Monthly Archives: January 2018

GBP/EUR Forecast – Sterling Stutters Following Leaked Brexit Report (Matthew Vassallo)

It’s been a fairly volatile day for GBP/EUR rates today, with the pair fluctuating between 1.1339 & 1.1425.

This morning’s Eurozone Unemployment Rate came out as expected at 8.7% but did little to shift the markets.

Sterling was under pressure throughout early trading, with the single currency finding plenty of support around 1.14. However, the Pound recovered as we headed towards the close of European trading, despite falling away from the 8 month highs seen last week over recent days.

One of the reasons it came under pressure this morning was a leaked Government report, which indicated that the UK will be worse off after Brexit. The report covered all three Brexit scenarios, including a free trade agreement, access to the single market, or the worst case scenario of no deal being reached at all.

The Government were quick to react and said the findings were only a preliminary assessment but the news is hardly likely to inspire confidence amongst investors. As such the Pound’s value dipped, before its mini recovery during the latter part of the trading day.

Despite this positive recovery, the Pound could come under further pressure over the coming days as Brexit talks starting to dominate the headlines once more.

With phase two talks not under way and trade discussions starting in March, it is a key point in the transition.

The EU have already outlined their position and it did make for positive reading for those driving the UK’s negotiations and with Brexit secretary David Davis already claiming the UK would be opposing many of the suggestions put forward.

The uncertainty of the outcome is likely to put further pressure on the Pound over the coming weeks and beyond and as such, I would be looking to protect any short to medium-term GBP currency positions if feasible.

If you have an upcoming GBP or EUR currency transfers 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.

 

GBP EUR Rallies ahead of EU Inflation Data

The pound has seen a mixed day against the Euro with losses in the morning for the pound before picking up nicely in afternoon trade. Rates for GBP EUR have now broken back over 1.14 taking levels close to the 9 month high seen last Thursday.

With no UK economic data tomorrow eyes look forward to Nationwide House Price data which can at certain times result in market movement. The consensus is that the London property market is cooling and this could start to be reflected in the official data. Any sudden drops could see the pound come under a new wave of pressure although so far the official numbers have proved fairly resilient.

UK manufacturing Purchasing Managers Index data is released on Thursday and should give some clues as the performance of the sector.

EU Consumer Price Index inflation numbers are released on Wednesday alongside December unemployment figures which are likely to create Euro volatility tomorrow.

The ongoing Brexit negotiations are likely to remain the single biggest driver for GBP EUR exchange rates for the rest of 2018. This week continues to tackle the transitional arrangement whilst March should be particularly interesting when the negotiations move on to the future trade deal. This is perhaps the most complex part to deal with and there could be considerable volatility if talks break down. Any suggestion that there could be a no deal scenario could see considerable weakness for the pound.

Clients looking to buy Euros are seeing some of the best levels seen for 9 months but any negative tome could see the pound fall sharply. The no deal scenario is still a possibility and this is likely to remain a hindrance for the price of sterling for the foreseeable future.

To discuss your requirement and how to achieve the best rates of exchange when they happen then please feel free to get in touch with me James at jll@currencies.co.uk

GBPEUR faces up to reality!

The pound to Euro rate has dropped back into the lower 1.13’s as investors brace themselves for the realities of Brexit to hit home. Expectations have been very high recently following a number of high profile comments from the various actors in the Brexit pantomime. Angela Merkel stated she was looking forward to a successful relationship with the UK and Philip Hammond was clearly laying the case for a softer Brexit.

Fast forward a week and the reality of the difficulties and weakness of the UK’s Brexit position has become more apparent. Headlines surrounding UK government infighting has left the pound struggling to hold onto last week’s gains with a move back into the 1.12’s highly likely. Of course, this behaviour for the pound against the Euro shouldn’t take us too much by surprise, it is what has been happening on the pair ever since the EU Referendum became a market concern back in January 2016.

With the Euro remaining strong against the pound and continuing to be an expensive currency to be betting against, there is the real prospect of some positive news making it even more expensive for Euro buyers taking a gamble on their purchase. Important economic data this week will be Thursday and Friday when we have a whole new set of economic data released which will give some further clues on the state of the UK economy.

