Next week is the European Central Bank (ECB) meeting which is Eurozone interest rate decision. with so much focus on Brexit and Donald Trump in recent weeks it is very easy to forget some of the key issues driving the Euro outside of Brexit and US Trade war issues. Mario Draghi and his team at the ECB have been very much in the spotlight lately regarding monetary policy. At their last meeting we saw the Euro weaken by around 1%, could next week offer up some better deals for Euros buyers?
The Euro has been trading on the back of sentiments relating to the ECB and how they view the current interest rate outlook at present. Some suggestions had centered around how the market is viewing the prospect for the ECB to be raising interest rates in the future which they had previously suggested would be in the middle of 2019.
However, at the last meeting it was suggested the next interest hike for the Eurozone would now actually be closer to the end of 2019. This information immediately weakened the Euro and saw better rate clients holding GBP and USD to purchase the Euro. A key component of the forecast relates to Eurozone inflation and growth, big factors for the ECB in deciding future monetary policy.
The commentary will be more than likely, more important than the decision. Investors will be following the comments from Mario regarding how he views future plans including the removal of QE (Quantitative Easing) and also how other global factors (like Brexit and the Trade Wars) could impact policy.
If you are buying Euros with pounds the last few weeks have seen a downward spiral on Brexit fears, the outlook remains choppy on Brexit which could be a reason to opt for a more defensive strategy buying Euros.
If you wish to discuss any Euro exchanges, buying or selling, please do feel free to contact me Jonny on firstname.lastname@example.org to discuss the best exchange rates and strategy.
Thank you for reading and I look forward to hearing from you.