In today’s Euro rate prediction, we’ll see how the Pound to Euro exchange rate has fallen lower again, with rates sliding to a low of 1.1135 today. Much of the weakness in the Pound continues to stem from Brexit uncertainty and an increased likelihood of a ‘no deal’ outcome.
The two hopefuls to become Prime Minister, Boris Johnson and Jeremy Hunt, continue to battle it out across the country. They’re trying to generate support for their vision of Brexit and their ability to deliver it on time, for the latest deadline of 31st October.
In particular, Boris Johnson has signalled his intention for Britain to leave the European Union with or without a deal by 31th October. There is currently an excellent opportunity to sell Euros for Pounds, with the sharp drop seen in the last 6 weeks. With more Brexit volatility expected, there could be room for further weakness in the Pound vs Euro exchange rate.
Is the Euro going up or down against the Pound?
The Euro could be set for a volatile period ahead, if the European Central Bank (ECB) move towards cutting interest rates or, more likely, a reintroduction of its huge asset purchasing scheme.
Any further Quantitative Easing is likely to prove negative for Euro exchange rates, and there is a growing chance such action will be taken. This is because there is a degree of pressure building on the central bank, what with a decline in the growth outlook for the global economy, the uncertainty of Brexit, plus the ongoing trade war between the US and China.
The ECB has already indicated that it is prepared and ready to use all the necessary instruments if required and, if used, could see a period of considerable Euro weakness. Last Friday saw disappointing inflation date for the EU, which arrived at just 1.2%, well below the target of 2%. The EU continues to battle with low inflation and weak economic growth, despite a huge round of asset purchases in recent years, which only came to an end at the end of last year.
There are rumours that suggest US President Donald Trump may seek to impose tariffs on European cars. This is something that could see a global trade war develop, putting additional pressure on the EU economy and Euro exchange rates.
For more information on Euro exchange rates and for assistance in making transfers, either buying or selling Euros, then please contact me, James Lovick, at firstname.lastname@example.org.