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GBP/EUR rises after prolonged fall (Joshua Privett)

Mario Draghi came out firing today after the past few weeks of his carefully laid plans being uprooted by tumoil on the global markets. His comments caused GBP/EUR to fly up to 1.37 on the days trading.

Since January the European Central Bank have been actively trying to devalue their currency in an attempt to bring make their exports more competitive, drive growth and bring the economy back from the brink of recession. By announcing a program of Quantitative Easing and more recently cutting interest rates.

The events of Black Sunday and the volatile aftermath, as much of the recent posts on this website have noted, have shifted vast sums of money into the Euro as a safe haven currency, moving GBP/EUR rates as low as 1.34. To bring rates lower, Draghi speech today detailed Eurozone issues with inflation, economic activity, and even hinted that the current QE program will be ongoing until September 2016! As such, rates hit 1.37.

However, there is little more Draghi can do to control rate movement. The global stock markets are still in turmoil and any more sudden shifts (easily done due to China’s lack of transparancy) will cause similar market behaviour and similar Euro strength.

I would not count on these rates being around for long, as such I would recommend contacting me overnight on jjp@currencies.co.uk to discuss a forward contract. This is where rates are pegged as they currently are for a small 10% deposite on any transfers planned for the future. This has proved very popular during short-term spikes like we are experiencing currently.

 

Those with Euros to sell should monitor these posts over the next few days until we get an indication on when this correction will be.

Draghi Lets the Cat out of the Bag (Daniel Johnson)

Things seem to have calmed down after “Black Monday”, there seems to be some form of stability in the markets. I am bold enough to say the days of 1.40 are over and I still feel Sterling is overvalued. If you are looking to purchase Euros short to Medium term I would be tempted to get something done.

 

Draghi today announced that growth was slowing in the Eurozone with inflation at next to nothing. We saw an immediate spike in Sterling and we have now breached 1.37. This is a hint that GDP figures released tomorrow in the Eurozone will be below par. The market moves on rumour as well as fact so I do not expect any shock movements tomorrow.

I am currently offering a free rate alert service, just drop a line or e-mail with your currency requirements and the levels you are hoping to obtain and I will notify you of movement.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

Slight GBP/EUR correction today (Joshua Privett)

The slide in GBP/EUR since the start of this week on global markets halted this morning at lows of 1.353 and rose up again gradually to breach 1.36 as markets closed this afternoon.

We are essentially seeing similar market movements to what evolved last week following the events of Black Monday. China’s stock market slide reverberated on a global scale, causing investors to flee into safe haven currencies. As the Euro was cheapest and has proven to be more stable recently, this was preferable. Demand for the Euro suddenly sky-rocketed and as a result so did its value. As stock markets stabilised this Euro strength slowly began to leak back into Sterling, pushing up GBP/EUR rates.

At the start of this week a repeated slide in the stock-market due to poor Chinese manufacturing data saw the Euro gain strength once more, and this correction today is a repeat of the stock-markets beginning to stabilise again.

Firstly, this correction is more gradual and took longer to come about than last week following the initial slide. Investors are no longer optimistic that Black Monday was a ‘blip’ or ‘anomaly’ and as such are less willing to re-invest in securities immediately after the market halts its fall in value. So money is remaining in the Euro and keeping down GBP/EUR rates.

Secondly, tomorrow the Eurozone will be releasing key data on their economy and will also be announcing their interest rate decision. With the recently glowing German data, we’re expecting similar reflections for the Eurozone as a whole.

These rates are now unlikely to slide higher as artificial Euro strength will remain and even be supplemented by genuine confidence in their economic performance. Those with Euros to buy in the short term I would recommend moving sooner rather than later if you can due to this – even if you requirements are not until later in the month or even the next rates can be pegged and help for you are no additional cost should you need it. Euro sellers may find some even more attractive opportunities beginning to emerge tomorrow.

Email me overnight on jjp@currencies.co.uk to receive a free quote on your transfer and I’ll happily take the time to offer my opinion on your personal situation if you were seeking advice.

Sterling recovers against the Euro (Tom Holian)

Sterling Euro exchange rates ended the week with positive gains as speculators took profits from the most volatile week this year.

We began last week with Black Monday after China posted some worrying data and commodity prices hit 16 year lows.

