If you’re looking for a Euro rate forecast, it may interest you to know that the weaker Pound has continued to push the Euro/Pound interbank exchange rate close to 0.90 today. If the Pound closes weaker today, this will be the record for 10 consecutive weeks the Euro has gained value against the Pound.
Likely next Prime Minister Boris Johnson maintains that the threat of a Brexit no-deal is vital to try to further negotiate with the EU. However, the EU have said many times that there will be no change to the current deal that is on the table. Where this leaves us is yet to be seen, and it is this uncertainty that is weighing heavy on the Pound.
Bank of England policymaker Gertjan Vlieghe warned this morning that interest rates could fall on the back of a Brexit no-deal. A fall in interest rates typically causes a currency to weaken, so if we did see further hints of a cut in interest rates, then we could see the value of the Pound weaken even further against the Euro.
Eurozone Industrial Production data for May released this morning came in better than expected at 0.9%, versus a forecast 0.2%, which helped to shore up the value of the Euro.
Is the Euro going to go up?
Whilst Brexit remains the main focus in the market, the Pound will likely struggle to gain value, and any weaker UK data will quite simply compound the weakness. This view may start to change, the closer we get to the next UK Prime Minister being elected on the 23rd of July 2019.
Market-moving data to watch closely early next week are UK employment data, and UK and Eurozone inflation figures.
If you are waiting for the interbank exchange rate to get at or above 0.90, then please let me know and I can keep a close eye on the market for you. Please contact me directly by email here.
If you do not have the funds available now, we can always secure your currency on a forward contract, allowing you to secure an exchange rate today for a future payment. This requires a 10% deposit, with the balance being paid on a date of your choice up to one year ahead.