UK GDP data to set the tone for Sterling Euro exchange rates (Tom Holian)

Sterling Euro exchange rates have remained relatively stable during today’s trading session as the currency markets wait for a key piece of economic data in the form of UK GDP data for the second quarter due out on Wednesday morning.

As this release will include the run up to and the subsequent Brexit vote this could be a real catalyst for change and if the data comes out low then we could see some very rapid losses for Sterling vs the Euro.

Clearly foreign investment over the last few weeks has been relatively low as it would have been difficult investing in the UK with the uncertainty of the EU referendum.

According to the latest Purchasing Manager’s Index the UK’s economic activity is now at its lowest level since 2009 with the figure published of 47.7 with anything below 50 representing contraction.

Later this week on Friday the European Banking Authority will look at a total of 51 banks across Europe including British banks and the likelihood is that we’ll see some concerns arising from the Italian banking sector which has come under pressure since the start of 2016.

The announcement of the stress tests will take place at 9pm UK time on Friday night and as the report is released outside of usual business hours I think this time has been chosen purposely  in order to reduce market volatility.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

I look forward to hearing from you.

 

 

Factors impacting a GBPEUR trade this week (Dayle Littlejohn)

If you are selling pounds into euros or euros into pounds below are some key events that will impact the exchange rate you receive this week.

The UK release there Q2 GDP numbers Wednesday morning. A rise is expected which should provide some support for the pound. Just remember this data release is for pre referendum.

The Eurozone release their latest Consumer Price Index (inflation) numbers at 10am Thursday. Inflation has been on the rise over the last few months due to the amount of quantitative easing the European Central bank have been pumping into the economy. I wouldn’t be surprised to see another slight improvement and therefore the euro to make gains against sterling.

The US release their latest interest rate decision Thursday evening. The FED indicated at the beginning of the year they could hike 4 times throughout 2016 and so far the US have not changed monetary policy. I expect no change due to the unstable global economy and when Janet Yellen testifies shortly after I expect to see speculators move out of the dollar and into the euro.

If you have a currency exchange to make involving GBPEUR it makes sense to explore all of your options. Here at GBPEUR forecast we understand every client’s situation is different, therefore we devise a strategy that meets your needs and requirements. As for exchange rates we can beat any UK brokerage or bank and I look forward to proving this to you. The clients I deal with are high net individuals, businesses and property buyers / sellers that are trading €10,000 to the multi millions.

Feel free to email me with the reason for your transfer (transfer of wages, property purchase) and I will respond with my forecast and the process of using our company.  drl@currencies.co.uk

Enjoy the rest of your weekend and I look forward to speaking with you Monday morning.

Will Sterling fall against the Euro? (Tom Holian)

Sterling Euro exchange rates have once again come under enormous pressure following the release of the UK’s latest Purchasing Manager’s Index which measures economic activity.

The data showed the lowest level since April 2009 and clearly this has been caused by the impact of the Brexit period.

British business has stalled and adopted a wait and see attitude during this time and this can be attributed to the fall in this data. This caused Sterling to fall by as much as 1% against the single currency during Friday’s trading session.

On Wednesday the UK announces UK GDP data for the second quarter. As this data will also include that from the Brexit I think we could see some real problems for the release and this could see Sterling exchange rates fall if the data comes out worryingly low.

Indeed, one source has even suggested that we could see a contraction in growth by 0.4% possibly sending us towards a recession.

When this happened previously Sterling took a big fall against the Euro so Wednesday’s data could be a real pivotal point for Sterling Euro exchange rates in the short to medium term.

However, although the UK economy is under pressure and therefore Sterling exchange rates have also struggled we could see some huge volatility towards the end of next week.

The European banking stress tests are due on Friday night and are set to be released suspiciously at 9pm outside of business hours.

Typically the reason why a news release is announced over the weekend is that it could cause too much volatility for the markets and I think this will cause some big movements on the currency markets.

The test includes 51 of the largest European banks by assets including British banks but since the credit crunch British banks have all had their capital requirements increased. Therefore, the focus is likely to be on the Italian banking sector which is coming under severe pressure during 2016.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

I look forward to hearing from you.

