Monthly Archives: October 2016

Sterling Jumps Higher on Positve Potential at Bank of England Meeting (James Lovick)

The pound has rallied very well today against most of the major currencies including the Euro. GBP EUR has gained over 0.75% throughout the course of the day. This is welcome news considering the pound suffered losses last week despite better than expected Gross Domestic Product figures at the end of the week and the news that Nissan was to invest in Britain at the Sunderland plant.

There are a number of important data releases for the UK this week including the Purchasing Managers Index surveys for the construction, manufacturing and services sectors.

Most importantly however the bank of England meeting is on Thursday. Mark Carney had suggested last week that he may not continue past five years at the central bank. However the latest news would suggest he will look to serve the full 8 year term. In my view this is likely to be stated on Thursday.

He is also likely to be more upbeat about the economy having previously given very negative commentary about the potential implications of Brexit, something he has received fierce criticism for. A more upbeat commentary on Thursday could see the pound rally a little higher and may see a good spike.

 Clients who are buying Euros continue to feel the pinch and the outlook is not set to get much better in the short term. This Thursday could see some improvement though and present buyers with a good short term opportunity.

If you have an upcoming Euro currency requirement either buying or selling 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 on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Economic information that will impact GBPEUR exchange rates this week (Dayle Littlejohn)

When purchasing euros with the pound or the pound with euros it’s important to understand the factors that will influence exchange rate fluctuations. Below are the key factors that will impact exchange rates this week:

Firstly and the most influential factor is the UK’s interest rate decision Thursday afternoon. Governor Mark Carney has already stated the central bank will cut rates further if the Monetary Policy Committee believe this will help the UK economy to perform. This decision is a 50-50 nevertheless I expect sterling weakness.

The US Presidential Election is 9 days away and there is a good chance investors will sell off their US dollars and buy euros to manage their exposure. If the demand for the euro rises GBPEUR should continue to fall.

Lastly the economic data releases to look out for this week are Eurozone GDP numbers Monday at 10am and the US interest rate decision Wednesday evening.

If you are buying or selling euros this year, today is the day to get in touch. Many people still believe the only way to transfer large amounts of money is through the bank and this is not the case. The company I work for enables me to give better exchange rates than high street banks which consequently means the individual saves money.

I would recommend emailing me with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

Positive UK GDP figures do little to help Sterling Euro exchange rates (Tom Holian)

Sterling Euro exchange rates have experienced another fall even with UK GDP figures for the third quarter coming out better than expected. This goes to show how much pressure the Pound is under vs the Euro as even with positive economic data we are not seeing any sustained gains for Sterling vs the single currency.

The was the first quarter to be measured following the Brexit vote back in June and it highlights the problem that the Pound is facing since the announcement earlier this month that Article 50 will be triggered in March 2017.

The main problem for Sterling exchange rates against all major currencies is that until we are more settled politically and we know whether the UK will opt for a ‘hard’ or a ‘soft’ Brexit then I don’t expect the Pound to make much progress if any.

Since the start of the month GBPEUR rates have fallen by 10 cents from the highest point to the lowest point and this is a real concern for anyone buying Euros to send to the continent.

I don’t expect to see a resolution anytime soon so if you’re thinking of buying Euros before the end of the year then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date. This is especially useful is you’re concerned about how Sterling may move against the single currency in the future.

Both Bank of England governor Mark Carney and the deputy governor Ben Broadbent have both spoken about the value of Sterling recently and neither appear to be too concerned about the Pound’s fall so to me this could open the door for the central bank to look at cutting interest rates at next Thursday’s Bank of England meeting.

Even if they don’t cut interest rates next week I think the rhetoric used could imply that one could be coming and if that’s the case I expect Sterling to fall close to 5 year lows vs the Euro seen earlier this month.

 

Having worked in the foreign exchange industry since 2003 I am confident of being able to offer you bank beating exchange rates when buying or selling Euros and also help you with the timing of your transfer.

If you have a currency transfer to make and would like further information or for a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Alternatively fill in the form below

Positive UK GDP data unable to help the struggling Pound. (Daniel Johnson)

GBP Forecast

Despite better than expected GDP data the pound only rallied against the Euro by around 40 pips. With news from Nissan that they would be building several new models in the UK and another Heathrow runway taking a step closer you would have expected to see the pound gain by well over a cent today, and yet GBP/EUR still sits in the 1.11s.

