Category Archives: Eur Forecast

Pound continues to fall against the Euro as predicted (Tom Holian)

Pound Euro exchange rates have continued to fall during today’s trading session and this has been the case for almost two weeks now.

There doesn’t appear to be a lot of confidence in Sterling at the moment and the Euro is going from strength to strength.

Not only is the Euro strong vs the Pound but it is also strong vs the US Dollar.

Typically when the Dollar weakens this results in Euro strength and this appears to be the case at the moment.

There is a lot of economic data due out for Europe tomorrow with German GDP data for the first quarter as well as manufacturing data.

As Germany is the leading economy in Europe if the economic data is strong in the morning expect GBPEUR exchange rates to fall.

Turning the focus to the UK, inflation has been one of the main culprits for Sterling’s recent demise vs the Euro. The Inflation Report Hearings are due out at 11am and if they highlight the ongoing problem then I expect to see the Pound fall even further against the single currency.

With just over a fortnight to go before the UK’s general election then we could see further volatility ahead so if you want to avoid the risk of the market moving against you then it may be worth looking at buying a forward contract which allows you to secure an exchange rate for a future date.

If you would like further information or a free quote when buying or selling Euros compared to using your own bank then contact me directly and I look forward to hearing from you.

Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your trade.

Tom Holian teh@currencies.co.uk

 

Could the Pound fall further against the Euro? (Tom Holian)

Pound Euro exchange rates have had a difficult last fortnight with a loss of over 3 cents. The problem that the British economy appears to be facing at the moment is that of rising inflation.

This was confirmed in both the Quarterly Inflation Report as well as the Consumer Price Index which came out earlier this week.

Rising inflation is a problem for the UK and part of this has been caused by the strength of the US Dollar. As we import so much from overseas and GBPUSD exchange rates have fallen by approximately 15% since last year when the Brexit vote was held the cost of living is rising.

Indeed, unemployment which came out at its best level in 45 years should have in theory strengthened Sterling vs the single currency but as Average Earnings came out lower than the current rate of inflation this means that although more people are in work their spending power has been reduced.

Increasing inflation would usually be tackled by the Bank of England with an interest rate hike but the central bank has a problem in that Quantitative Easing seems to be the monetary policy used in recent years. The Bank of England voted earlier this month to keep rates on hold with only one member voting for an interest rate hike.

Therefore, I think we will see the Pound struggle against the Euro until the issue of inflation is tackled or it comes down by itself.

With less than 3 weeks to go another question that I am frequently being asked is what will happen to the value of the Pound once the general election takes place.

Usually we would see the Pound strengthen if the existing government maintains the status quo but I think this time round as it is so obvious that the Tories will win I think this has already been priced in to GBEUR exchange rates.

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

Tom Holian teh@currencies.co.uk

 

 

Pound to Euro exchange rates take another dip following poor inflation figures (Joshua Privett)

Pound to Euro exchange rates have unfortunately taken a further tumble this morning as fears about inflation appear to be manifesting.

There is a very intimate relationship between interest rates and inflation which is why Pound to Euro exchange rates did not fare too well today when it was revealed inflation growth appeared to be ‘petering out’.

Growing inflation is a concern for Central Banks, as this suggests that prices are ‘running away’ from the ability for consumers to buy. A common tool to combat this is to conduct interest rate rises to curb spending by increase the incentive to save – in turn keeping prices lower.

The secondary effect of this is that the Pound tends to get a bit of a boost. If interest rates rise then holding Pound’s produces a higher yield, and this means you should normally see its value rise due to increased demand.

However, inflation is not rising fast enough to justify this, and it has lend credence today with the confirmation of the inflation rate that it is unlikely the UK will be seeing an interest rate hike.

This negative outlook for the Pound fed into markets immediately today, which is why GBP/EUR tumbled to begin today’s trading session when the news came out at 9:30am.

This will likely be the dominant narrative moving forward this week, so Pound to Euro buyers may be wise to move sooner rather than later to avoid a difficult day when buying an upcoming currency requirement.

This will likely dictate Sterling rates for the rest of the week, so anyone planning a transfer can contact me on jjp@currencies.co.uk to discuss a strategy for your transfer based on the outcome aimed at maximising your currency return, whether this be buying or selling Euros.

I have never had an issue beating the rate of exchange offered elsewhere, so a brief conversation could save you thousands on a prospective transfer.

Economic data to set the tone for Pound vs Euro exchange rates this week (Tom Holian)

The Pound has continued to drift down vs the Euro during today’s trading session as the markets are still digesting the news from the back end of last week.

