Monthly Archives: December 2014

How weak will the Euro be in 2015?

Just how will investors and markets react to the Euro in 2015? It would appear likely the Euro is bound to suffer as Greek uncertainty and Quantitative Easing causes investors to think twice about holding Euros. Against its most heavily traded peers the US and sterling investors will have to weigh up  the prospect of the Bank of England and the Fed raising interest rates whilst the ECB (European Central Bank) is printing money.

With the current uncertainty surrounding the Greek snap elections it seems that the Euro is bound to be on the backfoot in 2015. If you need to buy or sell Euros in 2015 making some careful plans now could save you money in the long run. We offer a range of contract options to ‘fix’ rates for future settlement. Many businesses and overseas property investors who expect to be paid in Euros for 2015 are now fixing levels to remove the risk form the market.

Historically GBPEUR exchange rates are still at a very good level for selling euros for the pound. That statement might be a little bitter for some Euro sellers to swallow if they have been budgeting on rates of 1.15-1.25 but the reality is those kind of levels have only been available due to GBP weakness. The pound has made a significant recovery in 2014 as the UK’s economic position improves and those dark days of recession have passed.

The UK is outperforming the Eurozone and it seems reasonable to expect in the next couple of years rate will return to more ‘normal’ historical levels like 1.30-1.50. This will happen gradually over time, exchange rates do not move in one direction. However if you are holding on to Euros in anticipation of a significant improvement you could end up disappointed.

For more information on what is driving your exchange rate and what you can expect in the future please contact me Jonathan on jmw@currencies.co.uk

Sterling Euro close to 2 year high (Tom Holian)

Sterling Euro exchange rates have got close to a 2 year high this week and have had a strong end following the best UK Retail Sales data for over ten years.

Sterling Euro has hit 1.2770 earlier this afternoon and with little data out on Monday we could see this rally continue to hit 1.28.

Tuesday sees the release of UK GDP figures for the third quarter.

The figures will be revised and if they are marked down we could see Sterling fall marginally against the single currency so it may be worth getting something organised early in the week if you need to buy Euros.

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

 

 

 

GBP/EUR Rates Hit 1.2770! (Matthew Vassallo)

GBP/EUR rates hit 1.2770 at today’s high, following an aggressive spike for the Pound yesterday. Sterling gained momentum early during Thursday’s trading following better than expected UK Retail Sales figures and this was the catalyst for yesterday’s spike.

With Sterling now getting close to a two year high against the single currency again, many investors will be hoping this positive momentum continues and pushed the Pound up towards 1.30 on the exchange. Personally I still feel we need to see another shift in market conditions in order for GBP/EUR to breach 1.30 and the EUR has found support around this level in the past.

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 above 1.27

Well daily the GBPEUR rate seems to be improving for Euro buyers. The forecast for the immediate future looks rather promising but if you need to buy Euros moving sooner might not be a bad option to capitalise on the excellent rates on offer. If you are buying or selling Euros and wish to check you are really getting the best exchange rate why not speak to one of us to find out if you really are getting the best deal.

We offer various options on buying currency for you including a forward contract and Limit order to help manage your risk and exposure to the most notably volatile markets in the world. For more information at no cost or obligation why not speak with me to find out exactly how we can help? Please email jmw@currencies.co.uk to get the latest news.

Markets Wait on Bank of England Minutes and Eurozone CPI

Recovering from a period in the 1.25s, the market has opened today in the early 1.26s. However, this may be short-lived as the Eurozone Central Bank release CPI (Consumer Price Index) figures at 10:00 this morning. The ECB target (as per most major economies) is 2% with a predicted figure of 0.7% expected. Should we see the rate move slightly towards the 2% target, you could see a good window of opportunity for Euro sellers. Should the rate move further from the 2% mark, i.e. less than the 0.7% figure expected, Euro buyers may have a good opportunity.

The CPI Data is followed by UK Bank of England minutes at lunchtime, with no change expected to the current 7-2 split in favour of no interest rate hike. Should we see a change from the current vote stances, we’d see sterling strength for a move in favour of a rate hike, but weakness if the vote went further against.

If you have an exchange requirement, feel free to contact me direct to the trading floor 01494 787 478 – AJB@currencies.co.uk

GBP/EUR Rates Remain Volatile (Matthew Vassallo)

It’s been another volatile day for GBP/EUR exchange rates, following a host of economic data releases for both the Eurozone & the UK. Following Bank of England (BoE) governor Mark Carney’s speech this morning the EUR strengthened significantly against Sterling, with the pair dropping to 1.2487 at today’s low. The Pound has managed to claw ground back during afternoon’s trading and is now putting pressure back on 1.26.

