Monthly Archives: October 2012

Sterling gains momentum (Alistair)

GBP rates are continuing to strengthen this week after last weeks unexpected rise of 1% to the UK economy. CBI retail sales, released yesterday, have shown a better than expected increase to retail sales across the UK with figures coming out at +30, a large jump above analysts forecasts of +7. This data release has added to the momentum of sterling over the past couple of weeks, largely increasing chances of sustained economic growth, and with Purchasing manufacturers’ index data for manufacturing, construction and services released this week we could be due to see a healthy UK economic growth going in to the fourth quarter. This boost to the pound has pushed GBP/EUR rates up above the 1.24 mark once again and GBP/USD rates have risen to 1.6133, edging closer to last weeks high of 1.6144. With nobody sure whether Spain will accept a bailout, Greece’s economy going in to an even deeper crisis and the rise in the UK economy investors are seeing this as a good time to purchase Sterling as political and economic uncertainty surrounding the Euro zone could affect these rates at any times.

If you have any currency requirements or questions regarding anything  and would like to talk to one of our experienced currency brokers then please contact the dealing floor directly on 01494 725 353 or Email Alistair at atr@currencies.co.uk

GBPEUR Forecast Wednesday 31st October (Jonathan)

Whilst I have no particular plans for Halloween I thought I would mark the occasion with a post, although for once there appears to be less than usual to be scared of on GBPEURO! This is presenting a good opportunity for both buyers and sellers to take stock of what has happened and where rates are going.

The important news for me is Eurozone Unemployment at 10.00 UK time. The Euro crisis remains but with more unity being shown, much calm has been restored. Recent bond auctions by Italy and Spain have all passed successfully and confidence has for the time being returned. With Greece due to request further tranches of bailout funds next month there is of course the possibility things could turn upside down again quickly.

I expect Eurozone Unemployment to have increased as expected and this could present some slightly better GBPEUR opportunities this afternoon. With a much less likely chance of QE next month it may now be that the better GBPEUR rates have passed.

Whatever the figures say, I don’t think the man in the street would agree things are much ‘better’ than they were a few months ago. Should you be considering any transfers involving sterling or the Euro speak to me for the best rates and all the latest information and to be kept up to date.

My name is Jonathan and I work as a specialist currency broker assisting both private and corporate clients manage their exposure to the most unpredictable market in the world. You can speak to me on 01494 787 478 or email jmw@currencies.co.uk

 

Sterling Still Riding High Following Last Week’s Positive GDP Data

The UK economy was given a huge last week following the release of UK GDP (Gross Domestic Product) figures. The expectation had been for our economy to grow by 0.6% during Q3 of this year but the actual figures surpassed this, showing a very positive 1% growth. This gave the markets a confidence boost and although these figures will have two revisions to navigate, the news can only be viewed as positive for the UK economy and ultimately Sterling.

GBP/EUR rates continued to climb throughout last week’s trading, although it has levelled out this week with the euro making some small gains back towards 1.24. GBP has gained approx 2 cents , or an extra EUR 4000 on a £200,000 GBP/EUR transfer in the past week and this spike is another clear indicator of why it is so important to stay in contact with your personal currency broker, so that you do not miss these fantastic opportunities when they do present themselves.

I expect rates to put pressure on 1.25 during November as the results of this positive data take effect and the continuing problems faced by the eurozone, hinder the EUR chances of recovery in the short-term.

If you would like to take advantage of this spike in the market highs then please visit our website www.currencies.co.uk for more information and speak to one of our brokers on the Freephone number 0800 328 5884 today.

Whilst it seems that the UK economy has turned a corner and moved itself out of recession,  the same unfortunately cannot be said for the euro zone. The well documented economic deficiencies in Greece, that seemed to indicate the start of the current debt crisis, then filtered out to smaller eurozone economies such as Portugal and Ireland amongst others. This was followed by economic downturn in larger countries such as Italy and Spain but what held firm were the stalwarts of the euro zone and they were the once untouchable economy of Germany and also France. Whilst these two powerhouses continued to prosper, they could to some extent support the smaller nations.

