Monthly Archives: July 2017

Will the Pound recover against the Euro? (Tom Holian)

The Pound is now at is lowest rate to buy the Euro since November and the problems for the Pound do not appear to be reducing anytime soon. The fears of the Brexit affecting the economy are appearing to be realised which is resulting in the Pound falling against the single currency.

The negotiations have been going on for a few weeks now and so far little progression has been made. There has been no decision as to whether the UK will opt for a softer or a hard Brexit and until this is resolved I think the Pound will remain under huge pressure for a long time to come.

The first estimate of UK GDP for the second quarter was published on Wednesday and although it came out as expected with 1.7% year on year this did little to support Sterling. Indeed, the Pound vs the Euro fell to its lowest level at the end of the week since last autumn.

Next week the Eurozone releases inflation on Monday morning as well as the latest set of unemployment data. If both announcements come out positively then I think we could see further losses for GBPEUR rates to come going into August.

EURUSD exchange rates are now trading at their highest rate since the start of 2015 and it is becoming clearer that not only is the Pound weak against the single currency but the Euro is also very strong against a lot of other currencies at the moment.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Will GBPEUR rise or fall next week?

The beginning of a new month always sees a new set of economic data and next Tuesday we will have the latest UK data for the month of July. The data so for for Construction, Manufacturing and Services for the UK have all been showing weakness since the Brexit and this could be reflected int he data next week which would see the pound lower. Overall expectations for the UK remain subdued, meanwhile the Eurozone is going from strength to strength! If you have a transfer buying or selling the pound and Euro the current rates are at a very interesting point. Euro sellers for pounds have close to a 9 month high, Euro buyers with pounds could easily see levels slip. Both for buyers and sellers there are strong arguments in either direction!

I am expecting GBPEUR could easily trade in the higher levels in the coming weeks but much will depend on just how the trade negotiations are received. The pound has been largely unaffected by the latest developments in the trade talks, I think this is because nothing will be decided for at least a year possibly 18 months. That means sterling is likely to remain languishing as investors await for further news of the talks. Ultimately with no real good news seen in the short term Euro buyers with pounds should be treading very carefully!

If you have any transactions to make in the future then making some plans in advance is very much worthwhile. We cannot just sit back and hope for the best in this market. If you need some information and assistance to help make an informed choice and decision about your FX transaction please contact me Jonathan Watson directly by emailing jmw@currencies.co.uk.

If you need to transfer amounts above £10,000 bank to bank across borders or within the UK I am very confident I can help you with your situation. Thank you for reading and I look forward to hearing from you.

GBP/EUR Short Term Forecast – Will Sterling Strengthen? (Ben Fletcher)

Sterling has been under continuous pressure these past few months presenting the opportunity for people to sell Euros back at some of the best levels in 9 months. Each week the range in which the GBP/EUR rate resides at has fallen nearly a cent suggesting there is more potential for the rate to continue to fall. If you have been waiting to sell Euros back to Pounds and are still holding on, the next month might be the best time.

German Election

At the end of September Germany will head to the polls in what is thought to be a non-event to re-elect current Chancellor Angela Merkel. Whilst Merkel is the major favourite there has been some surprising events that have taken place around the globe in the past year and anything unexpected could create Euro weakness. At the moment there doesn’t really appear to be any major rivals and the concern that Nationalist parties were coming back seems to have died down. Merkel was heavily criticised by many in her own country for welcoming 1 million refugees, however in the light of no other viable leaders her tenure looks set to continue.

From the perspective of the GBP/EUR rate, over the next month we may see some Euro weakness start to creep in due to election uncertainty. But by that point the GBP/EUR may be close to moving below the 1.10 level, which in my opinion would be a best case scenario for Euro sellers.

If you have a upcoming requirement you would like to discuss or ask any questions about the comments please send me an email briefly explaining your requirement at brf@currencies.co.uk. I would be more than happy to share my thoughts and try to help you develop a plan that will enable you to maximise your transfer. I will aim to respond within a few hours.

Will GBPEUR slip below 1.10?

