Euro Rate Forecast

Currency experts forecast on the Euro

EUR forecast: Pressure continues to increase on the Euro

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The EUR has come under further pressure of late, with GBP finding plenty of support ahead of the UK’s impending Brexit deadline. As a EUR forecast for you, this could be of interest.

Currently, the UK is still set to leave the EU by March 29th. However, with this date fast approaching, an extension to Article 50 looks like the only remaining viable option.

It looks near-impossible for the UK to agree the final terms of its exit within the current timeline. Once again, this highlights how little progress the government has made over the two-and-a-half years since Article 50 was initially triggered.

Despite this lack of clarity over the UK’s final Brexit position, the Pound has enjoyed a prosperous couple of weeks. This has been of detriment to the EUR, which has seen its value slide accordingly.

The single currency is in a precarious position currently, as its value continues to fall, despite the obvious problems still aligned to Brexit.

Investors’ confidence in the Pound seems to be slowly returning, as the prospect of a no-Brexit deal outcome diminishes. Despite this more positive outlook, following last week’s vote by MPs to not push forward with a no-deal, it must be remembered that it is still the UK’s default position, should a deal ultimately fail to be agreed.

Despite this level of uncertainty remaining, the markets have decided to take a more positive view and the Pound has reacted accordingly.

Pound Euro exchange rate forecast

The EUR has suffered not only due to an upturn in market sentiment surrounding Brexit, but also due to concerns surrounding the Eurozone economy.

With economic concerns hampering growth in the major linchpin economies of Germany, France & Italy, there are fears of this downturn filtering out to the remaining 16 states. This seems to be having a detrimental effect on the EUR value.

Add to this the upcoming impact of the UK leaving the EU, plus the European Central Bank’s (ECB) decision to end their monetary support programme at the end of 2018, and it is easier to understand why the EUR is coming under increased pressure.

If you have an upcoming EUR currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and, as a company, we have over 19 years’ experience in helping our clients achieve the very best exchange rates in any given market.

Our award-winning rates can be accessed very easily over the phone, and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Matt Vassallo

EUR Forecast – Is the Euro Likely to Lose Value Over the Coming Months? (Matthew Vassallo)

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The EUR has seen its value fall against the Pound in recent days, with GBP/EUR rates trading back above 1.14. These are some of the lowest levels the Euro has traded at in recent months and this fall comes despite the on-going uncertainty surrounding the UK ‘s impending Brexit.

Last week only compounded the issue, with UK Prime Minister Theresa may losing a key Commons vote on her Brexit deal and subsequently just survived a vote of no confidence in her leadership. She now faces the prospect of trying to negotiate further with Brussels, in order for her to go back to her fellow MP’s with an improved deal, which she can then hopefully push over the line before the UK’s deadline to leave the EU on March 29th.

Whilst this uncertainty is likely to handicap any major advances for Sterling for the time being, I think it is poignant that the Euro failed to make any further inroads against the Pound, despite the issues mentioned. They could hardly be seen as positive for the UK and ultimately they were unlikely to boost invvetsors longer-term confidence in GBP.

It is more likely that investors had significantly factored din the negative outcomes and thus, the Euro had no further scope for improvement when the outcomes were so heavily predicted. It may be that the EUR has gone as far as it can under the current market conditions and in my opinion only the prospect of a no-deal scenario for the UK when it does exit the single bloc, could act as the catalyst to drive GBP/EUR rates back towards and possibly under 1.10.

Looking ahead and the Eurozone economy is to see its economic output slow this year, with political and economic problems in key Eurozone economies such as Germany and France weighing heavily on the region’s growth.

The Eurozone will also have to cope with the loss of an integral member, when the UK does finally depart and I  believe these factors will impact the EUR value over the coming months.

 

 

Matt Vassallo

GBP/EUR – Brexit “No Deal” now a real Possibility (Daniel Johnson)

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GBP/EUR – GBP/EUR has now hit the 1.10s now sitting at the lowest levels this year. The lack of clarity surrounding Brexit and the real prospect of a “no deal” scenario is hitting the pound hard.

Trade secretary, Liam Fox has stated he believes there is now a 60% chance of a Brexit “no deal”.

I have noticed some worrying market reactions over the last week. One example would be the recent very poor factory order figures from Germany. Keep in mind Germany is the engine room for the bloc so data releases from the region do have an impact on the market. Despite the poor figures we did not see Euro weakness, in fact Sterling continued to lose ground, Brexit uncertainty out weighing the bad news form the Eurozone.

If we also look at  GBP/AUD we can see worrying signs. Despite The Reserve Bank of Australia (RBA) keeping interest rates on hold this week and a very dovish tone from Governor , Philip Lowe following the decision Sterling continued to fall against the Aussie breaching the 1.75 resistance point. GBP/AUD now sits at 1.73.

I am afraid there is very little reason to be optimistic about Sterling value at present. If you have a trade to perform short term it may be wise to take advantage of current levels.

If you have a currency requirement I would be happy to assist. If you wish to maximise your return it is important to be in touch with an experienced broker. If you let me know the details of your trade I will endeavour to produce a trading strategy to suit your needs. If you have a currency provider in place I am willing to perform a live comparison and I am confident I will be able to demonstrate a considerable saving. It will only take  a couple of minuites and could be well worth your while.

You can trade in safety knowing your trading with Foreign Currency Direct PLC, a company  trading for over 16 years. Our accounts are published online at companies house and we are FCA registered.

If you would like my help I can be contacted at dcj@currencies.co.uk. I look forward to hearing from you.

Daniel Johnson