For today’s Euro forecast I look at whether the Euro will weaken further. The Euro could be in for a very busy week ahead, as investors try to second guess the latest news for the single currency, given the ongoing political and economic developments. Friday afternoon saw the latest US Non-Farm Payroll (NFP) data released, which saw the Euro in a volatile mood against the US dollar and other currencies.
EUR/USD rates had previously fallen on Thursday to the lowest in 20 months. This is because a much less confident European Central Bank (ECB) embarked on their latest round of monetary easing, the Long Term Refinancing Operation (LTRO). The ECB have been forced to backtrack so suddenly from the previous optimism of December, when they were set on raising interest rates and scaling back their Quantitative Easing (QE) program.
Buying euros? Look out for Brexit vote
This latest ECB meeting was much less optimistic and saw ECB president Mario Draghi and his team admit defeat on the previous expectations. This has now seen the Euro weaker and I think it could be set to weaken further in the future. Clients looking to buy Euros in the weeks ahead could benefit from a weaker Euro, although events can and do change very quickly.
The next key events to affect the single currency might emanate from the UK with the latest Brexit news, which is expected to come to some kind of a head this week. The Euro could come under sustained pressure if there’s a no-deal Brexit, as this would grossly harm the Eurozone economy. There is now a growing belief that the political concerns could also rise further ahead, with a Spanish election and also the European elections in May.
Clients interested in buying or selling Euros should prepare for the latest news ahead, which might well see Euro weakness. It is impossible to guarantee what lies ahead for the currency markets but, looking at the current events that are unfolding, this is a realistic proposition. If you wish to run through the market and your options, please do not hesitate to speak me directly on firstname.lastname@example.org.