Category Archives: Buy Euros

GBP EUR Rates Remain Near 7 Year Low

The pound remains close to a seven year low against the Euro this morning as uncertainties over both Brexit and the recent change of stance from the Bank of England keep the pressure on the pound. Although position papers from the government are being put forward with a total of twelve expected to be released in the coming weeks, the pound has struggled to climb higher over a lack of clarity of where Brexit will ultimately end up and whether a trade deal will or not be in place when Britain leaves the EU.

The Bank of England have also reduced the growth outlook for the UK economy and have signalled that there is unlikely to be a rate rise this year. The markets only a couple of months ago were beginning to price in the possibility of a rate hike in the Autumn of this year but this seems highly unlikely now. For any clients who are looking to sell Euros there is a great opportunity to be taken advantage of as things stand.

It’s not just the pound that is performing badly though which has helped see GBP EUR exchange rates fall to a seven year low. The recent improvement in the outlook for the Eurozone has helped strengthen the Euro. Stronger economic growth and also higher inflation have helped see the Euro make considerable gains against most of the major currencies including the pound.

The German election in September will certainly be one to watch as it could create added volatility for Euro exchange rates. German Chancellor Angela Merkel has a strong lead in the polls and is highly likely to win a fourth term which would be good news for Euro exchange rates.

Economic data is light as we end the week so focus will move to UK GDP data and inflation report hearings next week which could see the pound rally on stronger data.

If you would like further information on Euro exchange rates or any of the major currencies 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

Eurozone Inflation To Cause Volatility (Ben Fletcher)

This morning the latest Inflation data will be released for the Eurozone which should provide an indication as to what the European Central Bank will decide to do in the next few weeks. Many analysts at the moment believe the ECB will start to reduce the amount of economic stimulus as early as September however if the EU economic data is not strong then that’s less likely to happen.

The Euro has been putting significant pressure under Sterling with many investors choosing to back the single markets major currency. There has been considerable growth across the EU with output data at one of its highest in years and future confidence soaring. Most of this strength has come from France and Germany but there also appears to be optimism that the Greek and Italian economies will this year grow.

There is still the small issue of multi-billions worth of bailout funds and it seems incredibly unlikely that those funds will ever be paid back. The Greek pension fund has already been completely raided and the higher tax bracket is considerably over 60%, which makes you think if the economy doesn’t start to grow there is nothing more to give and no more room for squeezing.

Today with the general downward movement of the GBP/EUR I would not be surprised to see the 1.09 level tested.

I am in a position to help you execute a transfer and I am confident I can offer you the best rates. Therefore if you do have a question with regards to my forecast please get in touch. When it comes to moving large sums of money a movement of a cent can often relate to a significant difference in your returns. Helping you formulate a strategy could make sure you’re in the best position to exchange currency when the market is in your favor, please contact me Ben Fletcher at brf@currencies.co.uk

The number of GBP to EUR parity forecasts increases, will GBP/EUR hit 1.1 by the end of the year? (Joseph Wright)

The talk of Brexit negotiations beginning badly is having an impact on the Pounds value against all major currency pairs, but it appears that the GBP/EUR rate has been the biggest loser in all of this so far.

Recent comments from David Davis, the Brexit secretary have added fuel to the fire after he revealed that Michel Barnier ‘is getting quite cross with us’. Michel Barnier is the EU’s chief negotiator which just goes to show that the UK going to need to get a move on regarding its Brexit negotiation plans.

With there being less likelihood of an interest rate hike this year from the Bank of England now that inflation pressures have subsided there have been a number of major financial institutions forecasting parity between the Pound and the Euro in 2018.

In just the last week, Morgan Stanley, HSBC and now City Index have all made this prediction which gives those planning on making a large GBP to EUR transfer a decision to make as the rate is currently just below 1.10.

