Sterling Euro rates at lowest level since November (Tom Holian)

Sterling vs the Euro exchange rates have hit their best level to sell Euros since November as the Pound continues to struggle against all major currencies.

The Brexit issue has continued to dominate the headlines with the current likelihood that the UK will opt for a hard Brexit rather than a soft Brexit.

This means if we opt for a hard Brexit then the UK will look at leaving the single market which has been one of the key reasons for the Pound’s demise vs the single currency.

The Pound has fallen against all major currencies and with GBPUSD rates close to their lowest level in history this has also started to affect the price of the value of goods in the UK.

With prices in the supermarkets expected to go up by between 5%-8% during the first 6 months of next year this is clearly going to impact inflation levels.

Typically the Bank of England would look to increase interest rates in order to combat rising inflation but with UK personal debt close to record levels seen in 2008 then it will be hard for the central bank to raise rates as quickly as they may want to in a more settled economic environment.

Prime Minister Theresa May is due to address the markets on Tuesday with a speech concerning her thoughts about how the UK will move forward but until the Supreme Court judgement is announced then I expect to see the Pound continue to struggle against the single currency.

In the next few weeks I expect Sterling to continue to fall against the Euro so if you need to send money to Europe in the short to medium term it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the currency markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also able with my experience to help you with the timing of your transfer.

To find out more or if you’d like a free quote when buying or selling currency then feel free to contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Hard Brexit Talk Continues to Devalue Sterling (Matthew Vassallo)

GBP/EUR rates have dropped again with the pair now trading around 1.1450.

The Pound continues to find life tough going with heavy losses earlier this week, following UK Prime Minister Theresa May’s comments regarding her plans for  a ‘hard Brexit’. If this were to happen we would be cutting nearly all ties with the EU, meaning we need to negotiate new trade deals and immigration rights.

The huge amount of uncertainty this would create regarding the future economic prosperity of the UK, has caused investors to pull their money away from the Pound and into safer haven currencies, which ultimately why the Pound has lost value this week.

However, EUR sellers should be aware that this is not yet been confirmed and the Pound did recover slightly on Wednesday  following comments by UK Chancellor Philip Hammond, who admitted no decision had yet been made as to whether the UK would stay in the single market post Brexit.

It may be that the Prime Minister is trying to give herself a strong bargaining position ahead of negotiations with the EU but wither way we just don’t have enough information to hand to make a firm decision either way.

With Theresa May confirming she will outline further plans for our Brexit in an interview next Tuesday, the markets may be preparing themselves for further talk of a ‘hard Brexit’ but I would not be prepared to gamble wither way., on what has become an increasingly unpredictable and unstable market.

If you have an upcoming current 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 us on 0044 1494 787 478 and ask one of the team for Matt.

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

Supreme Court Judgement causes volatility on GBP/EUR (Daniel Johnson)

The consequence of a hard or soft brexit on GBP/EUR

The supreme court judgement has been ongoing throughout January and will dictate the value of Sterling in the coming weeks. Theresa May has said she is set to make an announcement on Brexit next Tuesday which could cause further volatility. May has indicated her desire for a hard brexit during a sky news interview stating she would give up free trade in order to have control over immigration. The markets reacted and Sterling plummeted as a result.

If there is a hard brexit expect Sterling to suffer further losses. Sir Ivan Rogers recently resigned as UK ambassador to the EU over the unrealistic targets for an exit. The current target for a full departure from the EU is two years, Sir Ivan thinks it could take as long as 10.

I do think trade negotiations will be dragged out and problematic if a hard brexit occurs and this will have serious implications on the UK economy.

If the parliament do get to vote on the triggering of article 50 a soft brexit seems likely. Temporary trade deals could be put in place while the new deals are ironed out and this would provide some kind of stability for the UK economy and would cause Sterling to rise in value. If the supreme court judgement does go in this direction I would expect Sterling to breach 1.18.