Today’s movement is a continuation of the recent volatility we’ve seen on the currency pair, with the markets unsure of which direction to take under the current economic climate.  Whilst the UK recovery is ahead of the Eurozone’s. the link between our economies means there is very much a grey area in terms of where GBP/EUR rates will head next.

Personally I feel the EUR will continue to find support in the higher 1.20’s but any sustained move back below 1.25 will require an improvement in both economic conditions inside the Eurozone and a drop off in the UK recovery.

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

GBP/EUR Rates Drop to 1.26 (Matthew Vassallo)

GBP/EUR rates have dipped during Friday’s trading, following a volatile week for the currency pair. The key topic at present is how the European Central Bank (ECB) will deal with the on-going economic difficulties inside the Eurozone. With unemployment levels remaining high across the region and a very real threat of deflation in 2015, the ECB will soon have no choice but to act.

ECB president Mario Draghi is yet to instigate a full round of aggressive Quantitative Easing (QE), instead choosing the option of buying government issued medium and long-term bonds. Whilst this is a form of QE many believe it is not enough to counter the deep fiscal issues faced inside the Eurozone. I feel that the ECB will soon have no choice but to act and once they do we could see the EUR weaken as a result, with investors viewing it as a negative for the Eurozone economy.

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 at mtv@currencies.co.uk

Pound Euro Exchange Rate Forecast (Andrew Bromley)

GBP EUR has open within a tight trading range so far today, with just 30 ‘pips’ between day high and low. I could have been writing about rates north of 1.27 today, however yesterday’s manufacturing and production figures came in a lot lower than forecasted. Later this week a whole host of Eurozone economies release their Consumer Price Index (CPI or Inflation) which will be keenly observed by investors. Inflation is a vital data set indicating how much control a national bank has on its economy. Generally speaking the target across the board is a figure of 2%, which indicates goods go up in value, but not too much too quickly! Should we see the Eurozone economies release poor CPI figures across Thursday and Friday, then there is a good chance that we will see Euro weakness. That being the case I’d be inclined to SELL Euros sooner rather than later. I’d also look to take advantage of any rates available above 1.27…

If you have an exchange requirement, be it buying or selling Euros, please feel free to drop me a line direct to the trading floor – 01494 787 478. Alternatively, email me AJB@currencies.co.uk

GBP/EUR Rates Drop Following Poor UK Construction Data (Matthew Vassallo)

GBP/EUR rates have dipped during Tuesday’s trading, following poor UK Construction & Production data released this morning. This caused the pair to drop back below 1.27 on the exchange, with the EUR hitting 1.2609 at today’s low. This move is typical of recent spikes, with the Pound gathering

The other key economic data release for the UK was the latest NIESR (National Institution of Economic & Social Research) UK Gross Domestic Product (GDP) estimate. The NIESR are a respected institution, so their predictions are always taken seriously. The figure released of 0.7% growth was in line with other predictions, so the Pound did not manage to gather any momentum following this announcement.

Looking ahead to the rest of the trading week and it is Thursday’s European Central Bank (ECB) monthly report that is likely to dominate headlines, as this will give us a key insight into the latest economic conditions inside the Eurozone. There is also Eurozone employment data out on Friday, which is also worth monitoring.

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 and how to trade wisely

GBEUR levels have fallen today as UK data has missed expectation. There is however some hope on the horizon as we see UK GDP figures this afternoon which could see sterling’s value recover against most majors. Against the Euro I expect Sterling to hold steady generally this week but against the USD I expect rates to end the week lower than were we are currently. US data on Thursday and Friday is expected to show a climb giving the USD some strength.

 

Here we help people in a number of ways; from the basis saving seen on the exchange rates we buy to helping time transfers or mitigate risk of events outside of trading hours. It is a service that we have been providing for over 15 years now and simply put if we could not save our clients’ money we would not be in business. The first step is to get an account open here with us if you have not already, this costs nothing and is simply a legal requirement to make sure that you are not an international drug lord or connected to the Italian Mafia. Thereafter you are ready to go when needed, we can then help you with the market movement expected within your ‘trading window’.

