Monthly Archives: November 2017

Pound hits the highest rate to buy Euros since early November (Tom Holian)

The Pound has continued to make gains during the course of this week against the single currency as the news from the behind the scenes concerning the Brexit appears to be going a lot more positively recently.

Rumours are rife that the UK are preparing to offer approximately €50billion Euros as part of a settlement called the divorce bill in order to take the trade negotiations forward.

The next meeting is due to take place in the middle of next month and top of the agenda is likely to be the Irish border issue and as yet this could be a real sticking point for progression of the talks.

Clearly Ireland wants to remain without a physical border between north and south and this has not yet been sorted.

The amount of €50bn is not the only amount that the UK may have to pay as we also have a lot of previous financial obligations with some expectations as much as €100bn.

The Pound vs the Euro is currently trading at its best level to buy the single currency with Sterling since the start of the month creating some excellent opportunities for those looking to send money to Europe.

However, with all the ongoing uncertainty over the next few weeks a lot of my clients have been looking to buy a forward contract which allows you to fix an exchange rate for a future date.

This can take out all the concern of where GBPEUR exchange rates may be during this time and although they don’t always work they can provide you with peace of mind.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

 

GBPEUR spikes above 1.13

Overnight key Brexit developments have been made and euro buyers have reaped the rewards with exchange rates spiking from the lower 1.11s to the lower 1.13s. Reports are suggesting that the UK has offered €50bn as a divorce settlement which equates approximately to £44bn. No agreement has been made however it appears that the EU have welcomed the figure which in my eyes is a break through in the Brexit negotiations.

In recent weeks the amount of euros the UK would pay the EU as a divorce settlement has been the sticking point. Early this year the UK were suggesting they wouldn’t pay a penny to leave the EU and the EU wanted €100bn. It just shows developments have been made.

The next question is what next? This development shows quite clearly that the UK and EU want to eventually come to an agreement and I am optimistic that this will eventually happen. However the Irish border could be the next sticking point as Northern Ireland have stated they do not want a hard border.

On the 14th and 15 of December the EU will decide whether trade negotiations can begin. If enough progression has been made I expect the pound could continue to rise against the euro.

For further information in regards to GBPEUR exchange rates feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with the options available to you and the process of using the company I work for 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! **

GBP EUR Rates Fall on Political Uncertainty

The pound has dropped sharply in afternoon trade with rates for GBP EUR falling to a low of 1.1136. The edited documents in British politics which highlight the impact on Brexit on 58 different sectors appear to have been watered down for other politicians to view in an attempt to try and keep certain elements which are commercially sensitive out of the public domain.

There have now been suggestions from the Labour party that the government could be in contempt of parliament if it refuses to release all details in the reports. This news is yet another issue for this government which is having to tread very carefully with everything going on in this Brexit negotiation and is weighing on sterling exchange rates.

With a stalemate in negotiations between Britain and the EU the markets now look forward to the EU summit in December which could see a hugely volatile period for GBP EUR rates. If the deadlock is broken then there could be a great opportunity to buy Euros. The risk remains however that there could be a no deal and this would likely see the pound tumble sharply which could help anyone looking to sell Euros.

EU data sees consumer confidence numbers tomorrow ahead of the eagerly awaited inflation and unemployment data on Thursday. The EU has suffered with low inflation for almost a decade but this year has managed to see a pick up in the numbers which is helping the Euro make a recovery. A strong number here will only help cement the view that the European Central Bank is coming to an end of its loose monetary policy which should help support the Euro further.

For more information on GBP EUR exchange rates and how these key upcoming events have a direct impact on the rates of exchange and how to maximise on the opportunities as they happen then feel free to get in touch with me James at jll@currencies.co.uk

Will rates on GBPEUR can we expect in December?

The pound has risen higher against the Euro nudging back over 1.12 this morning as the Euro softens slightly, partly on the back of concerns over the Irish political situation. Sterling is bouncing back against most currencies too on the back of the news that all banks had passed the stress tests as well. What events are upcoming in December and how will they influence the GBPEUR?

