Online:
Visits:
Stories:
Profile image
By Euro Rate Forecast (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

EUR Likely to Come Under Pressure During 2017 (Matthew Vassallo)

Thursday, January 5, 2017 2:29
% of readers think this story is Fact. Add your two cents.

(Before It's News)

The EUR has started to lose value over recent weeks, with pressure building on the single currency. Investor confidence is waning, as economic and political issues across the region intensify and with further uncertainty over the coming months highly likely, is now the time to sell your EUR positions?

The EUR performed extremely well for an extended period, particularly against Sterling following the UK’s decision to leave the EU. GBP/EUR rates dropped below 1.10 and at the time it looked as though the EUR momentum could carry it further. However, the single currencies value was somewhat distorted due to the complete lack of investor confidence in the UK economy and ultimately Sterling and at the time I felt it would be difficult for it to make another aggressive move.

Since this high we have seen a switch in market conditions, with the EUR coming under increasing over recent weeks. GBP/EUR rates hit 1.20 and although the EUR found support around this level the recent highs now seem like a distant memory.

The problems facing the Eurozone have become more apparent in recent weeks, with the catalyst seemingly being the extension of their current monetary policy (QE) programme from March to December 2017. European Central Bank (ECB) President Mario Draghi cited a positive reaction by the economy to the current stimulus measures but the markets took it as a sign of weakness and the EUR weakened as a result.

The bad news continued for the EU following the recent Italian referendum result, which caused former Prime Minister Matteo Renzi to step down. This caused further market uncertainty due to the vacuum it created and the political uncertainty attached with this decision. With far right movements gaining momentum across Europe 2017 looks as though it could throw further controversies and turmoil, particularly with key elections in France and Germany.

EUR/USD rates have also fallen to some of their lowest levels of the past 10 years, as the recent rate hike by the US Fed alongside the negative issues already mentioned continue to pile pressure on the single currency.

This leads me to the conclusion that those clients holding EUR should be following market developments extremely closely and due to the likelihood of increased economic pressure on the Eurozone as we head into 2017, the current exchange rates for EUR sellers may look extremely attractive in the months ahead.

If you have an upcoming EUR currency exchange to make, we have a team of experienced brokers who can help guide you through this turbulent market and provide you with the best exchange rates under any market conditions. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to call us on 0044 1494 787 478 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk



Source: http://www.eurorateforecast.com/2017/01/05/eur-likely-to-come-under-pressure-during-2017-matthew-vassallo/

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

 

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.