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

Now:
Last Hour:
Last 24 Hours:
Total:

Will the EUR Strengthen or Weaken Over the Coming Weeks? (Matthew Vassallo)

Thursday, January 12, 2017 2:33
% of readers think this story is Fact. Add your two cents.

(Before It's News)

The EUR could come under pressure over the coming weeks and months, with a host of key economic & political decisions likely to impact the single currencies value.

GBP/EUR rates have been more volatile than usual of late, with highs of 1.20 and lows of 1.10 over the past few weeks. The current levels of 1.15 are being driven by market sentiment surrounding the UK’s Brexit from the EU and comments made by Prime Minister Theresa May, who is taking a hard-line stance ahead of the triggering of Article 50 in March.

The EUR has benefited from the uncertainty surrounding Brexit and detrimental effect this has had on investor confidence and ultimately the value of the Pound. I do not believe the highs mentioned for the single currency were reached through an overriding confidence in the Eurozone and as such you could look at the current value as over inflated.

If we delve deeper into the current economic climate inside the Eurozone and all is not well. The European Central Bank (ECB) have extended their monetary policy (QE) programme to support their flagging economy and with key elections in Holland, France and Germany this year and an uprising of far right parties, the landscape could look significantly different in 12 months’ time.

The EUR itself has dropped to over 10 year lows against the USD and this is poignant in my opinion. The USD has gained support over recent months and with further interest rate hikes likely this year, the EUR could struggle to make any sustainable impact against the greenback for the foreseeable future.

I feel that the EUR is going to find life extremely tough going in 2017 and if we see any positive information released from the UK regarding how we will facilitate our Brexit, then GBP/EUR rates could recover, as the Eurozone will be negatively affected by the UK’s departure, with some arguing the impact will be more severe for them that us.

Therefore I would be extremely tempted to secure any EUR transfers sooner rather than later, to take advantage of the current levels against Sterling and to protect further losses against the USD.

If you have an upcoming EUR currency exchange to make and you are looking for the best exchange rates available, then please feel free to contact us on 0044 1494 787 478 and ask one of the team for Matt.

We can provide key market information and analysis ahead of any transfer, whilst keeping you up to date with all the latest market movements. We help our client to time their exchange to maximise the market value available and have awards for our exchange rates and service.

If you would like to contact am directly I can be emailed on mtv@currencies.co.uk

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

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.