However, a report today has indicated that now both Germany & France are heading towards recession. German economic activity fell to 48.1, with France’s reading even worse at 44.8. These are extremely worrying statistics and will do nothing to ease fear amongst euro zone leaders. For all those hoping this will present an opportunity for a cheaper European property, they should beware that the UK’s long-term economic health and ultimately the strength of the Pound, is inextricably linked to the prosperity and long-term well being of the euro zone.

UK GDP figures push the pound up (Steve Eakins)

Yesterday morning the largest event of the week happily surprised the markets. Regular readers will know that we covered this well in the build-up to the release of UK GDP figures . These were expected to come in at 0.6% pulling the UK out of the deepest recession since the second world war, the actual figure come out at 1% well exceeding these forecasts.  As a result the pound rallied and climbed significantly on the news in morning trading and then experienced a second boost when the US markets opened in the afternoon.  It currently sits over 2 cents higher than were we started at the beginning of the week.  This just highlights the money that can be lost and saved by timing your transfer simply over a 4 day period.  In this example on a €200,000 purchase you would save over £3,000..

Also covered this week is GDP figures from both Germany and France which both showed a negative outlook adding to concerns about the short term future for the Euro.  So when do you buy euros, and when should I sell euros…….

If you are in the situation needing to move within the next week I would suggest buyers take advantage of the current gains and sellers hold off.  The reason being is that I am in the firm belief that GBPEUR rates will drop down over the next week. The reason why I think this is that traditionally at the end of the month traders start to price in their expectations for the following month.  Data this month has been great for the pound but most have been “artificially” improved by one off events, like hosting the Olympics and the Jubilee earlier in the year.  Next month these will not as bigger factor and as a result I expect, like many, figures to be weaker in comparison and creating GBP weakness.

Later this afternoon we also have US GDP figures, this is also expected to show an improving picture for the US.  As the USD and EURO is the heavily traded pair this WILL have an effect on the euro and as a result the price you pay to buy the euro. There are two views on the possible outcome. I personally think that if the figures come out positivity for the dollar, risk appetite will increase resulting with traders selling the safe haven of the dollar and buying riskier currencies like the euro. So I think that if GDP figures improve for the dollar I would expect the euro to cost more, if it is poor, expect the opposite and buyers will be able to take advantage.  The other thought is that if it improves people will want to buy the dollar resulting in euro weakness and a cheaper price for EURO buyers.  As always I am sure you have your own thoughts but be aware that experts in both camps both expect the “spread,” i.e. the difference between the high and the low on the GBPEUR trading pair today to be around 0.5%, the equivalent of on £450 on a €100,000 purchase.

If you need any further information or would like to discuss your situation with an expert, feel free to contact us today. You can do that by calling on the normal number or emailing me on hse@currencies.co.uk

Thank you and enjoy your weekends!

Steve Eakins

hse@currencies.co.uk

Sterling hits two week high against Euro. Best exchange rates for GBP/EUR (Alistair)

GDP (Gross Domestic Product) data released yesterday has given a widely welcomed boost to GBP rates. Following the release of GDP data yesterday the pound rose to a one week high of 1.6135 against the USD and hit a two week high against the EUR with the commercial rate hitting 1.2442. Building up to the GDP data release it was expected to be announced that the  UK economy grew by 0.6% but with large factors such as The London Olympics and decreased unemployment rates having a huge effect on UK economy this quarter an economic growth of 1% was achieved, the strongest quarterly reading for 5 years. This instantly had a large effect on sterling figures with the UK pulling out of a recession and the economy a lot more stabilised, Sterling has suddenly hit a spike in the market, therefore should you be buying currency using sterling and you want to take advantage please contact Alistair at atr@currencies.co.uk

Mervyn King and BoE (Bank of England) are expected to halt plans for more QE (quantitative easing), where they pump pounds in to the economy, next month due to this rise in economic stability. This could increase the strength of GBP further and push the sterling figures to even more highs over the next couple of months.

