The UK and Sterling seem to be going from strength to strength recently with more and more positive data coming out of the UK but will this Sterling strength continue? In my opinion I think there is a major possibility. Sterling has come a long way since hitting a low point after the UK lost its coveted AAA credit rating when GBP/EUR hit a year low of 1.1370 and GBP/USD went as low 1.48. As it is now GBP/EUR is sitting much prettier with the Interbank rate currently around 1.1850 and GBP/USD up just over 1.54. When UK Gross Domestic Product (GDP) figures were released two weeks ago we saw that the UK economy had grown by 0.3% in the first quarter of 2013, much better than expected and giving the pound a hefty boost as confidence oozed back in to the UK. Whilst the UK still has a poor growth outlook for the remainder of the year and we may not reach the highs of last year I still believe we could break through the 1.20 barrier with regards to GBP/EUR in the near future and possibly up above 1.56 with GBP/USD, even against a strengthening US economy. With better than expected Manufacturing, Construction and Services data coming out recently for the UK I just think that as long as these sectors of our economy keep on growing, Sterling will rise with them.
This is however my opinion and markets are prone to surprises, as the saying goes….’expect the unexpected’. There is a lot of uncertainty surrounding the Eurozone at present so if any of this can be resolved and a more positive outlook can be found then the Euro could find itself fighting back once more. As mentioned previously the US is a strengthening economy. Whilst this may be slow growth, it is growing none the less and this could create a tug of war between Sterling and the greenback.
If you have an upcoming currency requirement then it may prove prudent to speak with one of our highly experienced, professional currency brokers. We have a number of different contract options available that can help safeguard your funds against market movements. You can contact me direct at firstname.lastname@example.org
Yesterdays anticipated rate cut from 0.75% to 0.5% interestingly stregthened the Euro agains Sterling. This could be down to a number of factors, however the thought that the Eurozone could now move forward with it’s economic recovery is what potentially assisted the single currency strength. Euro sellers saw a brief window of opportunity as the Euro made ground on Sterling.
The relief was short lived however, as during Draghi’s speech the Euro slipped back to offer Euro buyers a good opportunity to take advantage again at the 1.18s level.
Today sees European Producer Price Index data released shortly. This has the potential to weaken the Euro further, as the predictions are for smaller growth than the previous Month. This morning also sees US Non Farm Payroll data, which is often linked to Euro Strength / Weakness. All in all a busy day, and with the bank holiday arriving shortly, is it worth securing your transaction now to give you piece of mi
And if in the UK how good to see some sunshine!
In summary this week on GBPEUR I think we may see some downward pressure again on sterling but Thursday is the key date which will determine where rates go. Regarding sterling growth of 0.3% is hardly anything to get too excited about! Ineed the economy was flat for the last 6 months (with -0.3% growth in Q4 2012).
This week look out for PMI surveys for the UK, Europe and US. PMI is Purchasing Managers Index and the data is released on the 1st, 2nd and 3rd working day of every month. It is snapshot of economic activity in the previous month. The data will therefore be more up to date than the recent GDP data and usually affects short term movements on rates.
Thursday too is the ECB (European Central Bank) Interest Rate decision. There is a possibility the ECB will cut the Euro base interest rate which would weaken the currency, hence making it more attractive to buy.
Are you considering anymore transactions for which I can keep an eye on the market? Registerin an interest with me Jonathan on email@example.com
I work as a specialist currency broker and our personal proactive service is designed to get our clients the most from the market.
Have a good week!
Yesterday’s GDP figures surprised most analysts by showing a growth of 0.3% meaning the UK avoided falling a triple dipp recession. This moved the markets significantly creating a SPIKE and giving quick moving clients the chance to buy euros at a near 3 month high and Dollar at a 2 month high. But will the rates continue to climb?
My personal view is that even though the data showed an improvement I cannot see the pound gaining any momentum as the economic outlook is not great. The economy is where it was 6 months ago as this gain equals out last quarters fall. However disposable funds are being squeezed, the construction industry is struggling and unemployment is up. Analysts are also suggesting that the Bank of England could extend their Quantitative Easing (QE) program in a few week’s time; Putting more pounds in circulation traditionally weakens its value, so clients holding sterling may not want to get too confident and limiting your exposure to any correction may be wise.
