The Euro continues to be supported on a better European economic outlook and hawkish comments from the European Central Bank. With inflation shooting higher and a better performance on economic growth the Euro has gone from strength to strength in recent months. ECB President Mario Draghi is widely expected to start tapering its asset purchasing scheme this Autumn and this could see further gains for the single currency. Those clients with Euros to sell could see some better opportunities on the horizon although it may be another couple of months before any real action is taken.
GBP EUR is likely to see considerable volatility on Friday after the eagerly awaited speech from UK Prime Minister Theresa May. This has the potential to be a major market mover and the tone of the speech is likely to pave the way forward in the Brexit negotiations. A strong speech that is received well and that offers a conciliatory tone could help see the pound make sizeable gains against the Euro. A repeat of the Lancaster House speech for example could see levels for GBP EUR increase 1-2% with relative ease.
There is however a risk for those clients holding pounds in that if there is a move to leave the negotiating table, which cannot be ruled out, then the pound could come crashing back down. Clients looking to buy Euros with sterling may wish to take advantage of the current levels to avoid disappointment and risk losing all the excellent gains we have seen in the last week.
If you would like further information on sterling or 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