However, the market has remained relatively quiet today in anticipation of another big day in terms of economic data tomorrow and Wednesday.

Although we saw the news from the latest Quarterly Inflation Report on Thursday all eyes will be on tomorrow morning’s Consumer Price Index due at 930am. The expectation is for 2.6% which is higher than the Bank of England’s target of 2% so anything different could cause some volatility for GBPEUR exchange rates.

Closely following the UK’s inflation data the Eurozone will release GDP data for the first quarter of 2017. The expectation is for growth of 1.7% year on year and with the German economy performing well in recent weeks I would not be surprised to see a positive announcement for the Eurozone and if this takes place we could see the Pound lose ground vs the Euro during tomorrow’s trading session.

On Wednesday UK unemployment data is due and although unemployment figures have been getting lower here in the UK the real problem is that of Average Earnings which have started to slow recently.

In layman’s terms this means that although there are more people in work their spending power is reduced and generally speaking this tends to weaken the currency involved.

Therefore, I think over the next two days Sterling will face a difficult period vs the Euro.

If you would like further information or for a free quote when buying or selling Euros compared to using your own bank then contact me directly and I look forward to hearing from you.

Working for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you bank beating exchange rates as well as being able to offer you different types of contracts including forward contracts which allows you to fix an exchange rate for a future date.

Email me below.

Tom Holian teh@currencies.co.uk

 

Has Sterling’s rally vs the Euro come to an end? (Tom Holian)

The UK published a number of lower than expected economic data releases on Thursday which caused the Pound to hit a one week low vs the Euro.

The Pound has had a very good run in recent weeks but the combination of poor Industrial & Manufacturing data caused the Pound to fall vs the single currency.

The UK’s Trade Deficit figures came out at £13.4bn and this is not a good thing for the British economy and in particular the Pound vs the Euro.

Whilst the Bank of England kept interest rates on hold the governor of the central bank Mark Carney cut the UK’s growth forecast from 2% to 1.9% and this led to investor confidence waning in the UK and as such the Pound fell against the Euro.

Inflation has been predicted to rise to 2.8% whilst average earnings are predicted to fall to just 2% which effectively means that the cost of living is going up whilst wages are falling.

German economic data out this morning showed an improvement in GDP compared to the first quarter from 0.4% to 0.6% and this helped the Euro to end the week on a high vs the Pound which has provided some good opportunities to sell Euros to buy Sterling compared to recent times.

We ended this week with US Retail Sales falling in April and typically when we see Dollar weakness this results in Euro strength which has been evident this afternoon.

As we go into next week the focus is likely to return to the UK’s political landscape and with the Tories looking like they will win without any significant challenge could this provide the Pound with a recovery against the Euro?

Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you bank beating exchange rtes compared to using your own bank .

Therefore, if you would like further information or a free quote when buying or selling currency then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

How will the UK General Election effect GBP/EUR? (Daniel Johnson)

Will the Election cause Sterling weakness?

Theresa May announced a snap election to take place on 8th June. Historically a snap election would cause the currency in question to weaken, however on his occasion we saw the opposite occur. Following the announcement Sterling strengthened over the Euro. It is important to remember the market moves on rumour as well as fact. It was a shrewd move by May to announce the election while the opposition is so weak. Due to the conservatives clear lead in the polls, I am of the opinion a conservative victory is already factored into current rates of exchange. I would expect little movement on GBP/EUR if the conservatives win. It is when the unexpected occurs you can expect significant movement on the exchange.

We can use the recent French election as an example. After the first round of voting, the field was broken down to two candidates. Macron and Le Pen. Macron was so dominant after the first round the Euro strengthened due to Macron’s pro EU stance. However, when his victory was confirmed we saw little movement on GBP/EUR.

Super Thursday

Thursday brings the UK interest rate decision. I would be very surprised to see any change. It will be interesting however to look at how the monetary Policy Committee (MPC) votes. The nine members vote on whether there should be any change in interest rates, if a member’s vote changes from last month’s we could see movement on the market as this is an indication a change in monetary policy could be on the cards.

We also have manufacturing data which is expected to show a slight decline, any variation from the prediction could result in volatility.

If you have a currency requirement I will be happy to assist. I will provide an individual trading strategy with no obligation to trade. If you already have a currency provider let me know what you are being offered and I am confident in showing you a considerable saving. Feel free to contact me at dcj@currencies.co.uk. Thank you for reading.