To register for these SPIKE notifications or to take advanatage of these currenct levels contact us today. Either via the normal number or email me, Steve Eakins at firstname.lastname@example.org
Have a good weekend.
The eagerly awaited GDP announcement of this morning was always destined to impact the currency markets. The 0.3% growth reported this morning has seen Sterling strengthen its position against all currencies, including an improvement of 1.1% (at time of publish) against the Euro.
This is an opportunity that Euro Buyers have taken advantage of today, and I expect the same trend to continue tomorrow. It may be some time before we see rates back in the 1.20s, so if you have a Euro transaction coming up it may be wise to get in contact to discuss your options.
All is not lost for Euro sellers, as trading today would still be a marked improvement in comparison to most of last years positions. If you are thinking of selling Euros and are trying to decide when is the best time to get the best rate, do get in touch to discuss upcoming ’market events’ that will affect your currency.
I work for a market leading Foreign Exchange company, with various awards from ‘The Times’ and ‘The Telegraph’, including best exchange rates.
You can reach me on 0800 328 5884 or email me AJB@currencies.co.uk .
Thursday 25th April sees the release of the UK Q1 GDQ figures, which have the potential to impact exchange rates substantially!
If you are considering buying Euros, then do get in contact to discuss your options. If Sterling drops to the six month low mark of 1.1430 on the back of negative GDP figures, then you would find a purchase of €200,000 would cost you an extra £4,600!
Tomorrow sees the release of BBA (British Bankers Association) measured Mortgage Approvals for March, and the CBI (Confederation of British Industry) Distributive Trades Survey. Although these on their own would generally not have a large effect on Sterling, when coupled with the hype surrounding potential poor UK GDP data, there is every chance that Sterling could take a hit. I don’t think that we will bottom out at the February figures in the 1.14s, however in the last seven days we have seen an instance where Sterling slipped in to the 1.15s rapidly!
Amazingly, there is concern within the single currency linking Scotland to further Euro uncertainty. As Scotland’s readies itself to vote on independence, Euro Zone members have voiced their concerns on members sharing currencies that aren’t the Euro. This has the potential to be a real banana skin for the Euro. Should Scotland vote on independence (unlikely and unwise in my opinion), the Euro-zone would look to hurry the Scots along with either their own currency, or immediate implementation of the single currency. As with the Cypriot Crisis, a small part of the Euro-zone has the potential to make waves on a huge scale!
If you consider yourself risk averse and want to find out what options there are available to guarantee rates of exchange, feel free to drop me an email AJB@currencies.co.uk or call me 01494 725 353.
I work for a market leading Foreign Exchange company, with various awards from ‘The Times’ and ‘The Telegraph’, including best exchange rates.
There is a whole host of economic data still to come this week and it looks to me like those most prepared will get the best deals. With no clear direction being established on the exchange rate pairing we are seeing lots of volatility which will affect your rate.
The exchange rate is very sensitive to economic data at present and Thursday is without doubt the big day with news on whether or not the UK economy has been in a triple dip recession. If you are considering an exchange soon, it is really worth making sure you have explored all of your options before you make a decision.
If the UK is in the dreaded triple dip it is likely the pound will lose a cent or two against most currencies. On the other hand if we are not, then it is likely the pound will gain up to a cent. The importance of the data cannot be overstated and it is highly likely those who are the most prepared will be the ones who get the best deals.
Our specialist service is designed to ensure our clients are well informed and up to speed on the latest news in the market. We are working with the rates all day long and have a wealth of experience in managing the needs of clients, both corporate and private. Even if your exchange is just a one-off speaking with us is very much worth your time. For a free no obligation discussion of how we can better the banks and other companies please contact me Jonathan Watson on email@example.com
I look forward to hearing from you. If you are unsure about anything please feel free to contact me on the email address. The savings we can offer versus the banks are very strong reasons to consider what we can offer.
The status of the UK continues to fall which is being reflected on the strength of the pound against a basket of currencies. Over the weekend the credit ratings agency Fitch confirmed that it has downgraded the UK from triple A to AA+. Moody’s has already downgraded the outlook for the UK and this continues to add more pressure on George Osborne, the rest of the Coalition government. It turn it makes the news on Thursday when the UK GDP figures are announced even more important for the future of the government and the strength of the pound.