GBP/EUR 2017 Outlook

I do think there is potential for further falls on Sterling short term, but medium to long term I expect Sterling to rally. The pound is currently chronically undervalued when you consider December 2015 we were sitting at 1.42 on GBP/EUR. The Eurozone has three general elections this year, the Netherlands,France and Germany. There is the possibility of far right parties getting in power in all of these elections. If just one gets in office there is the possibility of a referendum and the Euro will drop heavily.

There are also the continued problems in Greece, serious inflation troubles and the struggling Italian banks.

If you have a currency requirement and would like my free, no obligation assistance feel free to get in touch at dcj@currencies.co.uk. I am confident in beating any competitors rates and will also provide an individual trading strategy. Thank you for reading and I look forward to hearing from you.

What trading rates can I expect on GBPEUR in 2017?

I would expect that the GBPEUR levels on offer for GBPEUR in the coming weeks and months will remain within the ranges we have seen since the Referendum. These are 1.2013 to 1.1068 on the interbank exchange rate. Simply knowing the ranges is helpful but what is more useful is the upcoming events that can move the rates and understanding in advance your options to help you navigate the markets. Understanding the FX markets is some respects simple, in others impossible to make sense of.

We could easily be looking at a quick change on GBPEUR at any point in the next week or so as the Supreme Court decision is released. We are looking to this result as the main driver on GBPEUR in the short term. If you have a transfer to consider you should be closely monitoring this decision or if you wish you can alert me to your position and I can monitor it for you. Just email jmw@currencies.co.uk to highlight your situation Other flashpoints include the inauguration of Donald Trump on the 20th December. Will we finally see this as the end of the Trump rally that has been taking place in recent weeks?

Looking further into 2017 we have also the Dutch and French elections. If you have a transfer to consider in the future then making sure you are aware of such issues and their potential to impact your exchange rate is sensible. Personally I feel the pound is undervalued at present. There is real potential for some upside in the coming weeks and months once we get some clarity on the Brexit plans. Ultimately this could take a few months to manifest so clients looking to move now or in the next 6 weeks might wish to take advantage of any short term spikes as the pound is likely to remain under pressure.

For more information on events that will shape your exchange rate please speak to me Jonathan by emailing jmw@currencies.co.uk. I am your personal account manager here and will be very happy to hear from you and offer some assistance.

Thank you for reading, I look forward to answering your questions.

Will the pound continue to fall against the euro? (Dayle Littlejohn)

For euro buyers exchange rates have taken a tumble this week due to UK Prime Ministers Theresa May’s press conference with Sky on Sunday. She insinuated that the UK only have one option and that’s to leave the EU and single market. Mrs May has commented on the recent decline for the pound and is actually blaming the media.

Today the Chairman from HSBC has warned the UK that more clarity is needed as the leading bank are considering moving many jobs from the UK to Paris. If this materialized I am convinced this would have a detrimental impact on the pound and if other large companies follow suit buying euros could become more expensive.

Looking ahead the key decision this month that will continue to impact sterling exchange rates is the Supreme Court decision, which is set to be released any day. The Supreme Court need to decide whether Mrs May has the power to invoke Article50 or if she needs parliament approval.

This decision could potentially drive exchange rates back towards 1.16 however if the Supreme Court vote in favour of the PM I believe it wont be long until GBPEUR is back to the lows of 2016 (1.10-1.12).

For further information in regards to currency feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

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

 

Will the GBP/EUR pair fall back to their 2016 lows? (Joseph Wright)

Further Brexit jitters have caused the GBP to EUR exchange rate to plummet over the past couple of trading sessions.

In an interview over the weekend the UK Prime Minister, Theresa May commented that her primary focus is likely to be control over immigration as opposed to retaining access to the single market. This suggests a bias towards a ‘Hard Brexit’ as opposed to a softer approach and the currency markets have reacted to this news with the GBPEUR pair breaking below 1.15 and approaching the early 1.14’s at the time of writing.

May announced that the UK would not be able to keep ‘bits’ of EU membership, and since the comments the Pound has been falling across the board and notably against the Euro.

