The ECB have announced an extension to their current QE programme but at a reduced pace, as political and economic concerns take centre stage in Europe. Pound to Euro exchange rates remain volatile on the last day of the Supreme Court hearing, dipping as low as 1.165 at noon.
The news whilst expected, has sent Euro exchange rates plummeting against most major currencies including Pound Sterling, with GBP/EUR exchange rates now trading above 1.18 on the interbank.
Base interest rates remain untouched at 0%.
The announcement originally prompted a rally for the Euro, as markets acknowledge the ECB’s proactive stance, but the harsh reality that the Eurozone faces next year is not reassuring markets.
The Eurozone crisis set to continue
The ECB’s decision to extend its QE programme is only the beginning of the concerns within the Eurozone, whilst stagnant inflation has haunted the economy for years, the changing political landscape in the wake of Brexit and Trump could bring the Eurozone to its knees in 2017. Italy’s Referendum, although not on the subject of EU membership, has opened the door to far right political parties. France and Holland have to fight off the momentum of Marine Le Pen and Geerts Wilders in next years European elections, and to add the Eurozone’s list of headaches, Brexit will continue to dominate the spotlight as we draw closer to the March deadline of Article 50.
Draghi is currently giving a speech justifying his position in extending the QE programme, the Euro continues to dive against most major currencies with further losses likely throughout the remainder of today’s trading session.
European markets have rebounded following the announcement, but the Euro has lost significant ground against most major currencies.
Current exchange rates
The below table provides EUR/GBP, EUR/USD, EUR/AUD and EUR/CAD exchange rates which are accurate at the time of writing.
|Currency Pair||Current Interbank Exchange Rates|
|To keep track of current interbank exchange rates, please click here|