All indicators for this week for the GBP seem to suggest that there will be more pressure on the GBP (i.e. Public Sector Net Borrowing, CBI Industrial Order Expectations, CBI realised sales). Even if the GDP report shows that we have avoided a recession is seems unlickely that it will counter the losses expected.
As a result GBP sellers may want to move sooner rather than later but buyers of the Pound may want to hold out.
The process will only take you a few minutes and we can look at prices for you to see how much of a saving we can give. Here I am 100% sure that there will be a saving going through us over that of the banks, otherwise simply put we would not exist. We have been titled the best currency provider in the UK for 3 years running by The Sunday Times and independent comparisons have shown there is a saving between 2%-4% using us over the banks. Would that be of interest?
To find out more about the specialist currency service we provide, whether you are a private or corporate client, then we can help. Please get in touch either on 01494 787478 or by emailing me with a brief description of your individual requirement and I will happily contact you and run through your options. You can reach me direct at firstname.lastname@example.org
GBPEUR proved yesterday again to the market why it is one of the most unpredictable pairs right now. In early morning trade an increase in UK Unemployment data caused the pound to lose ground with rates dropping to 1.1577. Then within a few hours a hint of the ECB (European Central Bank) cutting their interest rates caused rates to soar back up to 1.17!
If you have a transaction to consider this will make planning and trading at the best price difficult but not impossible. With Retail Sales due shortly for the UK and GDP (Gross Domestic Product) data due for the UK next week there is bound to be more volatility on the horizon.
To put my neck on the line I think rates will drop a cent or so to the 1.15-1.16 again before rising next week up to 1.18 following good GDP numbers. Getting the best rates is achieved through forward planning and an awareness of all of your options. I am a specialist foreign exchange broker with many years of experience helping people move money abroad at the best rates and best time. For a free, no obligation discussion of all of your options please feel free to contact me directly on email@example.com
I look forward to hearing about your situation and offering solutions
This week looks like it could be a bad week for sterling and I think Wednesday will be the key date. Wednesday morning we will learn if the Bank of England considered anymore QE (Quantitative Easing) at their last meeting back at the start of the month. We are expecting no real changes but it is unlikely we will see anything that would give sterling a lift. Most of the data towards the end of last month for the MPC (Monetary Policy Committee) to base their decision on was poor and henceforth we may see some of this sentiment reflected in the voting.
This would lead to GBP weakness and I think even if we don’t see the above actually happen, more often than not we do see GBP weakness before the Minutes in anticipation of a negative piece of news.
Looking into next week we have GDP (Gross Domestic Product) data for the pound which is now widely expected to show growth for the first quarter of 2013. If you are looking for slightly better rates then this may be the opportunity you are waiting for. Having said that it could easily show a contraction which would be GBP negative as everyone had been expecting.
It is impossible to tell you exactly what will happen in the future. And as much as I enjoy looking after my clients and making forecasts, if I genuinely knew exactly what would happen I would probably not be telling everyone – unless you were really nice to me . What I can do is highlight the important upcoming events and make predictions which will allow you to make an informed decision on how to approach your transactions.
I have personally assisted thousands of private clients with their currency transfers when moving abroad or back to the UK. I also help many businesses in the UK manage their exposure to the currency markets.
For more information on the GBPEUR rates and how to ensure you trade at the best rates and with the right knowledge, please contact me directly on firstname.lastname@example.org
I am happy to take any questions on the markets or our services, please note there is no charge for our service. For more information on what I can offer and how it all works, please contact me as above, I look forward to hearing from you.
Unlike the weather which remains as cold as a few weeks ago, the pound has shaken off some of the worst of this year. Concerns over Cyprus and the stability of euro zone banks, plus a slightly better performing pound indicate to me a fairly range bound few weeks of anywhere between 1.16 and 1.19. Significant gains for sterling look limited, as do significant gains for the euro. On balance I expect rates to be higher towards the end of the month as sterling slightly recovers and attention remains on the Euro zone economies.
