Category Archives: Buy Euros

Sterling Uncertainty on Second Day in the House of Lords (James Lovick)

The pound is likely to see additional volatility this morning after the bank of England Governor Mark Carney makes a speech. His comments can drive sterling exchange rates considerably and any mention of future interest rate policy is likely to impact on the price of sterling accordingly.

Sterling has come under some pressure after disappointing retail sales released last week although there is still a fair amount of support for the pound. UK GDP numbers are released tomorrow and this has the p[potential to be a big market mover. A stable or even positive figure should only help support the pound tomorrow.

Meanwhile the House of Lords will be scrutinising the Brexit Bill for the second day running where it is expected that some members will look to make adjustments to the bill. UK Prime Minister Theresa May sat in the House or Lords yesterday to monitor the debates in a sign that there is plenty riding on this outcome – It is very rare indeed that a Prime Minister will sit and observe the Lords. Any hold up of Brexit in the Lords could see the pound come under renewed pressure as the path for Britain would become considerably less clear and may potentially limit what UK Prime Minister is looking to achieve.

Meanwhile the outlook is looking more optimistic that Greece will be able to make its next debt repayment in July although a meeting between German Chancellor Angela Merkel and IMF Managing Director Christine Lagarde could create uncertainty for the single currency. Any agreement between these parties to include Greece is likely to see the Euro strengthen.

If you would like further information on sterling or 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

Sterling under pressure owing to lacklustre economic data (Tom Holian)

Pound to Euro rates have fallen towards the end of the week after seeing GBPEUR exchange rates recently hit 6 week highs to buy Euros with Sterling.

The fall began on Wednesday with the release of UK Average Earnings which showed a fall and the drop was exacerbated by Friday’s release of lower than expected UK Retail Sales data.

Retail Sales have now hit a 3 year low and this has supported Bank of England governor Mark Carney’s claims that the UK economy could be negatively affected by last year’s Brexit vote.

The first estimate of fourth quarter UK GDP is due out on Wednesday morning and this will be a key data release to influence what happens next to Sterling vs Euro rates.

GDP has been relatively positive in the previous two quarters but if recent Retail Sales are an indication that things slowed down during the final quarter of 2016 this could cause real problems for the Pound’s outlook against the single currency.

As yet it is still not clear as to when Article 50 will be triggered. Uncertainty is something that currency does not respond well to and until we get some clarity as to what the government’s real plans are to leave the European Union I think Sterling will remain under pressure.

Longer term however I think the outlook for Sterling is positive against the Euro as politically we could be in for numerous changes on the continent as Holland and France are due to go to the polls in the next couple of months.

As we saw in 2016 there appears to be a voice of antiestablishment and a search for a change to the current system and if we see these changes occur in Europe then I expect this to result in longer term Euro weakness.

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

 

 

Sterling Recovers after Weaker Retails Sales Data (James Lovick)

The pound has seen mixed signals against the Euro this week having seen some good gains before slipping towards the end of the week. The pound fell this morning following weak UK retail sales numbers which fell in January. The report suggested that higher fuel and food prices were reducing demand and that the numbers are the weakest performance since November 2013. Although the pound fell following the release sterling did recover in afternoon trade breaking over 1.17 again.

With the Brexit bill expected to pass through the House of Lords next week after the half term parliamentary recess there is likely to be considerable volatility as the markets react to any news

In a precursor to the politics next week Ex-Prime Minister Tony Blair has stated that he would like a second referendum on Brexit. This is likely to be hotly debated over the weekend and it could signal that there could be more to come next week when this Brexit bill passes through the Lords.

In my view then any amendments to include a second referendum on the final deal could be damaging for the pound. There is a general view that a second referendum would not allow Britain to gain a good and fair trade deal with the European Union. The timing of this statement from Tony Blair is unlikely to be coincidental ahead of next week’s political drama.
Those clients looking to buy to sell Euros are likely to see considerable volatility in these coming weeks and there are likely to be some good opportunities for buyers and sellers alike.

