Euro rates continue to show strength against the Pound and US dollar. Euro exchange rate forecast.

Euro exchange rates have continued their recent resurgence breaking 1.31 territory against the US dollar and falling below 1.24 against the pound. Will this trend continue? Personally I think yes in the short term however I am still a believer that conditions in Europe are still so poor that this will ultimately  have a negative affect on the Euro as we head towards Christmas and I would expect to see GBP/EUR back towards 1.26/27 and EUR/USD back towards 1.25. However anyone with a more immediate requirement, particularly those selling Euros could do well to take advantage of the current spike. The moves have been quite significant with the Euro posting gains of 3.3% against sterling (this is an increase of just over £5k for a transfer of €200k) and a move of 6.5% against the USD (a difference of $16,200 on a €200k sell) in less than 1 month – this must represent a good move if you are selling? Should wish to take advantage or would like to run through the various contracts we can offer to maximise your exchange then please contact Mike at [email protected]

Data affecting the Euro this week

Tomorrow morning at 10:00 BST we have German and European economic sentiment figures. These are released by ZEW a well respected economic think tank. Forecasted to show an improvement month on month and this could help the Euros recent run. For those with an interest in EUR/USD we have 2 members of the Federal Reserve speaking tomorrow and one on Wednesday, keep an eye on their market sentiment as this may also help or hinder the dollar.

Those looking at the GBP/EUR pairing watch out for the Bank of England minutes on Wednesday at 09:30. This will give insight to future market policy from the Bank of England, any hint towards future QE and the pound is likley to fall, likewise a move away from this and the pound may spike. Finally on Thursday we have European Consumer Confidence, again expecting to show a small increase and I would see Euro strength as a result.

My predictions this week would see GBP/EUR settling towards 1.23 and EUR/USD moving towards 1.32 as the market is likely to continue is positive stance following last week’s constitutional agreement in Germany to agree with teh European bail out fund, however longer term I dont think his improved market confidence can last.

As a specialist currency broker at currencies.co.uk my aim is to help my clients achieve competitive commercial exchange rates. Through nearly seven years of market knowledge my aim is to help private and corporate clients maximise their exchange by keeping them up to date with market trends and data that may affect each individual trade. To discuss the service we offer in more detail and to run through the various contracts we can offer please email me at [email protected] or call 01494 787478 and ask for Mike.