In today’s Euro rate forecast, we’ll look at how the Euro has been rising against many currencies, following the news that the Greek elections produced a majority on Sunday.
This has helped restore some confidence in the single currency, which in recent years has been struggling under political pressures. Following the European elections in May, there had been a concern that more extreme parties would gain vote share. However, the Greek election proves that this is not the case.
Political concerns are also strong, with the markets awaiting further news on how we might see plans for any further economic stimulus pan out. The Euro had been weaker, with investors predicting the ECB (European Central Bank) will embark on a further round of QE (Quantitative Easing). This has so far not been the case and is perhaps unlikely immediately, with a change of guard at the helm of the ECB.
Christine Lagarde has now been announced as the new ECB President and will be taking her place from the beginning of November. Ms. Lagarde is respected for her political credentials as much as her economic status, having previously been the Managing Director of the IMF (International Monetary Fund).
Mario Draghi, the current President of the ECB, has laid out a loose plan for the market to become more doveish. There’s the expectation that, in future, the ECB will need to look to make some kind of interest rate cut or further monetary easing, to help stimulate the economy. Sluggish growth in the Eurozone has contributed to falling inflation and rising concerns. Investors may struggle to see the positive steps they need to seriously back the Euro.
Is the Euro going up or down against the Pound?
Looking ahead, the potential for no-deal Brexit, plus the onset of fears relating to lower interest rates, might see the Euro weaker. However, with there being a bit more certainty on a previously uncertain Greek political situation, there might be some more reasons for optimism on the single currency.
Thank you for reading and please do contact me directly to run through or discuss any matters relating to an international money transfer that involves the Euro.