Following a slight setback in talks over a coalition in Germany it does not appear that this is potentially back on once again.
German Chancellor Angela Merkel’s conservative party have now agreed to continue talks regarding forming a “grand coalition” following a potential collapse had been reported only a week or so ago. This had weakened Euro exchange rates as any political uncertainty, especially for the largest economy within the Eurozone is seen as negative for the Euro.
The SPD (Social Democrats) agreed to break the political deadlock that we have seen and talks will now continue with the hope of a grand coalition being formed, however this still may not happen until the new year as there are still a number of matters that need to be ironed out before sufficient progress is going to be made.
Either way this is one to watch as any developments may lead to Euro volatility.
Brexit will continue to hit the headlines and be of key importance for Euro exchange rates, most notably against the Pound for obvious reasons.
The up and coming EU summit will be the next big chapter in this epic novel, and issues with the Irish Government and matters stopping the U.K from moving on to the next stage appear to be slightly stalling this complex situation.
I personally feel that there are still a huge amount of obstacles in the way for the U.K and many potential banana skins to slip up on that may weaken the Pound against the Euro, so I would not be surprised to see a slight gain for the Euro against Sterling in the build up to the festive season.
What can be assured is that this pairing is likely to remain volatile and is constantly on the cusp of a big movement should we finally hear some news be it positive or negative.
With most eyes on the political side of things rather than fully focused on economic data it does make the pairing very hard to read, so if you are in the process of buying or selling a property or you have a large business transaction to carry out between GBP/EUR then it is important that you get a proactive and responsive currency broker on your side throughout.
If you would like our assistance then feel free to email me (Daniel Wright) directly on firstname.lastname@example.org or call our trading floor directly on 01494 787 478 and ask for me directly and I will be more than happy to explain how I can assist you both in terms of saving you on exchange rates and helping you with the timing of your transfer.