The main event for sterling I believe is the EU summit on the 14th – 15th December where the EU will decide whether or not the UK can now progress to the next stages for the trade talks to begin. Whilst the expectation is that this will all pass off relatively easily as the UK is now pledging more money to the situation, the potential for this to upset sterling remains high. Historically ‘deadlines’ with the UK and the EU see eleventh hour talks and excessive volatility.

The 21st December sees a big development on GBPEUR with the Catalonian election taking place which is effectively a referendum on independence or self rule. The possibility of this setting off fresh Euro fears is now increased, particularly when you consider there is also increased worry over Ireland, Germany and also Italy for next year.

GBPEUR has occupied a range of 1.08-1.14 in the last 3 months, with the worst fears over Brexit removed for now (eg a ‘no deal’ scenario), the potential for GBPEUR to now occupy a range between 1.10-1.15 seems more likely.

If you have a transfer to make buying or selling Euros and pounds and wish for the best rates and some of the latest news and market insight, please don’t hesitate to speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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

Sterling Rates Steady after UK Budget

After a very safe budget from Chancellor of the Exchequer Philip Hammond yesterday the pound has seen little in the way of volatility on the back of it. The ongoing uncertainty of Brexit remains the main sticking point however and continues to weigh heavily on sterling exchange rates.

GBP EUR is currently sitting at 1.1255 and the markets now wait for the end of next week for the end of a two week ultimatum set by Michel Barnier for Britain to offer more in the divorce bill to try and break the deadlock and move discussions on to future trade. Rumours are circulating that UK Prime Minster Theresa May will offer €38 billion in the first week of December although where rates for GBP EUR move to will very much depend on how well such an offer is received by the EU.

Will the pound strengthen?

Should trade discussions open then this in my view would be very good for sterling exchange rates and there could be a good shift higher for GBP EUR. The risk for those clients waiting for rates to improve is that is the conversation does not move on to trade then this could see the pound weaken materially across all of the major currencies including the Euro. The prospect of a no deal scenario continues to keep the pound at bay. The problems for the pound is that the negotiations will continue right through up until 2019 which leaves a very long period of uncertainty.

Clients looking to buy or sell Euros should pay close attention to developments surrounding the EU ultimatum for more money and would be wise to get in touch to look at the options available and how to take advantage of the better rates when they become available. Feel free to contact me James at jll@currencies.co.uk

Budget does little to move Sterling Value (Daniel Johnson)

Budget benefits first time buyers

Hammonds’s budget did little to alter the value of Sterling today, historically this is usually the case when the budget is delivered as the expected changes are usually filtered out through the media before hand. The market moves on rumor as well as fact.

Key Changes

  • To benefit London and other expensive areas, the first £300,000 of the cost of a £500,000 purchase by all first-time buyers will be exempt from stamp duty, with the remaining £200,000 incurring 5%.
  • 95% of all first-time buyers will benefit. 80% not paying stamp duty
  • £44bn in overall government support for housing to meet target of building 300,000 new homes a year in the next five years.
  • Councils given power to charge 100% council tax premium on empty properties
  • Compulsory purchase of land banked by developers for financial purposes
  • £400m to regenerate estates with £1.1bn to unlock new sites for development
  • Stamp duty is to be abolished immediately for first time buyers purchasing properties worth up to £300k

Factors that will effect GBP/EUR – Keep an eye on these situations as they develop

Sterling sellers would be wise to keep an eye on the current political situation with Theresa May. It is rumored there are as many as forty MPs willing to put forward a vote of no confidence. If there are forty-eight members and the vote is put forward, May will lose her position. Political uncertainty historically weakens the currency in question and I would expect GBP/EUR to drop below 1.10.

If an exit bill is agreed there is the potential for Sterling strength as this will pave way for trade negotiations to begin. €20bn is currently on the table , but it is rumored May will up this to €38bn.