Tomorrow we have Euro zone GDP at 11 am in the morning. We know the euro zone is struggling but just how bad is it? This first estimate of Q1 2013 today may impact rates on GBPEUR this morning. The euro has been on the back foot due to events in Cyprus and whilst unlikely the fears of bank runs all over Europe aren’t helping matters.
If you have a transfer coming up you can make an enquiry with us. We are specialist currency brokers who can save you money on your exchanges plus offer help with the timing of your transfers.
Please contact me Jonathan on email@example.com for more information at no cost or obligation.
Today we have the UK Interest Rate Decision, UK Quantitative Easing (QE), European Interest Rate Decision and European Quantitative Easing. This will make today maybe one of the busiest for the week and or month.
The UK interest rate has now been held for nearly 5 years so there is little chance of any change. QE in the UK however is a lot more probable and would weaken the pound if confirmed. The head of the Bank of England has voted for it for several months and failed to get the majority behind him in the monetary policy committee. Last month it was even mentioned in the UK budget that they need to do what they can to increase growth in the UK and QE is a real possibility. The only reason why they may not is that Mervyn King the head of the Bank leaves in 3 months’ time, it may be that they decide against making such a decision until his replacement is put in place.
In Europe interest rates will probably stay steady, but there is an outside chance a drop could be announced. This would probably weaken the single currency. Quantitative Easing is probably off the cards in the Eurozone however commentary from Mario Draghi the head of the European Central Bank can easily swing markets. His comments will more than likely be on Cyprus and the wider debt crises across Europe will probably result in swings in the next few hours.
So when do I buy?
Well anyone with a currency need may want to buy before this busy period as there is no crystal ball confirming which way the markets will go, whether you lose or gain. However for those looking at playing over the event will probably want SPIKE NOTIFICATION
. This is a service that we offer contacting you with these breaking news releases allowing you to make an educated decision on when to buy. Equally if you have a target rate that you are trying to achieve a RATE ALERT
might be best. To register for each simply email me Steve Eakins at firstname.lastname@example.org
with your details.
Here we offer an award winning service providing a proactive service helping you time your trade while giving you access to award winning exchange rates. If you have found this blog useful feel free to contact us for a quotation on your exchange to se how much you could save. It could be very well spent 10 minutes!
Sterling has once again had a strange week on the currency markets, gaining a little further ground against the Euro, however losing a little value against the majority of major currencies.
Much of the losses seen for Sterling can be put down to the possibility of the U.K having another credit rating downgrade, this time by Fitch (another of the three large credit rating agencies) which was announced late last Friday. We also had worse than expected mortgage approvals data early on Monday which again highlights all is not rosy in the U.K.
The reason we have gained ground against the Euro is quite clearly mainly down to the issue we have had over in Cyprus, for those of you that are looking to buy Euros in the near future it may be prudent to be a little concerned as rates have not continued their charge in the right direction over the past few days and if matters in Cyprus cease to be front page news then Euro may join the rest of the other major currencies and could start to fight back making it more expensive to buy again.
For the rest of the week we have GDP (Gross Domestic Product) figures for the U.K tomorrow morning – Don’t worry not the big one surrounding the triple dip recession but a revision of a previous figure.
On Thursday we have GDP figures for the U.S which can actually change global attitude to risk and may affect all major currencies.
Beware that the on-going Cypriot funfair will more than likely stay in town leading up to the long weekend so if you do have a pending transaction to carry out it may be sensible to eliminate any risk of another weekend rate shift and ensure that you can relax whilst eating your Easter eggs.
If you would like to contact me directly to assist with a pending currency transfer email me on email@example.com
GBPEUR has dripped below 1.18 due to poor UK retail sales and a general lack of steam from yesterday’s rally. Ultimately the reasons for the improvement were solely due to comments from the European Central bank that Cyprus was a test case.
These comments have since been taken back and hence the rate has fallen a little. I think on balance GBPEUR is destined to drop a little lower this week as we have UK GDP data tomorrow and so far everything seems to have settled in Cyprus.
Saying that it is impossible to say exactly what will happen, we aim to keep our clients informed of what is happening in the market to ensure that they don’t suffer unnecessarily at the hands of adverse movements.
