The European Central Bank (ECB) has today confirmed the expected news that yes ultimately they will be looking to taper their QE program. There is a strong belief that the ECB will in the future withdraw the stimulus that they have been injecting into financial markets which have been essentially propping up the Eurozone. With high unemployment and low growth the ECB were forced to act, is now the right time to be scaling back though?
In essence the ECB have been very positive today which has helped further strengthen the Euro. Expectations on the rates for the coming months are now centered around this withdrawal of the QE program and longer term I expect the Euro will continue to rise against the pound. If you need to buy Euros with pounds getting something done sooner on any improvements is more than likely the best way forward.
The next big news will be 24th September election in Germany, whilst Angela Merkel is expected to win comfortably there are no guarantees and this could cause volatility. The UK election back in June was supposed to be a straightforward one with Theresa May expected to win a strong majority, however she didn’t and the rate fell.
If you have any pound to euro exchanges that you will need to make in the future making plans in advance and working to secure a target level can save you much time and hassle. We are specialist currency brokers here to help with the planning and timing of any currency exchanges that you will need in the future.
For more information at no cost or obligation please feel free to contact me Jonathan Watson directly by emailing [email protected].
Thank you for reading and I look forward to hearing from you.