When will the Euro weaken!?

This is a question I am being constantly asked and with good reason. Euro buyers have seen their rate slip from over 1.40 last year to now 1.16, last week it 1.14! When will the Euro weaken again and what is the best way to maximise my transfers for Euros and pounds?

It is now 2 months to the day of the EU Referendum and the pound had already started to slide well before on the uncertainty. So whilst the pound has been suffering the Euro has been benefiting as Inflation one of the key problems for Eurozone policy makers starts to rise. The Euro has also benefited as the worst problems on Greece are put to bed and markets worry much more about the Brexit and its impact on the UK.

Unfortunately life does not look like getting significantly better for Euro buyers with pounds although there are a couple of potential events up ahead that might help. This is the prospect of the €360bn debt issue in Italy failing to be resolved and Greece coming to the forefront of investor concerns. Both of these scenarios cannot be ruled out but appear unlikely. The market is aware of the issues and unless the problems spiral again seem unlikely to cause big Euro weakness. For now there are plans to contain Italian debt and the Greek situation is also apparently being contained.

A further chance for Euro weakness would be the next ECB (European Central Bank) meeting as in their latest meeting minutes we were told they might be ready to extend their QE (Quantitative Easing) program. This is essentially a program to inject money into the financial system and weaken the Euro. The chances are not too high but if you are buying Euros with pound and have no immediate urgency to move, and are essentially sitting back waiting for the right time, this could be the event that will help you.

Amidst these grains of opportunity is a beach of uncertainty for the pound which for now seems likely to keep GBPEUR languishing at these lower levels. Most commentators do not expect the pound to rise significantly at this time and anyone buying or selling the Euro with sterling should be making plans on the future.

For assistance and assistance with any bank to bank currency transfers you are considering please contact me Jonathan using the form below or if you wish to explain a bit more why not send me an email to [email protected]. I am here to help you with any currency transfers you will need to consider in the future and in my nearly ten years experience handling thousands of clients foreign exchange requirements am confident I can offer something a little extra both in terms of my exchange rates and service.

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