Category Archives: Other Currencies

The Pound drops in value (Daniel Johnson)

The weaker Pound hits the Retail sector

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

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

What will effect GBP/EUR during 2017?

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

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

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

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

GBP/EUR Hits 1.20 (Daniel Johnson)

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

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

If  you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is vital during such volatile  times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.

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

QE statement causes big swings on GBP/EUR 

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

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

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

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

 

GBP/EUR spikes upward on hopes of a Soft Brexit, will the pair breach 1.20? (Joseph Wright)

The Sterling to Euro exchange rate spiked to a new 3 month high yesterday afternoon off the back of comments from David Davis, the Brexit Secretary.

Those that have been following the Pounds performance this year will be aware that any talk of or indications of a ‘Hard Brexit’ has resulted in Sterling weakness, and the opposite can be said regarding allusions towards a ‘Soft Brexit’.

When answering a question in the House of Commons yesterday Mr Davis suggested that the UK government may be willing to pay for access to the single market and this comment was met with positivity, as the Pound reached 1.1956 at it’s highest point.

The Pound entered December in bullish fashion and this was a continuation of how it performed in November after the currency gained around 7-8 cents through the month.

Those waiting for the right time to convert Pounds into Euros have been presented with a substantially better trading level than they would have been if they made the deal a month before.

At our brokerage we’re able to offer commercial exchange rates meaning that the rates we offer are closer to the inter-bank level than those offered by typical high street banks/providers.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be 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 Spike Again! (Matthew Vassallo)

Sterling received another welcome boost during yesterday’s trading, following the release of strong UK mortgage approvals for October from the Bank of England (BoE).

Mortgage approvals jumped to just over 67,500, which far exceeded the expected figure of 65,000. This helped boost Sterling value, with GBP/EUR hitting 1.1809 at yesterday’s high. This provided those clients holding the Pound with some of the best rates they’ve had over the past few months, with the Pound gaining over four cents at the high over the past few weeks.

Whilst Sterling has clearly found a foothold in the market, is investor confidence high enough to drive the Pound forward further or have we seen reach a peak in the short-term?

It is a difficult question to answer due to the high level of economic uncertainty surrounding both the UK and Eurozone economies.

The economic and social problems within the Eurozone are likely to manifest themselves over the coming months. Next month’s Italian referendum is likely to dominate headlines and if a No vote is reached by the public then the current Italian prime Minister Matteo Renzi is likely to step down. This could pave the way for the rise of the far right party in Italy, which will clearly change the political landscape and as such, cause further uncertainty in one of the Eurozone’s key economies.

We also need to consider the political unrest spreading across Europe and if this year’s Brexit decision and US election results are anything to go by then who knows which parties may be in power in Eurozone strongholds by the end of 2017.

There is also a distinct possibility that European Central Bank (ECB) President Mario Draghi will announce next month that they are extending their current monetary policy (QE) programme, beyond the current March 2017 cut-off date. If this is indeed the case, expect EUR weakness off the back of this decision.

On the flip side, you have to look at the on-going uncertainty surrounding the UK economy and with the Supreme Court ruling in December regarding how Article 50 can be triggered, only likely to cloud matters further, the Pound could well come under further pressure as we head towards the end of 2016.

This analysis leads me to believe that anyone with a short to medium-term GBP/EUR currency requirement should looking to take advantage of the current improvement if you are holding Sterling, or protect the huge gains made for EUR sellers over the past few months.

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

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

Buying Euro rates coming under pressure for the new Autumn Statement (Joshua Privett)

GBP/EUR exchange rates have waned about 0.6 cents since the beginning of the trading day, with high anxiety in the run-up to the Autumn Statement governing current market sentiment and movements in the short-term.

This is the first Autumn Statement and essentially the first public declaration of a new Government as to spending intent and hints given as to what they expect economic forecasts to be in the near future.

Tax receipt expectations, where how and how much money will be spent, and the degree they will be deviating from previous promises to fulfill their promise to get rid of the deficit by 2020.

Given that this is Hammond’s first statement there are few indications given to markets ahead of time of what to expect. Will he have a similar hawkish temperament to Osborne when it comes to spending or will he be much more liberal with his spending? The answers will come tomorrow from 12:30 with the commencement of the Autumn statement.

