The Euro is in for a rollercoaster of a ride as the polls are now coming out for the French elections. What is clear is that all three leading candidates could be in with a shot although Marine Le Pen does not appear to be performing as well recently.
European manufacturing numbers released tomorrow will be key for clues as to how well the sector is performing. Anything positive tomorrow morning could help support the Euro and will help reassure the European Central Bank that no further monetary easing will be required. Data from Europe is light next week so politics in Europe and the French elections are likely to be the biggest drivers.
Those clients who have a GBP EUR requirement will be aware that Article 50 is going to be invoked next Wednesday 29th March. The pound is likely to see considerable volatility around this time and already the rates for GBP EUR are moving higher. My personal view is that GBP EUR has the potential to climb even higher as the markets are now looking for clarity over Brexit and this in my view will be a step closer to actually receiving some of that clarity.
The European / British negotiations will not commence until May and are expected to take two years to complete so the pound is likely to be limited in any gains it can make. Rates for GBP EUR have broken through 1.16 today and I am optimistic that there may be a move higher to 1.18+ on the back of a very grand and upbeat statement from the UK Prime Minister. Beware any developments from Scotland with the second independence vote although the stance from Theresa May has been firm that there will be no referendum before Brexit has been concluded.
If you would like further information on Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on email@example.com