What next for the Euro? South African Rand plunges amidst political turmoil.
The markets have been much quieter than late this week with little data coming out this week to swing GBPEURO levels one way or another. The Pound however still remains under pressure with post Brexit reactions being monitored carefully by the markets as such GBP is struggling to breach the 1.16 mark, the Euro has benefited from rising inflation keeping these levels firmly in check.
Though not all is well with the Euro zone as Italy’s Banks continue to be a headache for finance ministers with news of debt issues failing to be resolved quickly. There is little in the way of opportunity for Euro buyers at the moment and any potential spikes should be acted on quickly. One such spike may occur if the ECB decides to implement further Quantitative easing to boost its economy, this could provide Euro weakness in the short term in turn helping the Pound briefly breach the 1.16 level.
In other news the South African Rand has plunged in this mornings opening market bell as political turmoil engulfs the countries finance minister over espionage charges with the minister being asked in for questioning by the countries Hawks police unit. This in turn has provided an opportunity for those with Rand to buy a better rate of exchange.
My outlook for the rest of this week will probably see the GBPEURO hover around the 1.16/1.17 rate (Inter bank rate) with a possible downslide Friday as the spotlight falls back on the negative consequences of Brexit for the Pound.
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