Monthly Archives: October 2014

GBP/EUR Rates Remain Close to 2 Year High (Matthew Vassallo)

GBP/EUR rates continued to float just above 1.27 on the exchange during Friday morning’s trading, remaining close to a 2 year high. This position is particularly attractive for EUR buyers,  considering the run of inconsistent economic data we have seen for the UK recently.

With inflation now at a five year low and with UK growth forecasts being cut for 2015, I would have expected the EUR to strengthen from its current position. For that reason I would be temtpted around the current levels, as I feel a move back towards 1.25 is still more likely than a move up towards 1.30.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

GBPEUR levels flat ready for European Inflation and Unemployment

GBPEUR rates have stayed steady this week so far as we enter the end of the month, when economic data is light. Rates will surly pick up and the volatility will return over the next few days however so if you have a currency transfer to make please make sure you are ready.  This means making your broker aware of your situation so that can be your eyes and ears in the market. Here we offer that pro-active service helping people make a more educated decision and assist with timing their trades. So for example highlighting days and events in the future which could provide a market movement or simply breaking radio silence when the market spikes.

This week watch out for data on Friday as the Europeans start their new monthly cycle of economic data. This will include Inflation and Unemployment data.  It will be the first time that we see results from the banks policy change early last month when they lowered interest rates to a record low.  Should be interesting reading and I certainly think it will change prices in the market.  If you would like breaking news when this is released please feel free to register your interest by emailing me at hse@currencies.co.uk

UK GDP Rises by 0.7% (Matthew Vassallo)

GBP/EUR rates have remained fairly flat during Friday morning’s trading, with small gains for the Pound following the release of the latest UK Gross Domestic Product (GDP) figures.

The reading of 0.7% growth came out as expected but showed a drop from the 0.9% growth recorded during the previous quarter. The UK recovery has stuttered somewhat over the past month, as highlighted by poor UK Retail Sales figures released yesterday. This added to already growing concerns over the negative knock on effect, being created by the economic slowdown inside the Eurozone.

Personally I feel it will be difficult for GBP to regain the momentum witnessed recently and I anticipate GBP/EUR to head back towards 1.25 before long.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with you current provider, then please feel free to get in touch with me directly on mtv@currencies.co.uk

Bank of Engalnd Minutes Keep the Markets Guessing (Matthew Vassallo)

GBP had lost position this morning against most of the major currencies, with GBP/EUR moving back towards 1.26 on the exchange. This move came about following the release of the latest Bank of England (BoE) minutes yesterday morning, which indicated no further members had voted for a UK interest rate hike. The vote remained at 7-2 but with the recent deterioration of UK economic conditions, including inflation levels falling to a record 5 year low recently, the Pound took a hit in the markets.

Despite a recovery this afternoon this has added to a growing negative outlook on the UK economic recovery and with our growth forecasts now cut 2015, we may find that Sterling struggles to build much momentum in the short-term.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Bank Of England Move Sterling Exchange Rates This Morning (Colm Gilhooly)

As expected there was no change in the Bank of England voting pattern this morning and sterling dropped off after yesterday’s gains.  The pound has slowly been clawing back ground versus the Euro since 9.30 but it suggests the UK is still quite a way off raising interest rates, a sentiment that reinforces the comments from the Chief Economist for the Bank of England the other day which said the UK economic outlook wasn’t quite as rosy as the forecasts only 3 months ago.

To this end I think any big improvement on GBP EUR exchange rates will be dependent on weak data in Europe from the inflation and jobs figures next week, rather than any surge for the UK.  Keep an eye on tomorrow morning’s UK retail data and GDP revisions on Friday just in case, but if you do need to make a currency transfer and want to get the best exchange rate, then feel free to email Colm at cmg@currencies.co.uk and I would be happy to explain how our services work.

GBPEUR Calm before another fall this week?

Sterling’s value against the euro has managed to hold steady for the last few days after a very aggressive fall this month. GBPEUR rates have fallen by as much as 4 cents and was one of the most aggressive slides in value that I have seen over the last 2 years.  Levels currently still stand high and if you ignore the last 3 weeks you are still buying the single currency at the best levels we have seen for over 18 months. This currently I believe represents a good buying opportunity for anyone looking at buying euros either this week or this month as I expect levels to fall further.  Some of the largest and most powerful economic reports from the UK economy is released at the end of this week and both are expected to show a fall. This includes key RETAIL figures on Thursday and GDP figures on Friday.  If I was looking to buy the euro I would certainly be buying beforehand however sellers may wish to hold on for a better level.

Here we assist in many ways, not only by giving our clients access to award winning exchange rates, therefore saving them money, but also with keeping our clients aware of market movement. His traditionally includes rate alerts, spike notifications and weekly forecasts. So informing them of key days and times when the market is expected to change and the potential outcomes. This is all aimed at assisting them make an educated decision on when to trade and therefore at a better level at a cheaper price.

