The Euro is the much stronger currency in 2017 as a restoration of economic and political certainty has helped alleviate investors fears over the outlook for the Eurozone and indeed Europe. Uncertainty in the UK and US has also helped the Euro as it has left investors with limited choices over where to park their cash, as is often the case on the currency markets it is not which is the best, but which is the least worst. That crown has generally been held by the Euro and it looks set to remain safely on its head for the rest of 2017.
This is all in fairly sharp contrast to the UK which has been struggling under the weight of political uncertainty that is the result of the Brexit. I believe longer term the matters will gently resolve themselves but it will more than likely take years and sterling for now will remain on the weaker side.
A few worries have just crept into the market lately in the form of the German election and Merkel’s reduced strength in the Bundestag. The Spanish constitutional issues over the independence of the Catalan region also poses serious questions over the previously impenetrable facade of the Euro. However with populist risings failing to manifest in any direct control of power the centre coalitions remain if weakened.
Economically the Eurozone is performing very well and next week’s European Central Bank decision will be absolutely key to determining the next few weeks and months direction on the Euro. It does appear the ECB will taper their QE next week, this should see the Euro stronger and increase its dominance over other currencies particularly the pound.
If you are buying or selling Euros we can help with the timing and planning of any currency exchanges that you will need to make. If you wish to run through or discuss anything please speak to me Jonny by emailing firstname.lastname@example.org.
Thank you for reading and I look forward to hearing from you.