 

 

Macron wins but Euro remains flat against the Pound (Tom Holian)

Emmanuel Macron has been confirmed as the new President of France with a convincing win over the more controversial candidate Marine Le Pen.

What make this interesting in terms of the currency markets is that this has done little to move the Euro vs the Pound and if anything we have seen GBPEUR exchange rates make gains since the start of the week.

Tomorrow morning there is a host of economic data due out from Germany in the form of Industrial Production data as well as Trade Balance. As Germany is the leading economy in the Eurozone any data can affect GBPEUR exchange rates.

The focus is now likely to return to what is happening politically in the UK and with the general election due to take place a month from today I think we could see the Pound make some gains in the weeks ahead as it appears as though the Tories will win with a clear majority at the moment.

If this happens this could provide the UK with more stability which means Theresa May will be able to start progressing the Brexit negotiations.

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

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 involving buying Euros or selling 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

 

Will the Pound improve after the French election? (Tom Holian)

We are now just a short time away from the French election which will be key in the short term movement for GBPEUR exchange rates.

At the moment it looks more than likely that Macron will win on Sunday with a clear majority vs Marine Le Pen but for me if the vote is closer than most expect then I think we’ll see some problems ahead for the single currency.

Le Pen is one of the most controversial candidates in France for years as she has campaigned for both a French referendum on the European Union as well as leaving the Euro in favour of the French Franc.

With the UK election campaign now in full swing I think as the Tories have done so well with the local elections I don’t see any real challenge from any other party and this is likely to provide Theresa May with a clear path to victory.

Over the month I think we could see the Pound improving against the Euro challenging 1.20 on the Interbank level.

However, once the general election is concluded the focus will then return to the Brexit negotiations and Theresa May has already said she’ll make things difficult and therefore I think we’ll see the Pound start to fall once the talks commence.

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 offer you both bank beating exchange rates and also help you with various contract types typically not available from your own bank.

For further information or for a free quote when buying or selling Euros then feel free to contact med directly and I look forward to hearing form you.

Tom Holian teh@currencies.co.uk

 

Could Tough Brexit Negotiations Halt Sterling’s Rise? (Matthew Vassallo)

The Pound has enjoyed a positive run against the EUR of late but has found resistance around the current levels over recent days.

With the pair now trading around 1.18, having hit a high of over 1.19 over the past couple of weeks, it indicates that the EUR is finding a lot of support under 1.20.

As regular readers will know this is a key resistance level on the pair and I certainly feel we need to see another shift in market sentiment, in order for the Pound to break through this.

Whilst the EUR has come under pressure ahead of the French elections, with the markets fearing a far right Le Pen victory, this scenario looks to becoming less and less likely. Whilst I’m wary about reading too much into poll numbers following last year’s surprising Brexit result and Trump’s victory in the US elections, I do feel that a Macron win on Sunday will help to solidify the single currencies positon.

The Pound found support following the announcement of a UK general election in June and the likely result of a Conservative victory, bringing an element of stability to the markets due to the continuity it will bring over the coming years. However, this positive spike seems to have cooled somewhat and based on some worrying reports this week, in regards to the UK’s Brexit negotiations and how tough they are likely to be, are you prepared to risk losing the gains made for Sterling over the past month?

My overall feeling has been that clients holding the Pound should be looking for short-term market opportunities, rather than hold out for long-term sustainable gains whilst so much uncertainty around the UK economy remains.

UK Prime Minister Theresa May has come out fighting this week, in response to reports that the UK has little understanding of how the EU works if it thinks it will be getting a good deal in regards to our Brexit. Whilst political jostling could account for a portion of this, I do feel we are in for a rocky road over the coming months. As such I would be looking to protect any GBP/EUR requirement, rather than gamble on an extremely uncertain market.

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

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

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

The Pound has made gains during April and I expect the Pound to continue to rise in the next few days against the Euro as the second round of French elections are due to take place on 7th May.

The two candidates include the controversial character Marine Le Pen who has pledged to remove France from the European Union as well as bring back the French Franc.

With the risk to the stability of France and its relationship with the European Union if Le Pen gets in this could send GBPEUR exchange rates flying in an upwards direction quickly. However, the outcome if more likely that Emmanuel Macron will win and this could cause the Euro to strengthen vs the Pound.

With the voting due to take place next week this is the reason why I expect the Pound to continue to make gains vs the single currency and we could even see GBPEUR rates hit 1.20 by this time next week if the voting gets close.