 

 

 

Francois Hollande Holds Firm on Free Movement (Ben Fletcher)

The French President made it very clear when meeting with Theresa May that if the UK wants to have access to the single market, then they must accept the freedom of movement. Hollande suggested that if the UK didn’t accept freedom of movement then they would have to accept a different status than the existing relationship.

Despite this firm stance from Hollande, the GBP/EUR rate has moved above the 1.20 level. Whilst Hollande is under a lot of pressure domestically to make sure Britain are given a tough time, there is plenty of Anti-EU sentiment growing in France.

May was able to have what appeared much friendlier talks with German leader Angela Merkel on Wednesday night. Considering that the UK imported over twice as much from Germany last month as they did France, it’s clear which talks are more important. The markets are beginning to recognise some strength for Sterling which could start to create good Euro buying levels.

Yesterday Mario Draghi President of the European Central Bank during his post interest rate decision statement suggested Brexit has not taken effect yet. Draghi emphasised that at the minute the consequences have blown over, but he is of the opinion that there will eventually be some fallout. Whether it comes in the form of businesses putting future projects on hold and not borrowing funds or consumers spending less it’s yet to be seen. But one thing that’s certain is there was very little opportunity in savings before the vote, due to low interest rates so spending may be the only way to improve your pension.

As a trader in a currency brokerage I am able to help you achieve the best rates possible, whilst also assisting with the timing of a transaction to make sure you get the most for your money. If you do have a currency requirements please feel free to send me Ben Fletcher an email at brf@currencies.co.uk.

Sterling’s Finding Strength Despite Mario Draghi Speech (Ben Fletcher)

The GBP/EUR rate closed the day around 1.20 having falling into the low 1.19’s as Mario Draghi delivered his statement after the European Central Banks Interest Rate Decision. Whilst the decision was expected to be a non-event as it was, the speech that followed was key.

Draghi has potentially exhausted all of his resources by dropping interest rates to 0% and injecting €80bn a month in quantitative easing into the market. The question today was what can he do to further stimulate the economy? Arguably further QE would only increase the amount of debt the banks currently hold. Furthermore negative interest rates have failed to turn an economy around in all scenarios it has been used. Dragi did suggest that come September if things haven’t improved for the Eurozone he would be prepared to act, but it’s yet to be seen how.

It was reported however that the recent Brexit result had not yet taken effect on the EU. There has been no data suggesting there was a slowdown just yet. However Draghi is giving himself time to see the full effects in the coming months to make sure any decisions her makes aren’t irrational or early.

The ECB President has put pressure on Governments to further support the effort to assist the banking crisis across nations in the Eurozone. The banking sector is very much causing a lot of the problems in the South Mediterranean so if this can be solved at source, then the general picture could start to improve.

In the coming weeks I believe that Sterling could find further strength, PM Theresa May has started meeting Europe’s leaders and this could start to settle markets. Having no answers creates volatility, if agendas and opinions are shared the markets can interpret what’s actually happening rather than guessing and waiting.

As a trader in a currency brokerage I am able to help you achieve the best rates possible, whilst also assisting with the timing of a transaction to make sure you get the most for your money. If you do have a currency requirements please feel free to send me Ben Fletcher an email at brf@currencies.co.uk.

Will the pound recover against the euro? (Dayle Littlejohn)

Since the EU referendum decision many of my clients have asked ‘will the pound recover against the euro and if so when?’ The next major economic event is the UK’s interest rate decision and Governor Mark Carney has eluded in recent weeks to a potential cut.

If this occurs GBPEUR could fall to the low 1.10s and exchange rates would therefore be at a 6 year low. The answer I am giving to my clients is its likely to hit 1.10 before 1.30.

On a positive note unemployment rates have fallen an inflation has increased in the UK consequently this does give the Bank of England potentially another month before making hasty decisions.

Even though rates have fallen, for many people currency still needs to be purchased at some stage. If you are looking to trade pounds into euros or euros into pounds, I can achieve better rates better than other brokerages and high street banks.

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

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

I look forward to speaking with you Friday morning.

