The Pound has ended the year in the 1.12 level against the Euro as the market comes towards a close.
The Pound has been under pressure against the Euro since early this year when Article 50 was finally triggered as well as the hung parliament in the UK.
Since then the Pound has dropped considerably against the single currency and although we saw an increase a month ago when the Irish border issue was sorted as well as citizens rights the Pound’s gain were short lived indeed.
This highlights the problems facing the Pound against the Euro and until we get some further clarity regarding the Brexit I think the Pound will remain under pressure against the Euro.
In the short term we could see some respite as the Italians have now dissolved parliament until March when the next election is held.
At the moment it is uncertain who will become the new leading party and this uncertainty could cause some problems potentially for the single currency.
Also, the issue in Catalonia has not yet been fully resolved and I think this could also continue to cause concern for the Euro.
At the moment the Euro is relatively strong against the Pound and at a 3 month high vs the US Dollar which demonstrates the strength of the Eurozone at the moment against both the Pound and the US Dollar.
Indeed, against the US Dollar the Euro is almost 15% stronger in the last year.
As we go into the new year I think the biggest day of the week could come on Friday with a number of important data releases.
Eurozone inflation data as well as US Non-Farm Payroll data is due out which are both a big factor in influencing the exchange rate for the Euro so keep a close eye out on Friday if you’re planning to make a transfer involving the Euro.
Thank you for continuing to read the articles and if you’re in the process of either buying or selling Euros and would like to be kept updated with what is happening over the next few days then contact me directly for a free quote.
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