Following the French election the focus will then return back to what is happening politically in the UK with the election due to take place on June 8th. At the moment it looks likely that Theresa May will win convincingly and this is why the Pound has had a good run since the announcement of a snap election. However, as we saw last year with the Brexit vote and Trump winning it is not a certainty so we could see a volatile period for the Pound in the weeks ahead.

If you would like a free quote when buying or selling Euros or simply more information about how I can save you money compared to using your bank or another currency broker then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

French election news strengthens the Euro vs the Pound (Tom Holian)

Sterling vs Euro exchange rates have fallen from their recent high reached five months ago after the UK announced a snap general election last week.

This gave the Pound a much needed boost vs the Euro but the gains have been short lived as the French elections announced their first round of results over the weekend.

The French public have voted for two candidates who will now go head to head in the next round which is due to take place on May 7th. The likelihood is that Emmanuel Macron will defeat the more controversial National Front leader Marine Le Pen.

This has led to the single currency recovering from its losses from the end of last week and the reason for the improvement in EURGBP exchange rates during today.

On Thursday there are a number of data releases likely to affect GBPEUR exchange rates with Services data from the Eurozone alongside a Business Climate indicator survey.

This will be followed by the latest European Central Bank decision due out and the subsequent statement released by ECB president Mario Draghi.

Having worked in the foreign exchange industryfor one of the UK’s leading currency brokers since 2003 I am confident not only of offering you bank beating exchange rates but also help you with the timing of your trade,

If you have a currency transfer to make and would like 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

 

1.20 Still a Key Resistance Level for GBP/EUR Exchange Rates (Matthew Vassallo)

Sterling has met resistance under 1.20 against the EUR and is struggling to break through this key level for the pair.

Despite this week’s positive move, I am not convinced that the recent trend will allow the Pound to sustainably move above this threshold.

Sterling has gained over two cents following UK Prime Minister Theresa May’s decision to call a snap general election in June. This positive move went against the grain, as historically any political U-turns usually bring with it a level of uncertainty and the currency in question is put under pressure. As regular readers will know any economic & political uncertainty is a currencies biggest downfall and for this reason I would be extremely tempted to take advantage of Sterling’s gains over the past 48 hours.

There are still many unanswered questions and despite many assuming the result of the election is a forgone conclusion, last year’s political outcomes in terms of the Brexit result and President Trump’s victory, should head a warning to us all that the expected outcome does not always come to fruition.

There is no doubt Sterling has gained a foothold and EUR sellers may well have missed the opportune time to sell their positions but the current levels remain attractive, certainly when you consider the history on the pair.

The main talking point over the next few of weeks is likely to centre around the French elections and with the far right Marine Le Penn once again gaining support, having seemingly been out of the race, investors are likely to be extremely wary about what the outcome could be should she get into power. With so much economic and political uncertainty across the Eurozone region are you prepared to gamble on a seismic shift in market conditions, which would be needed to significantly boost the EUR value in my opinion.

My overall opinion is that both buyers and sellers should be looking at short-term market opportunities to secure their transfers, rather than gamble on the long-term outcome whilst so much uncertainty surrounding the UK & Eurozone economies remains.

If you have an upcoming GBP or EUR currency transfer 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.

Pound Euro exchange rates on the rise (Tom Holian)

Pound vs Euro exchange rates have continued to improve since the formal announcement that Brexit talks can begin and we are now at the best rate to buy Euros with Sterling in over 6 weeks. The French elections are due to start in the next fortnight and at the moment the polls are showing quite mixed reports in Europe.

The controversial character and leader of the National Front Marine Le Pen appears to be looking like one of the favourites to get through the first round of voting which takes place on 23rd April.

However, the likelihood is that Emmanuel Macron will end up winning the final round which takes place on May 7th.

The problem for the single currency is that once the elections begin this is likely to cause a lot of volatility for Sterling vs the Euro and in my opinion I think we could see problems for the Euro and this could even result in GBPEUR rates hitting 1.20.

Therefore, if you need to buy Euros it would be worth your while paying close attention to what will happen once the voting in France takes place.

As we enter the Easter break the markets will be still be moving globally so if you’re based in the UK you may wish to contact me at some point today if you have a currency purchase to make in the next week.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency providers I am confident of being able to offer you better rates of exchange than using your own bank.

If you have a currency transfer to make and would like to save money on exchange rates then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Sterling hits an 8-day high against the Euro as French Presidency fears hit the single currency (Joseph Wright)

The Pound to Euro rate exceeded 1.1750 yesterday afternoon and the pair have held strong above this level so far, as at the time of writing the pair are still trading above this level at the mid-market level.