Potential Euro weakness could be caused by Merkel’s failure to form a government in Germany, there is the possibility of a new election which will no doubt cause the euro to lose value. Catalonian independence should also be kept a close eye on.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at dcj@currencies.co.uk.

 

Will GBPEUR keep on rising?

The pound has finally bounced back against the Euro as weakness and uncertainty in the German political situation opens the door to a more unsettled Euro. The prospect of a second election or Angela Merkel stepping down as Chancellor has seen the Euro undo many of its gains over the last few weeks. What lies ahead for the German Chancellor and how could this influence the Euro?

I expect that there will either be fresh German elections or that Merkel will be forced to step down in order to allow a fresh coalition. It appears that the outlook for the GBPEUR is now much better for clients looking to buy Euros with pounds, we have seen the rate rise above 1.13 this morning.

News that the UK is agreeing a Brexit bill of up to £40bn is also helping the pound which is now benefiting from some of the uncertainty in Germany. With the Spanish Catalonian election next month and then the Italian election next year the outlook for buying Euros has suddenly improved. If you have a transfer buying Euros then making some plans around this potential rise is a smart move since Euro buyers have not had a huge amount to cheer in recent weeks!

We are close to the best time in 3 months to buy Euros with pounds and the rate could rise even further depending on the way the market is going. Overall impressions of the rates are that of course sterling could come under renewed pressure owing to Brexit but for now the tide has turned. Euro buyers should not be too greedy but should be carefully making plans around this improvement.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you in the future.

 

Pound to Euro rate improves after German PM Merkel’s future looks uncertain! (Joseph Wright)

The Euro dropped in value today after Germany, the engine room of the EU is currently facing a political crises with many political commentators calling it the biggest crises of current Angela Merkel’s tenure.

Late on Sunday exploratory talks broke down between her Christian Democrats, Bavaria’s Christian Social Union and the Liberal Free Democrats broke down, ruling out an obvious path for Merkel to form a coalition government.

With German coalition talks collapsing it’s not surprising to see the Euro fall, as political uncertainty tends to weigh on the underlying currency.

An issue for the UK moving forward may be a pause to Brexit negotiations due to Merkel’s issue, but as it stands the GBP/EUR rate has benefited from the headline grabbing story.

At the same time the Pound opened the week strongly against all major currency pairs after speculation regarding the UK’s Brexit Bill continues. The current rumours suggest that the bill will increase to £38bn and the Pound has been boosted off the back of this news as if it’s true, it may clear the path for Brexit negotiations to progress.

If you’re following the GBP/EUR pair because you have an upcoming currency requirement involving the pair, feel free to get in touch and register your interest.

This week the Autumn Budget will take place so there could be movement, so this event is certainty worth watching.

If you have a large 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 (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Brexit negotiations to dominate Sterling vs Euro exchange rates (Tom Holian)

Brexit talks are again set to dominate Sterling Euro exchange rates as Prime Minister Theresa May has been told that she has a fortnight before she has to add more money to the pot if she wants talks to progress between the UK and the EU.

EU Council President Donald Tusk is preparing to take things forward but he has said that he wants the UK to move forward on the issue of the divorce bill as well as the Irish border.

At the moment the ‘divorce bill’ is still yet to be decided and this needs to see further progress before the next official summit due to take place on 14th December.

Tusk is due to meet with Theresa May next week but things are likely to stall at least until next year if things don’t get resolved during the next two weeks.

As we go into next week all eyes will be focused on next Wednesday’s Autumn Statement. The Chancellor Philip Hammond could face a lot of pressure from Tory Euro skeptics to be bullish about the Brexit so it will be interesting to see what plans he has for tax cuts and plans to encourage spending.