Pound getting stronger following positive jobs figures (Joshua Privett)

The Pounds value against the Euro, GBP/EUR, has seen a healthy boost today following a boost to employment in the UK, but rates still seem moored between 1.19-1.20 and have been for the past 5 days of trading in the UK.

The news was a surprise to markets but still produced a muted reaction in terms of buying rates. The unemployment rate fell below 5% for the first time in roughly 15 years. This news would normally translate into potentially staggering gains on Pound value, possibly even being measured in whole cents, however, the current Brexit situation has to be taken into account.

The news of a Brexit came out on the 24th of June, and the current employment figures were tallied as a result of the entire months progress. This was a month where most had bet that the UK would be remaining in the EU so many businesses carried on as normal.

Since then there have been discussions of hiring freezes across multiple sectors. The positive improvement can also be attributed to the summer months, where traditionally dormant industries have awoken and given a short term boost to the employment figures.

With the expectation that these employment figures are likely to be a short-term improvement, this is why the Pound still managed to remain range-bound between 1.19-1.20, as markets know such news does not necessarily mean the UK economy will continue to get stronger in the current climate.

I strongly recommend that anyone with a buying Euro requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer in order to maximise your Euro return. I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels can be fixed in place for anyone considering buying Euros and are worried that the Pound may suffer in the coming months.

When will Sterling Recover Post-Brexit? (Daniel Charles Johnson)

A new cabinet is now in place with Theresa May at the helm and I think we will see the pound gradually strengthen. There are two events which could hinder any pound rally however. Firstly on the 4th August we have  the Bank of England’s (BOE)interest rate decision. There was the high chance of a rate cut at the Monetary Policy Committee’s (MPC) vote this month but rates remained unchanged at 0.25%. Usually if a data release goes a against the grain you will see a big change market. GBP/EUR  only saw a slight change, briefly moving to 1.21 before levelling out  at around 1.20. Only a cent away from the previous day’s 1.19. This could be due to the strong possibility of a rate cut in August. It is the general consensus this will happen, therefore I would not expect the pound to drop substantially when a cut does occur. The other event which could cause Sterling to fall in value is if the button is pushed on article 50. Article 50 engages the UK’s exit from the EU, this will  weaken the Pound. I do not expect this to happen until early 2017 however.

If you have a currency trade it is important to be in touch with a seasoned broker. The timing of your trade is vital during such a volatile  times, If you have a veteran broker on board he can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to help with your trade I will be happy to help. Let me know the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the UK and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.

Is Sterling’s Recent Strength Sustainable? (Matthew Vassallo)

Sterling has gained a foothold against the EUR over recent days, with the pair floating around 1.20 on the exchange. The Pound has gained some much needed traction, gaining almost 5 cents against the EUR compare to last week’s low.

We have seen the pair level out over the past 24 hours but the initial improvement came following last week’s decision by the Bank of England (BoE) to keep UK interest rates on hold at 0.5%. This, alongside the political stability bough about by Theresa May’s appointment as Prime Minister, has helped boost Sterling’s value and the key question now is will we see this recent improvement continue and if so will it be sustainable?

Personally I feel the Pound is likely to find life tough going for the most part, at least until we are given a clearer picture of how and when we are going to facilitate our ‘Brexit’ from the EU. This does not mean that the currency will move in a straight line and there will be opportunities for both buyers and sellers but my overriding feeling is that we are unlikely to see an aggressive spike above 1.20 for the Pound under current market conditions.

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

GBPEUR holds above 1.20

GBPEUR has held steady doing floating around the 1.20 mark as the renewed confidence in the pound continues to hold steady. The outlook for sterling is not great but at the current levels I would not be surprised to see the rate fall. I think if you need to sell Euros in the future it could get better, if you have pounds to sell for euros then transfer might become more expensive. Generally speaking the outlook for sterling remain rather uncertain and I feel any clients looking to sell Euros or pounds should be aware of this. I am viewing the current upturn in sterling rates as a positive indicator for clients buying Euros with pounds to take advantage of. We have not seen the full extent of the Bank of England activity and need to keep a close eye on the current levels to make sure we don’t miss out.