If you would like further information on sterling or 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

Pound to Euro exchange rates beginning to rise ahead of UK Retail sales figures (Joshua Privett)

Pound to Euro exchange rates have, despite heavy movements daily, closed most days basically where we began, with GBP/EUR still hovering around the 1.17 mark.

This morning retail sales figures for the UK will be released at 9:30, and expectations are already for positive figures which are translating into a fair rally for the Pound.

Initial retail sales figures showed an unusually sharp drop for the beginning of January, but new figures to be released this morning suggest a sharp turnaround for their fortunes.

Retail sales figures are a strong measure for consumer confidence in the UK economy and their willingness to spend, and, as such, tend to have a heavy sway on Sterling value. If the figures come in positively, in this case it should trend well for the Pound.

Without much other information out of note today, this should be the focal point of the marketplace. Positive news may even carry into the weekend where markets close. Given that 1.18 has been a ceiling that the Pound has struggled to break, opportunities today may be wise to be seen as an opportunity, and I am well places to help you seize any peaks which emerge.

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 jjp@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.

I have never had an issue beating the rates of exchange on offer elsewhere, therefore a short conversation could save you a significant sum on an upcoming transfer.

If you wish to call me directly – simply call 01494 787 478 and ask the reception team to be put through to me, Joshua.

Will Sterling rise against the Euro? (Tom Holian)

Which way will Sterling Euro rates go in the run up to the trigger Article 50 has been asked by my clients many times already and at the moment it is difficult to say.

What is clear is that we had huge movements between GBPEUR rates when the Brexit vote took place and some may assume that we could see similar drops in exchange rates.

However, the Brexit vote came as a big shock to financial markets which is why we saw such falls for Sterling against the Euro but with Article 50 it is clear that it will happen at some point in March so I think this time round the Pound is ready but I think ultimately rates will hinge on whether the UK will opt for a hard or a soft Brexit.

Economic data is rather limited today so with UK Retail Sales due tomorrow morning we could see a rather busy and volatile end to the week.

Generally speaking Retail Sales have been rather positive for the UK so any more of the same could result in GBPEUR rates going in an upwards direction.

Clearly the Pound to Euro rate is being dominated by what is happening politically and for the time being GBPEUR rates will be determined with regards Article 50 but longer term when we have the French elections taking place i think we could see Sterling make some gains as it is unclear as to which party and leader will win.

Having worked in the foreign exchange industry since 2003 I am confident that not only can I offer you better exchange rates than using your own bank but also help you with the timing of your transfer of currency.

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

Tom Holian teh@currencies.co.uk

Alternatively visit the website directly www.currencies.co.uk

 

Will the Pound to Euro exchange rate struggle to break through 1.18? (Joseph Wright)

It’s been an interesting 24 hours for the GBP/EUR exchange rate after some key economic data releases out of both the UK and the Eurozone.

The Pound to Euro exchange rate did break through 1.18 yesterday morning as investors hoped for a high inflation reading out of the UK for the month of January, but as the figure released came out below analysts expectations the Pound was sold off and almost fell below 1.17 at the inter-bank level.

The reason for the fall is there is less likely to be an interest rate hike from the Bank of England whilst inflation readings aren’t surpassing market expectations.

Now that foreign exchange markets appear to have accepted that the UK will go ahead with a ‘Hard Brexit’ and that it’s likely to begin next month, economic data is beginning to have more of an impact on Sterling’s value whereas prior to the UK PM, Theresa May outlining the governments plans it was mostly sentiment that drove the Pounds value.

Interestingly the Pound has since recovered from yesterday’s fall and the GBP/EUR pair is currently trading around the 1.18 mark once again. It will be interesting to see whether this level will act as a resistance, and I think any readers with an upcoming currency requirement involving the converting of Pounds into Euros may wish to consider the current levels as we could see a fall in the Pounds value as the Brexit begins.

If you are planning to make a currency exchange involving the Pound and another foreign currency, 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.