If you would like to be kept updated regarding the Pound to Euros price movements do feel free to register your interest with me.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Will the Pound fall lower than 1.10 over the next few days? (Tom Holian)

The Pound has remained under pressure against the Euro recently as the negative effects of Brexit appear to be gathering pace.

We are now ten years on from the credit crunch and over 10 years since the Bank of England last raised interest rates in the UK.

Trade Balance figures in the UK yesterday showed a big deficit for June and this is highlighting that the lack of investment and spending by businesses in light of the uncertainty caused by Brexit.

Manufacturing and industrial production data showed a rise but the overwhelming factor is that of Brexit which is causing problems for Sterling Euro exchange rates.

Credit ratings agency Moody’s has recently cut its outlook for consumer debt and has warned that high inflation combined with a falling in wages could cause a large exposure to the debt.

Next week on Tuesday UK inflation data is due out and I think if we see a figure lower than last month’s 2.6% then this could see GBPEUR rates fall below the support level of 1.10 going into the middle of next week.

Therefore, if you’re in the process of buying Euros then it may be worth looking at buying a forward contract which allows you to secure an exchange rate for a future date with a small deposit.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

GBP EUR Exchange Rates Find Support over 1.10

The pound has slipped in afternoon trade despite making some attempts at a rally earlier in the day. Sterling exchange rates have found support against the Euro at around 1.10 for GBP EUR.

A gloomy post Brexit outlook which is being portrayed by much of the media is not helping reassure the markets and ultimately British consumers. There are also concerns of a consumer slowdown as a result of higher inflation and there are some concerns in the construction and housing sectors which are helping push the pound lower although so far these are not that significant. The Bank of England reduced the growth outlook for the UK last week which has also taken the shine off sterling.

As a result those clients looking to sell Euros are seeing excellent trading prices which are still available. When parliament returns from the summer recess in September there is likely to be considerable market volatility for the pound. Discussions surrounding Brexit which have been held in private are expected to come into the public domain very shortly and this could have the effect of strengthening the price of the pound.

One of the reasons the pound is so weak against the Euro is because of the lack of detail as to what the future relationship between Britain and the UK will ultimately look like. In my view any detail offered here should only be seen as positive for the pound. Depending on what comes out there could be some better buying opportunities in the coming months. For those clients who need to buy Euros rates are struggling at present but the targets of 1.15 – 1.18 for GBP EUR should become available again. Anyone with a pending requirement would be wise to make contact to discuss your options and how to make the most of the weaker exchange rates which we are starting to become used to.

If you would like further information on GBP EUR Exchange rates or any of the major currencies 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

Euro at 10 month high against the Pound (Tom Holian)

Pound Euro exchange rates have continued to fall this week hitting support levels of 1.10 earlier this afternoon.

The Pound is really struggling caused by the uncertainty of Brexit and the recent downgrading of the UK’s growth forecast for both this year and next.

Earlier on today French Trade Balance came out much better than expected as did their Export figures which further highlighted the strength of the economy in the Eurozone.

Indeed, the Euro is now trading at its best level in almost 18 months against the US Dollar which is good news for anyone holding Euros at the moment.

If you’re in the process of selling a property in Europe but have not yet completed it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

This involves paying a small deposit and the remaining balance at a date that works for you. This means you know exactly how much Sterling you will get when the property completes and can be especially useful if you’re concerned as to what may happen to GBPEUR exchange rates in the weeks ahead.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

 

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

The Pound has crashed against the Euro during yesterday’s trading session after the Bank of England confirmed that interest rates will remain on hold for the 11th month running. The split this time round was 6-2 which was lower than June’s vote which was 5-3.

One of the members of the Monetary Policy Committee Kristin Forbes has left since the previous meeting and the incoming Silvana Tenreyo was unlikely to have caused a surprise.

The Bank of England have also downgraded the UK’s growth forecast for this year from 1.9% to 1.7% as well as cutting next year’s growth forecast from 1.7% to 1.6%.