If you are buying Euros you have a great opportunity now with exchange rates much higher than they were only a couple of weeks ago. The GBPEUR rate dropped to the lower levels of 1.15 but we have now see it bounce back to 1.20. Will this continue? I would be rather worried it won’t as attention shifts back to the UK economy and the Brexit. If the Bank of England launch Quantitative Easing or cut interest rates in August sterling could be in for a very tough times. If you have a transfer to consider please email me Jonathan on jmw@currencies.co.uk

Sterling Euro rates on the rise as UK settles down politically (Tom Holian)

Sterling Euro exchange rates have this morning broken past 1.20 and the Pound has seen gains against all major currencies already this morning.

Politically things have become more stable for the British economy with new Prime Minister Theresa May coming in and this has helped Sterling experience some form of recovery against the Euro.

The Bank of England have confirmed last week that UK interest rates have been kept on hold with an 8-1 vote in favour of keeping rates on hold. However, the likelihood is that we could see some form of monetary easing at next month’s meeting due to be held on August 4th.

UK inflation data is due out on tomorrow morning with expectations for 0.4% year on year and anything difference could cause volatility for Sterling Euro exchange rates.

The impact of lower than expected data is that this could influence the central bank at next month’s meeting and could increase the odds of an interest rate cut or further QE next month.

On Thursday the European Central Bank announce their own interest rate decision and this could cause even further volatility for Sterling vs the Euro this week.

If you need to either buy or sell Euros in the weeks ahead you may wish to consider buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

GBP/EUR weekly round up and expectations (Joshua Privett)

 

With a new Government announced last week -avoiding two months of limbo where a new Prime Minister had to be sought, the Pound has found increased stability on financial markets.

But there are a number of different routes available from this point and sudden events could occur which would have a severe impact on the value of the Pound, and therefore buying Euro exchange rates.

Will the attempted coup in Turkey over the weekend secure their long delayed entry into the European Union? In doing so will this sure up arguments for many that a second Referendum is justified given that many assurances given by the Leave campaign have not been met.

Will Sturgeons call for a second Scottish Referendum next year, or her potential veto for the Brexit gain any traction? Will a leadership contest within Labour develop into calls for a general election?

Will we hear greater positive news from the Brexit itself? Australia has already come out with arms wide open to seize the opportunity for a trade deal with the UK after decades of not being able to. Will more follow?

Inflation data for the UK is set to be released early Tuesday morning. Positive data here may also give a boost to the argument that the BoE may not need to cut interest rates next month either with inflation being such a heavy barometer on their decision.

So at least in the short-term, it seems more likely than not that the Pound could continue to strengthen. As such I strongly recommend that anyone with a Euro selling requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer in order to maximise your Sterling return.

Anyone considering buying Euros can do the same, and we can discuss how best to approach a volatile market which seems to be moving in your favour in a safe fashion.

What is happening to Sterling Euro exchange rates? (Tom Holian)

Sterling Euro exchange rates have started to witness a brief recovery after the turmoil caused by the Brexit vote just over 3 weeks ago.

Prior to the announcement Sterling was trading above 1.3o and we have seen a drop of over 12% against the Euro but this week Sterling has showed signs of recovery.

The news of the new Prime Minister Theresa May coming in has helped to settle the economy and Sterling has taken the news positively as it has stabilised the very uncertain political landscape in the wake of David Cameron’s decision to resign.

Previously the Tory leadership was due to take 9 weeks but when Andrea Leadsom stood down last Monday this helped the economy.

Also on Thursday the Bank of England surprised the majority with an 8-1 vote in favour of keeping interest rates on hold.

The expectation was for a rate cut of 0.25% and the absence of any change in monetary policy caused the Pound to very briefly hit 1.21.

With the Consumer Price Index due to be published next Tuesday this could influence the central bank’s decision when they meet on 4th August to decide wether or not to change policy.

Bank of England governor Mark Carney has been very outspoken recently and there is clearly a huge appetite for further easing so if Tuesday’s announcement shows lower than the 0.4% expected then we could see Sterling fall against the Euro.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

I look forward to hearing from you.

