The pound to euro exchange rate reached the highest levels since 9th March this week, as markets continued to be fearful of what prospects might lie ahead for the Eurozone. Of note was French President Emmanuel Macron warning of an unravelling of the European Union unless it shows solidarity with Italy and other badly affected economies.
The Coronavirus has caused great economic damage throughout Europe, with France, Spain and Italy badly affected through national lockdowns that have seen major reductions in economic activity as businesses close and citizens stay at home.
At the heart of the weakness on the euro is the market’s fear that already significant debt obligations by certain countries will rise dramatically under the weight of the slowdown storing up problems for the future.
The pound has been enjoying a much better time against the euro with interbank rates reaching 1.1515 on Friday, a significant move higher from the 1.0533 reached on the 19th March, only four weeks ago. £100,000, traded at the highs of lows of these interbank rate movements would lead to a difference of €9,820.
Will the Pound Keep Rising Against the Euro?
The improvements for Euro buyers might not be available for too long since next week begins a series of key UK economic data releases. Sterling has benefitted from improved sentiments relating to the outlook on the economic crisis, with a series of strong government measures to pay the nations workers and provide loans to business all helping to restore confidence.
However, with the news next week on Unemployment, Retail Sales, Inflation and Borrowing for the UK all released, attention might well turn to the state of the UK economy and the potential negative effects up ahead in store too.
Next week will also see the resuming of trade talks between the UK and the EU. Despite some suggestions the Coronavirus would lead to an extension of the current transition phase, due to end in December 2021, the UK is seeking to continue as planned. Any fresh news on this topic might well sway sterling exchange rates, and adds to what is shaping up to be a busy week of data with plenty of potential for market movement on GBPEUR levels.
If you have a currency exchange to consider for involving either euros or pounds, we can help provide the latest news and information that is driving the currency markets to help you make an informed decision on your transfer.
If you have a transfer to buy or sell pounds for euros and wish to better understand future events that might change exchanges rates, please do get in touch directly with me to discuss further.