If you have a transfer to consider you may be well off speaking to one of our team to find out more about what we can offer. We can offer our clients much better exchange rates than the banks and all the information to make an informed decision on when to trade.
Please contact me Jonathan on firstname.lastname@example.org for information on the how it works and to learn what will affect your rate and how much it may move.
GBPEUR rates have pushed up to fresh highs today and many would believe this is down to risk in Cyprus changing, but this is not the case. First thing today the news was that Cyprus has agreed a bailout with the EU which drove the euro up pushing GBPEUR rates down to 1.1680. However through the rest of the day it was Italy that re-emerged its head with a risk of a credit downgrade that undid the euro strength. We come towards the end of the day and GBPEUR rates sit at a near 6 week high, threatening 1.18 potentially.
So what for the euro this week?
Well as we enter the end of the month, data which traditionally drives the market is thin on the ground so it is political views and markets views which drive the markets. With the Cyprus and Italian story, plus the weekend press highlighting that other credit agencies could follow Moody’s downgrade from the AAA credit rating, there is plenty to drive rates. We also have to respect that traders will start pricing in expectations for data next week/month. My view is that rates will be range bound between 1.16-1.18 for GBPEUR, there will be opportunity for the quick moving to get good prices for euro buyers and euro sellers.
Register your interest via my email at email@example.com if you would like to be notified of spikes before we publish them. If you want the best price you have to move quickly and that is a service that we offer. We can highlight these opportunities helping you get the best from the market at the best price. Hence the awards that we have been given. We have been highlighted as the “Best Exchange Rate Provider” with the “Best Exchange Rates” in Britain by The Sunday Times for three consecutive years and more recently by the Telegraph. Worse case you waste 2 minutes sending an email, best case the information saves you thousands on your exchange…
Economic data can be a fairly big mover on exchange rates and the rate has reacted today to worse UK economic news and a Spanish bond auction. The UK Manufacturing data today pointed to a contraction in output in the Manufacturing and Industrial sectors of the economy in February. This is bad news for the UK and raises the prospect of a triple dip recession.
Anyone buying euros may take some comfort from the fact the Spanish debt auction showed the cost of borrowing for Spain rising slightly and true this did knock the euro slightly. The main driver from last week on the euro was Mario Draghi’s comments that he expects things to improve in the future. If this is the case then the effects on the exchange rate will be two fold:
1 – The pound will weaken as investors holding GBP from last year due to fears over the euro zone outlook sell the GBP on news the euro zone is making progress
2 – The euro will strengthen as investors buy euros to benefit from the perceived longer term improvements in the economy
If you are making a currency exchange in the future I would be more than happy to explain what is driving current exchange rates and provide some assistance with a much better rate of exchange than you can currently achieve. For more information please contact me directly firstname.lastname@example.org
There is no significant sterling data tomorrow but I still expect we will see fairly a busy day as markets adjust from today. The lack of QE by the Bank of England helped the pound briefly but European Central Bank indications that the Euro zone situation is not quite as bad as many think helped the Euro make further inroads against the pound. As I have said many times GBPEUR has not really found its feet so far this year and I see no reason this uncertainty won’t continue. Don’t get caught out gambling rates will go your way, speak to one of our experienced currency specialists or email me directly email@example.com
The losses on GBPEUR look set to continue to be exacerbated by problems in this green and pleasant land. It is not just the flat economy; the UK is looking increasingly isolated politically too. Talk of the UK leaving the EU and the prospect of new banking regulations driving business away from London all serve to undermine international confidence in the UK and the pound. Lately there has been plenty of media coverage predicting further sterling losses. I think perhaps talk of parity with the Euro is unlikely but do feel rates could easily test 1.10 in the coming months and weeks. If you are considering any transfers involving the pound you can make an enquiry with us. We are confident that we will save you money and will provide useful information.
To learn more please email me Jonathan directly on firstname.lastname@example.org, I look forward to hearing from you.
The current GBPEUR outlook is rather negative and the poor economic data releases being released for the UK are not helping. All of the news quite frankly has been poor and this increases the likelihood of more QE or Quantitative Easing this week. We expect this would weaken the pound and make Euros more expensive to buy…
Thursday is a very important day for anyone interested in the GBPEUR rate. Should the Bank of England decide to embark on more QE we could well see the pound fall by a cent or two. What this also does is reduce the chance of any improvements in the short term on the exchange rate. It underlines the poor performance of the UK economy and signals further challanges ahead.
