The Euro has been struggling to continue its recent performance in 2018, having performed very well against all the major currencies. Expectations for the Euro are centered around the improved political certainty stemming from Angela Merkel’s progress to another term as German Chancellor. Any worries over the Italian situation have failed to materialise and we are now looking at more economic factors on the Euro.
Mario Draghi and his team have stated they will be looking to raise interest rates longer term as it comes out of the long QE (Quantitative Easing) program that has been in place for so long. The market is now factoring in the longer term chances of Euro strength but with so much ‘good news’ in the value of the Euro already, looking for further improvements could be tricky.
The Euro is slightly softer as the market had risen so much on the comments from the ECB (European Central Bank) last week. If you need to buy Euros with pounds we are currently above 1.13 on the interbank rate. These are close to some of the best rates to buy Euros since May 2017! Overall conditions in the market are still unsettled, the next really big news will be the EU Summit next week.
GBPEUR rates could be quite volatile next week as we have a series of important UK data including the Bank of England interest rate decision. This is due on the Thursday 22nd and with the EU Summit also due that week, we could be in for a very volatile period.
If you wish to learn more about the Euro rate forecast, please speak to me Jonathan Watson by emailing firstname.lastname@example.org.
Thank you for reading and I look forward to hearing from you.