If you have any questions or you would like to take advantage of these growing rates then please contact our dealing floor directly on 0800 328 5884 or Email Alistair a atr@currencies.co.uk

 

GBP forecast, data that could affect the pound?

The GBP has shown a steady rise this week, hitting a one week high against the EUR with today’s commercial rate at 1.2360 and a 0.4% rise against the USD hitting a high this week of 1.6067. This data comes after the GBP hit a six week low against the USD on Tuesday with figures at 1.5914. With the GDP announcements coming out over the next few day’s investors are still cautious about buying the currency in large amounts but there is a steady increase with speculation over the GDP being positive. It is expected to be announced that the UK is slowly pulling out of the recession but poor GDP data could put a lot of pressure on Mervyn King and the BoE (Bank of England) to ease economic worry within the UK.  With a range of different views to whether QE (quantitative easing) will go ahead in November, after Mervyn King announced that the BoE would have to think “long and hard” about pumping any more cash in to the economy, investors and experts alike are sceptical about how the GBP is going to hold up as we approach the end of 2012.

All in all GBP figures are holding up and been slowly increasing over the course of the week but with GDP data due out today this should show us what to expect of sterling rates in the near future. If you have any queries or currency requirements you should contact one of our experienced currency brokers today to discuss the options available to you. Please contact
0800 328 5884 to be put straight through to our dealing floor or alternatively Email Alistair on atr@currencies.co.uk

The best time to sell Euros in nearly 6 months! (Jonathan)

Improved confidence that the worst of Eurozone problems are now over have helped the euro make gains against the pound pushing the rate to a 6 month high. The question for everyone buying or selling Euros however is how long will this last? My expectation is that we will see the problems in the Eurozone resurface sooner rather than later and hence the rate will be limited in its ability to test the 1.21 and 1.20 rates.

The possibility of this happening could be triggered by tomorrow’s UK GDP data releases. The reason GBPEUR made some gains was Euro weakness as a result of a flash economic survey for Europe showing their economy (including Germany’s the largest economy in the Euro area) was faltering. Concerns raised earlier this week that the German economy may actually shrink towards the end of the year could be very bad news for the Euro.

Tomorrow’s UK GDP release is at 09.30 and we could easily see some movement of interest to anyone looking to make a currency transaction invloving the pound. GBPEUR will in my opinion actually get a boost and we could see the rate start to climb back towards 1.24 and 1.25.

If I was selling Euros I would be keen to make a move sooner rather than later to capitalise on the better rates. If I was buying Euros I may hold on to see what happens with the UK GDP data tomorrow.

The gamble on exchange rates is doing nothing so to be kept up to speed with what is happening please feel to speak with me directly!

Please email jmw@Currencies.co.uk or call 01494 787 478 quoting GBPEURO and asking for me Jonathan

GBPEUR rates hold steady (Steve Eakins)

Exchange rates have been rather flat this week as anticipation builds for UK GDP figures which are released on Thursday. It is expected to show an improvement for the UK’s outlook and as a result people buying another currency with the pound may be wise to wait for this release. Be aware of the risks involved though as if a figure other than the 0.6% expected is published expect consequences in the market which could easily move 0.5% within a few minutes.

GBPEUR rates are already sitting at a 4 month low so I would think most euro sellers would be looking at moving beforehand.

Other news that have developed over the last 48 hours is an interesting story that the newly formed ESM (European Stability Mechanism,) has been threatened. A member of the Irish parliament has taken it to the European courts claiming it to be illegal, even though it is being fast tracked in court and could start as soon as today, a result could easily be 3 months away or the start of 2013. Plus quite frankly the powers that be across Europe want this to move forward so I heavily expect a “legal loop.” This is something that may have legs to move markets in quite parts of the month, i.e. when there is little data being published and traders look at other factors to drive buy/sell demand.

