This morning the latest Inflation data will be released for the Eurozone which should provide an indication as to what the European Central Bank will decide to do in the next few weeks. Many analysts at the moment believe the ECB will start to reduce the amount of economic stimulus as early as September however if the EU economic data is not strong then that’s less likely to happen.
The Euro has been putting significant pressure under Sterling with many investors choosing to back the single markets major currency. There has been considerable growth across the EU with output data at one of its highest in years and future confidence soaring. Most of this strength has come from France and Germany but there also appears to be optimism that the Greek and Italian economies will this year grow.
There is still the small issue of multi-billions worth of bailout funds and it seems incredibly unlikely that those funds will ever be paid back. The Greek pension fund has already been completely raided and the higher tax bracket is considerably over 60%, which makes you think if the economy doesn’t start to grow there is nothing more to give and no more room for squeezing.
Today with the general downward movement of the GBP/EUR I would not be surprised to see the 1.09 level tested.
I am in a position to help you execute a transfer and I am confident I can offer you the best rates. Therefore if you do have a question with regards to my forecast please get in touch. When it comes to moving large sums of money a movement of a cent can often relate to a significant difference in your returns. Helping you formulate a strategy could make sure you’re in the best position to exchange currency when the market is in your favor, please contact me Ben Fletcher at [email protected]