What will the ECB do next to affect Euro Exchange Rates? (Tom Holian)

This week the ECB downgraded economic forecasts for 2015 and the next 2 years which caused the Euro to fall against the Pound.

We saw a positive movement by as much as 2 cents for Pound Sterling vs Euro during the course of the trading session.

Inflation is still worryingly low in the Eurozone and ECB president Mario Draghi has suggested that there is still room for further QE in order to combat the fall in inflation levels.

A total of EUR1.1trillion has already been set aside between March 2015 and October 2016 so any further increase of QE is more than likely going to weaken the single currency so keeping your eye on inflation levels over the next few months in the Eurozone will be extremely important.

Yesterday the US released some worse than expected Non-Farm Payrolls data but I still think that there is a chance that the US may still arise interest rate on September 17th, which if it happens then this could cause the Dollar to strengthen and the Euro to weaken.

Therefore, we could see the Pound make gains against the Euro towards the middle part of this month if the Fed raise rates.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]