The Euro is continuing to trade in the familiar ranges and whilst it has lost ground to both the pound and the US dollar in recent weeks, it has made some gains today. The European Central Bank’s Nowotny, head of the Austrian central bank has stated the current stimulus may end in 2018. Monetary stimulus has kept the Euro weaker in recent years but as we reach an end of this cycle it should actually begin to rise.
Monetary stimulus has essentially focused on negative interest rates and also QE (Quantitative Easing) which has all seen the Euro weaker. There is now a real belief the Euro will rally higher in the future if we see a further scaling back of the current QE program which is running around €30 bn per month.
If you need to transfer currency in the future then making sure you have all the relevant information on potential plans is vital to ensuring you get the very most for your money in the future. Generally speaking, clients looking to buy Euros in the last few years have been meeting a much stronger Euro but just lately it has softened slightly. With the ECB now clearly on a path to raising interest rates or removing the current stimulus the Euro might soon be back on track to strengthen.
A key factor to help us determine the future direction on Euro rates will be the ECB meeting on the 26th April 2018. The last ECB meeting saw the Euro touch its best levels against sterling in 2018 and this could easily happen again, clients looking to sell Euros for pounds or US dollar might wish to target this event as a good opportunity to maximise their rates.
If you need to make a transfer buying or selling Euros then we are in business to help you make an informed choice about the best strategies to maximise your exchange rates. For more information at no cost or obligation please contact me, Jonny on firstname.lastname@example.org.
You might also wish to download our future currency forecast for April by visiting this link here.
Thank you for reading and I hope we can be of service to you soon!