If you have a transfer buying or selling the pound against the Euro then making plans in advance is crucial to giving yourself the best chance to maximise the position. General impressions from the market are that we will see sterling rise as Brexit becomes better understood but this will likely take month or years to manifest.

If you have a transfer buying or selling the pound against the Euro then there are a number of issues to be conscious of to make sure you are maximising the position. For more information at no cost or obligation please don’t hesitate to speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

A good week for GBPEUR exchange rates

This week the pound has gained momentum against all of the major currencies and in particular the euro. GBPEUR exchange rates have been trading close to a 6 month high and many of my clients have taken advantage.

Early in the week average earning numbers exceeded expectation which was a big surprise as the Bank of England have been predicting that average earnings would continue to fall in the months to come. The problem the Bank of England have been facing is that inflation numbers have been outpacing average earnings.

Earlier today UK GDP numbers have also impressed. The consensus for the quarterly figures were 0.4% and the numbers were released at 0.5%. Furthermore the yearly numbers were set to be released at 1.4% and the number was released at 1.5%.

Central levels of exchange have finished in the 1.14s and for any client buying euros this is a window of opportunity that you may want to take advantage of. In the last 3 weeks, exchange rates have improved by 3 cents and I cant see how we are going to see any further improvements short term.

If you reading this website for the first time as you need to convert GBPEUR, 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 a free quote 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.

Common clients I help on a daily basis are Sole traders, MD or FD of a company, property buyers and sellers. If you are one of the three and are currently using the bank to transfer your currency you need to be made aware that you could be saving money!

 

Sterling Euro exchange rates get close to a 9 month high – Draghi knocks it back

Yesterday saw GBP/EUR exchange rates get close to the highest levels we have seen in almost 9 months, following a positive vibe around  U.K economic performance of late and comments from Angela Merkel that she would like to see a close relationship with the U.K post Brexit.

As the day progressed those highs quickly vanished, as we heard from head of the European Central Bank Mario Draghi during the ECB interest rate decision and press conference.

Draghi did not make any sweeping changes to fiscal policy but he did make a few comments including the fact that he felt that current economic data within the Eurozone points towards solid economic growth and that he also is not targeting the value of the Euro.

Comments earlier in the week from other members of the ECB had suggested that they feel that the Euro is too strong and that this is impacted European exports, which led to belief that Mario Draghi may seek to do something to tackle this, this speculation had weakened the Euro a little and the fact it didn’t happen then allowed it to fight back.

The Euro gained almost a cent against the Pound during the press conference and also managed to hit the best rate against the Dollar  in 17 months.

Personally I would not be surprised to see the Euro be fairly solid throughout the course of today following on from yesterday, however should this strength against the Dollar continue they will have to consider doing something, which is turn may weaken the Euro against the Pound.

If you have a Euro exchange to make in the coming days, weeks or months ahead then  it may be prudent to get in touch with me directly, Not only will you find that you save money on your rate of exchange but also you will find that our level of customer service if extremely high too.

You can email me (Daniel Wright) directly on djw@currencies.co.uk with an overview as to what you are looking to do and I will be more than happy to get in touch and discuss your situation personally.

GBP/EUR hits nine month high (Daniel Johnson)

Sterling hits nine month high against the Euro

Sterling hit a nine month high today against the Euro. The spike was caused by several contributing factors. Lord Jim O’Neill gave a very positive forecast on a recovery for the UK economy post Brexit early in the week. This was coupled with news that Dutch and Spanish finance ministers would like a close relationship in regards to trade with Britain. Angela Merkel, the German Chancellor also announced her intention to have a close bond with the UK post-Brexit. This was key, as Germany is the engine room of the Eurozone, but this is not necessarily a surprise due to the large volume of German exports to the UK, particularly cars of which the UK is a large consumer.

