The European Central Bank (ECB) has laid down some guidelines as to where economic policy could head in the future and it is not good news for the Euro. Whilst planning on withdrawing the Quantitative Easing (QE) program earlier than expected, the ECB pushed out their interest rate hike expectations further than expected to December 2019.
The market is always eager for clues on when interest rates might rise, this is one of the major driving factors for the currency markets. With the US raising interest rates this week to 2% and the Bank of England also on a path to hike, the Eurozone and the ECB is looking rather behind the curve and the Euro could suffer further as a result.
The Euro has been suffering and any clients looking to buy in the future should be making careful plans around what could ultimately happen, generally speaking the Euro could really find itself under pressure if we see further deviation between what the ECB are doing and the rest of the financial world.
The fact the Euro has not clawed back the losses suffered yesterday, indicates to me that actually it might well lose further ground, particularly if the economic data is not up to scratch. Generally speaking, clients looking to buy or sell the Euro should I feel be making careful plans around the coming weeks to try and help maximise the position.
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Thank you for reading and I look forward to hearing from you and assisting in the future.