• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / Euro / Euro weakens following European Central Bank’s plans

Euro weakens following European Central Bank’s plans

October 13, 2017 by Lewis Edmonds

Euro weakens following European Central Bank’s plans

This afternoon saw the Euro weaken against most of its major counterparts following reports that the European Central Bank (ECB) are planning on extending their asset purchase programme or Quantitative Easing into 2018. This has been labelled as cautious tapering – the plan on buying less per month (€30bn) but until September 2018.

The Euro had been the investor’s choice of late, having had a strong run of performance against the Pound and notably the Dollar. This was due to reports that the ECB were considering stopping the asset purchasing scheme altogether by March 2018. The reason why an elongated period of QE is potentially damaging and will keep the Euro’s strength subdued is because the ECB have categorically said that they will not look at raising interest rates in the Eurozone until the QE programme has finished. If these reports are true, this could be in early 2019 at the earliest. All eyes will now turn to the ECB’s next meeting on the 26th October for the result.

How is potential Catalan independence affecting the Euro

The Euro is also being affected by political factors too. This coming Monday is the date set by Spanish President Rajoy for Catalan President Puidgemont to outline his position on the Catalan independence. Depending on Monday, the Euro could look very different. So far, Mr Puidgemont’s comments have been ambiguous, and if Catalan independence is declared, I would expect the Madrid response to cause Euro weakness. If anything a suspended autonomy is high likely.

The Euro is very much in focus at the minute, for a lot of the wrong reasons, and has the potential to lose value more than it has to gain value, in my opinion.

Filed Under: Euro Tagged With: ECB, Euro weakness, GBPEUR, Quantitative Easing (QE)

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Lewis Edmonds

When he is not offering insights into the what is happening on the currency markets Lewis manages key relationships for an authorised payment institution in the UK.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy