Thursday 26th April is a key date for the Euro with the latest ECB (European Central Bank) interest rate decision. Investors are keenly eying the ECB and President Mario Draghi for any shift in tone following some recent economic developments. With the ECB seemingly on a path to raising interest rates and reducing their QE (Quantitative Easing) program, the Euro had been rising in March. This Thursday’s meeting could easily see a change in tone however and therefore movement on Euro exchange rates.
The ECB’s most recent communication came from the latest Meeting Minutes which showed they were concerned about Inflation falling and economic growth slowing. The recent ECB moves to begin looking at tapering and reducing their QE program had seen the Euro stronger. The main idea of the QE program had been to increase economic growth in the Eurozone in response to the stagnation at the hands of the Eurozone debt crisis, triggered by the last financial crisis. Markets will be keen to check the ECB is not running before it can walk and potentially looking to reduce its QE program too soon.
With the ECB having previously set themselves on a more hawkish and bullish tone, ie a more ‘positive’ view of raising interest rates and creating monetary policy, any signs of caution tomorrow could see the Euro weaker. It seems doubtful the ECB would actually make any actual adjustments to policy so soon following their most recent decision but the potential for an added degree of caution in their current stance could see the Euro slightly weaker.
If you are looking to buy or sell Euros and wish for some insight into market trends to help devise some formula and strategy over the best timing at the best rates, please feel free to contact me Jonny Watson by emailing email@example.com. Tomorrow, Thursday 26th is looking like a very important time for the Euro so please get in touch to discuss this further and see how it will affect your position.
Thank you for reading and I hope I can be of assistance to you with your Euro transfer!