Hammond has been relatively cautious so far so further evidence of this could cause a lot of movement for Sterling vs the Euro during the middle of next week so make sure you keep a close eye out on the markets and the impact of the Autumn Statement and ongoing Brexit saga.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me with details of your requirement and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

GBP EUR Rallies On Expectation of Increased EU Divorce Offer

The pound has found some support at the end of this week after a poor performance across nearly all of the major currencies. GBP EUR has pushed back over 1.12 this morning after rumours have circulated that UK Prime Minister Theresa May will possibly look to increase her offer of a financial settlement to the EU from €20 billion to €40 billion. Theresa May is in Sweden so any commentary here is likely to have an impact on the price of sterling.

If an offer is made later today the pound could react depending on how well that offer is received. The key to the direction will be the response from EU leaders but if received badly then the pound could fall against the Euro. The response today could also tie in to next week’s budget which will be delivered by Chancellor Philip Hammond and this is likely to be a big market mover next week.

UK data softened this week after retail sales numbers fell to their lowest level since 2013. Although the figure was higher than expected the fact that it is materially lower than four years ago is a concern for the British economy and hence the pound. With no UK economic data releases today the focus will be on a speech from European Central Bank President Mario Draghi and construction numbers this morning.

UK Gross Domestic product figures are released next week and any improvement here could help lend support to the pound. Considering the NIESR estimate pointed to stronger GDP going forward then there is the potential to see some upside for sterling exchange rates.

It is clear there are so many factors revolving around politics and Brexit which are having a direct impact on the price of sterling and the next week will be crucial in where rates will be heading next. Clients selling Euros continue to see an excellent opportunity for buying pounds. If you would like to discuss your requirement and the impact that these economic and political events are having then please get in touch with me and I will be happy to give you my thoughts. My email address is jll@currencies.co.uk

Major volatility expected for GBPEUR exchange rates

With the spotlight beaming down on UK Prime Minister Theresa May, the pound remains under severe pressure against the euro providing euros sellers with a fantastic opportunity.

Reports were leaked at the weekend that 40 Conservative MPs plan to persuade another 8 Conservative MPs to sign a vote of no confidence in the Prime Minister. This is a key reason to why the pound started the week so poorly against all of the major currencies.

Head Eu negotiators Michel Barnier is also mounting the pressure as he gave the UK a 2 week deadline for progression, this announcement was released last Friday therefore we have 8 days until crunch time. Mr Barnier wants to be able to report clear progression at the EU commission meeting in December.

With Brexit negotiations now in full swing and clearing heating up, I expect major volatility for GBPEUR exchange rates for the remainder of the year. If no progression is made I believe Theresa May’s time at number 10 will be limited and therefore GBPEUR exchange rates could fall to the lows that we saw 8 months ago (1.07).

However if progression is made pressure will be released, and GBPEUR could hit a 6 month high (1.15). If you are converting GBPEUR in the upcoming weeks devising a strategy now is wise!

For further information in regards to GBPEUR currency transfers feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you 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! **

Will GBPEUR slide below 1.10?

The pound to Euro exchange rate has been bouncing between 1.11 and 1.14 in the last month but lately seems to be on a gentle slide owing to uncertainty over Brexit and the UK government, plus the strengthening Euro. The Eurozone economy was shown to be growing at a very fast pace at 0.6% which has outpaced the US for the year on year at 2.5% versus the US’ 2.3%. Once again it is a case of the Euro rising and the pound weakening, will this continue?

On balance I would expect it probably will, trying to predict the longer term outcome’s are always tricky but we do need to bear in mind the great legal and political challenges ahead for the UK. In my mind these far outweigh what the Eurozone has to go through so ultimately I feel that this see the Euro outperforming the pound.

If you have a transfer buying or selling the pound at present, next week or even in the New Year now is a good time to be making plans. With the all-important UK and Eurozone interest rate decisions out of the way we are now focused on path ahead which will encounter the next developments with Brexit plus the Spanish independence election for Catalonia. Plus 2018 sees the Italian election which will be very closely monitored for signs of anti-EU feelings…

I suspect rates will be trading at fairly similar levels between 1.10 and 1.15 between now and early next year, however any shocks could easily see sterling much lower back below 1.10 again. I would not be ruling this move out and for any clients looking to buy Euros I would be cautiously monitoring the situation for any spikes. If you need to make a transfer and wish to be alerted to any spikes please speak to me Jonathan Watson by emailing jmw@currencies.co.uk with an outline of your position.