There is some distance for the pair to fall before hitting the lows of 2016. GBP/EUR hit 1.1028 at the beginning of November of last year and as the planned Brexit approaches I wouldn’t rule out further moves towards this level and I think that if the government is able to invoke Article 50 by the end of March as Theresa May plans, I think we could see the pair fall below 1.10 potentially.

Although economic data isn’t the predominant mover of exchange rates currently involving the Pound, investors should pay close attention to UK releases as negative updates have the potential to cause sell-offs in an already under pressure Pound. UK GDP figures will be released tomorrow so feel free to get in touch if you wish to be kept up to date regarding this event.

If you are planning to make a currency exchange involving the Pound and the Euro, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Sterling Crashes after Interview with Theresa May on Sky News (James Lovick)

The pound has crashed to a two month low on a reality check that Britain will be leaving the EU as well as the now perceived likelihood that Britain will also come out of the single market. UK Prime Minister Theresa May gave a rare interview with Sky News yesterday and made clear that Britain was absolutely coming out of the EU and that there would not be a mix of some parts remaining part of the EU and others not. The strong comments point to what has been dubbed a hard Brexit which the markets react badly to.

GBP EUR has slipped below 1.15 this afternoon which takes the pair down to a 2 month low. Politics is clearly the main driving force for the price of sterling and this is set to continue as we approach the end of March. Those clients needing to buy Euros would be wise to get in touch sooner rather than later as the pound ,may have a good way further to fall.

The Supreme Court Ruling which may come as soon as this week is also likely to create fireworks and the outcome will create new direction for the pound.

An estimate of UK GDP will be provided later in the week which may create some added volatility for the pound. However GDP has fared well over the last 6 months and Britain has actually performed extremely well in the G7 so much to say it is now the fastest growing economy. As such a steady figure is likely. Politics will continue to be the main driver for the pound in this unchartered period.

If you would like further information on Euro exchange rates and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively I can be emailed directly on jll@currencies.co.uk

 

GBP/EUR rates may now have cautious beginning to the week (Joshua Privett)

Initially there was hefty optimism heading into next week for buying Euro exchange rates, but today we have been given a very prominant reminder that the landscape and dominant narrative informing exchange rates can change very quickly.

Theresa May was interviewed today on Sky News about what features the UK would ‘prioritise’ in their negotiations with the EU. Her response of the UK not being able to hold onto ‘bits’ of its EU membership once they Leave.

Whilst this is still fairly vague, this currently hypersensitive market could believe that this points to a hard exit from the European Union, and, come Monday’s market opening, could lead to a sudden rally against the Pound if any sudden flash sells materialise.

It was comments on a hard brexit from German and French leaders which caused the flash-crash on the Pound in October, so Euro buyers would be wise to be on their toes as soon as markets open tomorrow morning. You may find yourself having to buy your currency fairly quickly. Should this occur, you can contact me directly by calling 01494 787 478 and asking the reception team for Joshua.

Should we manage to avoid any hysteria in the marketplace, then we can approach the rest of the week with some degree of normalcy.

On Wednesday we will see the release of manufacturing and growth data for the UK economy. If it continues from previous trend this should be a positive time for the UK and therefore the Pound.

Given that the strategy for Euro buyers is now based around being in a position to move quickly, and then from there look forward to positive news releases later in the week, I strongly recommend that anyone with a buying Euro requirement should contact me on jjp@currencies.co.uk.

I will be at the forefront of the news in an evolving situation and am able to contact my customers immediately in the event of any news which could benefit or adversely affect them.

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

 

Will Sterling continue to fall against the Euro? (Tom Holian)

Sterling vs the Euro exchange rates have had to endure a difficult beginning to 2017 as the Pound has witnessed falls against all the other major currencies since the festive break.

Uncertainty surrounding Brexit have caused the Pound to experience losses against the single currency even though the economic data published recently has come out better than expected.

Both services and construction data for the UK were both strong but this did little to lift Sterling which highlights the problems that the Pound is facing caused by the ongoing Brexit issue.

Recently Prime Minister Theresa May has stated that if we are not able to have full control of our borders then we will look to leave the single market and this has not boded well for Sterling exchange rates.