GBPEUR falls due to UK inflation (Dayle Littlejohn)

Speculation has been rising within the UK this year, that the Bank of England will be forced to raise interest rates towards the end of the 2017 due to rising inflation. Inflation has been on the rise due a weaker pound since the EU referendum vote and the bond purchasing program set out by the central bank.

Inflation numbers this morning continued to climb however not at the pace that speculators had anticipated and this led to a sell off off the pound earlier this morning. However the pound has recovered throughout the day. For your euro buys and sellers, if you had been in contact trading at the best points of the day would have generated you an extra cent.

Looking ahead the UK are awaiting the decision from the House of Lords to whether Theresa May can trigger Article50 and therefore start the process of leaving the European Union in March. My personal opinion is that this event will cause sterling weakness and GBPEUR exchange rates will fall therefore making euros more expensive to buy. On a positive note this could be the spike in the market that euro sellers are looking for.

If you reading this website for the first time as you need to convert GBPEUR, feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

If you are already using a brokerage and would like to a free quote email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands.

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

Sterling Rallies Following Co-op Announcement (Matthew Vassallo)

With no economic data for the UK today, the major talking point was the Co-op banks decision to put itself up for sale. This was welcomed by the Bank of England (BoE), who will continue to monitor the banks “financial resilience” over the coming months.

The Co-op has struggled ever since its near collapse in 2013 but with interest from TSB, there is hope that it can build strength and become a cornerstone in the UK’s banking sector over the coming years.

Whilst talk of failing banks is hardly likely to inspire investors this may well be taken as appositive by the markets, due to the hope of increased stability in the future and this news may well have helped support the Pounds value yesterday and for the coming days.

Currency markets will react to key economic developments and as such any stability and growth in the UK’s financial sector is likely to support the Pound and we may see an improvement over the coming weeks as the situation evolves.

Looking at the markets and the Pound has made gains over the past couple of weeks, with the Pound finding support against a host of major currencies.

The recent market volatility looks set to continue however, with UK Prime Minister Theresa May’s Brexit still awaiting approval by the House of Lords.

The Pound gained support following the decision by MP’s to ratify it through the House of Commons and whilst the general consensus is this will be backed up by the House of Lords, a level of uncertainty still remains. It’s for this reason that I have been suggesting to clients holding Sterling that they look for short-term opportunities, rather than hold out for long-term sustainable improvement.

Yes, there is no doubt the Pound has gained a foothold in the market but this is not the first time we’ve seen it make a move towards 1.20, only for market confidence to slip and the Pound to retract. This leads me to the conclusion that the UK economy remains extremely fragile in the eyes of investors and it won’t take a lot for this confidence to be shaken and the Pound will likely suffer as a result.

If you have an upcoming Sterling or Euro currency transfer to make and are concerned about the current market instability, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact us on 0044 1494 725 353 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk and can answer any queries you have about the current market trends & forecasts.

 

Could Sterling improve against the Euro? (Tom Holian)

Sterling Euro rates have ended the week close to a high after the release of better than expected GDP data as well as positive manufacturing and industrial production data but have still struggled to make any significant gains vs the Euro recently.

The Pound is still being weighed down by the uncertainty caused by Article 50 and at the moment although the government look to be in control there are undoubtedly more obstacles ahead prior to the triggering of Article 50 next month.

However, although Article 50 will be the main factor in determining what happens to Sterling Euro exchange rates over the next few weeks after that the focus will turn to what is happening politically in Europe.

Political uncertainty causes problems for a currency and with the Dutch and French due to go to the polls in March and May respectively then I think we could see problems in the second quarter for the Euro.

Therefore, if you’re looking at selling Euros in the next few weeks now may be close to your best chance.

Indeed, according to some reports we could see the Euro lose up to 10% of its value if Marine Le Pen gets elected.

Le Pen is in favour of leaving the European Union and the Dutch are also voicing a lot of discontent about the European Union so if we see some political change on the next continent over the next few months then I think this will be Sterling’s real chance of longer term recovery.

In the short term UK inflation data is due out on Tuesday which could cause volatility so if you’re considering making a currency transfer then this is likely to have a big impact on GBPEUR rates so make sure you’re prepared to move quickly.

