Pound to Euro Exchange Rate Weekly Outlook: Will the Pound to Euro Rate Rise or Fall?

Pound to Euro Exchange Rate Weekly Outlook: Will the Pound to Euro Rate Rise or Fall?

The weakness in the Euro which has slowly developed over the last couple of weeks against sterling, shows no immediate signs of changing, based on the fact that despite Eurozone finance ministers agreeing a rescue plan, the Euro was still weaker on Friday.

The market concerns that led to a weaker Euro stemmed from the worry that Eurozone nations were not doing enough to manage the economic foundations relating to the issuance of debt by countries.
Whilst a significant rescue plan to address the immediate funding needs because of the Coronavirus was addressed, with countries in the Eurozone being allowed to tap ESM (European Stability Mechanism) for 2% of their GDP with no conditions, there does remain worries over how troubled countries like Italy can easily get their economies back on track when they pay so much to borrow.

There is predicted to be a large downturn in the future as a result of the lockdowns in place across Europe, and markets are concerned not just about the short-term needs, but also the longer term implications on some already unstable economies.

Monday is a bank holiday for the UK and much of Europe but once the markets open for a shorter week, there is not a huge amount of UK economic news scheduled. The health of the UK PM Boris Johnson was one factor influencing the pound last week and might do again this week.

What Can We Expect Next Week for GBPEUR Exchange Rates?

For the week ahead on GBPEUR the topic of Eurozone debt might well continue to be an issue for market consideration. There is important Eurozone data released with Inflation data to be announced for the whole Eurozone, a key economic indicator.

We are close to some of the higher levels to be buying Euros with pounds in recent weeks, with the GBPEUR level back above the 1.14 interbank rate. Considering the rate was down at 1.0533 on the 19th March, this is quite a turnaround although we do still remain below the highs of 1.2070 reached in February.

The ongoing developments of the coronavirus and the predicted impact on the global and domestic economies of the UK and the Eurozone, is all continuing to play a role in shaping GBPEUR rates. To get an overview of the latest news and what other events might influence your levels ahead, please do get in touch using the form below.

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