In the meantime the currency markets are jostling for position ahead of time, with some investors buying and some selling Sterling in anticipation of a large shift one way or the other. Given the net loss for the Pound today on the currency markets, the consensus seems to be that markets are more anxious than positive about the upcoming result.

If you wish to avoid all risk entirely and secure the circa 6% gains on the currency markets following the introduction of Trump as President you can contact me overnight on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximizing your currency return.

I have never had an issue beating the rates of exchange on offer elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency purchase later in the year and wish to avoid any greater expense or risk towards your transfer.

 

 

GBP/EUR Spikes to the high 1.16s (Daniel Johnson)

We have seen GBP/EUR hit the high 1.16s this afternoon following positive retail sales data. This is the best opportunity to buy Euros for a considerable time. Considering the uncertainty surrounding the majority of trade negotiations post-Brexit it may be wise to take advantage of current levels. The catalyst for the Spike occurred after Trump’s election, Theresa May played the smart move by not lambasting Trump during his campaign. Trump’s stance on trade negotiations differs to that of Obama as he is one of the few persons of power willing to be accommodating to the UK. This caused Sterling to spike, coupled with positive retail sales we have seen GBP/EUR move very close to 1.17.

With the UK  government now looking like they will have to vote on whether to invoke Article 50 and Nicola Sturgeon making her presence fault hinting that Scotland should have a say on Article 50 it looks as though an EU exit could be long and arduous which does not bode well for the pound.

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

GBP/EUR Spike Following False Memo (Matthew Vassallo)

GBP/EUR rates have recovered this morning following yesterday’s losses for the Pound. Sterling lost value yesterday following the release an apparent leaked memo, which indicated that up 30,000 additional civil servants would be required to facilitate our Brexit following the triggering of Article 50.

This memo was widely renounced last night and this morning and the Pound has benefited as a result. Despite today’s spike yesterday’s sudden dip proves how fragile the UK economy and GBP remains in investors eyes and for that reason I would still be keen to take advantage of the improvement seen since last week.

GBP/EUR movements have been unpredictable ever since the UK’s decision to leave the EU and with pressure on both the UK & Eurozone economies I do not anticipate this trend to change anytime soon. Unless you are a gambler or extremely risk adverse, I would be tempted to make provisions to try and limit further negative market movement by locking in any short-term currency exchanges. You can also look to protect longer-term positions by way of a forward contract, which will completely eliminate the chance of future negative market movement.

The global impact of US President elect Donald Trump is yet to take full effect and with so much uncertainty surrounding the UK and our upcoming Brexit, alongside vast political and economic positons inside the Eurozone, I would not be prepared to risk heavy losses in such an uncertain and unstable market.

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

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

Buying Euro rates see net loss today (Joshua Privett)

GBP/EUR rates had been falling heavily this morning following a leaked government memo which gave an overview of how the current plans are going ahead of the Government’s attempts to implement a Brexit.

Alarmingly, the memo points to the need to hire an additional 30,000 staff to implement the Brexit itself, and also suggests that there is ‘no plan’. Currently, the Government is aiming to address 500 topics to cover all contingencies and negotiating topics following the triggering of Article 50 come March. With this estimation on staff increases necessary to cover the workload in the meantime, the shortfall pains the picture of a shambles currently in place.

Unfortunately the memo also points to issues within the Cabinet itself, with splits between Foreign Secretary Boris Johnson, Brexit Secretary David Davis and International Trade Secretary Liam Fox on one side, and Chancellor Philip Hammond and Business Secretary Greg Clark on the other.

Whilst markets have been interested in hearing about ‘delays’ in the enactment of Article 50, this news no longer is a question simply of delays but actually hurts the image of the government’s negotiating positon heading into their meetings with Europe.

Inflation figures released since this statement this morning have since stabilised the Pound, showing that prices are not rising as quickly as initially calculated.

So with this market already proven to have been hypersensitive this morning, GBP/EUR can expect complimentary movements as the week progresses.

Buying Euro rates are up at much more attractive levels and the sensible option given this new curve-ball introduced to the marketplace would be for buyers to secure their currency given the 4% gains since last week still available.

I strongly recommend that Euro buyers should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer in order to maximize your Euro return.

I have never had an issue beating the rates of exchange on offer elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency purchase in the near term and wishing to secure these gains rather than having to wait for what the rate is on that day.

