The EUR has seen mixed fortunes of late, with some impressive gains against Sterling matched with equally worrying losses against the USD.
A poor run of economic data over the past few weeks has been a cause of concern for investors but for the time being at least, has done little to impact its value against GBP.
Investor confidence in the UK economy and ultimately the Pound is clearly minimal at present and as such, this is helping to support the single currency around the current levels. GBP/EUR rates have fallen below 1.12, with the Euro once again trading close to a 9 month high.
This move has come despite some worrying trade balance figures in some of the Eurozone’s key economies. With Frances trade deficit growing and Germany posting some uninspiring export numbers this month, there is clearly some issues under the surface, which in turn could have a detrimental effect on Eurozone growth and ultimately the value of the single currency.
US President Donald Trump has few friends inside the Eurozone ever since his decision to levee export tariffs on key Eurozone exports to the US. These restrictions have put a strain on the Eurozone economy, whilst also causing global trade to slow. This in turn has caused investors to shy away from the Euro, which has seen its value decrease against most of the major currencies, apart from Sterling as I mentioned previously.
There is also now a growing concern regarding the growing financial crisis in turkey. Many of the larger banks businesses inside key Eurozone economies have a huge amount of exposure to Turkey. With their currency the TRY in freefall and a deepening economic crisis, the EUR could certainly see its value also decrease as a result
All of these factors lead me to the conclusion that any clients holding the EUR should be looking to take advantage of the current levels against the Pound, whilst protecting any further losses against the USD.
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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