There is simply too much uncertainty surrounding Britain’s economic future. If immigration gets tighter the UK’s labour force could be affected. The price of the pound will cause inflation problems with food expected to rise by 5% by early 2017 and the biggest factor,trade negotiations could be long and problematic. You only have to look at the CETA deal as an example. The deal between Canada and the EU, seven years in the making was nearly scuppered by a small region in Belgium.

Francois Hollande and Jean Claude Junker have made it clear that there will be no negotiations until article 50 is invoked. Hard Brexit now seems inevitable. Theresa May has indicated this will occur in March. Once article 50 is triggered and trade negotiations begin Sterling will have the chance to rally, but trade negotiations will have to be quick and decisive. I am not optimistic.

It is important to consider the problems in the Eurozone however. Italian bad loans at €360bn, Greek debt, shocking inflation and the threat of further referendums. If any of these problems come to the forefront the Euro could be in big trouble.

If you would like assistance with your currency transfer I would be happy to help. I will provide a free trading strategy to suit your needs and do mu utmost to maximise your return. I can also confidently say I will beat any competitors rate of exchange. Please do get in touch for no obligation assistance by emailing me at dcj@currencies.co.uk.

 

GBPEUR exchange rates for the remainder of the week (Dayle Littlejohn)

This morning at 9.30am the UK are set to release their latest Gross Domestic Product (GDP) numbers. GDP is a measure of the total goods and services produced by the UK and because of the loss in confidence in the UK due to the Brexit, the quarterly figures are set to show a decline. The prediction is a fall to 0.3% from 0.7%. If this is the case I expect GBPEUR will fall.

Friday the Eurozone are set to release a host of data releases including  Consumer Confidence, Services Sentiment, business climate and industrial confidence. The releases are set to be a mixed bag therefore expect volatility.

Since the UK voted out of the EU a general trend we have seen is for GBPEUR to fall Friday afternoons. With limited data releases on a Friday afternoon, I believe speculators are moving their assets out of the pound as they are unsure about events that could occur over the weekend when they are not studying the market.

If you are buying or selling euros this year, today is the day to get in touch. Many people still believe the only way to transfer large amounts of money is through the bank and this is not the case. The company I work for enables me to give better exchange rates than high street banks which consequently means the individual saves money.

I would recommend emailing me with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

Tomorrow’s UK GDP Figures Key for Sterling Exchange Rates! (Matthew Vassallo)

Tomorrow’s UK Gross Domestic (GDP) figures are likely to be key for any clients holding Sterling or Euro. With the expectation for 0.3% growth I expect additional volatility on GBP/EUR exchange rates if the figure comes outside of this remit.

Sterling had started to regain some ground against it’s EUR counterpart but fell away during yesterday’s trading. Rumours surfaced ahead of Bank of England (BoE) governor Mark Carney speech that he was going to take a dovish tone, which the markets immediately took as a negative and this ended the Pound’s mini recovery.

Whilst his comments were not overly positive he did mention a prospective interest rate hike due to UK Prime Minister’s prospective policy changes and this helped boost Sterling’s value and eliminate some of the afternoon’s losses.

GBP/EUR rates dipped to a low of 1.1132 but recovered back towards 1.12 following Carney’s speech. We’ve seen Sterling threaten a mini recovery on more than one occasion and European Central Bank (ECB) president Mario Draghi’s speech also curbed any further Sterling advances, as he commented on the current Quantitative Easing (QE) programme and how he felt it was having a positive effect.

I just feel that under the current market conditions the Pound will struggle to make any sustainable impact until at least next year, when key political elections and other factors in the Eurozone may start to drag the EUR value back down. If I was holding EUR I would still look to protect the gains I’d made and with a key data release tomorrow for the UK (UK Gross Domestic Product figures released at 09.30), I expect to see further market movement during Wednesday’s trading.

If you have an upcoming Sterling or Euro currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

 

Buying Euro rates tumble from market sensitivity (Joshua Privett)

Buying Euro rates slid heavily today in the run up to a House of Lords Treasury Committee hearing with Bank of England Governor Mark Carney.

The bread and butter of what markets were hoping for was some kind of indicationas to what Thursday’s growth figures for the UK economy may manifest as.