The Chinese also decided to cut interest rates in an attempt to restore stability to global financial markets.

The cut in China means that the US are now less likely to raise rates in September which caused the Dollar to weaken and the Euro to strengthen creating some excellent opportunities to sell Euros during the early part of the week.

However, at the close of Friday’s trading session Sterling rates shot up by 1% and the Euro strength appears to be short lived.

Next week sees the release of Eurozone inflation and unemployment data followed by the ECB interest rate decision due out on Thursday so expect another bumpy ride for Sterling Euro exchange rates during the week.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

GBP/EUR stable before bank holiday weekend (Joshua Privett)

While the title mentions stability, we were on the brink of 1.35 today, some positive GDP data for the UK saved this from happening. My meaning is that we began the day in a similar position to where we started, in the high 1.36’s.

Markets are poised and waiting eagerly for news coming from China over the weekend following the events of Black Monday. Their Party Leadership has been surprisingly quite since this whole debacle began, even for them. Markets are expecting some form of further intervention by the People’s Bank of China on the matter, possibly further investment in their own stock market to protect it from further crashes.

Any kind of intervention will likely be received well by market as it has been this week. As soon as an interest rate cut was announced and state-backed stock purchases – stock markets stabilised, and nervous investors who had fled to the Euro as a safe haven are cautiously returning to the stock markets. As a result this artificial Euro strength is deflating, and rates have moved back from the lows of 1.34 we saw earlier in the week.

We’ll know more after the bank holiday weekend on whether this trend will continue or reverse, I recommend that those who have a currency requirement in the next few weeks or months, to email me over the weekend on jjp@currencies.co.uk so I can respond to your queries after a weekend of news and some tailored advice on your situation.

When to buy Euros? (Daniel Johnson)

After the madness that was “Black Monday” it seems the markets are starting to stabilize after why I consider to be a knee jerk reaction. Now that an Interest Rate hike will be put back in the UK probably until late 2016, I think the days of 1.40+ are gone. I expect buoyancy around the 1.35-1.3850. If I was buying Euros I would be looking to move at anything above 1.3720 if your requirement is short term.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

GBP/EUR rates climbing (Joshua Privett)

The artificial value that the Euro has been enjoying recently is finally starting to deflate. GBP/EUR has been pushed back up from lows of 1.34 to the higher 1.30’s again, just holding above 1.37.

The Euro got a massive boost at the start of the week when global stock markets were rattled by the mass sell off of Chinese shares on what is now being dubbed as ‘Black Monday’. Shares were losing value and investors needed to reinvest elsewhere or store their capital liquidly in a currency of their choice. Due to the cheapness and improved stability the Eurozone and Euro have enjoyed recently most of the capital from the global panic sell fell into the Euro, bolstering its value hugely.

Now that the stock markets have settled down, with China’s stock market closing 5% higher at the end of the day, investors are returning to the stock market and buying securities while they are cheap, selling off their Euros in the process and weakening their value.

Those with Euros to sell should be looking to move immediately. These current rates are a gift after months of anguish. Only a few weeks ago rates were up at 1.44. With rates moving up time is of the essence. Email me overnight on jjp@currencies.co.uk for a free quote on your transfer – those who do get in touch your transfers can be collated in the morning to get an even more commercial rate of exchange.

Excellent opportunities now for selling Euros into Sterling (Tom Holian)

Sterling Euro exchange rates have hit their lowest level in weeks after both the UK and US now look less likely to raise interest rates.

The Chinese intervention with the Yuan and the cutting of interest rates themselves this week has now pushed back any change for monetary policy for the US and UK.

This has led to the Pound weakening against the single currency creating some excellent opportunities to sell Euros into Sterling.

UK GDP figures are due out on Friday morning and if the data is lower than expected we could see even further Euro strength at the end of the week.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Sterling recovers from yesterday’s fall vs the Euro (Tom Holian)

Sterling Euro exchange rates have bounced back from yesterday’s falls as the Chinese decided to cut interest rates earlier on today.

This morning started well for the Pound as investors ploughed their funds back into the UK giving strength to Pound Sterling exchange rates and the losses from yesterday’s trading have almost been wiped out.

The FTSE and other European bourses have all got a lot better during the course of the day and it could be argued that yesterday’s Black Monday was a massive overreaction.