What’s also interesting to see is that today’s low so far is 1.1756 which indicates to me that there could be support for the pair at this level.

With Sterling gaining slowly since the official start to the Brexit process it appears that the currency has hit its lowest level and it’s now on the recovery, which many within financial markets suggesting that the Brexit has been priced into the Pounds value.

What may help the Pound make additional gains against the Euro later this month is the French Presidential election. There have been fears and hedged bets against the Euro as there’s a chance far-right candidate Marine Le Pen could perform better than many are expecting. This would likely result in Euro weakness due to her plans for a Frexit, but over the past week the increasing popularity of far-left candidate Jean-Luc Melenchon has also weighed on the Euros value due to his views on tax tariffs.

Now that Brexit is underway economic data is playing a more prominent role in the currency fluctuations involving the Pound, so if you’re planning on making a currency exchange involving the pound and another currency do feel free to get in touch regarding these events.

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.

 

Pound falls against the Euro owing to poor economic data (Tom Holian)

The Pound has ended the week falling against the Euro after the UK posted worse than expected economic data.

UK Industrial & Manufacturing data both fell in March and this led to the Pound falling from close to a 1 month high earlier in the week vs the Euro to 1.1.6 during today’s trading session.

After the triggering of Article 50 last week the focus has now turned back to the economic data both here and the Eurozone and owing to the lacklustre data the Pound fell vs the single currency.

We also saw the release of the latest three month’s worth of UK GDP data published by the NIESR.

The figure was 0.5% for the quarter which although is still relatively strong it didn’t give the markets the boost they were perhaps looking for.

Moving the focus towards next week UK inflation data will come out on Tuesday morning.

Inflation has been rising recently in the UK and the previous month’s MPC meeting minutes showed that one of the 9 members actually voted for an interest rate hike.

Therefore, if inflation shows another increase on Tuesday it could provide support to last month’s vote and we could see a slow shift in favour of raising interest rates in the UK sooner than some have predicted.

Therefore, if you’re considering making a currency purchase between Sterling and Euro then Tuesday could cause some big movements depending on the data release.

If you would like a free quote when buying or selling Euros compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you bank beating exchange rates.

Email me with details of your enquiry.

Tom Holian teh@currencies.co.uk 

Could the Pound hit 1.20 this month? (Tom Holian)

With the trigger of Article 50 now one week behind us the focus is now returning back to the economic data in both the UK and the Eurozone.

The Pound has seen some small gains since last week touching 1.17 on the Interbank level during today’s trading session and the Pound has been creeping up against a lot of other currencies during the course of this week.

We are now less than 3 weeks away from the French elections which are likely to cause problems for the Euro as the controversial politician Marine Le Pen looks as though she will get through the first round of voting due to take place on 23rd April.

However, although she is very likely to get through the first round the likelihood is that she will be defeated when the second and final round takes place on 7th May.

However, as we have already seen with the Brexit vote and the Trump win during 2016 there appears to be a voice for change so anything is possible when it comes to politics.

If we see a surprise win for Le Pen this could send GBPEUR rates in an upward direction very quickly but personally I would be amazed to see her win the elections next month.

In the short term the UK releases the latest set of GDP figures for the last three months when the NIESR confirms the data on Friday. I think this could be rather positive for the UK as Retail Sales released recently showed a big jump and as Retail Sales are a big part of the British economy I think this could result in some positive GDP figures.

Therefore, if you’re in the process of buying Euros with Pounds then the end of the week could potentially provide a better opportunity.

If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly and I look forward to hearing form you.

Tom Holian teh@currencies.co.uk

 

Where Next for GBP/EUR following the triggering of Article 50? (Daniel Johnson)

Trade negotiations will be crucial to the value of the pound following the triggering of Article 50. Theresa May has been very positive in regards to how trade negotiations will proceed. She spoke yesterday and claimed the UK will be able to use the blue print of up to fifty current trade agreements already in place. Essentially copying deals that already in existence to avid the long drawn out negotiations process.

This could cause the first clash with Brussels. May stated “It will be possible to simply cut and paste deals with countries such as South Korea, Mexico and Jordan.”

She has caused some commotion by now claiming the exit process could take more than two years. This is not surprising to myself as I recall Sir Ivan Rogers, head EU ambassador resigned from his position stating the two year target was unrealistic. He said “negotiations could take up to ten years.”