This has led the Pound to fall against the Euro to its lowest rate since October 2016 and this is largely part to the Brexit discount currently on offer.

Bank of England governor Mark Carney has spoken out about the uncertainty caused by the Brexit and this is causing a lack of investment in the UK until a resolution is reached which is likely to take a long time.

One good thing for the British economy is that UK inflation appears to be falling at the moment from 2.9% to 2.6% but for the Pound this is not good news as it provides further support to keep interest rates low for a long period of time.

If you’re in the process of selling a property in Europe and would like to take advantage of these current low exchange rates to buy Pounds then feel free to get in touch.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

GBP EUR Crashes after Bank of England Meeting (James Lovick)

Sterling exchange rates have fallen sharply against the Euro after the Bank of England Meeting earlier today. With rates having plunged by almost 1% levels for the GBP EUR pair are now sitting at 1.1065. Those clients looking to sell Euros have been presented with an excellent opportunity for converting Euros into pounds.

The Bank of England held interest rates at 0.25% as widely expected but there was a change in voting patterns. Only two members voted for an interest rate hike today which is one less than at the last meeting. Today saw a 6-2 split on the committee in favour of maintaining rates compared to a 5-3 split at the last meeting. Particular attention to Brexit was also given and the Bank stated that the uncertainty of both Brexit and Britain’s future trade relationship with the European Union is now starting to have a negative impact on the UK economy.

This all would suggest that the Bank of England are unlikely to be raising interest rates in the near future which should keep downward pressure on the price of sterling. Those clients looking t buy Euros may wish to consider moving sooner rather than later as the weaker outlook may result in further fall for the pound against the Euro.

Tomorrow sees little economic data from the EU and UK so focus moves to next weeks UK housing data. The UK hosing markets has become very topical of late with some commentators pointing to a cooling in prices which could signal problems in the future.

If you would like further information on sterling and Euro exchange rates or any of the major currencies 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

Will the Pound recover against the Euro? (Tom Holian)

The Pound is now at is lowest rate to buy the Euro since November and the problems for the Pound do not appear to be reducing anytime soon. The fears of the Brexit affecting the economy are appearing to be realised which is resulting in the Pound falling against the single currency.

The negotiations have been going on for a few weeks now and so far little progression has been made. There has been no decision as to whether the UK will opt for a softer or a hard Brexit and until this is resolved I think the Pound will remain under huge pressure for a long time to come.

The first estimate of UK GDP for the second quarter was published on Wednesday and although it came out as expected with 1.7% year on year this did little to support Sterling. Indeed, the Pound vs the Euro fell to its lowest level at the end of the week since last autumn.

Next week the Eurozone releases inflation on Monday morning as well as the latest set of unemployment data. If both announcements come out positively then I think we could see further losses for GBPEUR rates to come going into August.

EURUSD exchange rates are now trading at their highest rate since the start of 2015 and it is becoming clearer that not only is the Pound weak against the single currency but the Euro is also very strong against a lot of other currencies at the moment.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Further losses for the Pound this week? (Tom Holian)

The Pound vs Euro is now at its lowest level since last autumn as economic and political woes continue to increase in the UK.

UK Inflation has started to fall which in a way is a good thing but this has caused the Bank of England to rethink any attempt to look at raising interest rates in the near future.

Meanwhile across the water on the continent the European Central Bank have suggested that they may be looking at tapering their current QE programme.

The Eurozone is performing very well recently and this has led the Euro to hitting its best level to buy US Dollars in over a year which highlights how strong the single currency is compared to other currencies as well.

UK GDP for the second quarter is due for release on Wednesday and as this period covers both the general election as well as the start of the Brexit talks I think this could be lower than the expectation of 1.7% and in my opinion I think we’ll see losses for the Pound vs the single currency on Wednesday.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

 

Buying Euro rates dip following Draghi speech (Joshua Privett)

The Pound has suffered further this week and buying euro rates have now hit some of their lowest levels since the beginning of the year.

