The single currency has been performing very well despite the pandemic crisis, however there are some risk factors ahead that might weaken its position.
So what is creating pressure for the EURO?
- There has been some negative development in the Eurozone’s efforts to provide relief measures to economies most adversely affected by the coronavirus pandemic. On Friday, Hungary refused to grant its final approval to the EU rescue funds without guarantees on a linked mechanism on the rule of law.
- Poor growth prospects. On Thursday we saw the Euro aggregate services PMI for August rise on its final reading versus preliminary estimates. However this was only thanks to Germany’s improved performance. The other major Euro countries, France, Italy and Spain, all saw their services activity readings drop from their July reading, and in France’s case, very sharply indeed.
- The prospect of another interest rate cut. It is expected that the European Central Bank, ECB, will announce on Thursday that they will cut the deposit rate further and may also announce an extension to the current quantitative easing programme; with both measures designed to boost inflation and stimulate economic growth.
The above factors are weakening the single currency and therefore offer an opportunity to get more euros for their money, for those needing to exchange their funds for the purchase or maintenance of a property in France.
What can you do to take advantage of currency movements?
If you haven’t done so yet, you should get in touch with a foreign exchange specialist like moneycorp and open an account early in the process and before you travel to France to view properties.
Moneycorp will not only offer you competitive rates of exchange but will also give you access to a variety of currency tools to take advantage of these sorts of currency movements even ahead of your property purchase.
Opening an account is really easy and free of cost or obligation. You can register online or over the phone in a couple of minutes and for FrenchEntree there are no charges on any payment.
With a Platinum Trusted Service Award 2020 from independent review site Feefo and 40 years of experience in the industry, FrenchEntree has been recommending moneycorp for more than 15 years. During this time they have helped thousands of clients planning the best way to pay for their property’s as well as supporting them afterwards with any further payment from paying bills and mortgages to repatriating UK pension payments for those who have retired to France.
Furthermore, we have worked with the same person at moneycorp for more than a decade! You might be familiar with her as she often writes for our FrenchEntree magazine. She has 13 years of experience in foreign exchange and she is also a qualified European lawyer with experience in European transactions. Mar will be happy to answer any questions or enquiries to support you through these difficult times.
Open a free account today by clicking here.
Contact moneycorp at 020 3773 6355
Send your enquires to Mar at [email protected]