Topics that euro buyers and euro sellers should watch out for this week include, European Stability Fun news, Bank of England announcements, UK GDP figures, European political commentary,  FED interest rate decision.

If you do need to buy foreign currency and are looking for the best exchange rates, make sure you contact us. We have been helping people move money for over 12 years and simply put we would not be in business if we could not save clients’ money. Either call me today on 01494-725353 or via email at hse@currencies.co.uk

Thank you,

Steve Eakins

HSE@currencies.co.uk

What if the exchange rate improves once I have booked a forward contract? (Jonathan)

A forward contract is one of the most important details anyone who has a currency requirement in the future can consider. Particularly in the kind of market we are in at present, i.e a declining one.

A forward contract allows you to book todays rate forward for up to two years. Once a deal is booked a deposit is payable (approximately 10% but it is negotiable) and you choose for how long you want the contract to run. Throughout the duration of this contract you are guaranteed 100% the rate you booked at. This offers peace of mind and security in a market that is known for being risky and full of surprises.

The downside is that if you book forward, you are unable to take advantage if the rate moves in your favour. For most clients this is a price worth paying.

More often than not you will find clients are more upset to discover they would have been better by booking forward, (i.e they do not book and end up watching the rate fall), then to discover they would have not been better booking forward (they book forward and the rate improves).

No one can tell you exactly what will happen on Exchange rates but we can provide detailed forecasts. Whenever I speak to a client with a longer term requirement the forward contract will be highlighted so that from an early stage in the process, the client knows they have options.

Whilst there were improvements in economic data last week for the UK, the main events in Europe weighed on GBPEUR performance. Further QE (Quantitative Easing – which weakens a currency, speak to me on jmw@Currencies.co.uk to find out more) looks set to weaken the pound and we have UK GDP data this week which could easily open the door to further losses.

If you have a currency requirement to consider why not get in touch to find out all of your options. The gamble is doing nothing in this kind of market. Please contact me Jonathan for further information jmw@Currencies.co.uk

Are we Witnessing the Calm Before the Storm? (Matthew Vassallo)

Thursday has seen a relatively flat day for the GBP/EUR currency pair, as the markets seem to be waiting for the next significant move either in Europe or the UK. The pound has struggled to make any inroads today, despite a drop in UK unemployment and today’s announcement that retail sale figures were up in September. Both of these would usually be viewed as a positive for Sterling but whilst our growth forecasts remain weak, it is difficult for the Pound to make any significant moves back towards the four year highs we witnessed in the summer.

Personally I think this is the calm before the storm, with a significant move likely sooner rather than later. This could be towards 1.22 if GBP continues to come under pressure, or back through 1.24 if economic problems in Europe deepen. I can’t imagine it will be long before Spain finally receive the bailout we are all expecting but how this will affect the eurozone and the GBP/EUR currency pair is difficult to say. In my opinion it is highly dependent on whether Spain can keep their borrowing costs down. Low interest will make the bailout repayments more manageable, whilst higher yields will do the opposite.

This market uncertainty can be difficult to digest, especially if you have an upcoming property purchase or sale and are looking to transfer funds but are worried that market movements will ultimately leave you short changed. Here at Foreign Currency Direct plc we have multiple contract types all tailored specifically towards our client’s needs. One of our most popular types is our forward contract, which allows you to lock in an exchange rate even if you do not have the full funds available. This is perfect for anyone looking to eliminate risk from the market but still take advantage of our award winning rates. If you would like more information please contact me directly at mtv@currencies.co.uk or on 01494 787 478.

GBPEUR rates hold steady at 6 month low (Steve Eakins)

Regular readers will know that I have recently mentioned the speculation behind the China data release this morning.  China GDP figures come out and confirmed the expectations that China’s growth has fallen over the last quarter. Down to a recent record of 7.4% which is a rate that anyone in the west would jump at, but over there is the lowest level for ages. (They have been over 8% for a majority of the last decade.)

Traditionally this data would case a run to safety and change currency markets with the dollar and pound strengthening. However in the
occasion this has not happened Why?