In the run up to the event a nervous market was on full show, with drops appearing for all of Sterling’s major currency pairings. Euro buyers are lucky that the net difference today was only 0.5%.

It seems that most investors in commercial markets were keen to relieve themselves of any risk ahead of the event itself so sold Sterling off in droves to protect themselves. Unfortunately, with Sterling’s value lowering through decreased demand, this hurt anyone with a private Euro purchase.

Furthermore, on Thursday we have the first look at UK growth figures since the Referendum, and markets will be looking to see just how close to recession the UK currently finds itself in.

Market expectations are for a fall down to 0.3%, which has more than halved on what was previously a relatively slow quarter in the run up to the Brexit vote anyway.

Euro buyers may be wise to move sooner rather than later an avoid a nervous market undercutting their chances to continue buying Euros around the 1.10 mark.

My opinion has not changed and as such I strongly recommend that anyone with a buying Euro requirement should contact me on jjp@currencies.co.uk to discuss a strategy on how to protect your upcoming transfer from any adverse movements and maximise your currency return with what is available in this current marketplace.

I have never had an issue beating the rates of exchange on offer elsewhere, and as such a brief conversation could save you thousands on an upcoming transfer.

You can also contact me on the form below whilst markets are quiet overnight and I will respond to you as soon as I am able.

What will happen to the GBPEUR rate next?

Today we learn of key information on the GBPEUR rate with two important speeches from Mario Draghi and Mark Carney. The outlook on GBPEUR remains fairly subdued for Euro buyers with I believe a strong prospect of further sterling weakness. The speeches today will help to provide some clarity on just what we can expect, personally I would not be expecting too much good news if I was buying Euros with pounds although there is some more data later this week which might help you if you are buying Euros with pounds.

The rate has fallen from its lofty heights of almost 1.20 6 weeks ago as investors learn of the UK’s apparent approach to the Brexit negotiations. Most commentators suggest Theresa May will be opting for more of a hard Brexit since trying to control the UK borders is incompatible with access to the single market. Just what kind of deal lies ahead we cannot tell for sure but it seems that it will not be one that is beneficial to sterling in the short term.

This Thursday is the latest UK GDP (Gross Domestic Product) data for the UK where we will earn of the latest news for the UK economy for Q3. This release is the latest release and the most up to date snapshot for the UK economy in this period. Expectations are for a slight decline in the rate of growth but hopefully no contraction. Whilst some areas of the economy struggled others performed well but overall it would appear activity will have been lower.

Despite the figures coming in lower the fact that they will still show the UK economy grew will I believe provide a temporary lift in the pound which could be supportive for anyone buying Euros with pounds. If you need to buy or sell the pound and the Euro I am your personal account manager here to help with any transfers you will need. For more information on the future direction of the rates and the planning and management of your deal please contact me Jonathan directly on jmw@currencies.co.uk

Sterling Falls ahead of Mark Carney Speech and UK GDP Numbers (James Lovick)

The pound has slipped marginally lower against the Euro as uncertainty over Britain and its future trading relationship with the EU remain firmly in focus. Rates for GBP EUR have dropped almost 0.25% lower.

Tomorrow is important with speeches from Bank of England Governor Mark Carney and ECB President Mario Draghi and there could be high volatility on the back of their comments. This is unusual to have these two voices speaking on the same day other than the usual monetary policy meetings, which are always held on a Thursday, not a Tuesday. They obviously have something to say….

Buyers of Euros should also be aware of the UK GDP numbers released on Thursday. The markets are expecting a fall to 0.3% in Quarter 3, down from 0.7% in Quarter 2. This is the economic data release that everyone has been waiting for and will certainly make front page news. If it is a weak number then those who campaigned for Remain in the Brexit vote will say “We told you so!” whilst the Brexiteers on a stable or even positive number will ask “what was all the fuss about?”

My view is that there will be a small but noticeable deterioration on the GDP numbers. I don’t think it will be as bad as many have forecast. Consumer confidence in my view is still very positive and the high streets are busy. Anything positive would be a huge boost for the pound and there could be a good spike for clients needing to buy Euros.