If you are considering a currency transfer involving the GBPEUR rate this is the time to take stock.
If the Bank of England do step up their monetary easing programme I would expect to see the pound weaken once more. Recent comments from members of the Bank of England have made it clear that they are happy for a weak pound as it is supposed to be helping our exports which may just help the economy in the long run.
Tomorrow we have Services data which can also affect sentiment and may highlight whether or not the Bank of England will announce more stimulus on Thursday. This is not a good sign for our economy and could be the start of further losses. At present sterling exchange rates have lost 7.3% this year against the USD and 6.5% versus the Euro. While we are reaching all-time lows against the Australian & New Zealand Dollar.
If you do have a requirement to make over the coming days or weeks then I would potentially look at things before the decision this Thursday. If you are planning on buying a property or importing for your business and your completion is fast approaching then I would consider your option of a forward contract (buying your currency without paying up front for it). Please do contact me if you would like more information on this contract option as it gives you the peace of mind to know exactly how far your funds will go and takes away exchange rate fluctuations.
If you would like more news on the markets or our services, please contact me Jonathan on email@example.com
If you are looking to make an exchange involving the pound and Euro a bit of careful planning could save you thousands of pounds. Just this week the difference between the high and the low has been over 2%. On a €100,000 transfer back into GBP you are looking at a difference of £1700 and it is only Wednesday!
Bank of England Minutes this morning showed that more QE is likely for the UK in the future. Any hopes that perhaps the rate would suddenly improve have today been dashed and anyone considering buying Euros should really not be taking anything for granted. 1.15 is a critical level of support to have breached and it is likley we will soon be testing 1.10.
Next week we have GDP data for the UK and a whole host of Eurozone data which will show us how the respective economies are performing. Despite the Eurozone being in recession officially investors will be closely watching the latest data. Last week’s GDP data for the Eurozone is effectively old news and therefore easily discounted if the newer data backs up recent signs of improvement in Europe.
Looking across the Channel the Italian elections will also be interesting, could Berlusconi really get back into power? It seems unlikley but you couldn’t rule it out.
Sterling looks likley to remain on a negative tide but fresh Eurozone worries could create some spikes next week to take advantage of. Don’t be fooled into thinking there is any chance of a big comeback for the GBP however. The close to ten cents slide since the start of the year looks certain to remain.
For a full discussion of your situation and to find out more about how to limit your exposure and trade at the best possible market exchange rates please feel free to contact me Jonathan directly on firstname.lastname@example.org or call 01494 787 478.
We have seen continued weakness from Sterling recently against both the euro and dollar. As of late GBP/EUR rates have been trading very close to a 15 month low with GBP/USD rates following the same trend hitting a 7 month low yesterday. There is a lot of pressure being put on Sterling at the moment with a declining UK economy, the chance of a triple dip recession and the possibility of a credit rating downgrade. All of these factors are having a derogatory effect on the pound but is this what Sterling needs to fire up a fightback against other currencies?
Bank of England policymaker Martin Weale yesterday stated that Sterling may need to weaken further in order to boost the UK economy. With a weaker pound it would help make our exports cheaper and in turn increase growth within the economy. If you couple this with the governor of the Bank of England Mervyn Kings speech last week, where it seemed he was openly talking the pound down, it looks like we could be in for some rough times for GBP rates.
The markets are very hard to judge at the moment with the talk of ‘Currency Wars’ and countries trying to artificially alter their exchange rates in order to boost their exports. This has created a lot of volatility in the market and lately it has not been rare to see movements of over 1% between the high and low of the day on exchange rates. I would not be surprised if in the short we saw GBP/EUR rates fall towards the 1.13-1.14 area but with all of these speeches from respected parties and data releases coming out recently I think we could see a tug of war between Sterling and most major currencies.
If you have an upcoming currency requirement and would like to talk about these market movements in more detail then please dont hesitate to get in touch. We have a number of different contract options to help you secure your currency at award winning exchange rates and help minimise your risk to a volatile market. Please contact me directly at email@example.com