 

 

 

UK Interest Rates on Hold. Where Next for Sterling? (Daniel Charles Johnson)

Yesterday the Bank of England (BOE) kept interest rates on hold at the record low of 0.5%. It was anticipated there would be cut to 0.25% following Brexit.  Historically if there is a significant economic event that goes against the grain you will see a considerable movement in the currency market. On this occasion however there was only a slight movement with the GBP/EUR for example sitting at 1.20 when it was in the early 1.19s per-interest rate decision. I think this is due to the very strong possibility a rate cut will occur in August. This information is common knowledge and as such I think the cut has largely been factored into the markets already and due to this there was not a large swing in the market nor do I expect one if there is a cut in August.

I think the new political stability created by Theresa May’s appointment and new cabinet will cause a gradual Sterling rally. If I was a Euro seller I would be looking to take advantage of current levels.

If you have a currency trade it is extremely important to be in touch with an experienced broker. The timing of your trade is vital during such a unpredictable  times, If you have an experienced broker on board he can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to assist with your trade I will be happy to help. Let me know the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the UK and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.

Euro buying rates spike following Nice, since stabilised (Joshua Privett)

The tragic news last night is still something most are struggling to digest, and it is the same on the currency markets. One of the major movers of a currency’s value can be sudden and devastating acts of terrorism.

At the initial release of the news the Euro fell heavily, as it was uncertain at the scope of the attack, and whether this was a lone-attacker. GBP/EUR reached 1.21 early this morning, before the full scope of the news was released and buying rates are now oscillating between the 1.19-1.2 mark.

Looking squarely back to the UK the Pound has improved since the beginning of the week with the announcement that we would be avoiding a prolonged battle over leadership, a new Prime Minister, a new Cabinet.

This fresh approach to the lack of confidence currently in the UK following a Brexit vote means that the Bank of England were more confident that they did not need to intervene to protect the economy immediately.

Buying rates will now likely be moving on how the new government takes its steps to manage the Brexit and the economy, and we’ll be hearing policy decisions relatively soon.

In the meantime, this renewed confidence, and the fact that attracting buying levels for Sterling may gradually push up its value through higher demand. Anyone with Euros to sell may be wise to move sooner rather than later, as currency markets rarely hold opportunities for long.

I strongly recommend that anyone with a Euro selling or buying requirement should contact me on 01494 787 478 and ask the reception team for Joshua to discuss a strategy for your transfer in order to maximise your Euro or Sterling return.

I have never had an issue beating the rates of exchange offered elsewhere, and a brief conversation could save you thousands on your transfer. jjp@currencies.co.uk

Bank of England keeps interest rates on hold and the impact to buy Euros (Tom Holian)

The Bank of England have chosen today to keep interest rates on hold as predicted in many of my previous articles on other websites I write on. The vote came out at 8-1 in favour of keeping interest rates the same at 0.5%.

Prior to the vote the chances were 80% in favour of a rate cut but to me it would have been been too soon as we have just had a new Prime Minister coming in.

Politically and economically the UK has been struggling owing to the recent Brexit vote and Bank of England governor Mark Carney has been suggesting that an interest rate or further Quantitative Easing could be introduced in order to settle the British economy.

However, compared to last week we now have a clear leader taking the UK forward and Theresa May has brought in some senior members which has helped to strengthen the Pound vs the Euro.

The Pound has seen its biggest daily rise vs the Euro in weeks improving by over 2% at one point shortly after the announcement was made.

Whether the positive movement for Sterling vs the Euro will continue is debatable so if you’re thinking about buying or selling Euros and you’re worried about what may happen over the next few weeks you may wish to consider buying a forward contract which allows you to secure an exchange rate.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

I look forward to hearing from you.

 

 

Will there be a UK Interest Rate cut? (Daniel Charles Johnson)

Over the last 48hrs we are seeing a new cabinet form. The appointment of Theresa May as the New Prime Minister has eased political uncertainty and caused a Sterling rally against the majority of major currencies. This may not last however.

