Where now for GBP/EUR? Exchange rate forecast

ECB interest rates and Brexit update

In my opinion GBP/EUR trends will depend on the outcome in Spain. Mariano Rajoy has been defiantly stating that Spain does not require a bailout and indeed it had a recent round of positive bond auctions with the bond yields falling nearly 2% since July. Confidence in Europe has picked up a touch since Mario Draghi (head of the ECB) openly stated he would do whatever it takes to secure the Euro back in July, however I feel confidence will still remain very jittery until Spain agrees to a bailout and clearer terms are given to Greece with regards to the extension of its ‘haircut’.

Indeed when you read the headline ‘Euro zone Recession’ it probably feels like a bad case of deja vu. In fact last weeks reports confirmed this was indeed the case and will have come as a further blow to EU leaders and any clients looking to sell EUR. The euro zone seems to be forever caught in a never ending cycle of debt, with little chance of growth across the region. In fact, if you take Germany out of the equation you can’t help but wonder how it would have survived  in its current entity at all. Personally I expect Spain to request a bailout but when this will be, your guess is as good as mine. Personally I think the Euro will remain range bound between 1.23-25, certainly for the short term.

Should you have an upcoming currency exchange to arrange involving the Euro and you are concerned about the current market volatility then why not get in contact to run though the many different contracts available to protect and maximise your exchange. The aim of this website is to achieve the best market price we can for our clients and this means keeping in regular contact with updates on current market trends. By helping clients time their exchange it can make a huge difference on the final cost of the currency purchase, should you have an upcoming currency exchange whether this be a property completion, business transaction, inheritance to name just a few, then please contact us on 01497 787 478 or email Mike at [email protected] to get the best deal on your foreign exchange.