Dismissed as no longer a likely exchange rate the GBPEUR rate has been very close to the 1.10 level as investors take positions on the Euro which represents a much more secure currency versus the GBP and USD. The Euro has risen to a 2 1/2 year high against the US dollar and is currently enjoying close to a 9 month high against the pound. The outlook for the pound and Euro is such that it would not be at all surprising to see GBPEUR below 1.10 very soon. If you have a transfer buying or selling the pound and Euro making plans around this possible scenario is I believe very much recommended.

If you look at what is driving the pound it is obviously the uncertainty over the Brexit and the economic decline this has caused. More recently the pound had been higher on the prospects of the Bank of England raising interest rates but this is not materialising. Last week Inflation dropped leading to the pound dropping as this effectively rules out any UK interest rate hike in 2017 or maybe further.

There are no guarantees over an interest rate hike for the UK in the future and it is a dangerous gamble for clients buying Euros to be holding back from a purchase just hoping that rates will rise in their favour. Most clients looking to buy Euros should be preparing for further losses as this could easily fall lower.

The Euro is much stronger as politics and economic supports the Eurozone. Expectations on GBPEUR could easily the rate below 1.10, if you have a transfer to make buying or selling Euros for pounds making some plans in advance is wise. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk

Further losses for the Pound this week? (Tom Holian)

The Pound vs Euro is now at its lowest level since last autumn as economic and political woes continue to increase in the UK.

UK Inflation has started to fall which in a way is a good thing but this has caused the Bank of England to rethink any attempt to look at raising interest rates in the near future.

Meanwhile across the water on the continent the European Central Bank have suggested that they may be looking at tapering their current QE programme.

The Eurozone is performing very well recently and this has led the Euro to hitting its best level to buy US Dollars in over a year which highlights how strong the single currency is compared to other currencies as well.

UK GDP for the second quarter is due for release on Wednesday and as this period covers both the general election as well as the start of the Brexit talks I think this could be lower than the expectation of 1.7% and in my opinion I think we’ll see losses for the Pound vs the single currency on Wednesday.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

 

What next for GBPEUR rates?

Overall the belief on the GBPEUR rate is that it will now continue to ebb lower and lower as the uncertainty over the UK’s political and economic outlook is overshadowed by much improved economic data and also political certainty in the Eurozone. Those who predicted the demise of the Euro and the Eurozone a few years ago are now facing some serious questions as the outlook for the Eurozone continues to improve. If you are selling Euros the likelihood of further improvements cannot be ruled out. The extra 2 cents gained for Euro sellers this week is an extra £1500 in your pocket per €100,000 transferred. If you wish to learn more about rate movements and how much you could save please contact me jmw@currencies.co.uk.

If you have a transfer to make buying or selling the pound and Euro the current trend is looking likely to favour the Euro but there could be surprises on the way. For example Mario Draghi was actually quite ‘dovish’ or soft in his comments yesterday during the European Central Bank (ECB) Press Conference. Nevertheless the Euro rallied essentially as Mario revealed there are plans to taper their bond buying purchases in the future.

This strengthened the Euro but Mario didn’t actually reveal too much on timings, that means that the market might actually have overreacted to his comments. This can often be the case on markets so Euro strength is neither guaranteed or assured. However looking at the overall picture and particularly against a weaker pound a further decline in the GBPEUR rate looks to me likely.

If you have a transfer buying or selling Euros we are here to help with the planning and execution of any transactions for the future. We can help with the forecasting and devising of strategies to help you maximise the transaction. Thank you for reading and please contact me if you would like to discuss anything further by emailing jmw@currencies.co.uk.

Buying Euro rates dip following Draghi speech (Joshua Privett)

The Pound has suffered further this week and buying euro rates have now hit some of their lowest levels since the beginning of the year.

Tuesday’s inflation figures once again (seemingly the third time in as many weeks) changed the narrative on whether the UK would be raising interest rates anytime soon.

Some were stating this could occur as early as this November – however, this drop in interest rates has at least put the currency back by 3 months.

Today, the poor news for buying Euro exchange rates doubled down on itself, with news coming out of the Eurozone.

Another rollercoaster has been on the future of the Eurozone’s financial policy coming from the ECB. Similarly there have been murmurs about whether they will be moving away from their now two year long bout of emergency financial stimulus package.