There is however concerns for Sterling. The biggest of which is Phase two of Brexit talks. Chief negotiator for the EU, Michel Barnier and UK Chief negotiator David Davis are at loggerheads. Barnier would like the financial sector included in any deal and Davis has stated Brussels will not be able to cherry pick aspects of the deal. Davis is clearly not happy, EU services have apparently been approaching UK companies and advising them to leave the UK or risk losing their contracts. The deal is set to be initially agreed in October, but I feel this target is unrealistic as is a full exit by 2019. I think talks could well prove problematic and I think Sterling could suffer as a result.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.
If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson

Will the pound continue to the rise against the Euro?

The pound had been struggling against the Euro for the last few months but finally, we have some reasons to be cheerful. The GBPEUR rate has hit a December high which was only previously reached back in May 2017. With the European Central Bank (ECB) meeting today to discuss their latest policy decision, further volatility could be ahead!

The general impression for sterling is that this run of form should continue as the outlook on Brexit improves. Some positive economic data for the Unemployment figures gave rise to more confidence in the UK economy, Angela Merkel was also reported saying she wished for close ties with the UK which was further evidence of the kind of support sterling is receiving.

Of course, the Brexit talks will begin soon enough and this will make it much more difficult for the positivity to continue indefinitely. Expectations for the pound remain for it to still struggle in the months and weeks ahead as new information on the Brexit is released.

If you have a transfer buying or selling the Euro against the pound then today’s news will be critical to the next direction the rates will take. Personally, I think the ECB will be positive about the future path on reducing their QE (Quantitative Easing) program which will give rise to Euro strength.

The market could, however, be guilty of pricing in the prospect of Euro strength so any deviation from this might actually see the Euro weaken. GBPEUR could easily be over 1.15 or up to 1.16. Equally, it could be back down to 1.12 or 1.13 by the end of the day.

If you have a transfer buying or selling the pound against the Euro we are here to help with the best rates of exchange and provide guided insight and information on the market for you, to help you make an informed decision about what might be the best way forward.

Please contact me Jonathan on jmw@currencies.co.uk to learn more.

Will GBP EUR Break Through 1.15? (James Lovick)

The pound has seen an excellent rally against the Euro today taking rates for GBP EUR to a high of 1.1493. The general economic outlook for the UK appears to have improved following the upward revision on global growth for 2018. The UK is expected to benefit from increased trade and may help offset any of the negative consequences which stem from Brexit.

French President Emmanuel Macron also suggested earlier in the week that Britain would be offered a bespoke trade deal which is also helping to lift the price of sterling although he did also highlight that UK financial services will not be permitted under the same terms as now.

Clients looking to buy Euros would be wise to consider taking advantage of the higher levels which have suddenly become available. The pound has seen a rocky start to the New Year and any good gains have generally proven to be very short lived. With Brexit negotiations recommencing next week which will tackle the transitional arrangements the pound could come under pressure once again on any negative rhetoric coming from either the UK or EU side.

Any suggestions that there will be no cherry picking or no access to the single market for financial services could see considerable weakness for the pound. Of course the real trade negotiations are not expected to commence until sometime in March and clients looking to either buy Euros or sell Euros should pay particularly close attention to political developments over Brexit.

UK Gross Domestic Product figures are released on Friday and could make for an interesting end to the week. I am optimistic that there could be a higher figure and that possible a jump higher to 1.8% could be seen. This would present a good spike for GBP EUR on such a release.

To discuss how the Brexit is likely to have a direct impact on your own currency requirement in these coming months then please feel free to get in touch with me James at jll@currencies.co.uk and I will be happy to give you my thoughts on the markets.

Will the Pound improve against the Euro this month? (Tom Holian)

The Pound vs the Euro had a relatively slow start to the year but has this week showed some very positive gains against the single currency. Indeed, GBPEUR exchange rates are now close to their best levels in 9 months.

Outlook for the UK appears to be a little more positive recently with the tone surrounding the Brexit a little more positive.

The International Monetary Fund has also upgraded the global growth forecast and this has led to the Pound making gains across the board.

Some analysts have also suggested that an increase in global growth will dwarf the negative impact caused by Brexit which is another reason for the Pound’s recent good run of form.

UK Public Sector Borrowing figures for last month came out a lot lower than expected which has also led to the Pound making improvements against all major currencies including vs the Euro.