If you would like to save money on exchange rates compared to using your own bank when 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

 

 

GBP EUR Supported after Upbeat UK GDP (James Lovick)

Sterling exchange rates continue to hold at these recent higher levels after a solid week of good gains. Rates for GBP EUR are now sitting at 1.1750 which is presenting anyone that needs to buy Euros with some better buying opportunities. It is only 1 month to go now before Article 50 will be invoked under UK Prime Minister Theresa May’s diary for Brexit.

The Gross Domestic Product figure from the national Institute for Economic and Social Research (NIESR) arrived steady at 0.7% showing no sign of any slowdown in economic growth. There has been little market reaction to the news and it is most likely that it is the overall uncertainty of Brexit which is preventing the pound from pushing higher. The NIESR is an excellent precursor to the official GDP numbers and it is encouraging that there has not been a slide lower which should help keep the pound supported.

In the Eurozone Greece has once again started to dominate the headlines and its inability to reform and difficulty in making its debt repayments could become another problem for the Euro. The Euro really suffered in the Summer of 2015 and it was only when Greece accepted another bailout the Euro started to gain.

On the one hand Brexit is keeping the pressure on the pound but it is my view that once the negotiations get underway the pound could actually perform well against the Euro when considering both the issues of Greece and the EU elections which are just around the corner.

Clients needing to buy or sell Euros would be wise to keep a very close eye on these political developments as the exchange rates will be directly impacted. This is where we can assist in helping you time your foreign exchange transfer.

If you would like further information on sterling or 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

Pound to Euro exchange rates may see minor boost before the weekend (Joshua Privett)

Yesterday on the currency markets was a fairly quiet day compared to the excitement the preceding days has brought us on buying Euro rates of exchange.

This week saw the culmination of months of debate in Parliament which saw Sterling to Euro exchange rates fly upwards and cascade downwards on numerous occasions. This debate is surrounding the ability for the Government to act unilaterally without the consent of Parliament in the Brexit negotiations.

To eventually pass the ‘Brexit bill’ the Government had to concede on a few key points involving the Leave process, namely that Parliament would get an opportunity to vote on any final Brexit deal put to the table once the negotiations finished.

Why does this trend positively for the Pound? Like any project, and the Brexit is certainly the biggest the government has ever faced, oversight to make sure that no wrong turns are made which are difficult to reverse, or if severe decisions are made, are received well by third parties looking on in negotiations. In this case third parties are financial markets.

This explain the rally for the Pound really since the latter part of January.

The final Brexit Bill was voted on yesterday, and it seems the momentum from this story is beginning to evapourate.

However, some manufacturing and industrial production figures to be released fairly shortly may provide a short-term boost for the Pound.

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 jjp@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.

I have never had an issue beating the rates of exchange on offer elsewhere, therefore a short conversation could save you a significant sum on an upcoming transfer.

Brexit – Still the Key Market Mover (Daniel Johnson)

Where next for Sterling?

GBP/EUR is still very unpredictable and is susceptible to high levels of volatility. Data releases that normally cause significant movement are proving to have little impact. Brexit negotiations are clearly the main force behind current buoyancy levels on GBP/EUR. UK PM Theresa May yesterday was given the go ahead to trigger article 50 following Labour minister, Harriet Harmen’s attempt to make an amendment to the Brexit bill. The change was for EU nationals to have their rights protected if they are already current residents in the UK.

The bill should now go through without too much trouble from the House of Lords. I would expect a far more thorough plan for exit from the EU to be published shortly. The markets react particularly badly to uncertainty, I feel a new white paper document detailing thoroughly exit plans could add certainty to the market and Sterling could rally. Trade negotiations are pivotal to the strength of the pound. Both Trump and Australian PM, Malcolm Turnbull have been forthcoming in regards to striking a deal. This is without a doubt good news for Sterling. I am however dubious of the current two year target for a full exit. Trade negotiations are anything but simple, the quickest the US has  ever tied up a trade agreement with another country is four years.

Later in the year things could well turn sour for the Euro, despite  small improvements in inflation there is still a lot to worry about for Euro sellers.