The single market is what is driving the GBPEUR rate at the moment and until; we have some clarity I expect the Pound to continue to struggle.

In the next week or two we should have the announcement of the recent Supreme Court judgement as to whether or not the Prime Minister can trigger Article 50 or whether is needs full parliamentary approval.

Depending on the outcome this is likely to have a big effect on the foreign exchange market towards the latter part of the month.

Therefore, if you’re worried about the potential outcome and need to either buy or sell Euros then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the industry since 2003 I am confident that not only can I save you money on exchange rates when buying or selling currency but I can also help you with the timing of your transfer.

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 and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

The Pound drops in value (Daniel Johnson)

The weaker Pound hits the Retail sector

Retail data is starting to filter through and the problems caused by Brexit are starting to appear. The weaker pound is causing retailers to pay more for their goods and as such they are raising prices on their products. The consumer is now reluctant to purchase and we are seeing figures fall as demonstrated by NEXT’s recent sales data, a fall of nearly 12%. Marks & Spencer’s figures are soon to be released and there is also expected to be a fall.

We could well see a surge in inflation. In this case inflation will not be good for our economy, wage growth will be unable to keep up and the pound will suffer as a result.

What will effect GBP/EUR during 2017?

The main factor in Sterling weakness is the uncertainty surrounding trade negotiations post-brexit. The Supreme Court Judgement on whether parliament will get to vote on the evoking  of article 50 could dictate GBP/EUR levels. If parliament does get the vote, this means there is the possibility of a soft brexit and we should see the pound rally. I think this is the likely outcome and I would expect the ruling to come through between the 12th-17th January.

There are due to be three elections involving EU countries throughout 2017. All of which could be won by right wing parties who have intentions to hold referendums. If one of these referendums comes to light it could cause serious damage to Euro value. Sterling fell nearly 20 cents against the Euro due to Brexit.

Keep also in mind the dire situation with Italian banks, terrible inflation and the Greek debt crisis and the Euro could be in for a very rough year.

If you have a currency requirement I will be happy to help. I can provide a free trading strategy to suit your individual needs and also off the best rates of exchange in the Country. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading.

GBP EUR Gains after Stronger Manufacturing Outlook (James Lovick)

Happy New Year! 2017 looks firmly set to be the year of politics both in the UK and Eurozone with the European elections this year. It will inevitably mean another rollercoaster for sterling Euro exchange rates.

The pound received a good boost as we started the New Year with UK Purchasing Managers Index (PMI)numbers for the manufacturing sector. PMI for December climbed to 56.1, the highest reading since June 2014 whilst touching a 2 ½ year high blowing away those Brexit blues and seeing some renewed confidence in the price of the pound.

Anyone with a Euro currency requirement either buying or selling Euros must be aware of the Supreme Court ruling which is expected in the next week or two. The outcome which could go either way as it will be decided by the judges will create new direction for the pound and the implications should not be underestimated. Even if Theresa May loses the appeal then l wouldn’t expect major sterling strength as Brexit is still destined to happen. It could also open up the prospect of a UK general election which would in my view be very damaging for the pound. If Theresa May wins the appeal then the pound is likely to fall quickly and lose most of the gains it has made over these last two months.

Those clients looking to buy Euros may be wise to consider taking advantage of the improved rates seen over the last couple of months as there is a huge amount of uncertainty for the pound as we now fast approach March when Article 50 is invoked which will give notice of Britain’s intent to leave the European Union.

If you would like further information on the pound or the Euro and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

What can we expect next for the pound to euro rates?

2017 should be an interesting year for GBPEUR as we learn of fresh political uncertainty in the Eurozone and also the UK. The question is which currency will be the weaker, will it be the Euro or will it be the pound. In my personal opinion we will see both currencies come under real pressure but it could be at different times. Therefore I expect a rocky performance with some big swings on the market. It would not be out of the question to see rates between 1.10 and 1.30 in 2017. If you think that is unrealistic the swings this year have been between 1.36 and 1.06 which is 30 cents. 20 cents next year is by no means out of the question.