Thank you for reading this post and I hope to discuss your situation and the best strategy very soon.

Will the GBP/EUR rate break out of its current trading range anytime soon? (Joseph Wright)

The Pound to Euro exchange rate is now trading towards the bottom end of its current trading range, as the pair have dropped down to the 1.11’s.

For some time now the pair have struggled to breach the 1.14 mark, and with there being talk of Theresa May’s (UK Prime Minister) position coming under pressure along with some disappointing inflation data yesterday, the Pound has been under pressure which has pushed it to the lower levels of the current range which I believe is roughly 1.10 to 1.14.

Now the likelihood of further rate hikes in line with the Bank of England’s plans are looking less likely, we’ve seen the Pound drop off and I think that the rate could continue to soften should this continue.

Those selling Euros into Pounds are still in a great position when we consider that the current EUR/GBP rate is trading towards the top end of a 10-year range, which mid-market levels now close to 0.90. This may continue mostly owing to GBP weakness, but I do think the Catalonian independence issue could scupper the Euros strong position should it resurface once again.

If you wish to kept updated regarding any short term price movements between the pair, do feel free to register your interest with me. Yesterday the Euro hit a 1-month high against the Pound so those that wished to be kept updated were able to take advantage of our service.

If you have a large 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 (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

GBP/EUR Forecast – Sterling Remains Under Pressure (Matthew Vassallo)

Sterling has lost further ground against its Euro counterpart today, falling by over a cent from the high.

GBP/EUR rates have dropped below 1.12, hitting 1.1145 at today’s low. Despite the Pound finding some marginal support this afternoon, it is clear that market confidence in Sterling remains minimal.

The EUR has had problems of its own but the overall perception of the Eurozone economy is far healthier than that of the UK’s. As such, it is unlikely in my opinion that the Pound will find any real support up to or above 1.15 under current conditions. Whilst 1.10 seems to have offered those clients holding the Pound some protection of late, any further political or economic unrest could lead to this level being tested again before long.

The Pound has had some false dawns of late and as such some clients have been holding out for more sustainable improvements. My opinion has remained the same for some time and that is that any client holding GBP should be taking advantage of any small improvements, rather than hold out for any longer-term sustainable gains.

The UK economy is under a huge amount of pressure and despite the Bank of England (BoE) raising interest rates my a marginal 0.25%, there has been no real change in market perception.

Reports this week have indicated that UK Prime Minster Theresa May is under further pressure, with a vote of no confidence edging ever closer.

Whether or not she holds on to her position over the coming weeks, her positon as the head of the Conservative party and UK PM is becoming more unattainable by the day. This is leading to yet more uncertainty and a disjointed approach to Brexit negotiations, which is creating instability at every turn.

Whilst the markets never move simply in one direction, whilst condition’s remain as they are, I do not anticipate a major upturn for the Pound.

I would be looking to protect the current value on any short to medium range transfers and avoid the very real risk of a further downturn.

If you have an upcoming GBP or EUR currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Trade Balance and Production Data boosts the Pound (Daniel Johnson)

Pending Euro purchase? When should I move?

We have seen a spike on GBP/EUR this morning following a series of positive UK data releases, going against the grain. Trade Balance data was positive across the board and was followed by Manufacturing and Industrial production data. Both moving up by 0.4%. GBP/EUR has hit a day high today of 1.1348 up from 1.1263.