Later on this morning we could see even further volatility for Sterling Euro exchange rates with the release of the latest set of UK unemployment data due to be released at 930am.

Unemployment rates are close to their best levels in 40 years but the concern for the British economy is Average Earnings which are lagging behind inflation at the moment.

With UK GDP figures due to be released on Friday we could see further volatility on Pound vs Euro rates so make sure you keep a close eye out for the release of Friday morning if you’re considering making a currency transfer.

If you have a need to make a currency transfer in the near future 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 Forecast – Sterling Closing in on 9 Month High! (Matthew Vassallo)

Sterling has found plenty of support against the EUR during the early part of the trading week, hitting 1.1412 at today’s high.

Despite the EUR finding some support and moving back below 1.14 by the close of European trading, the Pound has been creeping back towards a near 9 month high.

Whilst the current rates may still not look overly attractive based on historical levels, the Pound has certainly seemed to gain something of a foothold over recent weeks.

We must continually  remind ourselves that the goals posts have shifted since the Brexit decision. As a result I feel that the upturn over recent days certainly offers some value to those clients looking to exchange GBP/EUR positions.

This week’s positive move is even more surprising when you consider how poor the UK Retail Sales figures were on Friday and cleints have been aksing what th catalyst was behind this positive spike.

Whilst it’s impossible to give a universal answer, the upturn at least in some part could be attributed, at least in some part, due to a report by the former Conservative Treasury minister Lord Jim O’Neill.

Despite being a vigorous Remain campaigner, he argued that Britain “should prepare for a much more economically optimistically 2018”, citing better than predicated global growth as the reason.

He believes that Britain’s growth forecasts will be upgraded, due to China, the US and Europe showing increased economic activity.

Whilst this view is unlikely to be shared by all, the Pound seems to have benefited as a result.

Personally, my opinion remains unchanged from recent months and that is we are working in a short-term market. Therefore, those clients holding the Pound should be keeping a close eye on the current developments and consider their positon accordingly.

For those clients with a Sterling currency exchange to execute this week, there are some key UK economic data releases to keep an eye on.

The first is tomorrow’s official Unemployment Rate. The rate is expected to remain unchanged at 4.3% but expect additional volatility on Sterling exchange rates, should we see an alternative reading.

Further ahead and all eyes will be on Friday’s UK Gross Domestic Product (GDP) figures. These will likely have a significant impact on the Pound, with an expected growth figure of 0.4% currently being factored into the Pound’s market value.

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.

Retail sales figures fail to impress this morning, positive brexit outlook still holding Sterling strong

We have just had the release of Retail Sales figures for the U.K a short while ago and unfortunately figures have failed to impress and fell short of analysts expectations.

Usually this would have hit the Pound fairly hard and we would have had Sterling weakness, however it does appear that we are currently witnessing a bout of positive vibes surrounding Brexit negotiations and progress and this is currently giving the Pound a bit of a boost.

My opinion at present is that I would not be surprised to see Sterling exchange rates have a good year, there is of course the potential banana skin that Brexit talks may suddenly take a turn for the worse and at that point the Pound may struggle, but in general things to appear to be ticking along fairly well, and due to this fact alone I think Sterling will reap the benefits of this.

The European Central Bank do have a part to play and should they move to completely cut back on their QE program and start to make more positive economic decisions then the Euro could still continue its fairly good start to the year.

One possible setback for the Euro is the Italian elections which are due on 4th March, these should bring uncertainty for the Euro as there is still quite a bit of uncertainty over the potential victor, so keep your eyes peeled for more news throughout February for this.

If you have a Sterling/Euro exchange to make (either buying or selling) in the coming days, weeks or months and you would like assistance not only on the timing of your transfer but also with achieving the very best rate of exchange too then I can help you personally.

Feel free to get in touch with me (Daniel Wright) by emailing me on djw@currencies.co.uk and I will be more than happy to get back to you. Having now worked at the same foreign exchange brokerage for over a decade I am well placed to assist you and will be more than happy to help

What will happen on GBPEUR for the rest of January?

