The Pound has fought back during the course of this week against the Euro after the Eurozone economy showed signs of a slowdown.
Eurozone GDP figures showed a fall to their lowest level in four years as they fell 0.4% from the previous quarter.
Clearly the Brexit uncertainty has helped to keep the Pound under a lot of pressure against the Euro but there are also a lot of problems on the continent at the moment.
Italian growth has fallen to 0% even though the government are in the process of trying to spend their way out of the problem. Italian bank debt is at its highest level in history and the recent plans by the coalition of the Lega Party and the Five Star Party have been challenged by the European Union as they planned to spend more than they are technically allowed under the rules set out by the European Union.
Investor confidence in the Eurozone has started to wane with concerns increasing over an uncertain political future with German Chancellor Angela Merkel announcing that she will not be standing for another term.
The European Central Bank has also announced that they will be ending their Quantitative Easing programme in the next few months and the economy has since shown signs of a struggle so it could be argued that QE may even need to be continued to support the ailing economy.
Meanwhile the main factor determining the future of the Pound vs the Euro is that of Brexit. With some reports coming out that a deal could be done in the next three weeks we could see a rally for the Pound coming later on this month.
Therefore, if you’re planning a currency transfer involving the Pound vs the Euro then feel free to contact me directly for a free quote and I’m confident that I’ll be able to save you money when transferring currency.
For further information or a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]