By Matt Boyle
With tensions in the Middle East de-escalating the US Dollar has taken back some strength in the last couple of days, following the significant losses it had suffered during what President Trump called the Twelve Day War.
As USD/EUR is the largest traded currency pairing, the conflict and subsequent effect on oil prices caused significant volatility on the market and has been impacting GBP/EUR rates.
As GBP/USD drops it encourages GBP/EUR to rise and vice versa. This has benefitted Euro buyers as the strengthening US Dollar has helped push up GBP/EUR rates, benefitting those of you buying property overseas.
However, this is not guaranteed to last. With a range of data being released this week and speeches from the heads of the three central banks don’t be surprised if we see volatility across these major pairings.
Given the improvement late last week, will we see GBP/EUR correct and drop again? Certainly, if tensions were to rise again, a weakening US Dollar would likely encourage GBP/EUR rates to drop.
Those of you with an upcoming requirement to buy Euros may want to consider this and take advantage now whilst removing the risk the rate will drop, and your cost will increase.
Don’t get caught out by rates going South and your cost going North! We offer several ways in which you can secure currency and remove risk – speak to your dedicated consultant today
Mon
06.00 GER Retail sales
06.00 GBP GDP data
12.00 GER Inflation Data
17.30 EUR ECB President Lagarde speech
Tue
10.00 EUR Inflation Data
14.30 EUR ECB President Lagarde speech
14.30 GBP BoE Governor Baileys speech
14.30 USD Fed Chair Powell Speech
Wed
02.30 AUD Retails Sales data
14.15 EUR ECB President Lagarde speech
Thu
01.30 AUD Trade balance
06.30 CHF Inflation Data
12.30 USD Average Earnings
14.00 USD ISM Services PMI
Fri
09.00 EUR PPI Data
15.45 GBP BoE Governor Bailey Speech