The EUR started the week extremely positively, making gains against both the Pound & USD.
That’s positive spike has cooled today, with the single currency failing to make further inroads against either currency.
Sterling found support at 1.1236, moving back towards 1.13 by the close of European trading.
It was worse news against the USD, with the greenback finding plenty of support during afternoon trading. The EUR dropped alarmingly from 1.2405 at its high earlier today, to a low of 1.2269.
It’s been a volatile week for the EUR, following the much publicised crash in the global stock markets. Whilst there is no direct correlation between the stock markets and currency exchange rates, any shift in global financial conditions can have knock on effects for an economy and ultimately this will impact the value of their currency.
The single currency had found plenty of support earlier this week, following some positive Services data. This was coupled with EU commissioner Michel Barnier’s comments regarding Brexit negotiations and how the UK would not be able to work outside of the EU’s laws, whilst expecting not to have any restrictions on trade.
These comments put pressure back to Sterling, with the EU clearly taking a hard line stance as we head into a crucial period of the Brexit talks.
The EU seem to be in the driving seat and this in turn is causing investors to leave their funds in the EUR, which is seemingly turning into a more stable and “safer haven” currency than the Pound.
This complete turnaround in market perception since the EU referendum result is portrayed in the recent economic data releases for each economy, with the UK’s downturn the complete opposite of what is evidently, a thriving Eurozone economy.
Yes the EUR has weakened slightly from the dizzy heights it achieved late in 2017 but the outlook for the Eurozone remains far healthier than that of the UK’s, which is continually dwarfed by the uncertainty surrounding Brexit.
If you have an upcoming Sterling currency transfers to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
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