Tuesday’s inflation figures once again (seemingly the third time in as many weeks) changed the narrative on whether the UK would be raising interest rates anytime soon.

Some were stating this could occur as early as this November – however, this drop in interest rates has at least put the currency back by 3 months.

Today, the poor news for buying Euro exchange rates doubled down on itself, with news coming out of the Eurozone.

Another rollercoaster has been on the future of the Eurozone’s financial policy coming from the ECB. Similarly there have been murmurs about whether they will be moving away from their now two year long bout of emergency financial stimulus package.

This was largely introduced from a slowing Eurozone and one dealing with the Greek Debt crisis back in 2015. But now optimism in the Eurozone is relatively high and growth data is rivalling that of the UK.

Today Mario Draghi, the Head of the Eurozone Central Bank, came out fairly positive towards the potential to wind down this emergency financial help – contradicting some sentiments from one of his sub-ordinates last week who indicated that such a move was very unlikely.

These rollercoasters are set to continue, which is why it is so important to be kept abreast of current events and developments to ensure you maximise your currency transfer.

I strongly recommend that anyone with a Euro based currency requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your currency return.

You can contact me directly by calling +44 1494 787 478 and asking the reception team to speak to Joshua.

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

UK Data and Carney to Dictate GBP/EUR (Ben Fletcher)

This we will see a whole flurry of UK data including the Producer Price Index along with the latest Consumer Price Index. The CPI data which currently sits at 2.9% compared to this time last year, is a key indicator of inflation levels. If this level moves above 3%, which it isn’t expected to however the recent climb would suggest other wise, he market could move. If inflation continues to rise faster than average earnings consumers will start to feel the pinch, however the Bank of England could have a solution.

Governor of the Bank of England is expected to deliver a speech just after lunchtime today discussing his latest thoughts on the UK economy. The big question for investors at the moment is the potential of a UK interest rate hike in the short term. The Bank of England can encourage people to stop spending by raising interest rates, alternatively if people start to save more that has consequences on retail as a whole.

There is a very fine balance with so much uncertainty surrounding namely Brexit. Whilst the data and speeches are happening in the UK, David Davis along with his Brexit negotiations team are sat around a table with the EU team. We’re not likely to see any outcomes to the talks in round two of discussions, but we may receive news that the talks are going well and any concessions for Sterling will be seen as positive.

When the markets are this volatile there will always be spikes and drops, making timing a transfer vital to maximise your funds. If you have any questions with my forecast above or would like to simply discuss an upcoming requirement you have please send me an email to brf@currencies.co.uk. I would be happy to share my thoughts with you and I may be able to offer a viable solution to help you complete a trade, as I have several years experience working for a brokerage

GBP/EUR Back Above 1.14 (Ben Fletcher)

Sterling’s positive end to the week continued all the way to the close of business this evening as the GBP/EUR rate shot up to a high of 1.143. This has come as a considerable surprise following the fall to 1.118 on Wednesday, which convinced many further losses were on there way. Now that there has been a resurgence in the rate, the rise to 1.15 is a hot topic. The last time the rate reached that level was 6 weeks ago and that was only available for a few hours.

There is still a considerable amount of uncertainty surrounding Sterling, especially as the Great Repeal Bill is to be released shortly and every opposing party to the Government plans to challenge their plans. However some of the major concerns appear to have taken a slight back seat and at least for the last 48 hours no new negative headlines have appeared. It’s thought that earlier in the week Sterling was oversold as markets became over pessimistic on the UK conditions, with that in mind the recent jump is just making up lost ground.

GBP/EUR, where to next?

Now that we have seen favorable Sterling the movement the next step will be a jump above 1.15. This week we saw members of the Bank of England talk down a interest rate hike in the near future which was the main cause of the GBP/EUR rate dropping over a percent. Arguably if there was to be talk of a hike, that percent may return which would see a jump to the 1.15’s.