Overriding this data this week has been speculation that Spain will be taking a bailout or some sort of credit line. As a result of this being seen as positive, it makes Europe more likely to stay together and the euro has been strengthen. So GBPEUR rates are at a near 6 month low. Everyone seems to be gambling that it will be confirmed, so people have been selling safe havens, i.e. the dollar and buying the Euro.

GBPEUR is currently at a 6 month low as a result, but it also means that GBPUSD rates have actually climbed. Cable price is up at 1.6150 currently along with the GBPEUR will probably stay steady until the European conference finishing in Brussels tomorrow. At which point depending on whether there is or is not news of a credit line being offered to Spain, we will see GBPEUR and GBPUSD rates change.

This is going to be the big story for the rest of the week and your decision will be whether to more before at these levels or risk a bit with the hope it will climb further if the bailout is confirmed.

Personally, I can’t really tell, there is so much speculation out there for both out comes it makes it difficult to decide which is more probable….

So if you have a large amount of finances to move across the currency market you could limit your exposure and buy some before and some after this event, or move the full amount when you think the best time is. I personally if I did have to pick a side would limit risk and buy before as finding more money if the rates drop against you is always more painful.

Other data that we will be covering shortly is UK GDP figures that are released next week and UK Retail figures. However the prospect of a Spanish bailout is the biggest news story for at least 3 months so please don’t put you head in the sand as this is the event to make your decision on if you are trading within the next 6 weeks!

Let me know what you think and how you want to proceed as here we can assist providing a pro-active service with breaking news, while offering award winning exchange rates that will save you money compared to your current provider!

Kind regards,

Steve Eakins

hse@currencies.co.uk

Is this the end of the decline in GBPEUR Exchange Rates? (Jonathan)

GBPEUR has been tumbling over the course of the last 3 months leaving anyone buying Euros scratching their heads hoping for a magic return to those levels. The sell-off of July seems a distant memory and confidence in Europe has returned.

The current outlook now takes into account the fact we are widely expecting more Quantitative Easing by the Bank of England next month and it is highly likely GBPEUR rates will continue to deteriorate as a result. Anyone buying Euros would do well to take note of this at an early stage to prevent disappointment down the line.

The service we can provide to limit the potential losses anyone buying Euros may suffer is critical to manage your risk. Our service will ensure you do not suffer at the hands of falling exchange rates.

To speak with one of our team about all of your options and to be kept up to date with developments please feel free to make an enquiry on the right hand side of the page. Alternatively you can contact me Jonathan Watson on jmw@currencies.co.uk and I will be happy to run through all of your options and make sure you are aware of what is happening.

I look forward to hearing from you,

Jonathan

Euro falls on Growth outlook and Spanish aid uncertainty (Steve)

There is yet another round of meetings taking place this week with expectations that Greece and Spain will be the main topics for discussion. The Euro over the last 12 months has had a range of over 15 cents and you can see why as the political mess creates a high level of uncertainty for buyers and sellers of the euro.

The Spanish economy minister said this weekend that he felt “extremely comfortable” with his country’s ability to fund itself through the rest of the year. Spain is scheduled to sell more bonds this week and is something to watch if you do need to either buy or sell the euro. (They have an auction for 12 and 18 months tomorrow.)  Europe buyers at the moment are all betting on the chance that they will call out for a bailout, Spain says no even though a majority of the world expects them to.  Even though many comments that you will read suggests they have to that is not the case. Look at their 10 year bonds recently, which has become a good indicator to the confidence in a country, they have fallen to 5.63%, the lowest rate since April.

So if you are a buying euros or selling euros there are a few key dates to keep an eye out for this week.  The Spanish bond  auctions, the meeting in Europe at the end of the week, UK unemployment figures, Bank of England minutes and UK Retail figures.  It all adds up to a busy week and one that could easily move markets by over 2% or €2,500 for every £100,000 transferred.  Personally I  expect to see Euro sellers the winners this week as the price to buy euros this week will probably fall.  As a result if you are looking or need to buy soon you may wish to review your options and buy sooner rather than later.

