When will the Euro weaken?
A common question I get asked is ‘When will the Euro weaken?’. After peaking at 1.44 on July 18th 2015 the Euro and GBPEUR has been trending lower as a deal was struck for Greece and also the markets found confidence from a reiteration of Mario Draghi’s promise to do ‘whatever it takes’ to shore up Eurozone finances.
Since then and following the UK EU Referendum result the Euro has risen against all currencies, dramatically so against the pound with current levels at 1.11, peaking at 1.075 in August 2017. Whilst there are events which might see the Euro slightly weaker, depending on which currency you are buying Euros with the going looks set to remain tough for Euro buyers.
Euro buyers with pounds have a significant challenge with many unanswered questions over Brexit to resolve before the pound can be back in a position to capitalise. At some point this will happen but it could be many months or maybe years before we see it. With a series of upcoming events to move rates including some key EU Summits, the rest of 2018 will be crucial.
If you are buying Euros with pounds and wish to be alerted to a particular level, maybe 1.15 or 1.20? Please email me Jonathan on firstname.lastname@example.org with a brief overview of your position and a phone number and we can have a discussion about the best strategy to maximise your position.
Euro weakness ahead?
The key factor driving Euro strength is the expectation that the ECB, European Central Bank will raise their interest rate in the future, currently believed to be between ‘summer’ and the end of 2019. The ECB are also planning to halt their QE, Quantitative Easing program by the end of this year too, which is also driving confidence.
Any deviation from this high expectation could unsettle the Euro and clients interested in GBPEUR might find some important information next Thursday 13th when we have both the ECB interest rate decision plus, the Bank of England too. GBPEUR could be in for some turbulent times on this day. So, if you are looking to buy Euros with pounds or buy pounds why not get in touch for a discussion of the best strategy and rates for the transaction.
On amounts of currency from £10,000 upwards, we can help with a preferential rate and expert strategy to assist in the timing and planning of your exchange. Maybe you are unsure as to what are your options when considering a large volume currency exchange? Maybe you wish to get a second opinion or maybe you you have used another currency broker and wish to check you are truly getting the best deals?
Our specialist service is designed to personally assist you in the safe and smooth passage of your currency at the very best rates of exchange.
Thank you for reading and I look forward to hearing from you.
Jonathan Watson, Associate Director at Foreign Currency Direct plc
01494 787 478