If you have any questions with regards to my forecast above please don’t hesitate to contact me. I would be more than happy to discuss your requirement and provide a strategy that will work for your unique needs. I may also be able to offer a potential method of completing the transfer. Please send me a brief description of what you’re looking to do at brf@currencies.co.uk

 

Brexit Repeal Bill due today and the impact on Sterling Euro rates (Tom Holian)

The UK will announce today their plans for the Repeal Bill which essentially means that the UK will apply the same laws in the UK before the Brexit vote whilst giving power to parliament in order for them to be able to change them at a later date.

There is already a lot of disagreement between the various political parties but the plan is not due to be debated until later this year but will need to be put in place by the time the UK is due to leave the European Union which will come in March 2019.

This has yet to cause too many problems for the Pound vs the Euro but it does demonstrate how much uncertainty there is politically at the moment in the UK.

Brexit Secretary David Davis has said ‘the eyes of the country are on us and I will work with anyone to achieve this goal and shape a new future for our country.’

This appears as though Davis is willing to listen to ideas from various parties in the interests of the country but I think this could cause real problems for the British economy as clearly the political parties in this country have very different priorities and agendas.

We end the week with Eurozone Trade Balance for May which has been very positive recently so expect volatility for GBPEUR exchange rates towards the end of the week.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you bank beating exchange rates but also help you with the timing of your transfer.

If you have a currency transfer to make whether it’s buying or selling Euros then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk 

Pound drops lower once again as interest rate hikes suffer setback and Euro gains on the Dollar (Daniel Wright)

GBP/EUR exchange rates have dropped to the lowest point we have seen since since the U.S elections back in November, which is due to two reasons we saw yesterday.

Firstly, we had two members of the Bank of England speaking during the course of yesterday afternoon and both of those members dampened expectations of a U.K interest rate hike happening  in the near term, which led to the Pound losing further ground against the Euro and most major currencies too.

An interest rate hike is generally seen as a positive for the currency concerned as it makes it more attractive to investors, and the markets can more on speculation as well as action, so even the mere hint of a hike moving closer can lead to the Pound gaining strength, we saw this shortly after the last Bank of England interest rate decision where they confirmed 3 out of 8 members had voted in favour of interest rates going up in the U.K and this gave Sterling a boost.

The chances of a hike appear to have decreased again after yesterday which is why the Pound has lost a little value.

Secondly, due to more issues over in the States surrounding Trump and Trump JR the Dollar has lost plenty of ground against the Euro. With EUR/USD being the most traded currency pairing in the world when you see a large amount of money coming out of the Dollar and going into the Euro, the Euro can gain strength against most major currencies too, making it more expensive to buy.

Unfortunately economic data is still not dragging the Pound back up and we have unemployment figures and average earnings due out at 09:30am today. Average earnings are of great importance at present as inflation is increasing and making goods and services more expensive where as peoples earnings are actually increasing at a slower pace which is not a good sign for the economy. Should this trend continue people will have less and less money to spend and this may cause further problems for the economy as the year moves on.

We really do need to see a catalyst for the Pound to start moving in the right direction again but at present that has not materialised. The worry now is that we are starting to see the true impact of the referendum vote start to shine through now and that Sterling may be in for a tough month ahead.

If you have Euros to buy or indeed sell then it is more important than ever to make sure you maximise your exchange rate. Feel free to contact me (Daniel Wright) to discuss the various options available to you. Yo ucan email me on djw@currencies.co.uk and I will get back to you personally.

 

 

GBP/EUR Drops Again During Friday’s Trading (Matthew Vassallo)

Sterling has come under pressure once again during Friday’s trading, following poor Manufacturing & Industrial Production figures this morning.

With figures well under market expectation, the Pound was under pressure immediately dropping almost a cent at the low to 1.1281.