The pound to Euro rate has been trading in a very tight range for the last few weeks with a high to low variation of 1.12-1.1360. This is presenting a good time of consolidation for clients looking to buy and sell Euros to make plans surrounding better times to look at any currency exchanges. What is definite is that the rate will not stay like this forever and sooner or later we will see a change.

Key events will focus on the European Central Bank (ECB) meeting next Thursday 25th January. Investors will be closely monitoring any changes we might see in the economic policy of the ECB which might see a shift on the Euro. Overall expectations for the Euro centre around the reduction in their QE program and possibly the prospect of raising interest rates.

The Bank of England will meet in February, general impressions are that the pound will continue to rise if they do raise interest rates but this might not be until much later in the year. The UK has now falling inflation which would actually see the pound falling as it removes the pressure on interest rate hikes.

GBPEUR has been trading in a range of 1.10-1.145 since October so the prospect of any major deviation from this is limited. I would personally be expecting GBPEUR to remain this kind of range for the end of January. Most prospects for the future focus on the outlook on the pound to Euro rates remaining at these more favourable levels for Euros buyers.

If you have a transfer to consider in the future then making plans in advance is key to maximising the position. For more information at no cost or obligation on the best strategies to maximise your position please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

GBP EUR Rates Rally Back Over 1.13

The pound has made good gains against the Euro today with levels breaking back over 1.13 in afternoon trade. GBP EUR has rallied by almost a cent from the lowest point today despite stronger EU inflation data. EU inflation numbers rose to 0.5% in December which was higher than the expected 0.4%. It bodes well for the Eurozone after the European Central Bank has battled with weak wage growth and low inflation for almost a decade.

UK retail sales released on Friday could make for an interesting end to the week and the expectation is for a big jump higher for December which covers the Christmas period. A big number would be welcome news for the British economy and hence the pound and could see some material gains. The December retail sales can be a big market mover so those clients with pending requirements either looking to buy Euros or sell Euros would be wise to get in touch to consider your options. UK unemployment data is released next week and this too has the potential to cause some volatility next week.

Rates for selling Euros remain incredibly attractive with all the ongoing uncertainty with Brexit although any further developments in the second round of negotiations could see things change very quickly. Any positive noises being made from either side would likely see the pound rally although it may take a little more time to get to that point.

My view is that the Brexit outlook is starting to look that much more optimistic now that the first phase has been completed which highlighted a will from all sides to put something together.

Those looking to make currency transfer are impacted by these daily events. To discuss your requirement and how to try and maximise on the rates of exchange as they become available then please feel free to get in touch with me James at jll@currencies.co.uk

How will the Pound move against the Euro in 2018? (Tom Holian)

The Pound has remained in a fairly tight range against the Euro since the start of the year as the market appears to be waiting for further progress with the Brexit talks.

With the last meeting going relatively well in early December we saw GBPEUR rates spike in an upwards direction but the gains were relatively short-lived.

The critical issue of Brexit is that it is not just the UK who will be affected but also the European Union.

When the talks initially began last year the Pound came under a lot of pressure as the cards appeared to be in the hands of the other 27 member states.

However, recently the talks have started to progress positively and I think we could see Sterling improve in the future when the next round of discussions begin again in March.

At the moment the market is relatively settled so if you’re happy converting your money at these rates and would like a free quote then contact me directly by calling 01494725353 and ask for Tom Holian when calling.

The next catalyst for change in the short term is due to come out later on this morning with the latest release of Eurozone inflation figures at 10am. Eurozone Inflation is extremely important for the central bank when deciding monetary policy so this morning’s data could impact GBPEUR exchange rates.

The European Central Bank has already previously reduced their QE programme and if inflation remains as expected we could see the ECB possibly hint at raising interest rates at the next monthly meeting in the future which could see strength for the single currency.

If you have a currency transfer to make and would like a free quote compared to using your own bank or simply want to compare rates to buy or sell Euros against your current foreign exchange provider then feel free to get in touch for a free quote. Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help save you money on exchange rates.

Email me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

GBP/EUR Forecast – Brexit Negotiations Continue to Drive Sterling’s Value (Matthew Vassallo)

GBP/EUR rates have remained flat during Tuesday’s trading, with the markets seemingly waiting on the next Brexit report before making a major move.

