Euro rate forecast: Will the EUR weaken on the EU elections?

If you’re interested in a Euro rate forecast, it might benefit you to know that the Euro is currently weaker, as investors brace themselves for more uncertainty, ahead of the European elections. The elections are due on the 23rd May, with the results due for the 26th.

Clients looking to exchange Euros into another currency, or indeed to buy Euros, should be very conscious of what lies ahead. There’s potential for the Euro to find itself in a volatile situation.

There has been a growing expectation that the market is preparing itself for a very uncertain period around the European elections. This is because investors seek to question the future political direction of the Eurozone and the European Union.

The Euro currency is already under pressure in 2019, following global economic concerns. These are embodied by the behaviour of US President Donald Trump, who has threatened the stability of the EU economy, with plans for tariffs on European automotive exports.

When to buy Euros

If you have a transfer to buy Euros, the European elections could see the Euro weaker. However, it will depend on which currency you are holding.

Clients who are holding Pounds to buy Euros, hoping for the market to rise, could end up disappointed. This is because the Pound looks like it will remain under pressure from the uncertainty created by the European elections.

If you’re holding the US Dollar or Australian Dollar and looking to buy Euros, the global events on trade will also be an important factor to consider. This will ultimately provide the markets with some added pause for thought.

The US Dollar is stronger, as the general expectation is that the US economy will come off the best from the trade wars. The Aussie is weaker, since it relies on exporting raw materials to the global economy. Concerns of a weaker economy may see the Aussie less stable.

If you need to make a transfer concerning the Euro, both buying or selling, there are a number of important events in the market to be very conscious of at present. If you wish to discuss some strategy and plans relating to your transfer, then please don’t hesitate to get in touch with me, Jonathan Watson, directly on jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you.