Clients who are buying Euros continue to feel the pinch and the outlook is not set to get better in the short term. There are short term opportunities and this week has a couple of events which may see market movement. If you have an upcoming EUR currency requirement either buying or selling 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 on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Uncertain times ahead for Sterling vs the Euro and the impact of the EU Summit (Tom Holian)

Sterling Euro exchange rates have improved marginally this week but have also seen big swings caused by political influence which seem to be driving exchange rates since the Brexit vote back in June.

UK inflation came out higher than expected at 1% which saw a brief improvement for the Pound but then yesterday’s comments from ECB president Mario Draghi caused Sterling to fall dramatically against the Euro.

During Draghi’s press conference he suggested that the ECB could look at tapering their current QE programme and that this will be discussed again at their next meeting in December.

Currently UK Prime Minister is at the EU summit discussing their position within the European Union and she has pledged to continue to ‘work closely’ with the EU after Brexit.

With May now having been the Prime Minister for 100 days in her time we have really seen big falls for Sterling and typically when she has spoken this has caused the Pound to fall so I would not be surprised to see further negative movements for Sterling vs the Euro over the course of this summit.

Clearly the leaders in Europe do not want the UK to leave the European Union and they have previously stated that they will make it difficult for the UK to part company from the EU.

Therefore, with a few months to go before Article 50 can be triggered I think we’ll be in for an uncertain future ahead and this is likely to be reflected in the value of Sterling.

Indeed, a lot of large British banks have all forecast Sterling to fall and I’m inclined to agree.

Having worked in the foreign exchange industry since 2003 I am confident of being able to offer you bank beating exchange rates and also help you with the timing of your transfer.

For further information or for a free quote when buying or selling Euros then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Alternatively fill in the form below

GBP/EUR – Up and down like a cork in a bath tub (Daniel Johnson)

Pound Forecast

Sterling rallied against the Euro yesterday to 1.12 following positive  unemployment data from the UK. Today saw Mario Draghi’s speech after the European Central Bank’s interest rate decision and there was high volatility on GBP/EUR ranging from 1.1074 to 1.1215, thankfully  it now sits back above 1.12.

Many analyst are predicting 1.05 by December. I am not quite so pessimistic  but I would still be thinking about making my transfer if I had to buy euros short to medium term. current levels are the best since the fat finger flash crash two weeks ago.

Theresa May could cause further volatility as speaks at the European Summit as she is likely to be grilled about Britain’s exit strategy from the EU. I think in order for the pound to rally we will need to see article 50 triggered and decisive action taken in regards to trade negotiations. There will be an initial fall and then as trade negotiations become closer to completion there will be the opportunity for a slow,steady rally for the pound.

There will be opportunities for Euro buyers over the coming months, the market never moves in one direction, but it is vitally important to be in touch with an experienced broker to take advantage when a window of opportunity presents itself. I am confident I can beat any competitors rate of exchange and will be happy to assist with your currency requirements. Please do get in touch by e-mailing me at dcj@currencies.co.uk.

An important day for Euro exchange rates (Dayle Littlejohn)

With the ECB set to release their latest interest rate decision this afternoon and President Mario Draghi’s press conference shortly after today could dictate euro exchange rates for the weeks ahead.

With interest rates at 0% I would be surprised to see any further cuts from the European Central Bank however all eyes will turn to Mr Draghi and his future plans in regards to the Quantitative Easing program that finishes March 2017.

Quantitative Easing is where a central bank buys assets which are normally  The central bank introduces a new money supply into the economy. The theory behind quantitative easing is to stimulate the economy however the currency does lose value.

If Mr Draghi does decide to extend the Q.E program I would expect major euro weakness however in my opinion an extension is very unlikely until early next year.

Short term I expect the ECB to keep their cards close to their chests and bat off questions from reporters about any extensions. Therefore the major talking point that should continue to impact GBPEUR exchange rates should be the Brexit.

UK Prime Minister has stated a Brexit will occur in March 2017 and this has been the main reason why the pound has lost value over the last two weeks. Looking ahead I expect the pound to continue to devalue and GBPEUR exchange rates to drop off. For euro buyers this year, a trade sooner rather than later is sensible. If you do not have all of your sterling available a contract that may interest you is a forward contract, which allows you to fix exchange rates now and pay later.