This was largely introduced from a slowing Eurozone and one dealing with the Greek Debt crisis back in 2015. But now optimism in the Eurozone is relatively high and growth data is rivalling that of the UK.

Today Mario Draghi, the Head of the Eurozone Central Bank, came out fairly positive towards the potential to wind down this emergency financial help – contradicting some sentiments from one of his sub-ordinates last week who indicated that such a move was very unlikely.

These rollercoasters are set to continue, which is why it is so important to be kept abreast of current events and developments to ensure you maximise your currency transfer.

I strongly recommend that anyone with a Euro based currency requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your currency return.

You can contact me directly by calling +44 1494 787 478 and asking the reception team to speak to Joshua.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you significant sums of money on a prospective transfer.

UK Data and Carney to Dictate GBP/EUR (Ben Fletcher)

This we will see a whole flurry of UK data including the Producer Price Index along with the latest Consumer Price Index. The CPI data which currently sits at 2.9% compared to this time last year, is a key indicator of inflation levels. If this level moves above 3%, which it isn’t expected to however the recent climb would suggest other wise, he market could move. If inflation continues to rise faster than average earnings consumers will start to feel the pinch, however the Bank of England could have a solution.

Governor of the Bank of England is expected to deliver a speech just after lunchtime today discussing his latest thoughts on the UK economy. The big question for investors at the moment is the potential of a UK interest rate hike in the short term. The Bank of England can encourage people to stop spending by raising interest rates, alternatively if people start to save more that has consequences on retail as a whole.

There is a very fine balance with so much uncertainty surrounding namely Brexit. Whilst the data and speeches are happening in the UK, David Davis along with his Brexit negotiations team are sat around a table with the EU team. We’re not likely to see any outcomes to the talks in round two of discussions, but we may receive news that the talks are going well and any concessions for Sterling will be seen as positive.

When the markets are this volatile there will always be spikes and drops, making timing a transfer vital to maximise your funds. If you have any questions with my forecast above or would like to simply discuss an upcoming requirement you have please send me an email to brf@currencies.co.uk. I would be happy to share my thoughts with you and I may be able to offer a viable solution to help you complete a trade, as I have several years experience working for a brokerage

What can we expect next for GBPEUR exchange rates?

What is the likelihood of GBPEUR rate rising much higher is a very common question I am being lately. Trying to second guess the market and hoping for big improvements often leads only to disappointment when expecting a certain outcome. The pound against the Euro is in a very volatile situation at the moment which could easily see the rates quickly and unexpectedly changing, keeping up to date with the developments is a crucial factor to ensuring you maximise the transfer.

This week we have a number of important data releases which will be crucial to determining the next steps on the currency pairing. Overall I expect the market to favour sterling weakness but much of this has been built in to the current rates and therefore we will need some fresh new bad news so clients looking to buy sterling need to be careful holding back just waiting for rates to improve.

We aim to offer clients a clear forecast of current evens and work proactively to help determine the very best times to trade and buy currency. If you have a transfer to consider then understanding the coming news and information is critical to getting the best deals. For more information at no cost or obligation on what to look out for in the coming weeks to help you get the best deal please do feel free to contact me directly by emailing jmw@currencies.co.uk.

Tomorrow is UK Inflation and then Thursday is the latest European Central Bank Interest Rate decision, these are big events and trading them properly and understanding the outcomes could potentially save you hundred or thousands depending on the outcomes.

Thank you for reading and I look forward to hearing from you and working with you to achieve the maximum for your transfer.

 

GBP/EUR Back Above 1.14 (Ben Fletcher)

Sterling’s positive end to the week continued all the way to the close of business this evening as the GBP/EUR rate shot up to a high of 1.143. This has come as a considerable surprise following the fall to 1.118 on Wednesday, which convinced many further losses were on there way. Now that there has been a resurgence in the rate, the rise to 1.15 is a hot topic. The last time the rate reached that level was 6 weeks ago and that was only available for a few hours.

There is still a considerable amount of uncertainty surrounding Sterling, especially as the Great Repeal Bill is to be released shortly and every opposing party to the Government plans to challenge their plans. However some of the major concerns appear to have taken a slight back seat and at least for the last 48 hours no new negative headlines have appeared. It’s thought that earlier in the week Sterling was oversold as markets became over pessimistic on the UK conditions, with that in mind the recent jump is just making up lost ground.

