Eurozone inflation data was released as expected today, so the recent upturn for the single currency cooled somewhat.
Despite no further aggressive moves against wither GBP or the USD, the EUR held firm against both currencies during Thursday’s trading.
The EUR has performed better than almost every other major currency during 2017, over exceeding almost every analysts early year predictions.
Yes, it has been boosted by a downturn in UK economic output and the on-going ramblings of President Trump but this does not paint the full picture, or do it any real justice.
Whilst there have been many issues surrounding the make of the Eurozone and its fundamentals, its biggest weakness can often turn into its biggest strength. when the cogs tick and the key component of the set-up (France, Germany, Italy) are prospering it drives the overall economy forward and that is what we are seeing.
As touched on in yesterday’s report Eurozone growth forecasts have been raised, economic output & investor confidence has grown and as indicated by the recent trade balance figures, profits are outweighing spending.
Ultimately this is what it all boils down to and despite the Eurozone having some underlying issues of its own (For example the Greek debt crisis) the overall perception of the Eurozone economy is clearly far healthier than that of the UK’s.
As such, it is unlikely in my opinion that the Pound will find any real support up to or above 1.15 under current conditions. Whilst 1.10 seems to have offered those clients holding the Pound some protection of late, any further political or economic unrest could lead to this level being tested again before long.
If you have an upcoming EUR currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on firstname.lastname@example.org to find out all the options available to you ahead of your currency transfer.