The Euro could be in for a volatile afternoon, with the European Central Bank (ECB) releasing their latest interest rate decision.
This will be followed by a monetary policy statement from ECB president Mario Draghi, which will be followed closely by investors and anyone with a EUR currency transfer to execute.
The Euro found plenty of support towards the end of last week, making gains against both Sterling and the USD.
GBP/EUR rates are now trading just above 1.14, having slipped towards 1.16 at its recent low.
As regular readers will know, the Eurozone economy has performed impressively over the past 18 months but recently we have seen a run of inconsistent economic data releases. Many analysts believe the Eurozone economy has now ‘come off the boil’ and with growth forecasts well under the expected 2.5% growth at present, it is highly unlikely that the ECB will commit to raising interest rates this afternoon.
This result is likely being priced in to the EUR current value, so it is far more likely that Draghi’s press conference will have a greater impact on the Euro’s value.
There is a school of thought that indicates the single currencies current value is restricting the Eurozone productivity, due to the fact that their exports are becoming very expensive. As such the central bank may wish to talk down or jawbone the currency, in order to try and devalue it artificially.
Due to this possibility and the fact the Eurozone economy seems to be slowing, I would be very tempted to take advantage of he recent upturn and remove any risk ahead of this afternoons ECB meeting.
If you have an upcoming EUR currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
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