GBP/EUR, where to next?

Now that we have seen favorable Sterling the movement the next step will be a jump above 1.15. This week we saw members of the Bank of England talk down a interest rate hike in the near future which was the main cause of the GBP/EUR rate dropping over a percent. Arguably if there was to be talk of a hike, that percent may return which would see a jump to the 1.15’s.

If you have any questions with regards to my forecast above please don’t hesitate to contact me. I would be more than happy to discuss your requirement and provide a strategy that will work for your unique needs. I may also be able to offer a potential method of completing the transfer. Please send me a brief description of what you’re looking to do at brf@currencies.co.uk

 

Brexit Repeal Bill due today and the impact on Sterling Euro rates (Tom Holian)

The UK will announce today their plans for the Repeal Bill which essentially means that the UK will apply the same laws in the UK before the Brexit vote whilst giving power to parliament in order for them to be able to change them at a later date.

There is already a lot of disagreement between the various political parties but the plan is not due to be debated until later this year but will need to be put in place by the time the UK is due to leave the European Union which will come in March 2019.

This has yet to cause too many problems for the Pound vs the Euro but it does demonstrate how much uncertainty there is politically at the moment in the UK.

Brexit Secretary David Davis has said ‘the eyes of the country are on us and I will work with anyone to achieve this goal and shape a new future for our country.’

This appears as though Davis is willing to listen to ideas from various parties in the interests of the country but I think this could cause real problems for the British economy as clearly the political parties in this country have very different priorities and agendas.

We end the week with Eurozone Trade Balance for May which has been very positive recently so expect volatility for GBPEUR exchange rates towards the end of the week.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you bank beating exchange rates but also help you with the timing of your transfer.

If you have a currency transfer to make whether it’s buying or selling Euros then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk 

Pound drops lower once again as interest rate hikes suffer setback and Euro gains on the Dollar (Daniel Wright)

GBP/EUR exchange rates have dropped to the lowest point we have seen since since the U.S elections back in November, which is due to two reasons we saw yesterday.

Firstly, we had two members of the Bank of England speaking during the course of yesterday afternoon and both of those members dampened expectations of a U.K interest rate hike happening  in the near term, which led to the Pound losing further ground against the Euro and most major currencies too.

An interest rate hike is generally seen as a positive for the currency concerned as it makes it more attractive to investors, and the markets can more on speculation as well as action, so even the mere hint of a hike moving closer can lead to the Pound gaining strength, we saw this shortly after the last Bank of England interest rate decision where they confirmed 3 out of 8 members had voted in favour of interest rates going up in the U.K and this gave Sterling a boost.

The chances of a hike appear to have decreased again after yesterday which is why the Pound has lost a little value.

Secondly, due to more issues over in the States surrounding Trump and Trump JR the Dollar has lost plenty of ground against the Euro. With EUR/USD being the most traded currency pairing in the world when you see a large amount of money coming out of the Dollar and going into the Euro, the Euro can gain strength against most major currencies too, making it more expensive to buy.

Unfortunately economic data is still not dragging the Pound back up and we have unemployment figures and average earnings due out at 09:30am today. Average earnings are of great importance at present as inflation is increasing and making goods and services more expensive where as peoples earnings are actually increasing at a slower pace which is not a good sign for the economy. Should this trend continue people will have less and less money to spend and this may cause further problems for the economy as the year moves on.

We really do need to see a catalyst for the Pound to start moving in the right direction again but at present that has not materialised. The worry now is that we are starting to see the true impact of the referendum vote start to shine through now and that Sterling may be in for a tough month ahead.

If you have Euros to buy or indeed sell then it is more important than ever to make sure you maximise your exchange rate. Feel free to contact me (Daniel Wright) to discuss the various options available to you. Yo ucan email me on djw@currencies.co.uk and I will get back to you personally.

 

 

GBP/EUR, Calm Before the Storm? (Ben Fletcher)

Yesterday the GBP/EUR rate hardly moved half a cent across the whole of the day with very little changing in the market. Until the drop on Friday due to poor economic data for the UK, the rate had spent most of the week hovering around the 1.14 mark. This morning the rate is back above 1.13 and in my opinion there could be a opportunity for the rate to lift a little today.