Here we provide a pro-active service helping you try to buy at the best price, a service that we have won a number of awards for over the last 12 years that we have been helping people. If you want to make sure you are getting the best price, make sure you compare us to your current provider. Simple call us on the normal number or email me directly at hse@currencies.co.uk for more information.

In other news be aware that later this week we have the GDP figures released for China.  This is expected to show the lowest level for
year, even though it will be over 7% and a number that everyone in Europe and the Western world would love to call their own. This expected contraction will again put stock markets across the world under pressure and resulting currencies as global growth shrinks as a result.  The key currencies that will probably be affected are the ones with an economy based on exports. As a result if you are a buyer of AUD, NZD, ZAR then it seems sensible to wait for the news as rates could easily climb further.

Hopefully this all helps?

All the best,

Steve Eakins

hse@currencies.co.uk

Greek Unemployment Figures Can’t Halt EUR Momentum

The EUR momentum continued during Thursday’s trading, as pressure on GBP continues to grow. Fears over the UK economy have deepened, as recent reports suggest our economy has stagnated during Q3 of this year and our trade deficit has once again widened. This positive movement comes despite news that unemployment has hit a record high in Greece, reaching 25.1% of the population and a truly staggering figure.

The relevant health of the UK economy has been the subject of much debate for quite some time now. On one side you have the Prime Minister talking positively about our economy ‘slowly healing itself’ and the Bank of England governor Sir Mervyn King believing we will see economic growth towards the end of this year. On the other hand we seem to have the reality of the situation and these bullish statements do not seem to be aligned with the seemingly endless stream of poor economic data being released.

We have seen UK growth forecasts cut consistently and unfortuantely we can see a rather bleak picture being painted. I did feel the Pound was going to come under some pressure as I alluded to in recent blogs, as it seemed to be over-valued against the EUR. The levels we witnessed a couple of months ago, particularly against the EUR, were born out of sheer despair at the lack of growth opportunities and prospects for multiple debt ridden eurozone economies, rather than any real confidence in our own currency.

It now seems as if things have started to realign themselves some what, with the EUR making consistent headway against the Pound over the past couple of weeks. Today was the first time we have seen Sterling make any notable inroads against the single currency for some time, as rates spiked back up through 1.24. This comes despite the negative data mentioned above and it may be the markets have started to factor in a Spanish bailout that in my opinion is inevitable, regardless of comments made by the Spanish economic minister recently that they may not require one at all. I do believe that GBP/EUR rates are currently on a knife edge but my gut feeling is that we could see levels fall away towards 1.22 over the coming weeks, if the situation in Europe does not destabilize any further.

This market uncertainty can be difficult to digest, especially if you have an upcoming property purchase or sale and are looking to transfer funds but are worried that market movements will ultimately leave you short changed. Here at Foreign Currency Direct plc we have multiple contract types all tailored specifically towards our client’s needs. One of our most popular types is our forward contract, which allows you to lock in an exchange rate even if you do not have the full funds available. This is perfect for anyone looking to eliminate risk from the market but still take advantage of our award winning rates. If you would like more information please contact me directly at mtv@currencies.co.uk or on 01494 787 478.

Sterling Euro update – Will the Pound start to gain strength?

I have a huge amount of clients in the middle of buying a property overseas at present and the general thought on their minds is should I buy my currency now or shall I hold on until closer to completion?

Always a hard choice and one way to look at it is that you would never go forward with a house purchase in the U.K if you didn’t know how much it was going to cost and essentially that is exactly what you are doing if you have agreed on a foreign property yet you have not secured your exchange rate – It is indeed a pure gamble as the markets unfortunately do not move on hope.

There are a few options available for you to protect yourself from a nasty surprise should the market suddenly shift, I will list them below:

Forward contract – This is where you can lock into a rate of exchange for anything up to two years in advance, paying just a small deposit to hold the rate and then paying the balance on or before the date that has been agreed. This contract is great if the rates are above budget and you want to take advantage of them without having full availability of funds.

