Weekly market headlines:
With the Lionesses lifting the Women’s Euros trophy, the UK has another proud moment to celebrate. But while football fans rejoice, financial markets are bracing for a very different kind of action and it’s the kind that could affect your next currency transfer.
This week brings a mix of major political agreements and central bank decisions, all of which could influence GBP to EUR exchange rates. For anyone planning to send money abroad, whether for property, investment, or family reasons, timing and preparation could make a meaningful difference.
EU–US Trade deal: Stability… but at a cost
After months of negotiations, the EU and the US have agreed to a new trade deal, which will apply 15% tariffs on EU exports heading to the US. While the UK is not directly impacted, this agreement is significant. As two of the world’s largest economies, any shift in their trade relationship can ripple through global markets.
The deal is expected to bring more stability to transatlantic relations, which may be welcomed by investors. Although the terms aren’t as beneficial as the UK’s own trade arrangements with the US, the agreement still represents an improvement over previous proposals and the markets may respond positively to that clarity.
In FX terms, this could drive strength for the euro, depending on how investors interpret the potential economic impacts across the region. And with sterling always sensitive to global sentiment shifts, GBP could also be influenced by how the market reacts.
What’s driving the market this week?
Wednesday – A double-header of data:
- Eurozone Q2 GDP: The release of gross domestic product figures will offer insight into the health of the Eurozone economy. If the data comes in stronger than expected, it could support the euro but weaker figures may weigh on it.
- US Federal Reserve interest rate decision: The Fed is under political pressure, with figures such as Donald Trump pushing for rate cuts. However, the Fed remains independent, and most analysts expect no change this week. Still, any hints about future cuts could influence USD performance and indirectly affect both EUR and GBP.
Thursday – ECB takes the stage:
- The European Central Bank (ECB) will announce its latest monetary policy decision.
If you’re planning a transfer this week, whether it’s a property payment, investment, or sending money to family speak to a Lumon currency specialist today. Call +44 (0)204 506 5672 to explore your options.
