If you’re interested in a Euro rate forecast, you may like to know that the Euro has suffered some bouts of weakness in June. This is because investors fear that the European Central Bank (ECB) will be looking to withdraw their previous plans to raise interest rates, and instead embark on a possible expansion of their QE (Quantitative Easing) program. This could see the Euro weaken and put increased pressure on the currency, as markets become fearful over the direction ahead.
If this happens, then I believe the Euro is likely to struggle ahead. Clients with a requirement to buy or sell Euros might benefit from a quick review of their situation to make sure they are fully up-to-date with the market and what lies ahead.
Political concerns are also a key factor when looking to buy or sell the Euro. Italy has been grabbing the headlines once again over concerns whether or not they will be able to keep within the existing financial rules.
Euro forecast for next week
July is an important month for the Euro, as we will learn the latest news from the ECB on the 25th July. Throughout the month, investors will be tracking down whether the economic data supports a view that the ECB should be ready to act or not. Economic data is a key factor and on July 1st next week the latest news on Eurozone unemployment will be released.
Another factor we must also be conscious of is the possibility for the G20 Summit this weekend to influence exchange rates. The market is currently looking eagerly to the US and China for some kind of deal, which might help restore some confidence in the region. Clients looking to buy or sell the Euro have lots to consider in July. It is my belief that increased concerns over the global economy will ultimately weigh on the Euro and see it weaken.
Thank you for reading and if you have any questions or queries over a Euro transfer, I would be most interested to hear from you and have a chat about the market and the latest news that’s driving Euro exchange rates.