With UK GDP due out on Friday this could cause even further volatility for Sterling Euro later this week.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Sterling Euro biggest daily fall in 6 years (Tom Holian)

Sterling Euro exchange rates saw their biggest daily fall today by over 2% as Chinese data wreaked havoc for financial markets during the course of the day.

Timing your transfer is crucial as demonstrated throughout the course of the day as rates moved by over 4 cents from the high to the low.

You may have a transfer to make over the next few weeks to buy Euros and for a small deposit you can secure a rate in advance of needing the funds by purchasing a forward contract.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Chinese Factory Data causes Sterling to fall against the Euro (Tom Holian)

Chinese data published this week showed that factory orders were at their lowest level in over 6 years and with the intervention with the Yuan during the last fortnight this has caused concern for when the US and UK may raise interest rates.

Previously pressure has been mounting on the US and the UK to raise interest rates but with the second largest economy showing big signs of a slowdown this is concerning for global stock and currency markets.

Indeed, the FTSE has had its worst week this year and investors appear to be cautious about holding Sterling at the moment and we are now seeing GBPEUR exchange rates at their lowest level sine June 2015.

This means if you have been holding out to get a better rate to buy Euros you may have just missed your opportunity whilst if you’re considering selling Euros to buy Pounds now could be a good time to get something organised.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. teh@currencies.co.uk

 

 

 

GBP/EUR rates crashing (Joshua Privett)

We started the day for GBP/EUR at 1.42, rates are now at 1.39.

Multiple factors have influenced the combination of Sterling weakness and Euro strength which have sent rates flying against the favour of Euro buyers.

Firstly Sterling weakness for poor retail sales figures for last month, which were almost at a standstill when summer months normally record massive growth, begin the poor run this morning.

This was alongside expectations that a rate hike for the UK will be delayed – a result of similar sentiments expressed by the Federal Reserve in America overnight, it seems banks are worried about raising rates when global growth is being revised down for next year. This weakened Sterling but also sent money flying into the Euro from those who had previously held USD. As the USD/EUR is the most commonly traded currency pair in the world, traditionally when the USD weakens a lot of the capital that investors are taking out of it tends to end up in the Euro, particularly now it is so cheap.

The Euro also strengthened today following the approval yesterday from German MPs for the Euro bailout.

Now that the GBP/EUR rates have broken through 1.40, a traditional resistance level, it is likely they will slide further with these current market forces in the background… to the delight of Euro sellers!

Those with Euros to buy should email me overnight on jjp@currencies.co.uk for a free quote on your transfer. Similarly Euro sellers should do the same, so we can discuss a roadmap to help you ride this move in your favour.

 

UK Retail Sales Figures cause Sterling Weakness (Daniel Johnson)

UK retail figures have come in well below expectations and Sterling has took a hit. The general consensus was that the figures would be favorable, they came in substantially lower and Sterling has took a hammering. We saw recently after the high expectations of “Super Thursday” were proved wrong that Sterling dropped considerably. When favorable data is expected it is factored into the exchange rate  so personally I would move before hand. the rate will rarely change significantly if expected figures arrive whereas negative data will cause a severe drop in the currency in questions value.

I think sterling’s days above 1.40 are numbered, if I had a Euro requirement I would get it done ASAP.

 

I am offering a free rate alert service to notify potential clients of any spikes or troughs in the market. feel free to drop  me an email if you would like to take advantage of this service.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

GBP/EUR rates as Greek bailout now fully implemented (Joshua Privett)

Finally Greece will be receiving the funds they have negotiated, haggled and recently jumped through hoops for. The German Parliament has now ratified the Greek bailout as they have implemented the austerity reforms required of them. This was the last hurdle for Greece in receiving the first instalment of their €86bn bailout.

€13Bn Euros will now be wired over to allow Greece to repay it’s debts and keep the country afloat while they continue their recovery. This first tranche is expected to last them until the end of the year.

Greece will likely take a back-seat in the news cycle now until later in the year. It has been a roller-coaster since January where GBP/EUR rates have moved from 1.28 to 1.44 at its highest. Since talks have become more positive rates have been as low as 1.37. The interbank is now at 1.41 and has been falling all afternoon since the German decision was announced and greater confidence was imbued in the Eurozone.

