Shall I buy Euros now or wait? EUR/GBP nears 6-month high

If you want to know “Shall I buy Euros now or wait?”, it could interest you to know that the EUR continued its good run against GBP this week, hitting a high of 1.1139 this morning.

Whilst the Pound has found some support around this level, it has thus far failed to make any inroads back to or above 1.12.

This threshold has provided plenty of protection for the single currency over recent days. The ongoing uncertainty surrounding Brexit is seemingly sapping investors’ risk appetite for Sterling. Those clients holding the single currency will be buoyed by its recent run against the Pound.

However, it would seem that the EUR’s current strength has been brought about primarily due to investors’ complete lack of confidence in Sterling. Looking at the Eurozone economy, the economic outlook for the single currency bloc remains doveish, despite some better than expected PMI data this week.

At their recent policy meeting, European Central Bank (ECB) President Mario Draghi cited a potential interest rate cut and further Quantitative Easing (QE). This is to help support the Eurozone’s flagging economy. Whilst Mr. Draghi is renowned for his doveish stance, economic data has shown that the Eurozone economy stagnated over the first two quarters of 2019.

Mr. Draghi is set to step down from his position as President of the central bank on the eve of the current Brexit deadline. So it will be interesting to see who replace him and what policies they put in place.

Euro forecast next 6 months

The current levels offer EUR sellers some of the best rates seen in the last six months. However, whilst the EUR is likely to continue to be well-supported against GBP for the time being, any breakthrough in Brexit talks may help facilitate an upturn for Sterling.

There are a number of negative variables that may impact the EUR’s value over the coming weeks and beyond. These include concerns over the current slowdown in global growth, coupled with the trade tariffs US President Donald Trump has levied on a host of Eurozone exports.

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. 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. I can keep you posted with key market developments, ahead of any prospective exchange you need to make.

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