Pound Euro in tight range
Pound Euro exchange rates have been trending in a very slow upwards direction recently, and we could be in for further movement during the course of this week.
Over the weekend, there was a huge number of protesters in London, aimed at reversing Prime Minister Boris Johnson’s decision to suspend Parliament.
The Prime Minister’s main aim is to try and get Brexit sorted prior by the end of October and, by suspending Parliament, this allows him to take things forward without too much interference.
Clearly, this hasn’t gone down well with MPs, as many are still looking to block a ‘no deal’ Brexit from happening.
Euro under pressure: Germany struggling
Meanwhile in Europe, there is a lot of uncertainty at the moment. The Euro has dropped against the US Dollar for five consecutive days, and there are fears that the European Central Bank (ECB) has not acted quickly enough to support the economy.
Germany, which is the economic powerhouse of the Eurozone, has been struggling during the course of this year.
The German economy contracted by -0.1% during the second quarter, and rumours are increasing that they may also be struggling during this quarter. Indeed, if the current quarter shows another contraction, this would mean that Germany will fall into a technical recession.
Typically this will have a negative effect on the value of the currency concerned, so this could see problems ahead for the Eurozone.
However, in my opinion, it will be Brexit that will be the over-riding factor, in terms of the impact for GBPEUR exchange rates.
With rumours also increasing that a general election may be called, this could also have a huge effect on Sterling in the near future.
If you would like further information or a free quote when buying Euros, then contact me directly and I look forward to hearing from you.
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