What can we expect for the Euro in 2018?

Brexit Developments Continue to Impact Euro forecast

The Euro had been looking a little stronger against all currencies but the outlook now is not so positive with fresh uncertainty over the German election and also the Spanish situation. Will Angela Merkel be forced to call another election? This might well be the case and would essentially destabilise her very favourable position. Political uncertainty in the Eurozone will easily undo the recent Euro strength, clients looking to buy and sell the Euro should be very conscious about what lies ahead.

2018 also sees the Italian election on March 4th which could be a major event to trigger Euro weakness. Combined with the unknown outcome of the German and Spanish political situations events could lead to worries on financial markets. Of course, such events were highlighted back at the beginning of 2017 with French and Dutch elections. Ultimately the Eurozone survived 2017’s political events but will this be the case for 2018?

Overall expectations for the Euro are still very positive but events could easily change course dramatically. If you are looking to buy or sell the Euro against the pound then making plans in advance is a key way to remove the uncertainty inherent in the currency markets. We operate on a basis of understanding client positions and working closely with them to try and offer forecasts unique to their position, thereby helping them mitigate against any unfavourable outlook and reducing the inherent risk from the FX markets.

Economic news will also be important for the Euro as markets continue to assess whether or not the ECB (European Central Bank) will be looking to upscale or scale back their QE (Quantitative Easing) program. By reducing their current program and extending it further they caused movement on the Euro (it got weaker), we could easily see a repeat this year.

2018 promises to be a very busy year on the Euro with plenty happening so making plans in advance is vital to getting the best deals. We offer a specialist service to help you get the most from the market, for more information at no cost or obligation please speak to me Jonny by emailing jmw@currencies.co.uk.