Yesterday was the start of the potential process of returning to normality as Germany and Austria announced plans to be released in the coming days which will see them move out of lockdown. Denmark has also revealed a clear plan with schools expected to reopen on the 15th April if the virus numbers remain stable. There appears to be an element of optimism growing across Europe which could start to provide a lift to the euro.
EU Economic Bailout Talks Rumble On
Angela Merkel the Chancellor of Germany has said the EU faces its biggest challenges and warned on the future of the Bloc. It’s safe to say that the discussions surrounding the economic bailout for the EU have been a total shambles, with countries desperately clawing for as much support as possible. Emmanuel Macron has said France will face the worst recession since World War 2 with the likes of Italy already plunged into trillions of debt now seemingly even less capable of paying back what they owe.
The major risk for the EU is that due to the difference in performance of all the economies there is unlikely going to be a solution that all will agree with and resentment towards the EU could once again start to rise. There is expected to be progress today with the EU finance ministers expected to agree on a way to help the economies. The package is expected to come to around €550bn which the EU will hope to stimulate the economy and keep businesses alive.
Euro to Pound Exchange Rate Continues to Be Volatile
The EURGBP rate could continue to be volatile with 1% daily swings now a common place. If you’re looking at completing a transfer then there is a considerable number of events to be following. After all this coronavirus focus the main topic of Brexit is still to be resolved and how that plays out in the coming months will also e key to both currencies in this pair. There is likely to be a delay to discussions which may mean the December 31st deadline day will be moved back, which many will argue is a sensible choice. However what this does mean is that as soon as the economic impact of coronavirus is resolved it will be back to Brexit.
If you would like to learn more about these factors could influence exchange rates or you have an upcoming currency transfer, feel free to contact me directly using the form below.