For more information in regards to the currency market, forward contracts or how I can achieve you the best exchange rates, feel free to email me with your requirements, timescales, the best number to reach you on and I will give you a call to discuss your options drl@currencies.co.uk.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

Sterling Rallies Against the EUR – Will the Current Trend Last? (Matthew Vassallo)

Sterling battled back during Tuesday’s trading, giving those clients holding Sterling some much needed respite after weeks of seeing their Pounds lose value.

GBP/EUR rates moved back above 1.12 at the high, following a host of better than expected UK inflation data released yesterday morning.

All eyes will now switch to this morning UK employment data, with the official unemployment rate released at 09.30. With the figure expected to remain unchanged at 4.9%, expect additional volatility on GBP/EUR exchange rates if it comes outside of this remit. If we see a figure below the 4.9% I would expect Sterling to find further support and a move back towards 1.13 is certainly feasible but anything above this and the Pounds recent gains are likely to be wiped out.

The Pound did find support around 1.10 so I think we would need to see an extremely poor figure in order to fall back to this level or below but with further key data releases coming up this week, anyone with a GBP/EUR position should be keeping a close eye on market developments.

Looking ahead and tomorrow we have the latest European Central Bank (ECB) interest rate decision and this is likely to have a big impact on the short-term outlook for clients holding both GBP and EUR. Whilst it is widely anticipated that rates will be kept on hold at 0%, it is ECB president Mario Draghi’s subsequent press conference that is likely to have the most impact on exchange rates, as any indication of a future rate cut or hike, along with any bullish or dovish statements about the Eurozone economy will more than likely drive the amkrets over the coming days.

Based on recent mixed messages I would not be prepared to gamble on the outcome of this. Those clients holding EUR still sit close to a five year high against Sterling and these levels, in such an uncertain climate should be protected and taken advantage of.

Similarly those clients holding Sterling will be buoyed by yesterday’s move, which on a £200,000 GBP/EUR exchange will have gained them approximately 2,500 EUR more than it would have on Monday.

If you have an upcoming GBP or EUR currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The current levels may not be around for long as the currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.

If you 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 on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

Buying Euro rates improve thanks to UK inflation…what next? (Joshua Privett)

Buying Euro rates have improved heavily today back above 1.12 thanks to improved inflation levels for the UK economy. Inflation is a measure of price change and a healthy targe is set at 2% rate of inflation each year.

The UK and the world as a whole have been struggling with inflation for some time. Before the Leave vote UK inflation for the year was stuck at around 0.6%, yet this has now almost doubled to 1% and is set to improve further.

The two main benefits for the UK economy is that this firstly means citizens in the UK will be spending more for one which tends to translate into greater confidencein business activity.

Secondly it makes it less likely there will be a further interest rate cut in the UK economy, which was previously hinted atby members of the Bank of England last month.

Tomorrow is the key event in the marketplace this week for anyone with an interest in buying or selling Euros – the European Central Bank interest rate decision and subsequent Monetary Policy Statement and press conference.

The reason why markets are expecting some form of action at some point it that the ECB’s emergency quantitative easing program which began last year will run out by March, with the cap set at 1.7 trillion needing to be raised if it is deemed necessary. If this is confirmed this will likely caused a similar deterioration in the Euro’s value compared to last January and finally admit to markets that the ECB are worried about the long-term prospects of the Eurozone economy in the face of some serious issues floating about at the moment. The Italian banking crisis and the prospective bail out of German Banks to name but a few.

Positive inflation figures for the Eurozone released on Monday however, suggest that Mario Draghi, the head of the European Central Bank does not need to be hasty and may continue to hold fire and see how the aftermath of the Brexit vote unfolds and make a decision later in the year.

In the past this has spelt slight Euro strength when such emergency action is staved off, so if Euro sellers are aiming for an opportune moment this week, Thursday lunchtime could provide a period of opportunity to counteract a currently strengthening Pound.

I strongly recommend that if you have a Euro buying or selling requirement to contact me overnight whilst markets are quiet on jjp@currencies.co.uk to discuss a strategy for your transfer in order to maximise your currency return.

I have never had an issue beating the rates fo exchange on offer elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency transfer later in the year and are worried about adverse falls against their favour.

You can also fill out the form below and I will be in contact as soon as I am able to.

Will GBPEUR go higher?

