The Euro remains cautiously optimistic this morning ahead of the European Central Bank (ECB) meeting today where any changes to monetary policy including its major asset purchasing scheme will be discussed. The Euro has reacted in recent weeks to comments from ECB President Mario Draghi who gave the markets the impression that the asset purchasing scheme may be getting closer to coming to an end.
The comments resulted in Euro strength although the central bank was quick to make a further statement saying that his comments had been misinterpreted by the financial markets. As a result the Euro could see considerable market reaction on any changes or comments made today. Clients looking to buy or sell Euros should be aware of this meeting as it has the potential to be a big market mover today.
My view is that the ECB will not make any actual changes today but the wording may move to signal a reduction in the central bank’s asset purchasing scheme which could commence in the coming months. Inflation is still running low in the Eurozone and remains below the 2% target which is why there is unlikely to be any major shift in policy today but rather just a change of wording.
Rates for GBP EUR have fallen to 1.13 this week after the weaker than expected inflation numbers which were released on Tuesday. Clients looking to buy Euros with sterling could struggle to see any major improvement in the rates as the likelihood of an interest rate hike in August from the Bank of England is diminishing. There may be some gains in the coming weeks but they are likely to be limited in the current climate. Looking for these opportunities in the rates as they come about is something we can help you with.
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