Three general elections are due to take place in the Netherlands , France and Germany. All have the possibility of a far right party gaining power. Political uncertainty, historically weakens the currency in question. As does a potential referendum. Italian banks are in need of bailouts due to excessive lending to the tune of over €360bn and lets not forget Greece’s debt crisis.

If you have to purchase Euros short- medium term, you will need expert assistance to maximise your return. I will provide the most competitive spread and a trading strategy to suit your needs, with no obligation to trade. Feel free to e-mail me at dcj@currencies.co.uk. Thank you for reading.

Daniel Johnson

Foreign Currency Direct

Save money when buying Euros for foreign property (Tom Holian)

When buying a property in France or Spain or indeed any other nation within the Eurozone it is crucial that you are aware that there are other options available compared to using a bank to buy or sell Euros.

Clearly if you’ve been reading the articles on this site for a long time or simply stumbled across them recently I hope you’ve found them both interesting and informative to help you to decide when you may wish to buy Euros for your dream property.

We have already seen a large amount of movement for Pound to Euro rates since the turn of the year caused primarily by the uncertainty surrounding the issue of Brexit and as yet we are not much further from knowing what will happen next.

For many of my clients both new and old they have chosen to buy a forward contract which allows you to fix an exchange rate for a future date which is useful if you want to guarantee your budget early on or if you have stage payments to make over a period of time.

Other options available are contract types such as Limit Orders or Stop Loss Orders which means you can ensure your budget does not go out of control and this allows you to have both a maximum and minimum exchange rate. This can be very useful in times when the currency market is very volatile.

Having worked for one of the UK’s most successful independent companies since 2003 I am confident that not only can I offer you better exchange rates when buying or selling Euros compared to using your bank but also help you with the various options available and the timing.

For further information or for a free quote when buying currency then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

GBP Exchange Rates Slide after High Court Blocks New Case (James Lovick)

The pound has fallen again today against most currencies after a substantial fall across the board yesterday. The Eurozone received unwelcome news in the form of weak retails sales numbers for December although it did little to impact on sterling Euro rates of exchange.

GBP EUR is now sitting just below 1.16 and the drop today is most likely as a result of a court case that was blocked in the high court earlier.
A new court case was put forward to the high court this morning which was being used to try to establish whether Parliament must be consulted on Article 127 of the European Economic Area Treaty.

This tackles the issue of remaining in the single market and whether or not UK Prime Minister Theresa May must go through parliament to give notice of the UK’s departure. However in a twist today the High Court have blocked the legal challenge and have stated that the case is premature. This is a win for the British government today but it also means for the time being that the harder type of Brexit is still the more likely outcome from all of this. To date a so called hard Brexit has proved negative for sterling exchange rates.

With Brexit literally around the corner the pound could come under renewed selling pressure as there is a degree of uncertainty that goes with invoking Article 50. GBP EUR may have considerably further to fall in the short term. Those clients looking to buy Euros would be wise to get in touch as the next 6 weeks are likely to see further pressures on the pound.

If you would like further information on sterling or 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 February be a positive month for the Pound? (Joseph Wright)

The Pound has begun the day positively which could be an indication of how today will unfold, as there is a busy day on the cards for Sterling exchange rates.

Many have coined today ‘Super Thursday’ due to the volume of economic updates which could create volatility between GBP exchange rates. Although no interest rate change is expected the official outcome of the Bank of England’s voting members decision will be announced at 12.00 along with an update on the BoE’s current Quantitative Easing program.

Perhaps the most price sensitive time of the day will be at 12.30 this afternoon when Mark Carney, the governor of the Bank of England will be giving a speech.

Sentiment surrounding the Pound is positive at the moment as the UK economy continues to impress. Last week GDP figures released showed that the UK is the fastest growing economy within the G7 set of countries and the inauguration of Donald Trump has also boosted sentiment surrounding the UK economy and therefore, the Pound’s value.

If you wish to be kept up to date with the Pound’s price movements and potential key news that could move the markets, feel free to get in touch.