Personally it seems that that ‘sweet spot’ for purchasing Euros has passed. Now that Greece is out of the picture, the Euro economic data will be the at the forefront when deciding Euro value. Investors are flocking to the single currency while it is cheap and stability has returned. Better inflation figures than the UK are currently being recorded in the Eurozone, and with their financial stimulus programme GDP figures are expected to continue rising.

For GBP/EUR rates to rise and change the current trend, then Sterling strength would be required. But rates are not expected to rise until 2016 and we are only just in the green on inflation with a 0.1% improvement last month. This could easily turn negative once again.

Those hoping rates will rise again to 1.44 will simply see rates moving in the opposite direction it seems. I advised people to move ahead of the German vote today, and on a £100,000 Euro transfer an extra thousand Euros was achieved by doing so.

Email me overnight on jjp@currencies.co.uk for a free quote on your transfer. I guarantee beating any quote you have received elsewhere, and I recommend those who do not have requirements for a few months to get in contact as well. You do not have to watch the rates dwindle against your favour, they can be pegged at no additional cost to make sure you buy while the interbank is still above 1.40. Or call me on 01494 787 478 and ask for Joshua.

So far, 2015 has been a roller coaster ride for GBP/EUR exchange rates! (Dayle Littlejohn)

Its been a roller coaster ride so far in 2015, for clients that trade GBP/EUR. Mario Draghi and the European Central Bank implemented Quantitative Easing in March, which weakened the euro and GBP/EUR pushed into the higher 1.30s/ lower 140s. However long term quantitative easing should stimulate and strengthen the euro.

The lead up to the UK general election weakened sterling and rates dropped to the 1.34s the night of the election.  However the result provided an immediate spike in sterling favour, as investor confidence returned when the conservative party won a majority.

Finally in recent months Greece have been stealing the headlines with talks of a possible ‘Grexit’ due to bankruptcy. This has weakened the euro over the last few months however over the last week or two the euro has strengthen against sterling as a 3rd bailout appears to have been struck. 

So where next for GBP/EUR exchange rates?

Short term, I think the euro will continue to chip away at sterling due to investors feeling confident that Greece will not exit. Therefore clients looking to buy euros should look to trade sooner rather than later. If I was selling euros short term, I would look to catch the market when there is a drop in the euros favour.

Long term, its looking like the UK will hike interest rates towards the end of the year or early next year. Therefore for clients buying euros in 6 months I think GBP/EUR could be in the mid 1.40s. If you are selling euros, (for example you have sold or selling a property) its important to get in touch to today to discuss a forward contract to limit losses. This is where you lock into a contract now and pay later!

If you need trade currency for your business or a property purchase I can SAVE you money compared to other brokerages and the high street bank. If you are looking for the best exchange rate possible and a smooth service feel free to email me directly on drl@currencies.co.uk (Dayle Littlejohn) with your requirement and I look forward to saving you money in the future.

Inflation better than expected sees Sterling Euro Exchange Rates (Tom Holian)

Sterling Euro exchange rates have increased by 1% today as UK inflation data came out better than expected.

With inflation rising this has again brought the argument forward as to when the Bank of England may consider raising interest rates.

Earlier this month only 1 of the 9 members of the MPC voted for a rate hike so next month with inflation rising we could possibly see another member changing their minds.

As this was such a surprise this has really given support to the Pound once again.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

UK Inflation give sterling a boost

GBPEUR rates have climbed this morning making the euro cheaper to buy. This came from economic data being released this morning for the UK which improved demand for the pound and gave it strength. This being inflation data which showed signs of improvement. GBPEUR levels I believe are now towards the top levels that we are going to see for the next seven days as I expect euro strength to come. The largest of which is due from Germany tomorrow when they confirm and vote in the third bailout for the Greeks. When confirmed it will reduce the risk of a ‘grexit’ creating euro strength probabaly and make it more expensive to buy.

Euros sellers have been the winners of late with euro gaining almost 4 cents compared to only 10 days ago.

If you would like more information on what is driving prices, live levels or a free quotation please feel free to contact me directly through email. Email me STEVE EAKINS via hse@currencies.co.uk and I will be happy to help personally.