GBPEUR rates could actually get a small lift this week as we learn of some important economic data and personally I think there is some potential we could see GBPEUR rates higher towards the end of the week. The are three main pieces are economic data which could lift the rates, either supporting the pound or weakening the Euro or perhaps both. Make no mistake the ball is firmly in the court of those looking to sell Euros for pounds but anyone looking to buy Euros with pounds needs all the help they can get right now.

UK economic data has actually been fairly robust since the Brexit vote with the economy growing and some areas such as Manufacturing benefiting from a weaker pound. The upshot for the economy overall has been better than expected but of course it is the political concerns and the prospect of what lies ahead which is the overriding factor. This was witnessed in the first week of October when a 2 year high on Manufacturing output was lost amidst the breaking news of Theresa May’s apparent decision to seek a ‘hard’ Brexit. Sterling crashed and very few took any notice of the good news on the Manufacturing data that same week.

Despite this some data will I believe have the potential to provide some small spikes in the value of sterling by reflecting that overall Brexit hasn’t so far been the disaster many had predicted. Today we have Inflation data and tomorrow Unemployment for the UK , both of which could help the pound slightly. These are post Brexit vote data releases and will reflect the period following the vote which should attract lots of attention. Thursday attention turns to the Eurozone with the latest ECB (European Central Bank) meeting which may see some discussions of QE (Quantitative Easing) which may unsettle the Euro.

GBPEUR rates may find some improvements if this data goes your way but waiting until these days could be too late. Even if you don’t need to transfer funds today making some plans in advance is usually the best way to reduce your risk and stress! As specialist foreign exchange brokerage we can provide all the information and tools you need to make an informed decision on the markets.

Life has been cruel for Euro buyers and this might finally be some good news which can help you to purchase Euros at a better rate than is currently available.

The author is Jonathan Watson, Chief Analyst and Associate Director at one of the UK’s largest private currency brokerages. You can contact Jonathan directly with your enquiries  by email on jmw@currencies.co.uk for more information at no cost or obligation.

Sterling continues to fall against the Euro owing to Bank of England comments (Tom Holian)

Bank of England governor Mark Carney has spoken out this morning claiming that inflation is likely to rise owing to the fall in the value of the Pound.

We have already experienced ‘Marmite-Gate’ with Unilever and Tesco unable to agree who would front the cost of the rise in ingredients but this has now been resolved.

However, this issue could occur across the entire retail and food industry if Sterling vs the US Dollar remains as low as current levels. The rate to buy US Dollars with Sterling is now at the lowest level in 3 decades and until the Pound gains strength we could see the UK economy struggle.

Mark Carney has also suggested that it wasn’t the Bank of England’s job to concentrate on the value of Sterling but that ‘we are not indifferent to it, it matters to the conduct of monetary policy.’

Therefore, clearly the central bank is not too fussed by the drop in the value of Sterling and are targeting the ongoing problem of inflation. With the Bank of England due to meet next month we could even see an interest rate cut and this could cause Sterling to fall even further against the Euro.

Indeed, since the rumours started as to when Article 50 will be triggered we have seen Sterling drop by over 9 cents against the Euro which is the difference of £6,750 on a currency transfer of €100,000.

If you’re in the process of buying a property in Europe before the end of the year it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.

Having worked in the foreign exchange industry since 2003 I am confident of not only offering you a better exchange rate when it comes to buying or selling Euros compared to using your own bank but to also help with the timing of your transfer.

If you have a currency transfer to make and want to save money on exchange rates then contact me for further information or for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Alternatively fill in the form below

 

Will Sterling continue to decline and can we expect to see parity with the Euro? (Joseph Wright)

One pattern we’ve seen between Sterling and Euro since the Brexit vote is whenever there has been talk of a ‘Hard Brexit’ the Pound has weakened, as this is because many had hoped for a long drawn out period of negotiations but those hopes are now fading fast.

This so called ‘Hard Brexit’ is currently in the news once again as yesterday evening the European Council President Donald Tusk said that the only alternative to a ‘Hard Brexit’ would be no Brexit, and the Pound have softened slightly off the back of this announcement as has usually been the case.

Tusk warned the UK that the EU will not compromise on its insistence that freedom of movement will be a condition for Britain’s access to the single market.