Firstly starting with the pound the big news will be the Supreme Court decision and market reaction. I personally expect the Supreme Court to uphold the decision that the UK Government must seek parliamentary approval to trigger Article 50. Whilst loosely GBP positive as it makes a hard Brexit less likely, following this release I think attention will shift towards the outstanding big questions over Brexit, namely what it means and the type of deal the UK can get. These negotiations are unlikely to be smooth and it will be this uncertainty which will act as a hindrance to the pound and will see sterling lower.

The Euro will come under further pressure owing to the political uncertainty in the European Union as the French and Germans go to the polls. I expect this uncertainty to manifest in the latter stages of the year as we approach Summer after the French elections in April. The greater degree of uncertainty stems I believe from the German elections which are in the Autumn.

I believe GBPEUR will retest the lows towards 1.10 in the first 3 months of 2017 before rising towards the end of the year as attention turns to European affairs. If you have a currency exchange involving the pound and the euro then please get in touch with me to learn more about the latest trends and themes which will effect your exchange rate. Please email me Jonathan on jmw@currencies.co.uk to learn the latest news that might influence your exchange rate.

Sterling Struggling to Find Support Above 1.20 (Matthew Vassallo)

Sterling has found a lot of resistance around 1.20 against the EUR, with the single currency continuing to find support under this threshold.

The Pound has touched this level on more than one occasion over the past couple of weeks but evidently does have enough market support, or investor confidence to breach this consistently under the current market conditions.

1.20 has become something of a glass ceiling for the Pound and whilst GBP has clearly found a foothold over recent weeks, I’m not convinced that we are going to see another aggressive move in the short-term.  Whilst the Eurozone is facing multiple problems of its own, both economically and politically, the UK economy’s  prosperity is currently being driven by our on-going Brexit from the EU.

This is likely dominate market sentiment for months, possibly even years to come and as such I would be wary about putting too much faith in sustainable Sterling strength. Until we have a clear picture of how we will facilitate our Brexit the uncertainty that this has created will handicap any major advances for the Pound in my opinion.

I do feel as we move into 2017 and assuming we do get some factual information released about how the UK economy will move forward post Brexit, that economic issues manifesting themselves inside the Eurozone will inadvertently push Sterling’s value up. However, I would be prepared to gamble on this and as such I would be taking advantage of the 4-5 cent improvement seen for those clients holding the Pound over the past month.

If you have an upcoming Sterling currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, 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

 

Buying Euro rates fairly stagnant today despite horrific attacks in Germany (Joshua Privett)

Seemingly two opposing forces have hit the marketplace today, with GBP/EUR as a result moving heavily but showing little net change by the close of play today in UK markets at 6pm.

GBP/EUR oscillated by only 0.7 of a cent between the high and the low today with, at the time of writing this post, only a net change of 0.16% from the beginning of the opening to the close of play.

The utterly abhorrent news emerging out of Germany overnight warranted some shedding of the Euro by investors who wanted to protect themselves from any adverse repercussions on the currency markets. The sell off of Euros is what caused its value to decline.

However, when it emerged the attack was isolated and follow-ups had been discounted, the Euro quickly settled back to its original value before the horrific news had proliferated into the marketplace.

Following this GBP/EUR rates of exchange were largely governed by end of year flows on the currency markets which explained the choppy nature of the exchange rates as the day wore on.

As we enter into the final days before Christmas this seems set to continue, with GBP/EUR exchange rates moving heavily throughout the day, however with little to show for it as markets tend to stabilize.

As such for anyone planning a foreign currency transfer in the near future, the key will be to attempt to catch the market at a peak, rather than a trough. Meaning that being in a position to move quickly in these scenarios is crucial.

I offer a proactive service in order to keep my customers informed of any potential movements, and as such am in a position to be your eyes and ears in the market place – relaying pertinent information and tempting trading levels.

You can contact me overnight whilst markets are closed on jjp@currencies.co.uk to discuss a strategy for your transfer in order to maximise your currency return.