If I had a Sterling to Euro requirement I would be considering moving at current levels. Political uncertainty and a lack of clarity on Brexit talks could drag the pound back. 1.1340 does not seem like a bad time to move considering the best rates we have seen since June is 1.1450. With the recent resignations of Michael Fallon and Preti Patel it is difficult for investors to have faith in the Tory government who seem to be more concerned with their only political agendas and protection than sorting out the UK economy and focusing on the most important negotiations of the last fifty years.

I am of the opinion we will be anchored at current buoyancy levels between 1.10-1.1450 unless these situations are rectified \or indeed something unpredictable occurs to weaken the Euro. The situation in Catalonia is one of the few reasons I can base Euro weakness on. Be wary of hoping for  1.15 + if you have to move sort to medium term buying Euros.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving.  I can be contacted at dcj@currencies.co.uk . (Daniel Johnson) Thank you for reading.

Brexit Date and UK Economic Data – Pound vs Euro rates (Tom Holian)

Prime Minister Theresa May has set out guidelines for the UK’s date and time to leave the EU in law and claiming that she will not ‘tolerate’ any potential plans to block the Brexit.

May has claimed that the EU Withdrawal Bill will be formally changed on Friday 29th March 2019 and as we are already almost 6 months into the discussions this is a clear line in the sand by Theresa May.

This means that the government are absolutely committed to pushing through Brexit but she will still have to get it through a number of attempts to pass it via parliament.

There are still a number of opponents to the Bill but it looks at though there is at least an attempt to provide the markets with certainty.

Turning the focus back to the UK economy we have a lot of economic data due out during the course of the day starting with UK Manufacturing & Industrial Production data due out at 930am this morning.

This will be followed later this afternoon with the latest NIESR GDP estimate for the last three months.

The UK has been going through a mixed period with economic data so keep a close eye on the data releases over the next few hours.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

GBP EUR Rates Fall Below 1.13 Amidst Political and Brexit Uncertainty (James Lovick)

The pound is struggling to push beyond the recent highs against the Euro with levels for GBP EUR sitting just below 1.13.
The pound is being hampered by constant political uncertainty with new stories coming out almost by the day all adding a little bit of risk for the pound. The latest resignation of a senior cabinet minister could see a cabinet reshuffle in the coming weeks.

The resignation yesterday from Priti Patel and Sir Michael Fallon in the week before all weigh heavy on a government that recently lost its majority in the House of Commons. Politics continues to be a major driving force for sterling exchange rates and this is unlikely to change anytime soon. With the position of International Development Secretary now filled by Penny Mordaunt expect the markets to guess who will be next to go.

UK economic data is heavy on Friday with manufacturing and industrial production figures as well as trade balance data. The GDP estimate from the National Institute for Economic and Social Research could also create some major volatility for the pound vs the Euro. The strength of the British economy is a big driver for the price of sterling and any projection of a fall could see the pound come under added pressure. The NIESR estimate is an excellent pre cursor to the official economic data and the markets can move quickly on the bag of a strong or weak number.

Selling Euros?

The Brexit negotiations have resumed today and any comments from Brexit secretary David Davis or his counterpart Michel Barnier are likely to cause volatility for sterling Euro rates. The stalemate over the amount Britain is prepared to pay is preventing the pound from making gains although it may only be a matter of time before sufficient progress is made.

Clients looking to buy or sell Euros would be wise to make contact and look at the options available. There are reports that pressure is mounting on Britain to move forward within the next two weeks. As such at the end of the period there could be some considerable volatility for GBP EUR. Please feel free to make contact with me at jll@currencies.co.uk to take a look at your requirement and how we can help achieve the best rates of exchange as they become available.

Be wary of waiting for further gains for the pound (Daniel Johnson)

Interest Rate hike by the BOE a knee jerk reaction

The recent gains for the pound last week were based on the predicted rate hike by the Bank of England (BOE) and tapering form the European Central Bank (ECB) along with the uncertainty surrounding the situation in Catalonia. The UK economy is shocking state considering where we could be had we not voted to leave the EU. Inflation is now at 3% and average wage growth is at 2.1%, In order to have a stable economy these figures need to be moving at a similar pace, they are not. Unemployment is being lauded as the best levels since the 70’s, but the data has only recently incorporated zero hour contracts. The rate hike from the BOE was a knee jerk reaction to the inflation problem and it is a coin flip as to whether it will have any impact.