If you would like to know more about any of the above or speak to myself personally about your own situation, please email me directly at hse@currencies.co.uk

GBP/EUR Forecast (Matthew Vassallo)

GBP/EUR rates have dipped during Tuesday morning’s trading, after moving back above 1.26 yesterday. With a host of key data releases for the UK this week it is likely we will see further volatility on GBP/EUR before the week is out.

Key data to watch out for includes tomorrow’s Bank of England (BoE) minutes, which will could give us an indication of when we are likely to see an interest rate hike in the UK. Thursday is likely to be a busy day on the currency markets with the latest set of UK Retail Sales figures. We also have Eurozone PMI data and Consumer Confidence figures, all of which are key market movers.

Friday is also a key day with UK Gross Domestic Product (GDP) figures and with an anticipated drop month on month from 0.9% to 0.7%, we may find GBP struggles to make any serious inroads in the EUR as we head into the weekend.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movement, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Quiet Day for the Pound (Tom Holian)

Sterling Euro exchange rates have remained at 1.26 during today’s trading session with a distinct lack of data out today.

Public Sector Net Borrowing is due out at 930am tomorrow morning which could see a bit more movement for the currency pair.

One of the reasons for Sterling improving at the end of last week was down to the increased worries about Eurozone inflation which is running extremely low at 0.3%.

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

 

 

GBPEUR levels expected to fall further

GBPEUR levels are ending the week a further 2 cents lower than where they started and near to 4 cents lower than the start of the month. This makes a HUGE difference on the cost of buying anything from stock to property in Europe and anyone in that situation should be very wary of future falls.  I personally think that we could see levels fall further this month as data from the UK continues to pain a poor picture. Plus with concerns in Europe international investment in the UK is falling having an impact on its demand and value. Plus on top of that be wary of the Ebola outbreak and the EU court case, both are starting to have an impact on currency swings.

 

Saying the above however timing a trade will remain important in getting the best price. Here we have a number of tools including RATE ALERTS and SPIKE NOTIFICATIONS which are aimed at assisting people looking at maximising their transfers. Here we have won a number of awards for both our personal, proactive service and the rates of exchange we have access to so I am sure we will be able to help. Simply put if that was not the case we simply would not be in business. So if you are a regular or a new reader who has not got in contact yet, do so! You can contact myself, Steve Eakins, via my email address at hse@currencies.co.uk Simply get in contact and I can quickly discuss your options, the days to be wary of and the live prices.

Look forward to hearing from you.

Steve

Sterling Makes Slight Recovery After Heavy Losses In The Last Few Days (Colm Gilhooly)

Sterling has managed to rally after several days of losses due to weak UK data and fears that the global economy may slide back towards recession.  Yesterday sterling was 4 cents lower versus the Euro compared with a couple of weeks ago.  Very low inflation figures have changed market expectations on UK interest rates in that the Bank of England are not expected to raise rates until Summer 2015.

Whilst unemployment has dropped below 2 million in the UK for the first time since 2008, and average earnings rose, they rose by lower than the rate of inflation meaning prices are rising faster than peoples earnings – again another big potential problem for the UK.  Next week we have the Bank of England Minutes and GDP revisions, so these will need to be a little more bullish if the pound is to claw back significant ground.

If you need to make a currency transfer and want to get the best exchange rate, then feel free to email Colm at cmg@currencies.co.uk and I would be happy to explain how our services work.

Pound Sterling Forecast (Tom Holian)

Eurozone inflation figures came in his morning slightly lower than expected which has helped Sterling pick up against the Euro. Later this morning UK inflation figures are due which is likely to impact upon GBPEUR exchange rates.

UK inflation is expected to come out at 1.4% so anything higher could see Sterling strength as it puts a bit more pressure on the Bank of England to look at raising interest rates sooner than maybe expected. The target is for 2% and if the data starts to get near the figure then we would expect to see Sterling gaining.

EU industrial production figures are due for release at 10am and with the Eurozone experiencing big problems with growth and having had interest rates cut recently if the data is weak then expect to see Sterling rise against the single currency.

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

 

 

Sterling Has Late Rally (Colm Gilhooly)

With no major news for the UK today and no surprises from the Bank of England, sterling saw a late rally versus the Euro climbing back up to the 1.27 mid rate.  With lots of EU and UK data next week, including inflation and jobs figures, it will be interesting to see if the pound can push on up or whether sterling has lost its sheen.

If you need to make a currency transfer and want to get the best exchange rate, then feel free to email Colm at cmg@currencies.co.uk and I would be more than happy to explain how our services work.

Bank of England Interest Rate Decision (Tom Holian)

The Bank of England has decided to keep interest rates on hold this month and QE the same as the UK economy continues to perform very well.

Revised UK GDP out last week confirmed growth of 3.2% and the NIESR also confirmed growth is up on the quarter. This has seen the Pound strengthen against the Euro now trading above 1.27.

With Mario Draghi speaking this afternoon we could see further volatility for the currency pair.

UK trade balance figures are due in the morning and if the data is positive we could see further Sterling strength.

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

 

 

Sterling Euro exchange rate lower in today’s trading

It has been rumoured that a UK interest rate rise could be pushed back to June or July. For those that are not aware, a hike in interest rates is generally seen as positive for the currency concerned and a cut in rates is generally negative, with the markets moving on speculation as well as fact this potentially is  why we have seen this move in anticipation of the delayed rise. This could be a reason for the decrease in GBP/EUR. There is also the possibility of profit taking. Individuals ” cashing out ” after the highs from the Scottish referendum.

Do bear in mind however the GBP/EUR is still very inviting, close to a two and a half year high.

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

GBP/EUR Rates Flat During Wednesday Morning Trading (Matthew Vassallo)

GBP/EUR rates have remained very flat during Wednesday morning trading and with little data of note out until tomorrow, I anticipate this to remain the case for the rest of today’s trading. Sterling’s recent run may well have run its course, with the single currency moving away from the fresh 2 year lows witnessed last week. GBP has moved back under 1.27 at today’s low and all eyes will now switch to tomorrow’s Bank of England (BoE) interest rate decision and monetary policy statement.

Both of these are considered key economic data releases and if we get any indication that the BoE may raise rates sooner than expected we may find Sterling momentum increases again. However, I personally feel the BoE will be keen to see Sterling’s value soften so we may find rates go the other way if BoE governor Mark Carney decides to talk down the UK recovery and chance of a rise in our base rate before summer 2015.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

GBPEUR enter downward trend on interest rate change forecasts

GBPEUR rates have started to fall this week which is a trend I expect to establish itself over the next fortnight. The reason for this change is that financial indicators are making the market believe that the bank of England is now unlikely to change interest rates until the middle of the summer next year, a lot further back that initially expected. This change is making investment drop along with the demand and therefore the value of Sterling.  There is the potential for some uplift however this afternoon when GDP figures are released for the UK but generally I expect this to be the highest level seen for the week as the negative trend continues.

For more information on market movement, prices and forecasts feel free to get in contact with myself STEVE EAKINS via email at hse@currencies.co.uk

Where Next for GBP/EUR Exchange Rates? (Matthew Vassallo)

GBP/EUR rates have dipped back below 1.28 on the exchange, following a volatile couple of weeks for the currency pair. The Pound had managed to rise to a fresh two year high earlier this week and at one point it did even seem as though Sterling may put pressure on 1.26, before the EUR found support and started to fight back.

It does seem as if Sterling recent run may now be tailing off and it is likely we saw an overcorrection following the Scottish referendum results and the market’s reaction to the European Central Bank (ECB) decision, to cut their base interest rate to a record low of 0.05%.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Will the ECB introduce more QE tomorrow? (Mike Vaughan)

Sterling has remained relatively flat against the Euro today but tomorrow could be a different story. At 12:45 the European Central Bank will release its latest interest rate decision, however it is not this to keep an eye on it is whether the central bank decides to increase Quantitative Easing (QE). With interest rates already at 0.05% the bank has little room for maneuver and with the Euro Zone still suffering from deflationary pressures they may decide to print more money in the form of QE. Should they do this then I would look for GBP/EUR to push towards the 1.30 level. Anyone with an interest in the Euro should also look out for the monetary policy statement held by Mario Draghi at 13.30

Should you have a foreign exchange transfer to arrange (not including cash) and you would like more information on the currency service we provide then please email Mike at mgv@currencies.co.uk

Will The ECB Act Tomorrow And Does This Mean The Euro Will Drop Further? (Colm Gilhooly)

The Euro has been under a huge amount of pressure of late as economic data continues to disappoint.  Indeed inflation figures the other day were once again on the low side and this has been one of the main concerns for the ECB as there is a risk that the low levels could turn negative and become a deflationary problem where prices keep dropping.  This has resulted in the ECB cutting their interest rate to a record low of 0.05% and indicate that they would be prepared to embark on some form of asset purchase program much like the Bank of England and Federal Reserve did with their respective Quantitative Easing programs.

 
All of this has caused investors to move away from the single currency hence it’s drop in value over the last few months.  The next ECB announcement is tomorrow and if they do announce the commencement of asset purchases on any scale we could see the Euro plunge further, although markets have already been part-pricing in this possibility.  This is why despite the UK losing its AAA credit rating from Moodys, and seeing Manufacturing PMI drop, the pound is still looking very good versus the Euro.

There is a risk though that if the ECB take no action and adopt a wait and see stance (maybe the recent interest rate cuts and drop in the value of the Euro could stimulate exports and growth), then the Euro could actually gain some ground.  The press conference will be all important so anyone buying or selling euros should be well prepared to move quickly.  If you would like help with a currency transfer and how to get the best exchange rate, then feel free to email Colm at cmg@currencies.co.uk and I would be happy to explain how our services work.