I have never had an issue beating the rates of exchange on offer elsewhere, and these current buying levels can be fixed in place for anyone buying foreign currency in the near future and wish to secure an exchange rate presently.

GBP/EUR Hits 1.20 (Daniel Johnson)

Last night saw the US interest rate decision. Janet Yellen the Chair Lady of the Federal Reserve indicated last year there would be as many as four rate hikes in 2016, none of which materialised. She has since been accredited as a very cautious Chair Lady and Trump is not happy with the lack of hikes. He went as far as to threaten her position.

Yellen’s hand seems to have been forced not only by this factor but also by the very positive data coming out of the US at present. It was widely expected there was to be a hike of 0.25% which did materialise. The Euro has suffered since against both the US dollar and Sterling as investors leave the Euro in search of safety and higher returns. The hike caused GBP/EUR to very briefly strike 1.20 but has since dropped back into the mid 1.19s. It seems the 1.20 mark is becoming a resistance point as demonstrated when GBP/EUR hit 1.2040 very briefly after the Italian prime minister resignation, Matteo Renzi. If you are buyning Euros short term it may be wise to take advantage of current levels.

If  you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is vital during such volatile  times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally. If you inform me of the 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 country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% 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.

What will move GBPEUR this week?

GBPEUR rates have slipped ahead of the Fed meeting this evening which could easily see the pound lower against the Euro tomorrow. Many analysts predict the US dollar will strengthen and the Euro will weaken but with much of this expectation priced into current rates I think that it is unlikely the Euro will weaken too much. Personally I think the US dollar could actually weaken a little which would strengthen the Euro.

Other news tomorrow is the latest information on the Eurozone Inflation report which could easily cause some movement on the GBPEUR rates. Personally I would be surprised to see this weaken the Euro since the Inflation levels have actually been rising which is presenting some strengthening in the Euro area. If you have a transfer to consider in the future involving the pound and the Euro tonight’s decision is key.

Personally I would not be surprised to see the pound weaken in the New Year and I think GBPEUR could be very close to the very top of the current ranges on offer. If you have a transfer to make then making plans in advance is key to minimising your risk. We offer a number of options to limit your exposure to the markets which include the ability to fix a rate for up to two years.

For more information at no cost or obligation please speak to me Jonathan by emailing jmw@currencies.co.uk.

Today’s US FED Interest Rate Decision Likely to Affect Global Markets (Matthew Vassallo)

Today’s much anticipated interest rate decision by the US Federal reserve, is likely to have an influence on the global currency markets.

This means anyone with a GBP/EUR currency exchange to make should be keeping a close eye on market developments throughout the day.

Whilst there is no direct correlation, the high chanced of a rate hike means that investors could well move their money away from riskier currencies and back into the USD.

With pressure on both the UK and Eurozone economies this is harder to dissect but instinct is that the EUR will be seen as the weaker of the two and as such we could see EUR positions sold off this evening. In turn we could see EUR weakness against the Pound but whether or not it will be enough to push the apart through 1.20 I’m not so convinced.

The single currency has come under pressure since last week’s announcement by European Central Bank (ECB) President Mario Draghi, that they would be extending their current monetary policy programme beyond the current deadline of March 2017. With the new timeline set to continue their bond buying scheme until December next year, the markets immediately took this a sign of weakness in the Eurozone economy and the EUR weakened as a result.

Whilst this announcement was at least in part expected, it is proof that investor confidence in the Eurozone region is low and the Pounds value was inadvertently pushed up as a result of this.

GBP/EUR rates have moved through 1.19 and whilst I expect the EUR to find support around the 1.20 level, it is becoming increasingly clear that the EUR is unlikely to move back to the high we saw a few months ago, so those clients holding EUR positons should act accordingly. The EUR is still trading at extremely attractive levels against the Pound when you consider history on the pair and with so much un certainty surrounding the Eurozone, both politically and economically, now could be the time to act.

If you have an upcoming GBP or EUR currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, 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 may rise towards the end of this week!