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.

GBP/EUR rates experience a rollercoaster today (Joshua Privett)

Today produced a few moments which left the hearts in the mouth of Euro buyers everywhere, with GBP/EUR rates falling from 1.17 to 1.15 in a matter of hours during trading this morning.

Housing data for the UK this morning at 9:30am and this was lower that expected. Currency markets are always sensitive to house market news, given its ties to interest rates decisions and the ability to measure consumer confidence figures in the UK. This started the run against the Pound.

For Euro buyers these losses were exaggerated in morning trading with the release of three key pieces of information which produced greater support for the Euro’s value.

Growth for the Eurozone came in much higher than expected, improving its yearly forecasts to 1.8%, which is a stunning turnaround to a year ago. As such the unemployent rate is now well below 10% as well at 9.6%. Still on on par with the UK or the US, but a move in the right direction.

This is what currency markets care about, improvements.

Even inflation had improved, and this overwhelming positive tone is what saw the Euro gain move than a percent against the Pound at that point.

The fact that yesterdays news from Brexit negotiators om the Eurozone’s side upset the Pound as well by pointing our European Parliaments would be unhappy with a favourable deal for the UK. The landscape for Euro buyers thus seems decidedly negative in the short-term.

Euro buyers may be wise to move sooner rather than later, and if you contact me on jjp@currencies.co.uk, I can reply with the options open to you to seize any potential improvements tomorrow morning.

Furthermore, I have ever had an issue beating the rates of exchange on offer elsewhere, so a brief email exchange could save you thousands on a prospective currency exchange.

GBP EUR before Bank of England Meeting (James Lovick)

The pound is hitting resistance at these higher levels with GBP EUR sitting just below 1.17. This week and next could see substantial volatility for sterling exchange rates as the Brexit bill to invoke Article 50 is about to be scrutinised in Parliament.

There are a fairly large number of MP’s who are highly likely to vote against the bill so there is still a chance that Brexit could be delayed if things are held up in the House of Commons and House of Lords.

Any politically sensitive issues that come out of this could see heightened volatility for the pound as the final destination of Brexit could become less clear. Politics continues to be the single largest driver for sterling exchange rates and will continue to do so for some time.

The Bank of England will meet this Thursday to discuss interest rate policy and although no rate change is expected the markets are likely to pick up on any comments from Bank of England governor Mark Carney.

The quarterly inflation report is also released on Thursday and this is likely to be particularly interesting for the Bank of England as to the future path of interest rates. Any suggestion of rising inflation is likely to create a degree of sterling strength as despite an amount of uncertainty that comes with Brexit there is still a real chance that interest rates may start to climb either this year or next. There are likely to be some buying opportunities after the meeting.

European data is relatively light this week although EU Gross Domestic Product figures later today could crate some volatility for Euro exchange rates.

If you would like further information on sterling 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

Sterling Drops Following Brexit Comments (Matthew Vassallo)

Sterling lost some ground against the EUR this afternoon, following comments my made by a head EU negotiator regarding the UK’s upcoming Brexit.

He stated that any decision regarding a future deal with the UK would have to be ratified through European Parliament and as such the UK was unlikely to get the deal it wanted following the triggering of Article 50.

This immediately caused investors to pull funds away from Sterling, which has performed well of late against the single currency. GBP/EUR hit a high of 1.1778 earlier today before retracting to 1.6664 this afternoon.

This move is a reminder of how fragile the current market is. I’ve said to my clients that sustainable strength for the Pound is unlikely under current market conditions and as such I would be looking to take advantage of the gains we’ve seen over the past two weeks.

Any further negative comments about Brexit are only likely to intensify these losses and as such I would be looking to protect any short-term Sterling currency requirements by way of a forward contract. I still do not think that there is enough information to hand to make a firm decision either way and whilst the Pound has certainly gained a foothold, there are still many unanswered questions.

Until Article 50 has been approved and we have clearer picture of how we will actually facilitate our exit from the EU, investors are likely to remain sceptical.