The pair has remained rang bound of late, with Sterling finding plenty of support above 1.10 but not threatening to break through 1.13 against its EUR counterpart.

UK Prime Minister Theresa May has reshuffled her cabinet in the hope of bringing some stability and in turn some confidence back to the markets. However, investors have not reacted particularly positively to this development and whilst the Pound has found a foothold of late, a sustainable increase against the EUR looks unlikely under current market conditions.

The EUR itself has benefited from a prosperous Eurozone economy, which has exceeded expectation at almost every turn. It seems to have been the currency of choice for investors throughout much of 2017 but whether that trend continues over the coming months, is likely to be hinge on how phase two of Brexit negotiations develop.

With so much market focus and emphasis on the UK’s separation from EU neighbours, any positive strides forward in this sphere is likely to benefit Sterling immensely. Brexit has been a weight around its neck for the past 18 months but personally, I feel any resolution in the short-term is highly unlikely.

It is far more conceivable that negotiation’s will continue to stagnate, as they did during the early stages, and this in turn is likely to handicap any sustainable increases for the Pound.

Therefore I would be tempted to remove any risk from the market and lock in any short-term currency exchange before Brexit negotiations resume.

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.

Will the Euro continue to strengthen and will Carillion drag the Pound down? (Joseph Wright)

The headlines surrounding the Euro at the moment are that the currency is currently trading at an all time high against the US Dollar. The gains are generally being put down to the strong economic outlook for the Euro and also expectations that the European Central Bank will begin to cut back on the current stimulus package as the economy justifies it.

Many economists expect to see the Euro hold its ground at the current levels, and when compared with the Pound I think we may even see the Euro to Pound rate improve further especially if Brexit related issues continue to negatively impact sentiment surrounding the UK economy both during and after the Brexit process.

The case for a stronger Pound hasn’t been helped in the past week as it’s emerged that the UK’s second largest construction company, Carillion is likely to go into liquidation shortly. There is up to 20,000 jobs that could be lost as a result and a number of industries and sub-contractors could also run into issues as a result of this. The company has close links with the UK government and it’s emerged that up to 8 contracts were taken out with the company by the government since profit warnings were announced.  This is likely to be looked into further and I certainly don’t think we’ve heard the end of it.

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.

What will be happening with the pound to Euro forecast this month?

The pound is looking much better against the Euro following the withdrawal agreement which has improved the outlook on the Brexit. Sterling has found some support against the Euro and despite plenty of uncertainty over what lies ahead, sterling is enjoying a much higher range of rates than we have had. The range has been  1.07 to 1.14 so the current levels of 1.12 are not to be easily ignored.

2018 will undoubtedly offer us some better opportunities to buy Euros with pounds following a number of key events including the Italian election in March and the resolution (or not) of the Spanish situation. We will also be looking to the German situation to see if the coalition agreement will actually take place and hold. Whilst agreed today the coalition could struggle and this could see the Euro weaker, if looking to sell Euros and hanging on hoping for big improvements you could end up disappointed!

2018 could be a better year for Euro buyers but the pound could struggle if the Euro continues to find favour which it has been doing recently. Expectations for the pound to struggle can also not be discounted so I would personally be imagining some ranges in the 1.10-1.16 level for Q1 of 2018.

If you have a transfer buying or selling Euros against the pound making the most of the situation and trying to cover your bases on the predictions is sensible. Most clients looking to sell Euros have not had rates this good since September, the lows we hit then were in the 1.08 range, this is the best rates for Euro sellers in nine years!

Overall 2018 has begun fairly quietly on the rates with no major changes but this will not last for long. Market sentiment is leaning towards improvements for the pound against the Euro should the Euro weaken but sterling has many hurdles to overcome. The best way to plan for the future is to create it, if you have a transfer that you are considering please don’t hesitate to contact me Jonathan Watson to discuss further.

Please email me on jmw@currencies.co.uk to get the latest news and information on this situation.

