When converting euros it is essential to monitor the other currency that you will be trading, as the 2nd currency will have an impact on the exchange rate you recieve. When focusing solely on the euro it is key to note that the currency is performing extremely well. Unemployment levels are at the lowest levels since the financial crash in 2008 and European growth sits at a 10 year high. However its not all good news for the Europeans.
Analysts are suggesting that President of the European Central Bank has no tools available to him to devalue the currency in a bid to keep European exports competitive. The President has kept interest rates at record lows and used quantitative easing to create a money supply in a bid to stimulate growth, however he knows that a prolonged Q.E program has the potential to have a detrimental impact on the economy.
Over the last couple of years the ECB have focused on inflation levels within Europe, however if the currency continues to strengthen it’s hard to see how inflation will continue to rise towards the ECB’s 2% target. Nevertheless I expect the positive data releases we have seen over the last couple of years will continue and the European economy will continue to remain strong throughout 2018.
The main currency pairs I convert for clients is EURGBP and EURUSD. For the trading pairs I would have a different strategy. The euro is still extremely strong against the pound, however I expect this trend to dissipate throughout the year when the UK secures a deal with the EU in regards to the transition and also the important trade talks which will follow. Therefore for any client that is holding onto euros and wish to buy pounds, I would look to make this transfer sooner rather than later.
In regards to EURUSD, the US dollar continues to remain under pressure due to a variety of reasons and most of the time President Donald Trump has something to do with it. Many of the leading banks are suggesting that EURUSD exchange rates are going to break 1.30 by the end of the year, therefore holding onto euros for the time being may be the best option.
The currency company I work for helps people that convert euros into a foreign currency. Most of my clients are either owners of a business or property sellers in Europe that need to repatriate to their own country. If you fit into either category I want to hear from you, as I believe I will be able to make you more currency when you come to trade. My direct email is email@example.com and I look forward to speaking with you.