MPC Members Speak Today

Two of the nine Monetary Policy Committee members will speak today Andy Haldane and Dr Ben Broadbent. The MPC are thought to be investigating whether a interest rate hike would be beneficial for the UK in the short term future. The two committee members who vote with the other 7 will provide their insights, if they’re hawkish and suggest a hike may happen that could provide market optimism boosting Sterling. Alternatively Andy Haldane is returning for his second stint on the MPC and was previously known for his Dovish attitude. There is of course every chance this is a non-event, but with little positivity around for Sterling any spikes in the market should be capitalised on.

In my opinion over the course of the next few weeks the GBP/EUR rate may move back towards the 1.14 but I find it hard to see anything much more substantial happening. The second round of Brexit talks will begin next week and we may get some further updates into how they’re progressing. However Theresa May is coming under so much pressure in the UK, even as much so that MP’s are calling for her resignation. If May was to resign then another general election would only add to further uncertainty and the GBP/EUR rate may drop below 1.10.

If you would like to ask me any further questions with regards to my forecast, please feel free to send me an email to brf@currencies.co.uk. If you send me a brief description of what you’re looking to achieve, I will respond within a few hours. Hopefully I can assist with devising a strategy to help you achieve your goal and potentially help execute the trade.

Where next for the GBPEUR exchange rate?

When looking for indications as to the future direction of GBPEUR exchange rates it can be helpful to consult the information of a currency specialist who can highlight the important trends and themes that will move the market. A 1 cent improvement selling €100,000 at current levels would result in a £800 saving! We offer assistance to clients looking to increase the value of their currency exchange by offering information on the market to help them time and execute their transfer for maximium effect.

If you are looking to buy or sell Euros for pounds then the last month has see a fairly choppy range developing in a tight band of 2 cents. Whilst we haven’t broken free of the 1.1260 to 1.1470 range, the movement within these parameters has been rather unpredictable with the market jumping back and forth according to speculation on various factors.

One key point to be noting is the prospect of a UK interest rate hike or the European Central Bank (ECB) considering to withdraw their economic stimulus. These two factors are example of two highly unpredictable factors which could see the pound rising or falling against the Euro rather suddenly.

With tremendous pressure on sterling and there appearing to be no easy way out of the current situation for the pound and the UK, GBPEUR seems like it could easily spend much of the coming weeks and months in a 1.10-1.15 range. It is very difficult to see what would lead to sterling rise dramatically but there could be surprises.

If you need to make a transfer of more than £10,000 worth buying or selling Euros then understanding the best steps forward in advance will give you the greatest chance of securing the best rate. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk or please call 01494 787 478.

Thank you for reading and I look forward to hearing from you.

 

 

GBP/EUR Drops Again During Friday’s Trading (Matthew Vassallo)

Sterling has come under pressure once again during Friday’s trading, following poor Manufacturing & Industrial Production figures this morning.

With figures well under market expectation, the Pound was under pressure immediately dropping almost a cent at the low to 1.1281.

Despite a recovery during the afternoon following the NIESR Gross Domestic Product (GDP) prediction.

The well-respected think tank has predicted GDP to grow to 0.3% this month, which if it comes to fruition, will show a steady improvement from last month’s reading.

It wasn’t that long ago that the Pound was creeping towards 1.20 but a complete shift in conditions, has seen the EUR gain almost seven cents at its high.

Despite Sterling finding a foothold over recent days, the current climate both politically & economically inside the UK means that any major upturn is unlikely in the short-term.

We can help our clients pin point specific moments to execute their currency exchanges, even when they are battling a falling market.

The current uncertainty surrounding our fragmented government and grave concerns amongst investors regarding how we will facilitate our Brexit, are two of the defining factors driving Sterling’s value at present.

With both of these issues, in particular the long Brexit process, will be resolved in the short-term and as such clients with a GBP/EUR requirement need to be realistic in terms of what they’re targeting on any exchange.

Clients should also consider any bottom lines, in order to protect their positions wherever possible.

There are no guarantees in the currency markets and with so many unanswered questions, let us help you navigate this turbulent market and maximise any currency exchange you need to make.

If you have an upcoming GBP or EUR currency transfer to make 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 Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk.

 

GBP/EUR Rate Close to 1.15 Jump (Ben Fletcher)

The Sterling Euro rate could be on the verge of a positive upwards movement as a several week high is touched upon this morning. The rate moved up to 1.142 which provided optimism there could be more to come.

Governor of the Bank for England Mark Carney will speak tomorrow and after his speech last week caused over a cent movement that could happen again.

If you’re looking to purchase Euros then tomorrow may present a window of opportunity for you. If Sterling does start to move upwards then I do think it will be a significant jump. The currency has been oversold in the last few months which is why the rate has dropped so low, but there could be a turn of events coming.

Inflation Report Next Week

The UK’s latest inflation report was expected to be released this week however it has been postponed to next week. Inflation data is a double edged sword at the moment; firstly if it keeps rising and wage growth doesn’t it will feel like a wage cut, alternatively if it does continue to rise the Bank of England will be forced to raise interest rates. The home currency when there is a interest rate hike, can often benefit by several percent which could see the rate move back towards the high teens.

If you’re a Euro seller who is waiting to complete a transaction at an even lower level than what is currently available I believe you’re playing a risky game. Sterling seems to have found a resistance at the 1.13 level and would take a serous series of events to fall much lower than this point, never say never but the bottom may have been reached.

Whilst this is quite a speculative plan, but certainly plausible if you do have a more specific requirement please don’t hesitate to ask any questions about the forecast above. I would be more than happy to share my thoughts and discuss what might be the best option for you moving forwards. Please send me an email with a brief description of what you’re looking to do at brf@currencies.co.uk

 

GBP/EUR – Where Next? (Daniel Johnson)

Sterling struggles against the Euro

We have seen gains for Sterling against most major currency pairings  following a government being appointed in the UK. The euro however is proving to be stubborn, with a resistance point at 1.14. I think there will need to be a significant catalyst for GBP/EUR to breach 1.14 and remain above it.

Over the last decade Eurozone positive data has been sporadic and has held back The European Central Bank (ECB) from tapering Quantitative Easing (QE). We have recently however seen positive data more widely spread both geographically and in industry sectors. This is good news for Draghi and could mean we could see tapering sooner rather than later. If this does occur I would expect a sharp rise in Euro strength.

It is not all good news in the Eurozone however, let us not forget Greece, struggling to make debt repayments to the IMF. The debt is so great it seems impossible to imagine a stable Greek economy. If this problem comes in to the lime light this could hinder any Euro advance.

I am of the opinion Sterling is chronically undervalued, before the referendum announcement GBP/EUR sat above 1.40. I think short to medium term it will be tough time for the pound. I think once we have a more stable government and the Brexit stance is clear the pound will have the opportunity to rally. Although leave voters will not be happy, it may be the wise move to  compromise on immigration in order to have market access. This would almost certainly cause a spike in Sterling value. It is a shame we are in this position, it seems the whole reason the UK is in tatters is due to politicians pursuing their own agenda.

The Monetary Policy Commitee (MPC) recently voted on a change an interest rate and there was change in stance with 3 members voting in favour of a hike.  I believe this is not a solution to the rapid rise in inflation. The Bank of England are trying to fight a problem with the wrong tools. Many believe rate hikes drop and fall usually by 0.25%. This is not gospel and rates may move by as little as 0.5%. If there is a change in rates I would expect this to be the choice which would not have a huge impact Sterling value.

If you have a large currency transfer to perform in the coming days, weeks or months then I will be happy to speak to you directly as I will be willing to help you both with trying to time a transaction and getting you the best possible rate when you do come to trade. A small improvement in a rate of exchange can make a significant difference so for the sake of taking a few minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can contact me (Daniel Johnson) on dcj@currencies.co.uk and I will endeavor to get back to you as quickly as possible. Thank you for reading.

 

Will GBPEUR rise or fall in July? Important news for GBPEUR clients….

