March is a key time for the Euro as we have the latest ECB, European Central Bank meeting this Thursday. 2019 has been a tricky year for the Euro so far with fresh economic and political concerns weighing on the outlook. Investors are battling the previous ECB forecast of higher interest rates and a scaled back QE, Quantitative Easing program, against a slowing economy and increasingly anti-EU and populist government.
March 7th is the latest ECB meeting where we will receive guidance on their future plans and the extent to which they are taking note of Italy being in a recession and Germany on the verge of. Financial markets will need to grapple with the possibility of future further concerns for the Eurozone economy which would not allow the ECB to actively consider raising interest rates or reducing their QE program. Some commentators have even suggested that the ECB might need to scale back in its plans to reduce the QE program to provide the Eurozone with further stimulus.
Overall, clients with a position to buy Euros are looking at some very favourable levels as we enter the next stages of the Brexit and what lies ahead. Clients buying Euros with pounds now have close to a 2-year high purchase level presenting some excellent opportunities to capitalise on any purchase. Rather troubling in the midst of the Brexit news is the concern that we could see a no-deal, this would likely see the pound losing value sharply but might also put some further downward pressure on the Euro, in that it would likely destabilise the region.
I expect GBPEUR levels will face some tougher challenges next week with the latest meaningful vote, which will only pile pressure on the levels, we could easily see the rates going back up to 1.17, or falling back down to the 1.13-1.14 level.
If you have a transfer buying or selling Euros in the coming weeks, why not get in touch to discuss the latest news and trends, and how we might be able to help out with the planning and execution of any transactions.
Thank you for reading and please contact me Jonathan Watson to discuss further.