Limit order – If there is a specific rate you want to achieve then a limit order is for you, there is no cost to place the order and it can be canceled or amended at any point in time as long as the order has not been filled. The order stays in the market 24 hours a day 7 days a week so if you are a busy individual and do not have time to keep watching the exchange rates than this may be ideal for you.

Stop loss order – The opposite to a limit order if there is a rate you want no worse than then this is for you, If rates should suddenly drop away then as soon as the market hits your lower level your currency is bought out meaning you are protected from going over budget.

Hedge your bets – Why book out all your currency in one go, many of my clients split the risk by carrying out their transactions in chunks, meaning if rates should drop away they are not as exposed and if rates should spike they still have the ability to take advantage with a proportion of their money.

How will the Pound perform in the near term?

Of course we can never be sure exactly what is around the corner but after some positive news for the U.K yesterday I think the Pound could be on to have a good few weeks against the majority of major currencies, the NIESR (National Institute of Social and Economic Research) actually believe that our economy grew by 0.8% in the third quarter of 2012. 0% or above would technically mean the U.K is back out of recession and although I have no doubt that we still have a huge amount of problems to resolve in the U.K this can only be seen as a positive thing for the Pound.

I generally have a good feeling about economic data this month and think the Pound could have a solid performance, however be aware that there is a lot going on with other economies most notably within Europe so even with good data for the U.K this still could switch our fortunes back around.

For more information on getting the very best exchange rates plus a forecast unique to your particular requirements please feel free to make contact directly with me Daniel Wright djw@currencies.co.uk or call  01494 787 478 asking for me directly. I welcome any enquiries for  clients looking for assistance on their transfers. I look forward to hearing from you and hopefully enlightening you! Thank you.

 

Angela Merkel Goes to Greece (Jonathan)

Angela Merkel the German Chancellor’s visit today to Greece is capturing all the headlines. She is deeply unpopular in Greece and is seen as the cause in many respects of the crisis. A wide range of protests in Athens at her visit is symbolic of this. It is unlikely we will see any particular changes in economic policy as a result of this visit but there is plenty of opportunity for something to occur which captures the headlines.

GBPEUR took a bit of a nose dive yesterday as the UK Chancellor signalled more cuts are on the way and it became clear following IMF estimates the UK’s economic recovery was still on the ropes. The launch in Europe of the ESM (European Stability Mechanism) which will act as a backstop to aid indebted nations also helped the Euro find favour.

The big events I am highlighting to clients looking to trade at present is next Wednesday’s Bank of England Minutes and the UK GDP estimate for Q3. Currently at some of the worst levels for buying Euros in the last couple of months, we are seeing a great opportunity for Euro sellers. If I was selling Euros I would be preparing to move sooner rather than later in case current levels fade.

It would be impossible to run through every piece of important information for anyone interested in the GBPEUR pairing in one post so if you are considering any GBPEUR trades whether buying or selling Euros, I encourage you to get in touch. I am a  currency specialist working for one of the UK’s top currency brokerages and can assist not only with a commercial rate of exchange but also all the information you will need to make an informed decision.

You can reach me directly on 01494 787 478 or email jmw@currencies.co.uk, please ask to speak with me Jonathan and quote GBPEURO Forecast.

Thank you,

What is Really Going on with the Spanish Economy?

The EUR has made further gains against GBP during Friday’s trading as Spain’s minister of the economy claimed that the country does ‘not need a bailout at all’. This could be seen as a foolhardy message, or one of defiance depending on you talk to but if true the news could certainly bring about some stability within the eurozone and help the euro solidify its recent gains against Sterling.

This news follows yesterdays decision by the Bank of England not to cut interest rates or extend their Quantitative Easing programme, a bold move considering the fragility of  the UK economy. With further reports suggesting that our economy has once again stagnated during Q3 of this year, I would be surprised if we do not see a further monetary injection before the end of the year.