Since the UK election GBPEUR has only moved 2 cents between the high and the low which some would read as boring, I read as opportunity! Clients looking to buy or sell the pound or Euros following say an overseas property purchase or sale, should be preparing for further volatility on the foreign exchange market that could well present some fresh opportunities to maximise their exchange rate. On a €100,000 sale into sterling a cent at current levels is £750 more in the sellers pocket. We work to highlight improvements on the market to clients in such positions to help them make an informed choice about when to execute their exchange.

If you have a transfer to consider buying or selling Euros for pounds getting the timing on your exchange correct is critical to getting the most for your money. With GBPEUR having been trapped in a range between 1.1270 and 1.1468 there has not been much opportunity for either Euro buyers or sellers to capitalise. I have many of my clients who need to buy Euros for an overseas property purchase or to pay business Invoices holding off expecting the rate to recover. And too, many of my Euro sellers are also holding off expecting the pound to crash!

With so many different potential outcomes from the rates being prepared is vital to capitalise on spikes or to limit any losses. A very popular contract type at present is a limit order whereby we look to automatically purchase a currency for you if we do get to a certain level. Popular Limits buying Euros are at 1.15 currently.

If you have a transaction to consider in the future then making some plans in advance is crucial to getting the best deals. We can very easily set up one of these orders to help limit your exposure and maximise the return.

For more information on the GBPEUR forecast and the best way to maximise your rate please speak to me Jonathan Watson to get a full overview and discuss strategy. Please email jmw@currencies.co.uk with an overview of your position to get the latest news and updates.

UK Inflation to set the tone for Pound Euro exchange rates (Tom Holian)

We begin the morning with UK construction data due out at 930am with expectations of a possible fall but the real movement for Pound vs the Euro exchange rate is likely to come with the latest set of Inflation Report Hearings due out this morning.

UK inflation has been rising recently to the level of 2.9% compared to the target level of 2%. Bank of England Governor Mark Carney is likely to be questioned and any suggestion that interest rates may be coming back on the agenda could lead to some movement for the Pound vs the Euro.

Indeed, this could see the Pound making some gains vs the single currency if there is any hint that an interest rate hike may be coming sooner than expected.

Tomorrow sees the latest release of PMI Services sector data for the UK and as this sector makes up such a huge amount of our overall GDP this could cause volatility for GBPEUR exchange rates.

On Thursday arguably one of the biggest data releases of the week is the latest NIESR GDP estimate. Although this is not the official data it is very up to date as it measures the last three months of the UK’s performance.

This could be the biggest market mover of the week so if you’re in the process of thinking about buying currency in the near future keep a close eye on what happens on Thursday morning immediately after the data release.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to save you money on exchange rates compared to using your own bank. 

If you would like further information or a free quote when buying or selling Euros then contact me via email below and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Buying Euro rates see slight improvement to begin the week (Joshua Privett)

We have begun this month with some welcome and similar gradual improvements to buying Euro rates as seen in the back end of June. But Euro buyers are still not getting a wow factor when looking at exchange movements.

To put this in perspective, even since the election GBP/EUR exchange rates have only seen a difference between the high and the low on exchange rates of 1.6 cents. Given that we are funnelling through an incredibly tumultous period in the history of the United Kingdom, such movement defies belief from my years in the industry.

So why the inactivity?

Two fronts. Given the high levels of political uncertainty trading is notably thinner on currency markets from Foreign Currency Direct’s perspective. Without heavy trading you cannot have the same changes to buy and sell rates for Euros which many were used to seeing before politics had such a large sway on exchange rates – masking the same dominance economic data used to bring to day to day trading activities.

Secondly, we are still waiting for answers. Despite the strong rhetoric on the importance of the election and the results on the Brexit negotiations and what can be achieved, we have heard little in terms of definitive sign-posting.

Markets are still very much in the dark on this, explaining the limbo on exchange rates that Euro buyers and sellers alike have been forced to suffer through.

However, a quote that is ringing truer and truer is that uncertainty is the new norm.

Economics is beginning to shine through once more, with day to day economic data having a larger sway than it once did.

These have generally been Sterling positive and should continue to be so in the short-term.

I strongly recommend that anyone with a buying Euro or Sterling selling requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your currency return.

I have never had an issue beating the rates of exchange on offer elsewhere.