The Euro gained against the Pound yesterday, after the markets viewed comments made from an ECB member yesterday positively.
At the moment all eyes are on next weeks European Central Bank (ECB) meeting which takes place next Thursday, and yesterday at a speech in Berlin an ECB member hinted at a major announcement regarding the ECB’s asset purchasing programme next week.
Peter Praet suggested that there are signals showing convergence of inflation towards the 2% target have improved and the ‘ending for APP (Asset Purchase Programme) will be up for discussion next week’. With some economists predicting that the APP will come to a close this year the markets reacted to the comments yesterday and the Euro strengthened.
The Euro had already received some positive news this week when it emerged that the new Italian government formed by the coalition of Lega and the 5-star movement don’t plan on withdrawing Italy from using the Euro. There are still concerns surrounding the new government as their plans to cull immigration and increase public spending. These concerns may stop the ECB from making any immediate decisions to cut back on the current APP but we’ll find out for certain next Thursday.
Later this morning the EU’s GDP figures will be released at 10am UK time. The expectation is for 2.5% year on year which is unchanged from the previous update, so we’ll see how the figure impacts the markets when its released this morning.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on email@example.com and I will endeavour to get back to you as soon as I can.