The EUR has been making headway since the start of the week, with rates moving towards 1.24 and providing EUR sellers with an additional £2,500 on a 200,000 EUR/GBP, compared to the same transfer on Monday morning. This is a key indicator as to why it is so important to have a currency broker actively working with you to ensure you are maximize each and every transfer, no matter how large or small.

Here at Foreign Currency Direct plc we provide our clients with award winning service and rates of exchange, as well as a variety of contract types all tailored speciffically towards their needs. If you have an upcoming currency transfer and would like to be kept up to date with all the latest market

 

Pound – Euro exchange rates today following ECB meeting

Sterling – Euro today
A busy day for GBP/EUR today as interest rate decisions were released from both the Bank of England and European Central Bank, along with a press conference from head of the ECB Mario Draghi.

Neither rate decision really threw up any huge surprises however the press conference over the course of the afternoon did lead to quite a jittery market. Draghi once again reconfirmed his statement from last month that he feels the Euro is irreversible, and this coupled with the news that Spanish bonds were still remaining fairly steady ensured that the Euro is still holding firm against the Pound.

With little data out today for the U.K and indeed the Eurozone I would expect rates to remain fairly range bound of the course of today unless we hear of any progression with the almost certain pending Spanish bailout. If you look back at the week for both currencies then personally I feel the Euro has nudged it so might strengthen again slightly tomorrow.

If you have a currency requirement and wish to get the best rate of exchange for it then do feel free to fill in the enquiry form on the right hand side of this page and I shall be happy to help you.

Forecast Euro GBP – Trading Ranges are narrowing (Jonathan)

On this blog we present market knowledge and information which will help assist anyone making a currency exchange with their decision making process.

Lately the ranges the euro has been trading in have narrowed to the point where we feel any particularly sharp weakness would occur nly from something majorly unexpected. The current trend on GBPEUR and the range bound nature makes it unlikely we will see any particularly strong movement either way. I personally think the market would lean closer to the 1.20 level and that we will see 1.20 before 1.30.

It is however in these circumstances where we often expect no major movement that investors and clients alike can be caught out! A surprise move by the Bank of England or indeed the European Central Bank could easily swing the market out of the current levels.

For a full explanation of all of your options and an explanation on how we can save you up to 4% on your money transfers please get in touch with me Jonathan on 01494 787 478 or email jmw@Currencies.co.uk

What will drive GBPEUR Exchange rates this week?

The start of the month is always a busy time on exchange rates and you often see much of the movement for the month take place in the first week. This is because there are a wide range of economic events and data releases which can give rise to changes in sentiment which is ultimately reflected in exchange rates.

The first three days see PMI surveys. PMI stands for Purchasing Managers Index and it is a survey of purchasing managaers and their attitudes to their business. By asking the same people simple yes / no questions monthly, you get a get a picture on how their relative businesses are faring. Questions include ‘Are your orders up this month compared to last month’ and ‘Do you feel more positive about business conditions than last month’. Simple yes / no answers allow a picture to be built up over time on how that sector is performing relatively speaking.

These releases affect the short term daily movements and are indicative of trends in the economy. We also have interest rate decisions which are hugely important and can greatly affect trends on a currency.

This week there is the possibility the Bank of England could increase its QE programme and the chance of an interest rate cut in the Eurozone. If you are unaware of the effects of such decisions please feel free to contact me directly for a full explanation as an understanding of what happens and drives the markets is key to getting the best exchange rates.

If you are considering any currency trasnsactions involving GBPEUR this week could be key so why not speak to a specialist to make sure you don’t lose out. My name is Jonathan and you can reach me directly on jmw@currencies.co.uk or call 01494 787 478.

In my role as a specialist currency broker I have been assisting private and corporate clients moving money internationally for many years. As well as the blogs I have spoken at Emigration Seminars and been featured in numerous online and print publications.  I look forward to hearing from you, thank you.