15 Years of the Euro – The story so far | TransferMate Global Briefing
Annmarie Carrigan, Senior Market Analyst at TransferMate takes a look back on how the Euro has performed over the past 15 years.
January 1st 2017 sees 15 years since the Euro was brought in as the principal currency of the European Union. Originally, it was implemented by 12 EU countries including Ireland, Germany, Italy and the Netherlands.
Analysis carried out by Knight Frank, examines how the change in the EUR/GBP exchange rate over the past 15 years has provided opportunities for Irish and Eurozone companies to benefit from currency movements in the other’s market.
Regardless of its relatively short but eventful history, these opportunities have been numerous. The chart below shows some of the keys events which have moved the EUR/GBP rate.
Put simply, a Sterling-based buyer purchasing in the Euro-Area in January 2002 (€1.62/GBP) and then selling when the Euro was at its highest since its beginning against the Pound at €1.09/GBP would have enjoyed a 49% gain on a currency basis alone.
Equally, a Euro-focused buyer who bought in the UK in March 2009 (€1.09/GBP) and then sold when the Pound was at its post financial crisis high against the Euro at €1.41/GBP would have experienced a 30% gain from a currency standpoint alone.
In the past 12 months the shock result of Brexit made a staggering impact on the currency markets with a Euro – Sterling high of .91182 and a low of .73245 – that’s a 17% differential in a year. We further witnessed a Sterling – Euro high of 1.3654 and a low of 1.0967 – that’s a 26% shift!
2017 is set to throw-up numerous challenges and market-impacting political events including the inauguration of Donald Trump and Article 50 being triggered. Now is the time to speak to our Trade Experts on how you can off-set the risk faced by your business in the face of such market uncertainty.