EUR Weakens Following Mario Draghi’s Comments on Future Monetary Policy (Matthew Vassallo)

The EUR lost some value following European Central Bank (ECB) president Mario Draghi’s comments, during his speech last Thursday. Whilst the ECB kept interest rates on hold at 0% as expected, Draghi did hint at the fact they were open to extending their current monetary policy (QE) programme beyond the current timeline of March 2017.

This was immediately taken as a negative by the markets and the EUR weakened against both GBP and the USD, with GBP/EUR moving back through 1.12 on the exchange. This is a prime example of why EUR sellers should be looking to take advantage of the huge gains seen since the UK’s Brexit decision and not gamble on further improvement, when the Eurozone economy remains fragile and under increasing pressure.

Looking ahead and today is likely to be key for those clients holding EUR as we have Bank of England (BoE) governor Mark Carney’s speech, which will give us a key insight into the UK’s central banks stance on current economic conditions inside the UK. It should also point towards potential future growth and their current monetary policy stance. We also have Draghi talking again so expect additional volatility on GBP/EUR exchange rates during Tuesday’s trading.

Further ahead and Thursday will also hold weight for investors with the latest UK Gross Domestic Product (GDP) figures, which is perhaps the month’s key release for investors. This is because it gives them an overview of the current economic climate and will drive the markets and exchange rates alike.

If you have an upcoming EUR currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.

If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk