Euro rate forecast: Will the Euro weaken in July?

In this Euro rate forecast, we’ll look at how the Euro has been weaker in 2019, as investors struggle to make sense of the conflicting factors that are very present on the Euro of late.

The first point has been the uncertainty surrounding the political situation, but there has also been concerns surrounding the economic factors. The issues of concerns are not just based in the Eurozone, but are also global factors which are weighing on sentiment driving the Euro.

A key example of some of the more global factors are the trade wars with China, as Trump’s bravado and trade spat with China threatens global demand for European exports. Another key concern will also be the latest news relating to the threat of tariffs on the European economy for exports to the US.

The global economy has been struggling in 2019 with sluggish growth and such conditions are not supportive of the Eurozone economy. The Eurozone has struggled with low growth and high unemployment, plus falling inflation. It requires a healthy global economy to help it get back on track.

Euro exchange rate forecast

Against a backdrop of such conditions the Eurozone is struggling to make significant economic progress. Very recently the ECB (European Central Bank) made clear that they will be considering further monetary easing. However, with President Mario Draghi on his way out in October, there is not too much time for the ECB and the market to consider this option.

The 25th July ECB meeting will be vital to determining what we might expect for the future on the Euro. My personal view is that the Euro will struggle further ahead. Political concerns are also present, with investors fearful that any shifts in tone and sentiment regarding Italy could undermine the single currency further.

Thank you for reading, and I look forward to offering some assistance in the future with any currency transfers or insight that might be required.

Jonathan Watson

jmw@currencies.co.uk