Despite the elongation of trade deals, I am of the opinion Sterling will rally as trade negotiations progress. I do not think it will quick significant gains, more a slow steady rally.

Take in to account Marine Le Pen has the opportunity to take power in the French elections and we could see the pound gain strength against the Euro later in the month. The Head of the National Front has claimed she will hold a referendum in the event of victory. We have already witnessed the effect a referendum can have on a currency.

If you have a currency requirement I would be happy to assist. I will provide a free trading strategy to suit your individual needs and also I will perform a comparison with your current provider to demonstrate your potential savings by using our services. I can be contacted at dcj@currencies.co.uk.

 

 

 

 

Pound to Euro exchange rates soften following poor manufacturing and construction data (Joshua Privett)

Pound to Euro exchange rates have been having a more difficult time as of late with economic data coming to the fore now that Article 50 has been triggered, and it is no longer the daily machinations of the Brexit negotiations governing exchange rates.

The Pound has begun the month poorly so far after some underwhelming manufacturing and construction figures were released for the UK economy on Monday morning and now this morning.

These were business confidence figures in these sectors, which were benefiting heavily from the supportive impact of a cheap Pound on UK exports, and the government’s recent drive for infrastructure investment.

Whilst these are still positive, this enthusiasm appears to be muted compared to where we have been previously. This is likely due to the recent Spring Budget which didn’t announce as sweeping an investment as expected in UK infrastructure, and due to the recent gains for the Pound eating into the competitiveness of the manufacturing industry.

However, the spotlight will shift to the Eurozone’s own data later this week, and again with the first time in a while that economic data seems to be playing a major part in exchange rate movements, Euro buyers should be looking keenly to the results later this week in dictating trends for Pound-Euro rates as the year continues.

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, so a brief conversation could save you thousands on a prospective transfer.

Pound vs Euro at the highest rate since February (Tom Holian)

Pound to Euro exchange rates have hit their best rate to buy Euros since late February.

Since the triggering of Article 50 on Wednesday the Pound has edged up against the single currency despite some previous predictions that the Pound would struggle once the formal announcement was made.

It appears as though the value of Sterling Euro exchange rates for the last few weeks has been priced in which means there was an expectation for the trigger of Article 50 so when it was actually announced it cause little movement for Sterling.

Indeed, at least for the time being the focus will now turn back to the economy before the EU negotiations will take place.

We saw UK GDP come in line with expectation shrugging off any Brexit fears for the fourth quarter of 2016 and this has also lent the Pound some support vs the Euro.

Also, published yesterday were Eurozone inflation figures which saw a big drop from the expectation of 2% to 1.5%.

This caused weakness for the Euro sending GBPEUR exchange rates up to their highest level since the final week of February. Good news if you need to buy Euros to send to Europe for a property purchase or even living expenses.

The reason for the weakening of the Euro is that if inflation falls it demonstrates that the QE programme which the ECB has in place until early next year it not necessarily working which means it could be extended.

It also means that the ECB will not be able to increase interest rates for quite some time. Therefore, this is the reason why we have seen Sterling increase against the Euro towards the end of the week.

If you have a currency transfer to make and would like to save money 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

 

Article 50 triggered so what next for Pound to Euro rates? (Tom Holian)

With Article 50 now having been triggered we have not seen some of the volatility on Pound Euro exchange rates that many were expecting.

The event itself left markets with little to move on and so the foreign exchange markets as well as global stock markets remained relatively flat.

The UK has now formally triggered Article 50 of the Lisbon treaty and as we have officially started the Brexit process we have now passed the point of no return.

Prime Minister Theresa May went on to try and reassure markets that the UK will be looking for the best possible deal for the UK and she is hoping to make ‘close ties’ with Europe.

I think the speech gave some reassurance to Sterling but as the trigger was expected to happen Pound to Euro rates did not see much movement.

Therefore, the focus will once again turn back to economic data.

Eurozone Consumer Confidence data is due out shortly and this is likely to impact Sterling Euro rates.

Tomorrow we could see a big day for the short term trend for Pound Euro exchange rates with a number of different data releases due to come.

On Friday UK GDP data is due out at 930am followed by Eurozone Consumer Price Index at 10am so expect to see big swings on GBPEUR exchange rates during Friday morning as both data releases are expected to be positive for both sides

Having worked in the foreign exchange industry for one of the UK’s leading currency brokers I am confident that I can offer you bank beating exchange rates. 

If you have a currency transfer to make and would like a free quote when either buying or selling Euros then email me directly with your particular requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk