Sterling Euro exchange rates had an interesting end to the week ending close to the 2 month high that was hit during early Friday morning.
Yesterday European Central Bank Mario Draghi held a press conference concerning European monetary policy and has said that the Eurozone’s rocky recovery still remains reliant on the bank’s willingness to be open to further monetary easing.
He said ‘we cannot be sanguine over the outlook’ and there are a number of factors that could cause problems for the Euro ahead. Low inflation has continued to hamper growth on the continent and with the ECB due to meet again on 8th December we could see a further extension to their EUR80bn a month bond buying programme.
Also, on the continent in December the Italians will be holding a referendum which could see further changes in the Italian government which has had 65 governments in power since the World War. Italian banks also have a huge amount of bad debt and to me it is only a matter of time before this causes problems for the Euro.
However, it is not all plain sailing for Sterling as the UK is still uncertain as to when/if Article 50 can be triggered. According to Prime Minister Theresa May she is still confident that it will happen by March 2017 but with the High Court already ruling that the government will need parliamentary approval the government is now going to the Supreme Court in December to see if this can be overturned.
2016 has been a real year of change with Brexit, Trump and now an Italian referendum to prepare for and it is becoming clear that there is a voice of anti-establishment and a desire for political change all of which causes volatility for currency markets
Therefore, if you’re in the process of buying or selling a property abroad and worried about the ongoing volatility it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.
Having worked in the currency markets since 2003 I am confident that not only can I offer you bank beating exchange rates when buying or selling currency but also help you with the timing of your transfer.
If you need to make a currency transfer and would like further information about the process or a free quote then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org
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