Welcome to our latest Euro rate forecast. The Euro faces fresh challenges ahead, as the market has to grapple with a number of important economic and political uncertainties.
The currency markets are moved through a number of factors, but two principal concerns are always politics and economics. At present, there is an abundance of the two to make life very interesting for anybody looking to make a Euro exchange.
Political concerns are sweeping across the Eurozone bloc, with no country seemingly unaffected. Some countries are attracting more attention than others, notably France and Italy. A rising tide of anti-globalisation and anti-integration has influenced mainstream politics in the Eurozone, and this is weighing on economic sentiment for the bloc.
Euro rate prediction: Eurozone elections may weigh
Investors are loosely eyeing up the European elections in May, which could see further evidence of this shift in perceptions. The shift in the political outlook reflects an increasing mistrust of the existing order. The recent strength of the Euro is now being threatened by these changes in the political makeup, as investors are concerned over just what lies ahead for the economy of the Eurozone.
On the subject of the economy, investors are grappling with the longer term outlook. At Christmas, a very confident European Central Bank indicated that they would be looking to raise interest rates in the future, whilst they were also looking to reduce their QE (Quantitative Easing) plan.
This helped the Euro to rise, but there’s been recent news that Italy is in a technical recession, while Germany narrowly avoided one. Also, there could be further trouble ahead if US President Donald Trump slaps tariffs on European automotive industries. This has all marked a shift in the economic viewpoint.
Pound to Euro exchange rate forecast
The Euro is understandably weaker on these concerns. The next ECB meeting on the 7th March will be a key point to determine the future behaviour of the Euro. Another factor will also be the upcoming unemployment news which is at the end of this week. It does feel like the Euro could hit some further troubled waters ahead.
The next few weeks are going to be extremely interesting, with a possible final conclusion on Brexit, and unfolding developments in Europe. Thank you for reading and please do contact me if you wish to run through or discuss the markets ahead or our service.