Despite a recovery during the afternoon following the NIESR Gross Domestic Product (GDP) prediction.

The well-respected think tank has predicted GDP to grow to 0.3% this month, which if it comes to fruition, will show a steady improvement from last month’s reading.

It wasn’t that long ago that the Pound was creeping towards 1.20 but a complete shift in conditions, has seen the EUR gain almost seven cents at its high.

Despite Sterling finding a foothold over recent days, the current climate both politically & economically inside the UK means that any major upturn is unlikely in the short-term.

We can help our clients pin point specific moments to execute their currency exchanges, even when they are battling a falling market.

The current uncertainty surrounding our fragmented government and grave concerns amongst investors regarding how we will facilitate our Brexit, are two of the defining factors driving Sterling’s value at present.

With both of these issues, in particular the long Brexit process, will be resolved in the short-term and as such clients with a GBP/EUR requirement need to be realistic in terms of what they’re targeting on any exchange.

Clients should also consider any bottom lines, in order to protect their positions wherever possible.

There are no guarantees in the currency markets and with so many unanswered questions, let us help you navigate this turbulent market and maximise any currency exchange you need to make.

If you have an upcoming GBP or EUR currency transfer to make 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.

 

GBP/EUR Rate Close to 1.15 Jump (Ben Fletcher)

The Sterling Euro rate could be on the verge of a positive upwards movement as a several week high is touched upon this morning. The rate moved up to 1.142 which provided optimism there could be more to come.

Governor of the Bank for England Mark Carney will speak tomorrow and after his speech last week caused over a cent movement that could happen again.

If you’re looking to purchase Euros then tomorrow may present a window of opportunity for you. If Sterling does start to move upwards then I do think it will be a significant jump. The currency has been oversold in the last few months which is why the rate has dropped so low, but there could be a turn of events coming.

Inflation Report Next Week

The UK’s latest inflation report was expected to be released this week however it has been postponed to next week. Inflation data is a double edged sword at the moment; firstly if it keeps rising and wage growth doesn’t it will feel like a wage cut, alternatively if it does continue to rise the Bank of England will be forced to raise interest rates. The home currency when there is a interest rate hike, can often benefit by several percent which could see the rate move back towards the high teens.

If you’re a Euro seller who is waiting to complete a transaction at an even lower level than what is currently available I believe you’re playing a risky game. Sterling seems to have found a resistance at the 1.13 level and would take a serous series of events to fall much lower than this point, never say never but the bottom may have been reached.

Whilst this is quite a speculative plan, but certainly plausible if you do have a more specific requirement please don’t hesitate to ask any questions about the forecast above. I would be more than happy to share my thoughts and discuss what might be the best option for you moving forwards. Please send me an email with a brief description of what you’re looking to do at brf@currencies.co.uk

 

GBP/EUR – Where Next? (Daniel Johnson)

Sterling struggles against the Euro

We have seen gains for Sterling against most major currency pairings  following a government being appointed in the UK. The euro however is proving to be stubborn, with a resistance point at 1.14. I think there will need to be a significant catalyst for GBP/EUR to breach 1.14 and remain above it.

Over the last decade Eurozone positive data has been sporadic and has held back The European Central Bank (ECB) from tapering Quantitative Easing (QE). We have recently however seen positive data more widely spread both geographically and in industry sectors. This is good news for Draghi and could mean we could see tapering sooner rather than later. If this does occur I would expect a sharp rise in Euro strength.

It is not all good news in the Eurozone however, let us not forget Greece, struggling to make debt repayments to the IMF. The debt is so great it seems impossible to imagine a stable Greek economy. If this problem comes in to the lime light this could hinder any Euro advance.