The reason for the above explanation is that its likely to weigh on the pounds value as we approach the invocation of Article 50 next year towards the end of March. This is a key date as from the date that Article 50 is invoked, the UK will have 2 years to have separated from the EU .

A number of major financial institutions such as Unicredit and HSBC are outlining 1 for 1 between GBP and EUR in the upcoming months and HSBC suggested that the par will be trading at this level towards the end of next year.

If you are planning a currency exchange between Sterling and the Euro, it’s worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Sterling at 168 year low!

The pound has fallen further against the Euro as expectations over the outcome of the Brexit are realised and markets do not like what they see! If you are looking to buy or sell the pound against the Euro making some plans in advance is key to understanding what lies ahead, most clients looking to buy Euros should really be looking to buy sooner as the expectation is for further weakness on the pound.

Supermarkets are now poised to struggle as Tesco reports it is no longer stocking certain items as the value of the pound plummets so fast suppliers costs rise. This is the result of a weak pound and is likely to continue further in the coming weeks as investors brace themselves for a tough few weeks. The complexities and costs of Brexit are significant, the challenges ahead are huge and will not be quickly solved.

If you wish to get a detailed analysis of the market and all of your options please speak to me Jonathan by emailing jmw@currencies.co.uk. I work as Chief Analyst and Associate Director for the UK’s largest privately owned currency brokerage and am very well placed to provide the guidance and support you will need to get the best rates.

Expectations for the pound to lose further value are high, the Euro is performing quite well owing to an improved economy. The big news on this pair aside from Brexit could be next week’s important Eurozone data. If you have a transfer to make and wish for some information and advice please speak to me on the email above.

Sterling finds support following Theresa May’s comments

After GBP EUR rates initially fell to 1.095 during yesterday’s trading, Sterling opened the day trading 2 cents higher against the Euro following Theresa May’s promise to include parliament in Brexit talks. This has helped boost the value of Sterling and allows for better and more open discussions around the UK’s future outside of the EU.

Much of the recent losses for Sterling were likely triggered by Theresa May’s hardline approach to Brexit, as well as her unfavorable decision to keep parliament and the public outside of the political Brexit landscape. Her comments yesterday will be welcomed by investors and will reassure the markets that Brexit will be covered from multiple angles.

Despite the perk to the Pound, further losses are likely ahead as markets become increasingly anxious towards Article 50 deadlines. With Theresa May set to invoke Article 50 by the end of March 2017, it is only a matter of time until the clocks begin to tick and uncertainty heightens.

Quiet week for Sterling

It is a quiet week for Sterling and in the absence of economic data Sterling could continue to fall against most major currencies. Since the Referendum Sterling has found little support in positive economic data. Much of the changes to Sterling exchange rates are now being driven by sentiment and political updates.

I am predicting GBP EUR exchange rates to fall to parity by the end of the year which is when I expect Theresa May to invoke Article 50. If you are looking to buy Euros in the coming weeks, I would consider what a further 10-cent loss for every Pound could do to your currency exchange requirement. I am able to help you secure good rates, you can email me at rdl@currencies.co.uk if you would like to find out more.

Rate to buy Euros with Sterling hits 5 year lows (Tom Holian)

In what has been one of the worst weeks for Sterling this year we have seen the rate to buy Euros hit its lowest level since 2011. This is good news for selling Euros but not if you need to send money to Europe.

In overnight Asian trading on Thursday we saw what is being called a flash crash whereby automated systems triggered a huge sell off for Sterling and this big movement caused Sterling to fall to its lowest level since 2011.

Since Theresa May announced that Article 50 will be triggered by March 2017 this has caused a huge weakening in the value of Sterling vs the Euro.

Strangely though UK economic data that has been published since the Brexit has been in the main very positive. However, clearly the biggest influence on Sterling Euro exchange rates is the uncertainty as to how the negotiations will go with leaving the European Union.

Since the initial rumours began a month ago when European Council Tusk suggested in a  meeting with Theresa May that the UK was looking to trigger Article 50 early next year we have seen GBPEUR rates fall by as much as 9 cents or the difference of EUR9,000 on a currency transfer of £100,000.

If you’re in the process of buying a property in Europe before the end of year and are worried what will happen to Sterling vs the Euro it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date. Very useful for your peace of mind.

Having worked in the foreign exchange industry since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.

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

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