Currencies Direct
Currency outlook: Euro stumbles as ECB maintains dovish policy outlook
Euro
EUR/GBP: Unchanged at £0.85
EUR/USD: Down from $1.17 to $1.16
The euro initially got off to a strong start in September, with the single currency carrying over some of its momentum from late August and supported by some robust Eurozone data releases.
However, the euro’s bullish run was curtailed by the European Central Bank (ECB), which maintained its dovish stance as it concluded its September policy meeting, in spite of also announcing plans to begin reducing the pace of its pandemic emergency purchase programme.
This pullback in the euro through the second half of September was then fuelled by political uncertainty in Germany as well as pressure from a stronger US dollar.
Looking ahead, the single currency could face additional volatility in the weeks to come, as coalition talks in Germany could result in prolonged uncertainty, while the policy divergence between the ECB and Federal Reserve may drag on the single currency.
Pound
GBP/EUR: Unchanged at €1.16
GBP/USD: Down from $1.37 $1.36
The pound has traded in a wide range over the past four weeks, in response to growing doubts over the resilience of the UK’s economic recovery.
This comes as businesses express concerns over staff shortages, supply constraints and rising energy prices, the combination of which could lead the rebound in growth to stall in latter half of 2021.
Also spooking GBP investors in early September were concerns over Boris Johnson’s announcement that national insurance contributions would rise in 2022 as part of a ‘healthcare levy’.
But Sterling subsequently rebounded following the Bank of England’s (BoE) September policy meeting, as its hawkish forward guidance prompted GBP investors to start pricing in a March rate hike.
With the UK now facing a fuel shortage, the country’s economic headwinds show no signs of abating. As a result, the pound could face an uphill battle in the coming month, particularly if the end of the government’s furlough scheme results in a sharp rise in unemployment, as some economists predict.
Currencies Direct have helped over 325,000 customers save on their currency transfers since 1996. Just pop into your local Currencies Direct branch or give us a call to find out more about how you can save money on your currency transfers.
With Currencies Direct you save money in most cases a substantial saving can be made compared to the banks in Spain. Currencies Direct has helped over 325,000 people save time and money on their currency transfers since 1996 by offering the best exchange rates from Pounds to Euros also with no transfer fees. Currencies Direct are an award-winning firm and are highly recommended for their customer service, expert team of staff, and by offering tailored transfer solutions.
Currencies Direct have over 500 currency experts and more than 20 global offices, they are able to provide an unrivaled level of support and insight – making sure you have access to all the tools you need to make an informed decision.
The services include:
Forward contracts
Fixed exchange rates
Limit orders – Target an exchange rate higher than the current market level
Rate alerts – Set the rate you want to achieve and get notified by text and email as soon as that rate is hit
Regular transfers – Automate recurrent transactions, eliminating all the hassle
Currencies Direct have a five-star ‘Excellent’ Trustscore on Trustpilot, they hold a level one credit rating and have won the Money Age awards for Consumer Champion and International Money Transfer Provider of the Year.
Find out how much you could save today email us at
info@expatinfo.es