I am of the opinion Sterling is chronically undervalued, before the referendum announcement GBP/EUR sat above 1.40. I think short to medium term it will be tough time for the pound. I think once we have a more stable government and the Brexit stance is clear the pound will have the opportunity to rally. Although leave voters will not be happy, it may be the wise move to  compromise on immigration in order to have market access. This would almost certainly cause a spike in Sterling value. It is a shame we are in this position, it seems the whole reason the UK is in tatters is due to politicians pursuing their own agenda.

The Monetary Policy Commitee (MPC) recently voted on a change an interest rate and there was change in stance with 3 members voting in favour of a hike.  I believe this is not a solution to the rapid rise in inflation. The Bank of England are trying to fight a problem with the wrong tools. Many believe rate hikes drop and fall usually by 0.25%. This is not gospel and rates may move by as little as 0.5%. If there is a change in rates I would expect this to be the choice which would not have a huge impact Sterling value.

If you have a large currency transfer to perform in the coming days, weeks or months then I will be happy to speak to you directly as I will be willing to help you both with trying to time a transaction and getting you the best possible rate when you do come to trade. A small improvement in a rate of exchange can make a significant difference so for the sake of taking a few minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can contact me (Daniel Johnson) on dcj@currencies.co.uk and I will endeavor to get back to you as quickly as possible. Thank you for reading.

 

UK Inflation to set the tone for Pound Euro exchange rates (Tom Holian)

We begin the morning with UK construction data due out at 930am with expectations of a possible fall but the real movement for Pound vs the Euro exchange rate is likely to come with the latest set of Inflation Report Hearings due out this morning.

UK inflation has been rising recently to the level of 2.9% compared to the target level of 2%. Bank of England Governor Mark Carney is likely to be questioned and any suggestion that interest rates may be coming back on the agenda could lead to some movement for the Pound vs the Euro.

Indeed, this could see the Pound making some gains vs the single currency if there is any hint that an interest rate hike may be coming sooner than expected.

Tomorrow sees the latest release of PMI Services sector data for the UK and as this sector makes up such a huge amount of our overall GDP this could cause volatility for GBPEUR exchange rates.

On Thursday arguably one of the biggest data releases of the week is the latest NIESR GDP estimate. Although this is not the official data it is very up to date as it measures the last three months of the UK’s performance.

This could be the biggest market mover of the week so if you’re in the process of thinking about buying currency in the near future keep a close eye on what happens on Thursday morning immediately after the data release.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to save you money on exchange rates compared to using your own bank. 

If you would like further information or a free quote when buying or selling Euros then contact me via email below and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Buying Euro rates see slight improvement to begin the week (Joshua Privett)

We have begun this month with some welcome and similar gradual improvements to buying Euro rates as seen in the back end of June. But Euro buyers are still not getting a wow factor when looking at exchange movements.

To put this in perspective, even since the election GBP/EUR exchange rates have only seen a difference between the high and the low on exchange rates of 1.6 cents. Given that we are funnelling through an incredibly tumultous period in the history of the United Kingdom, such movement defies belief from my years in the industry.

So why the inactivity?

Two fronts. Given the high levels of political uncertainty trading is notably thinner on currency markets from Foreign Currency Direct’s perspective. Without heavy trading you cannot have the same changes to buy and sell rates for Euros which many were used to seeing before politics had such a large sway on exchange rates – masking the same dominance economic data used to bring to day to day trading activities.

Secondly, we are still waiting for answers. Despite the strong rhetoric on the importance of the election and the results on the Brexit negotiations and what can be achieved, we have heard little in terms of definitive sign-posting.

Markets are still very much in the dark on this, explaining the limbo on exchange rates that Euro buyers and sellers alike have been forced to suffer through.

However, a quote that is ringing truer and truer is that uncertainty is the new norm.

Economics is beginning to shine through once more, with day to day economic data having a larger sway than it once did.

These have generally been Sterling positive and should continue to be so in the short-term.

I strongly recommend that anyone with a buying Euro or Sterling selling requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your currency return.

I have never had an issue beating the rates of exchange on offer elsewhere.