EUR Forecast – The Euro Finds Support Following BoE Interest Rate Decision (Matthew Vassallo)

It’s been a mixed for the Euro of late, making gains against GBP but seeing its value decrease against the USD.

The Eurozone economy has started to slow of late, with growth forecasts for 2018 down from last year and no major upturns expected for 2019.

The EUR has been well supported in recent months but a slowdown in some of its key economies, particularly Germany, has been a cause for concern amongst some investors. Germany is widely considered the powerhouse of the Eurozone and has had the ability to withstand any economic downturn inside the Eurozone region.

For this reason it is maybe understandable that investors had started to shy away from the Euro.

However, this week the Euro has mad inroads against Sterling, as investors have sold-off their Sterling positions following a poor run of economic data and yesterday’s Bank of England (BoE) interest rate decision.

The Euro spiked by over a cent, hitting 1.1315 at it’s high. Despite the Pound finding support around this level, it is now unlikely that the EUR will fall back to its recent lows above 1.15 over the coming days.

Looking ahead and political progress in Italy could help to solidify the Euro’s position heading into next week. The leading parties released a joint statement to confirm that they had entered into negotiations to decide on a new Prime Minister.

Any clients with an upcoming Euro currency exchange to execute will also be keeping a close eye on European Central Bank (ECB) president Mario Draghi’s speech this afternoon. His previous address was one of cautious optimism and a bullish delivery would likely strengthen the Euro’s position further.

If you have an upcoming Euro 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.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.