 

To get the ball rolling or if you would like more information on the timing of a trade contact myself, Steve Eakins, via email at hse@currencies.co.uk

GBP EUR Exchange Rate Forecast

Sterling has been incredibly busy in the last 48 hours, following the UKs Autumn Statement and then the ECB monthly meeting. The Pound was expected to weaken during George Osbornes address due to the increased levels of public spending required to fulfill his promises. As Osborne released an election linked statement (targeting new voters with popular policies) which was taken very well, Sterling midmarket spiked to the high 1.27 region for several trading hours.

The Euro had been expected to weaken as the ECB governor Mario Draghi had been expected to release plans including further Quantitative Easing to stimulate the ECB economies. However in his address Draghi indicated that his QE plans would not kick in to place until the latter end of Quarter 1. This allowed the Euro to regain it losses and opened trading today back in 1.26 region.

If you have an exchange that you are not sure of how to time – feel free to drop me a line – 01494 787 478 / AJB@currencies.co.uk

Sterlings value SPIKE

A spike is when the markets move very quickly to price in new information, it attracts day traders who artificially increase demand and push levels high. A spike is normally the best time to buy but it is always a balancing act as at some point these traders will sell off their position, taking profit and therefore we see rates drop back down. I would expect we will see this through the course of this morning meaning anyone looking to buy funds should potentially be looking to move sooner rather than later.

The other thing to consider is the European Central Bank meeting which takes place this afternoon. The Bank of England is also meeting but I expect that to be a non-event, all eyes are on Europe. They are expected to give further clarity about their potential expansion of their QE program to include government bonds. This is a massive event if confirmed and will have a lasting impact on GBPEUR rates for months, something that if you are in the market you should be keeping a very close eye on.

For a full break down of today’s market and forward forecasts please get in contact, you can telephone in on the normal number or for a personal approach feel free to contact myself directly through email at hse@currencies.co.uk

How will QE affect the Euros?

Quantitative Easing by the European Central Bank might severely devalue the Euro but significant Euro weakness is well priced into current exchange rates. On balance I would feel that looking at how QE has aeffected other currencies the future does not look bright for the Euro. The pound has risen today further against a weaker Euro as investors take stock of QE on the cards and impressive UK economic data.

For more information on when to buy currency at the best rates of exchange please contact me Jonathan on jmw@currencies.co.uk

GBP/EUR Rates Spike Back Through 1.27 (Matthew Vassallo)

It’s been a productive day for Sterling, with the Pound spiking back up against the EUR. GBP/EUR rates are once again trading above 1.27, providing some of the best buying opportunities of the past 2 years.

Today’s headlines were dominated by UK Chancellor George Osborne’s Autumn Statement and he was very bullish regarding the UK economic recovery and our growth forecasts for 2015 and beyond. This seems to have brought new found confidence to investors, with the Pound spiking by over a cent at today’s high. Whilst I do expect the EUR to find support under 1.28, it is clear that the feel good factor certainly lies with the UK and on-going economic difficulties inside the Eurozone are likely to handicap EUR exchange rates 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

Sterling Euro waits for Thursday (Tom Holian)

Sterling Euro exchange rates have remained in a tight range this week as markets wait with bated breath to see what will happen with both the Bank of England and the European Central Bank on Thursday.

Interest rates are up for review both in the UK and the Eurozone and although I don’t foresee any changes this week I think the ECB press conference will provide us with a lot of volatility for GBPEUR exchange rates.

UK manufacturing showed an improvement yesterday which helped push Sterling vs Euro above 1.26.

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

 

 

When to BUY Euros? Best Rates of Exchange (Andrew Bromley)

Sterling has opened this mornings trading session with strength – at it’s high pushing the 1.2650 mark. UK ‘PMI’ Manufacturing data is due out at 09:30 this morning and is expected to show a slight reduction from last month (61.0 down from 61.4). We may see Sterling peg back, maybe just under the 1.26 mark.

Tomorrow the UK and primary Eurozone economies release their ‘Market Manufacturing’ data and retail sales figures. UK Markit data is forecasted to improve slightly, as is Eurozone retail sales. The key market mover therefore looks like it could be George Osborne’s Autumn Forecast Statement, potentially forecasting an increase to public spending in the region of £75Bn per year. I’d be inclined to BUY Euros prior to the address at 09:30 Wednesday AM.

It is vital to have professional eyes and ears on the markets if you have a currency requirement. Please feel free to drop me a line should you wish to discuss; the direct line to the trading floor is 01494 787 478. Alternatively, email me AJB@currencies.co.uk