Today will see the most eagerly awaited UK interest rate decision for years. UK Interest rates  have been sat at 0.5% for several years and today there is a strong possibility of a rate cut to 0.25% following Brexit. By lowering interest rates the Bank of England is attempting cause economic growth by making money cheaper to borrow.  Mark Carney the governor of the Bank of England has indicated there is also £150bn available for quantitative easing (QE).  QE is essentially pumping money into an economy in order to stimulate growth, Both of these monetary policy tools if implemented should weaken the pound.

If you have a currency requirement it is extremely important to be in touch with an seasoned broker. The timing of your trade is key during such a unpredictable  times, If you have an experienced broker on board he can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to assist with your trade I will be happy to help. Let me know the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the UK and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog and I look forward to hearing from you.

Sterling rates start to fall – Bank of England Interest Rate Decision.

GBPEUR rates have been climbing of late following the appointment of Theresa May as the next PM of the UK.  This has resulted in rates climbing 5 cents in three days giving anyone with euros to buy a great opportunity.

However rates are now starting to fall as the market looks forward to the Bank of England decision tomorrow. This is their first opportunity to make any change following the result of the referendum less than three weeks ago.  It is becoming increasingly likely that they will cut interest rates for the first time in over 7 years in an effort to bolster the domestic commercial property market. Many expect this to happen which is why we are seeing rates start to fall this afternoon and why many expect this to continue tomorrow.

As a result if you have euros to buy in the next few weeks moving sooner rather than later may be wise.

Longer term we also have to keep an eye out for the potential of an election being called by our new PM.  As pressure builds following the collapse in the Labour Party it seems a real threat to the strength of the Pound moving forward as this new level of uncertainty will surely have a negative impact on the currency market.

If you would like more information on this topic and how it could impact the price of your currency transfer please feel free to get in contact with myself. My name is STEVE EAKINS and you can contact me via hse@currencies.co.uk. Look forward to hearing from you and being able to assist you with your situation.

Theresa May to Become Next Prime Minister (Ben Fletcher)

Sterling has gained against many major currencies since yesterday lunch time as there appears to be more certainty forming with the announcement of a new British Prime Minister. Theresa May this afternoon is going to take over from David Cameron and it will be interesting to see where she starts.

May has been quite explicit in suggesting that she will not enforce Article 50, which starts the process of the UK leaving the EU. Instead she will wait and allow the dust to settle before causing any further shocks to an already rocky road.

Thursday will bring an interest rate decision from Governor Mark Carney and the Bank of England. There is currently a high expectation that there could be a cut by 0.25% however the late rally for Sterling and a jump to in the FTSE to an 11-month high may change opinions. Sterling could continue to rise towards the end of the week if there is no movement on the interest rate. Especially as it appears the market has priced in a rate cut, there could be major gains.

I don’t think there will be a cut tomorrow and therefore I am expecting Sterling strength in the coming few days. Potentially moving into the mid 1.20’s by the start of next week.

As a trader in a brokerage I am able to help you achieve the best rates possible, whilst also assisting with the timing of a transaction to make sure you get the most for your money. If you do have a currency requirements please feel free to send me Ben Fletcher an email at brf@currencies.co.uk.

GBP/EUR Rates Surge Following Theresa May Appointment (Matthew Vassallo)

GBP/EUR rates have surged over the past 24 hours, with the biggest single gains seen since the result of the EU referendum was announced. The Pound rose by over two cents against the single currency, hitting 1.1981 at today’s high. Sterling is benefitting from some political stability, following Theresa May’s appointment as the new Tory leader & Prime Minister, effective from tomorrow.

One of the key catalysts for Sterling’s woes over the past few weeks has been the political uncertainty created by David Cameron’s immediate resignation, following the Brexit decision. This uncertainty was anticipated to last until MP’s decided on their leader later this year but following Angela Leadsom decision to step down as one of the two remaining candidates, May’s run to number 10 has been cleared.

This has brought some much needed stability to the markets and investors risk appetite has increased, leading to Sterling’s run. Whilst we may now see Sterling continue its run over the next 48 hours, Thursday’s Bank of England (BoE) interest rate decision could bring any positive spike to a swift halt. With an expectation that BoE governor Mark Carney will announce a rate cut to 0.25% either Thursday or next month, or at the very least increase our current Quantitative Easing (QE) programme, the Pound’s recent gains could be short-lived.

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