The EUR has found support against both GBP and the USD over recent days, following its recent downturn against both currencies.
GBP/EUR rates have moved back below 1.14, whilst the single currency has moved back towards 1.17 against the greenback.
The EUR was under increasing pressure earlier this week, following what looked like a complete collapse in negotiations between the anti-establishment Five Star Movement and the far-right League to form a government. The irony of this perceived breakdown was that it could actually be seen as a positive by some, due to both party’s distaste for negotiating with Brussels. If they are to form a government, then there is the very real prospect of Italy calling a referendum similar to the one the UK had, ahead of its decision to withdraw from the EU.
The Euro’s recovery has come in line with reports, that a breakthrough has been made and it now looks less likely that another general election will have to be called and as such the single currency has once again started to gain some support form investors.
Despite the single currencies slight upturn, I am still wary about assuming that we are going see any substantial improvement from the current levels.
It has been well publicised that the Euro has come off the boil, having arguably been the currency of choice for investors in recent times.
GBP/EUR rates still continue to trade at some very attractive levels but the current standing has as much to do with a lack of confidence in the UK economy and the Pound, as it does with investors’ appetite for the single currency.
The major economic cogs in the Eurozone’s make up have all had their problems recently. Despite German data improving slightly this month, the “powerhouse” of the Eurozone has been unusually sluggish of late, with France also posting weaker than expected growth figures.
Any clients with an upcoming EUR currency transfer to execute would have been keeping a close eye on today’s Eurozone Manufacturing data, which came out as expected. As a result I expect a fairly quiet day for the EUR, unless we hear any further reports regarding the political situation in Italy.
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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