Euro remains strong against the Pound but for how long (Tom Holian)

The Pound vs the Euro has been trading in a very tight range during the course of this week as the markets return for their first full week back since the start of the year.

It appears as though the currency markets are waiting for their first big move of the year and with the Brexit negotiations not due until March the Pound could remain under a lot of pressure for the next two months.

Economic data has been mixed and we have seen Sterling move up one day and then down the next and not yet settled in one direction or another.

The Euro has once again broken the 1.20 Interbank level against the US Dollar which is the highest the currency pair has been in a very long time which highlights how strong the single currency is at the moment.

Tomorrow afternoon could see the Euro end the week with a lot of movement as the US releases its latest set of inflation data in the afternoon.

Inflation is a key indicator as to which way a central bank may move interest rates so if you’re in the process of making a currency transfer involving Euros then keep a close eye out on tomorrow’s announcement.

US Retail Sales are also due to be published and like with inflation, I think we could see a lot of volatility at the end of this week.

If you have a currency transfer to make and would like a free quote compared to using your own bank or simply want to compare rates to buy or sell Euros against your current foreign exchange provider then feel free to get in touch for a free quote. Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help save you money on exchange rates.

Email me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Phase 2 of Brexit Talks could prove problematic (Daniel Johnson)

Brexit Negotiations

It looks as thought the next round of Brexit talks could be problematic which does not bode well for the pound. It seems Brussels have been making contingency plans fro a “no deal” scenario due to the possibility of UK firms losing out.

In a letter to Theresa May, Brexit Secretary, David Davis has warned that firms may have to relocate to Europe or there is the risk of seeing contracts terminated.  The second phase of talks, covering transitional arrangements after the UK leaves and economic and security co-operation moving forward are due to begin towards the end of the month.  Theresa May has said it is right to plan for all possible outcomes, including no deal. She has however stated she is confident the UK and the EU can reach a deal on their post Brexit relations in time for the UK’s departure target. I am of the opinion this is optimistic and that their could be an extension.

There are British concerns about Brussels’ preparations for Brexit with David Davis suggesting they are “frequently damaging to UK interests.” In his letter to May Davis warned it was potentially discriminatory of EU agencies to have issued guidance to businesses stating that Britain would become a “third country” outside the EU without any reference to a future trade deal sought by both parties.

Davis warned that the EU’s current stance amounted to “potential breaches of the UK’s rights as a member state”, he also said he wants the European Commision’s Brexit task force to withdraw the statements so far in light of the deal reached in December to begin trade talks.

The comments from both sides does not bode well for Sterling, it may be wise to take advantage of current levels if you are a Euro buyer.

If you have a currency requirement I would b 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.

GBP EUR Rallies Towards 1.14 (James Lovick)

The pound has seen a volatile period after making good gains this week against the Euro. GBP EUR now sits at 1.1344 ahead of industrial and manufacturing production figures released tomorrow. The data has performed well in recent months as a result of the weakness in the price of sterling which is of course good news for British exporters.

The November figures are expected to show a jump higher on Octobers data which could help see the pound rally on the back of a strong number. UK data is generally lighter this week and focus next week will centre on the UK Consumer Price Index inflation numbers on Tuesday as well as retail sales figures released later next week. A pickup in inflation would which would be of concern to the Bank of England could see the pound rally.

With British politics continuing to drive the markets as the ongoing Brexit negotiation moves forward then any developments on this front are likely to see considerable volatility for GBP EUR exchange rates. The cabinet reshuffle which has been concluded today could now set the tone for 2018 after a bad summer for the Prime Minister when Theresa May lost her majority in the House of Commons. The Brexit negotiations however are likely to be the biggest driving force for GBP EUR exchange rates. Clients looking to buy Euros could see a window of opportunity to purchase if the second round of talks get off to a good start.

The Euro however could be in for a better period after stronger data this week impressed the markets and this should help support Euro exchange rates. EU retails sales have performed better whilst Germany has also had a good run of economic data with very high factory orders recorded. Those with pending requirements are likely to see a volatile start to the year. To discuss your won requirement and how we can assist with any transfers please feel free to get in touch with me James at jll@currencies.co.uk