There was very little justification for the hike and I am of the opinion we could be in for further losses for the pound against the Euro. Buoyancy levels have been between 1.08-1.15 since June,the last time we hit 1.15 was June. The highest we have seen the market in several months is 1.1450 and if you have a Euro requirement short to medium term it could be wise to move if the market moves close to 1.14 again.

In order for a significant rise Sterling value we need a stable government and clarity over Brexit, both of which I can’t see happening for the foreseeable future.

If you have a currency requirement I would be happy to assist. You need to have an experienced broker on board in order to take advantage of rates when a brief spike occurs, especially in the current climate. If you have a currency provider already in place I am prepared to perform a comparison against them. It will take minutes and could potentially save you hundreds or even thousands of pounds. I can be contacted at  dcj@currencies.co.uk.

 

Sterling rebounds after last week’s sell-off, will GBP/EUR reach 1.14 again soon? (Joseph Wright)

The Pound to Euro exchange rate has been trading in quite a volatile fashion over the past week, after the pair breached 1.14 before trading in the 1.11’s in the immediate aftermath of the Bank of England’s rate hike yesterday.

The rate hike from the Bank of England (BoE) was the first in the last decade and widely expected to happen within financial markets even if not everyone agreed with the decision.

Personally I think the sell-off was simply profit taking from the likes of day traders, although I am surprised to see the Pound recover so quickly back to the levels seen just before the BoE decision.

Moving forward I think we may see a more resilient Pound and despite some negative economic data out of this UK recently, we’re still seeing the Pound slowly recover from the lows seen just a couple of months ago when I think the Pound was oversold.

Later today there will be the release of UK GDP data for the past 3 months, and this data will be released by a leading UK-based think tank. Data releases such as this one have the potential to move the markets, so if you would like to be kept updated regarding price movements as soon as possible, do feel free to register your interest with me.

For now at least it appears that the Catalonian independence issues have subsided somewhat, but should this matter surface once again I wouldn’t rule out a downward move for the Euro which would benefit the GBP/EUR rate.

If you have a large 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 (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Selling Euros – GBP EUR Drops Below 1.12

The pound remains on the back foot after yesterday’s market crash for sterling which saw rates for GBP EUR drop by almost 2%. GBP EUR is now trading at levels below 1.12 for this pair which has presented those clients looking to sell Euros with a surprise opportunity to convert. Normally an interest rate increase from the Bank of England would generally have the effect of helping strengthen the pound.

In this rare case however the pound dropped like a stone as a result of the bank suggesting that interest rates would only be raised another two times over the next three years. This was a major disappointment to the markets which resulted in the substantial drop for GBP EUR.

Buying or selling Euros?

Both British and Spanish politics will also have a major impact on the price of sterling in the coming weeks. The Catalonian situation is likely to continue to be a hot potato for the Spanish government with mass protests expected in the streets of Catalonia. Eight regional ministers who were sacked when Madrid imposed direct rule appeared in court yesterday accused of rebellion, sedition and misuse of public funds and so protesters are expected to take to the streets. Meanwhile the ousted leader Carles Puidgemont did not appear before the Spanish courts and a European arrest warrant is expected to be issued. It could be the start of a long process when lawyers are involved and could see added pressure on the Euro.

The ongoing Brexit negotiations will of course continue to be a major driving force for the pound and any signs of further tension between Britain and the EU in these negotiations will only add to the uncertainty for the pound. Anyone with a requirement to either buy or sell Euros would be wise to make contact sooner rather than later and look at the options available to take the risk out of it.

If you would like further information on sterling or Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact myself James on 0044 1494 787 478. Alternatively, I can be emailed directly on jll@currencies.co.uk