The pound to euro exchange rate could experience volatility towards the end of this week following a key piece of economic news from the United States. The US will vote on whether or not to raise their interest rate this week Wednesday and it is widely expected they will vote to hike rates by 0.25%. If you are looking to make GBPEUR exchange this news will have an impact on your exchange rate and the currency markets.

The US dollar is the worlds most traded currency and as such has very strong relationships with each currency. Simply put movements on the US dollar have bearing on all currencies. Therefore with the big decision on Wednesday night we could see the pound and the Euro reacting individually to the US dollar which will influence their own relationship.

The outcome of tomorrow’s decision will in my opinion weaken the Euro since the pound has generally been holding up against the US dollar. Therefore as the US dollar strengthens (assuming the Fed do raise rates) then the Euro should weaken which will present some better opportunities to buy the Euro with the pound.

This morning at 09.30 am is the latest UK Inflation data which will of course effect the pound, then tomorrow is the latest UK Unemployment data. Retail Sales for the UK is released Thursday when of course we will also have the latest news from the US Interest rate decision. Another factor in all of this will be the Inflation Eurozone data released Thursday, all in all this is a busy week for the GBPEUR rate.

I expect the GBPEUR rate to be higher towards the end of the week, if you have any transfers to consider please speak to me about how to go about forming a strategy to help you capitalise on any improvements. Please either email jmw@currencies.co.uk or call 01494 787 478. I would be very interested to speak with you and offer assistance with your plans.

Sterling makes gains vs the Euro following ECB action (Tom Holian)

GBPEUR exchange rates have made gains following the action taken by the European Central Bank during yesterday’s trading session.

The central bank announced that they will be continuing their Quantitative Easing programme which was due to end in March 2017. The plan is now to reduce the monthly amount from €80bn per month to €60bn per month until December.

As the ECB have bought so many bonds already they now have to make purchases of negative ones which in effect means by performing QE this actually costs the central bank money to do it.

This has caused the Euro to dramatically fall vs the US Dollar and also against Sterling which is now back to levels seen early Monday morning following the news from the Italian referendum which saw GBPEUR rates hit their best level to buy Euros in 4 months.

Clearly the issues surrounding the triggering of Article 50 have not yet been resolved and the Supreme Court judgement is not due until January so I’m personally expecting the volatility to continue between Sterling and Euro but I do feel there is room for improvement for the Pound vs the single currency and I predict that we could see 1.20 hit before the end of this year.

Indeed, this morning UK Trade Balance figures came out better than expected which has seen the Pound improve overnight by 1 cent vs the Euro providing some good news for those looking to transfer money to Europe.

Having worked in the foreign exchange markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also help you with the timing of your transfer of money.

If you need to buy or sell Euros and would like a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Draghi’s QE announcment causes volatility on GBP/EUR (Daniel Johnson)

QE statement causes big swings on GBP/EUR 

This afternoon we saw Draghi address the situation on Quantitative Easing (QE). QE is essentially printing money and then injecting it into an economy in order to stimulate growth.  One of the major concerns for the European Central Bank (ECB) is deflation in the Eurozone. Inflation levels are currently teetering on the brink of deflation and QE has not had the desired affect. The program was due to end in March, which had €60bn going into the struggling Eurozone every month. Not to continue QE had the possibility to cause disaster in the bloc.

Draghi as expected, lengthened the current program to December, but drew the line at increasing monthly increments. It caused GBP/EUR to be up and down like a cork in a bath tub. GBP/EUR currently sits in the 1.18s. With so much uncertainty regarding Brexit, if I was selling Sterling short term I would not set my  trade target much more than 1.19.

If you have to perform a currency trade it is important to use a skilled broker for your trade in order to achieve competitive rates and to assist in timing your trade. If you require my assistance let me know the amount you are looking to transfer, the currency pair you are trading and the time scale you have for your trade and I will endeavor to produce an individual trading strategy to try and maximize your return.

You could be looking at up to a 4% saving by using us compared to the banks and you can trade with us with peace of mind knowing you are dealing with an FCA registered company that has been in business for over 16yrs. I can be contacted at dcj@currencies.co.uk. Thank you for reading our blogs and I look forward to helping with your trading requirements.