For example what trade deals will be negotiated once we have exited the single market? What immigration rights will skilled workers have? What real plan is in place to drive the UK economy forward?

It may well be that the government have answers to these questions but words alone will not be enough to help the Pound recover to pre Brexit highs and I still feel that sustainable Sterling strength is unlikely under the current market conditions.

I do feel that there are many economic and political issues inside the Eurozone that will manifest themselves as we move through 2017 and this in turn could inadvertently boost Sterling’s value, but for the time being I do not envisage GBP/EUR rates breaching 1.20 whilst market conditions remain as they are.

Looking ahead and its Thursday’s Bank of England (BoE) interest rate decision and subsequent minutes/press conference, which will be focused on by investors. Any deviation from the expected result and/or comments regarding future rate changes will likely cause additional volatility on GBP/EUR rates.

If you have an upcoming GBP or EUR currency transfer to make and are concerned about the current market instability, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact us on 0044 1494 725 353 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk and can answer any queries you have about the current market trends & forecasts.

Rate to buy Euros with Sterling and the impact of next week’s Eurozone economic data (Tom Holian)

We are in for a big week for anyone looking to buy Euros with Sterling as the focus will turn to Eurozone economic data due to be released early next week.

UK GDP from Thursday has already shown that the British economy has remained resilient during the final quarter of 2016 and that the Brexit uncertainty has not had the negative effect that some experts previously had predicted.

On Monday of next week Eurozone data begins with the release of Consumer Confidence as well as Industrial Confidence data. This is likely to cause some volatility for GBPEUR rates but personally I think Tuesday’s data will cause the most movement for the Pound vs the Euro.

On Tuesday the Eurozone announces Inflation, GDP and Unemployment data. Each data release is extremely important in its own right and all three are due to be released within an hour of each other which is rather unusual so in my opinion this could cause huge movements for Sterling vs the Euro shortly after the release on Tuesday morning.

Therefore, it is important that you keep a close eye on what is happening with rates as this is likely to affect the value of Sterling vs the Euro but it is not yet clear whether the data will be positive or negative.

Sterling has been trying to get towards 1.20 recently and has struggled to get past 1.18 during this month but if the data is negative for the Eurozone early next week this could be the catalyst needed to send GBPEUR rates in the direction of 1.20.

However, the ongoing discussions concerning the Brexit are likely to weigh heavily on Sterling so the opportunity to buy at slightly higher rates could be limited.

To be kept up to date with what is happening between Sterling and the Euro or if you have a currency transfer to make then contact me directly for a free quote and I look forward to hearing from you.

I have worked in the fx industry since 2003 for one of the UK’s leading currency brokers and therefore I am able to offer you bank beating rates.

For a free quote please email me with a brief outline of what you need to do and I’ll happily respond.

Tom Holian teh@currencies.co.uk

 

 

 

GBP EUR ahead of Trump / May Meeting (James Lovick)

The pound has taken losses today against most major currencies including the Euro and US dollar. GBPEUR has fallen to 1.1720. UK Prime Minister Theresa May will meet US President Donald Trump today and there is an expected press statement from the Prime Minister this evening. There is a huge amount of interest in this symbolic meeting where a trade deal will be discussed and other UK US policy. This could lend support for the pound and there could be some short term gains for sterling exchange rates on the back of it. GBP EUR may have 1.18 in sight on a positive outcome.

The pound is especially volatile to political shocks at the moment with the biggest political upset of Brexit in decades. Sterling remains at these weaker levels and is likely to remain so although there has been some recent support of late. The pound turned around after Theresa May gave her Brexit blueprint last week which saw the pound move by over 2% against the single currency.

EU GDP numbers for the fourth quarter are released next week on Tuesday and could provide for an interesting market reaction especially if there is some weakness in the official numbers. The Eurozone has been battling with chronic low inflation and weak growth for years although inflation is just starting to inch higher as it is in the UK as a result of the recent climb in the price of oil. Whilst inflation is shooting higher, GDP is less likely to be on the rise so the Euro is unlikely to see real benefit.

 If you would like further information on sterling or 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