 

UK Inflation data the key to Sterling vs the Euro this week (Tom Holian)

Pound Sterling forecasts against the Euro will be decided on Tuesday when the UK releases inflation data.

With interest rates in the UK making headlines as to when they will go up Tuesday’s announcement could be a huge factor as to when the Bank of England will raise interest rates.

If inflation falls we could see the Pound drop vs the Euro as it will put the argument back further into the future but if the data is positive then this will likely give Sterling strength against the single currency.

The data is likely to provide a huge amount of volatility either way so get in touch if you would like to talk about arranging a forward contract which allows you to fix an exchange rate for the future even if you don’t have the full amount of funds available.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank or another currency broker email me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

GBP/EUR rate rise before the weekend a gift to Euro buyers (Joshua Privett)

GBP/EUR rates were bolstered from a small injection of Euro weakness on Friday afternoon. GDP figures came in lower that expected, and as a result forecasts for the year are now down to 1.2% growth when a higher amount was expected. But this was only enough to weaken the Euro by about half a cent against Sterling, just holding rates above the 1.40 region.

This has provided a short bit of respite for Euro buyers recently, as the past week of trading has seen rates fall from as high as 1.44 down to lows of 1.39. The reason for this is the greater confidence in the Euro following increased inroads to a full agreement on the Greek bailout.

This morning, after a whole night of debate, the Greek parliament have agreed on the final measures to pass the bailout. Now this simply needs to be ratified by the the Eurozone and German parliaments. Once this happens, and the bailout becomes more concrete, then the current trends we have been seeing recently will likely continue – to the delight of Euro sellers.

To what extent will these rates fall? The truth is it is difficult to say. They have already fallen further following positive news coming out of Greece than at any point in the past when a deal has been close to being reached. There will certainly be a drop, if slight, but the true point of this post is to encourage anyone with Euros to buy to be prepared to move after the weekend.

There is little movement over weekends as markets close. But if you email me over the weekend on jjp@currencies.co.uk and leave a number to call, I would be happy to contact you on Monday with a live quote for your exchange, or some tailored advice for your situation if you are not in a position to act just yet. I would remind anyone who does not need currency until a few months or weeks from now, that these current high rates can be pegged at no additional cost.

When should I buy/sell my euros? (Dayle Littlejohn)

For clients who are looking to buy/sell a currency its important to note that the currency markets move every second. Over the last 7 days GBP/EUR exchange rate has fluctuated over 2 cents making a €200,000 purchase over £2,000 more expensive. On the reverse if you had €200,000 to sell you would have made an extra £2,000 today compared to a week ago.  There  are two main reasons for the euro making gains against sterling

1) Finally it appears that Greece’s parliament has backed a five year bailout of €86bn, which has eliminated the risk of Greece leaving the euro.

2) Average earnings within the UK dropped 0.4% on Wednesday. Very simply, if wages drop, people dont spend. If people are not spending inflation wont rise, (as predicted by Mark Carney, Governor of the Bank of England) and finally if inflation doesn’t rise I find it difficult to see the Bank of England hiking interest rates.

The Golden question from clients is ‘when should I buy/sell my sterling/euros?’  please see below what I would do! 

If you need to buy euros short term, (next 4 weeks) I would buy as soon as possible. I believe the euro will continue to make gains against sterling as confidence in the Eurozone starts to return, as Greece have made the decision not to leave. It wouldn’t surprise me if the central level/ inter bank level drops to 1.38/1.39 by the end of trading next week.

If you need to sell euros short term (next 4 weeks) I would look at placing a limit order into the market.This is where you look to target a certain rate and once that rate is achieved our automatic system will buy it for you. A great way of trading off the back of a spike in your favour!

Longer term I expect Mark Carney (Governor of the Bank of England) to keep insinuating that a interest rate hike is on the horizon and then this to be backed up by the voting members of the Bank of England. Therefore by Xmas it wouldn’t surprise me if GBP/EUR exchange rates hold steady in the lower to mid 1.40s.

The most important piece of advice I can give, is to euro sellers!! I am a strong believer that rates aren’t the best at the moment however they will get worse and the next few weeks might be the last window to sell before rates continue to steadily climb.

If you have a currency transfer to make and want to achieve the best exchange rate possible then feel free to contact me directly for a free quote. Dayle Littlejohn drl@currencies.co.uk.