The EUR has seen its value dip slightly during Tuesday’s trading, against both the Pound and US Dollar.
GBP/EUR rates hit 1.1241 earlier, having been trading around 1.12 during early morning trading. EUR/USD rates also dropped back below 1.17 but in truth both pairs have been fairly range bound throughout Tuesday’s trading.
Investors focus has seemingly been directed on the UK economy of late, with any issue inside the Eurozone seemingly going under the radar, as the furore over Brexit continues. UK Prime Minister and her own government are at loggerheads, with the PM losing control of her party following a decision earlier this month regarding the UK’s Brexit strategy.
The uncertainty this has brought about, has put pressure on the Pound and inadvertently boosted perception of the EUR as a result.
The single currency has made inroads against its Sterling counterpart for much of the past week, with this positive move also boosted by a spike in Business Confidence figures for June, which unexpectedly came out above market prediction. The expectation had been for these figures to fall, with recent data indicating that the Eurozone economy had “come off the boil”.
Whilst it has been widely accepted that their economy has slowed during the first half of 2018, the European Central Bank (ECB) have continued to remain upbeat in their outlook and are convinced that the economy will be able to stand up, once they do finally end their current monetary policy programme.
ECB President Mario Draghi has been steadfast in his commitment to tying this up by the end of 2018 but as of yet, has still not given the markets a firm assurance that this will happen. If he were to extend the ECB’s current bond buying scheme into 2018, then the markets are likely to view this as a negative for the Eurozone economy and the single currency could see its value drop as a result.
Those clients holding Euro should also be wary about the current trade standoff between the EUR & US. President Trumps has introduced trade tariffs on certain Eurzoone import, which int run could cause a slowdown in demand for these goods from US Manufacturers. This in turn is likely to put pressure on the Eurozone economy in the long-term, a scenario which is unlikely to help propel the EUR value upwards
If you have an upcoming EUR currency transfer 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 winning 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.
Feel free to email me directly on email@example.com to find out all the options available to you ahead of your currency transfer.