Sterling on the Rise, The Trump Card has been pulled! (Daniel Johnson)

The Trump Factor

Now that the under dog Donald Trump has gained power he has been a catalyst for Sterling strength. He has been forthcoming about getting a trade deal put together with the UK which has seen the pound rise in value. Theresa May played the smart move not lambasting Mr Trump as other key political figures did. She knew if he got into power they would have to work together and her silence has paid off.

The movement on the market shows just how important trade negotiations are for the UK. The market does not react well to uncertainty, you take that uncertainty away and the currency in question will strengthen. Lets hope trade negotiations are quick and decisive, although I wouldn’t hold my breath.

GBP/EUR currently sits over 1.15. This is an excellent opportunity for Euro buyers as the uncertainty surrounding Brexit does not bode well for the pound’s value. It may be wise to take advantage of current levels.

If you need assistance timing your trade and worried about getting competitive rates of exchange please do not hesitate to get in touch I will be happy to assist. I work for one of the top brokerages in the country which enables me to get some of the best rates of exchange and will also give you peace of mind using an FCA registered PLC company in business for over 16 years. If you let me know the currency pair you are trading,time scale and the volume you will be transferring I will come up with an individual trading strategy to try and maximise your return. I will be prepared to provide a comparision with your current provider to demonstrate how much I can save you. You will be looking at up to a 4% saving compared to the Banks. I can be contacted at dcj@currencies.co.uk. Thank you for reading my blog and I look forward to being of assistance.

Daniel Johnson

Executive Broker – Foreign Currency Direct PLC

GBPEUR increases due to US Presidential Election (Dayle Littlejohn)

Yesterday the US public shocked the world by voting for Republican Candidate Donald Trump to become the next President of the United States of America.  Currency markets fluctuated throughout the day, however sterling finished the day up against all major currencies.

Many of my clients have asked why the pound has gained value and I actually believe Donald Trumps comments in the past about a trade relationship between the US and UK has increased investor confidence in the UK.

However for euro buyers I think will is a temporary spike only. The closer we get to the Supreme Court  decision in regards to Brexit should put pressure on the pound and therefore GBPEUR exchange rates will fall once more.

For euro buyers you are purchasing at 5 week highs and personally  this could be the spike you have been waiting for! 

If you are buying or selling euros this year, today is the day to get in touch. Many people still believe the only way to transfer large amounts of money is through the bank and this is not the case. The company I work for enables me to give better exchange rates than high street banks which consequently means the individual saves money.

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

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

 

Donald Trump Wins US Presidential Election (Matthew Vassallo)

The results are in and it his rival Hilary Clinton has conceded the US Presidential election to property mogul Donald J Trump! Whilst some remaining votes are still to be counted, President Trump has reached the 270 electoral votes he required to fend off his Democratic rival Clinton and take his place in the White House.

This result will send shock waves across the world, as the once unthinkable has now become reality. How this will affect global markets is difficult to analyse at this point but GBP/EUR rates have taken a hit during the early days trading, with the pair hitting 1.1077 at the low.

Whilst there is no direct correlation between the US Presidential election and GBP/EUR, it is sure to have a knock-on effect for the global markets and due to the fact investors viewed a Trump victory in such a negative light, increased market volatility is likely over the coming days.

I still don’t feel a sustainable increase for Sterling is likely against the EUR under current market conditions but it may be that the EUR will also struggle to bounce back to its recent highs, due to last week’s high court ruling regarding the triggering of Article 50 having to be ratified through Parliament.  I would be looking to take advantage of the current rates rather than gamble on an increasingly unpredictable market and with the US election results likely to cause additional market volatility over the coming days, the current rates could suddenly seem extremely attractive in weeks to come.

Looking at the key economic data this week and yesterday’s UK Manufacturing & Industrial Production data was mixed, so investor focus will now switch to today’s European Commission’s economic growth forecasts, so expect increased volatility on GBP/EUR exchange rates over the next couple of days.

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

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

Sterling spike as Interest Rates kept on hold (Daniel Johnson)

Sterling Forecast

The pound has had a tough time of late gaining any momentum even on the release of positive data. Today has created an opportunity for Sterling sellers. Three factors combined caused the Spike. First came UK Services PMI, which is an indicator as to the health of the services sector which makes up a significant amount of the UK’s GDP. It came in positive and above expectations which set the pound on it’s rally. Then there was the  ruling by the high court that there must be a government vote before Article 50 is invoked, this could mean the possibility of a soft Brexit which put more momentum behind the pound.

Finally came the news of a hold on interest rates which to be honest was no surprise, but the markets reacted and the pound rallied. GBP/EUR hitting 1.1287 at the day high. With many analysts predicting 1.05 in December it was some much needed positive news for Sterling. If you are trading Sterling to Euro it may be wise to take advantage of current levels.

If you have a currency requirement I will be happy to help. I have assisted many clients today and achieved rates very close to mid market levels. I would be prepared to provide a comparison against your current provider if you wish I am very confident I will be able to beat their rate of exchange. I will also help in picking the correct contract to suit your needs and also assist in timing your trade in an attempt to maximise your return. I can be contacted by e-mail on dcj@currencies.co.uk. Thank you for reading my blog and I look forward to hearing from you.

Daniel Johnson

Executive Dealer – Foreign Currency Direct PLC

Sterling Falters Ahead of BoE Interest Rate Decision (Matthew Vassallo)

GBP/EUR rates dropped during Tuesday’s trading following poor Manufacturing figures, which caused the Pound’s value to plummet. Sterling dropped by over a cent against its EUR counterpart, with the official reading of 54.3 coming in under the markets expected result.

Sterling continues to find life tough going and every time it takes a step forward it seems to take two back and with investor confidence in the UK remaining low, this trend is likely to continue in the short-term.

We have further PMI data out today in the form of Construction figures and with a drop expected from previous, the Pound may once again struggle to make any significant impact against the Euro.

However, the key day for investors and clients is likely to be Thursday with a host of key economic data releases, likely to shift GBP/EUR exchange rates. We start the day with Services PMI figures, which are expected to fall slightly from. This could put a negative tone on things before they’ve even begun, with the latest Bank of England (BoE) interest rate decision likely to be driving the markets, as it is arguably the month’s most important economic data release, alongside an economies GDP figures.

Whilst we are unlikely to see a rate cut it is certainly not an impossibility, especially when you consider the poor run of data we’ve seen here in the UK. In my opinion it will be the subsequent press conference by BoE governor Mark Carney and the BoE minutes, which will give us the greatest insight and as such expect increased volatility on GBP/EUR exchange rates during these releases.

Based on the current downward trend I would be looking to protect any Sterling transfers ahead of these releases, as otherwise you are gambling on the market data coming out above expectation, in order to give Sterling a much needed boost.

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

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

Positive UK GDP data unable to help the struggling Pound. (Daniel Johnson)

GBP Forecast

Despite better than expected GDP data the pound only rallied against the Euro by around 40 pips. With news from Nissan that they would be building several new models in the UK and another Heathrow runway taking a step closer you would have expected to see the pound gain by well over a cent today, and yet GBP/EUR still sits in the 1.11s.

There is simply too much uncertainty surrounding Britain’s economic future. If immigration gets tighter the UK’s labour force could be affected. The price of the pound will cause inflation problems with food expected to rise by 5% by early 2017 and the biggest factor,trade negotiations could be long and problematic. You only have to look at the CETA deal as an example. The deal between Canada and the EU, seven years in the making was nearly scuppered by a small region in Belgium.

Francois Hollande and Jean Claude Junker have made it clear that there will be no negotiations until article 50 is invoked. Hard Brexit now seems inevitable. Theresa May has indicated this will occur in March. Once article 50 is triggered and trade negotiations begin Sterling will have the chance to rally, but trade negotiations will have to be quick and decisive. I am not optimistic.

It is important to consider the problems in the Eurozone however. Italian bad loans at €360bn, Greek debt, shocking inflation and the threat of further referendums. If any of these problems come to the forefront the Euro could be in big trouble.

If you would like assistance with your currency transfer I would be happy to help. I will provide a free trading strategy to suit your needs and do mu utmost to maximise your return. I can also confidently say I will beat any competitors rate of exchange. Please do get in touch for no obligation assistance by emailing me at dcj@currencies.co.uk.

 

Tomorrow’s UK GDP Figures Key for Sterling Exchange Rates! (Matthew Vassallo)

Tomorrow’s UK Gross Domestic (GDP) figures are likely to be key for any clients holding Sterling or Euro. With the expectation for 0.3% growth I expect additional volatility on GBP/EUR exchange rates if the figure comes outside of this remit.

Sterling had started to regain some ground against it’s EUR counterpart but fell away during yesterday’s trading. Rumours surfaced ahead of Bank of England (BoE) governor Mark Carney speech that he was going to take a dovish tone, which the markets immediately took as a negative and this ended the Pound’s mini recovery.

Whilst his comments were not overly positive he did mention a prospective interest rate hike due to UK Prime Minister’s prospective policy changes and this helped boost Sterling’s value and eliminate some of the afternoon’s losses.

GBP/EUR rates dipped to a low of 1.1132 but recovered back towards 1.12 following Carney’s speech. We’ve seen Sterling threaten a mini recovery on more than one occasion and European Central Bank (ECB) president Mario Draghi’s speech also curbed any further Sterling advances, as he commented on the current Quantitative Easing (QE) programme and how he felt it was having a positive effect.

I just feel that under the current market conditions the Pound will struggle to make any sustainable impact until at least next year, when key political elections and other factors in the Eurozone may start to drag the EUR value back down. If I was holding EUR I would still look to protect the gains I’d made and with a key data release tomorrow for the UK (UK Gross Domestic Product figures released at 09.30), I expect to see further market movement during Wednesday’s trading.

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

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

 

Buying Euro rates tumble from market sensitivity (Joshua Privett)

Buying Euro rates slid heavily today in the run up to a House of Lords Treasury Committee hearing with Bank of England Governor Mark Carney.

The bread and butter of what markets were hoping for was some kind of indicationas to what Thursday’s growth figures for the UK economy may manifest as.

In the run up to the event a nervous market was on full show, with drops appearing for all of Sterling’s major currency pairings. Euro buyers are lucky that the net difference today was only 0.5%.

It seems that most investors in commercial markets were keen to relieve themselves of any risk ahead of the event itself so sold Sterling off in droves to protect themselves. Unfortunately, with Sterling’s value lowering through decreased demand, this hurt anyone with a private Euro purchase.

Furthermore, on Thursday we have the first look at UK growth figures since the Referendum, and markets will be looking to see just how close to recession the UK currently finds itself in.

Market expectations are for a fall down to 0.3%, which has more than halved on what was previously a relatively slow quarter in the run up to the Brexit vote anyway.

Euro buyers may be wise to move sooner rather than later an avoid a nervous market undercutting their chances to continue buying Euros around the 1.10 mark.

My opinion has not changed and as such I strongly recommend that anyone with a buying Euro requirement should contact me on jjp@currencies.co.uk to discuss a strategy on how to protect your upcoming transfer from any adverse movements and maximise your currency return with what is available in this current marketplace.

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

You can also contact me on the form below whilst markets are quiet overnight and I will respond to you as soon as I am able.

GBP/EUR – Up and down like a cork in a bath tub (Daniel Johnson)

Pound Forecast

Sterling rallied against the Euro yesterday to 1.12 following positive  unemployment data from the UK. Today saw Mario Draghi’s speech after the European Central Bank’s interest rate decision and there was high volatility on GBP/EUR ranging from 1.1074 to 1.1215, thankfully  it now sits back above 1.12.

Many analyst are predicting 1.05 by December. I am not quite so pessimistic  but I would still be thinking about making my transfer if I had to buy euros short to medium term. current levels are the best since the fat finger flash crash two weeks ago.

Theresa May could cause further volatility as speaks at the European Summit as she is likely to be grilled about Britain’s exit strategy from the EU. I think in order for the pound to rally we will need to see article 50 triggered and decisive action taken in regards to trade negotiations. There will be an initial fall and then as trade negotiations become closer to completion there will be the opportunity for a slow,steady rally for the pound.

There will be opportunities for Euro buyers over the coming months, the market never moves in one direction, but it is vitally important to be in touch with an experienced broker to take advantage when a window of opportunity presents itself. I am confident I can beat any competitors rate of exchange and will be happy to assist with your currency requirements. Please do get in touch by e-mailing me at dcj@currencies.co.uk.

Sterling Rallies Against the EUR – Will the Current Trend Last? (Matthew Vassallo)

Sterling battled back during Tuesday’s trading, giving those clients holding Sterling some much needed respite after weeks of seeing their Pounds lose value.

GBP/EUR rates moved back above 1.12 at the high, following a host of better than expected UK inflation data released yesterday morning.

All eyes will now switch to this morning UK employment data, with the official unemployment rate released at 09.30. With the figure expected to remain unchanged at 4.9%, expect additional volatility on GBP/EUR exchange rates if it comes outside of this remit. If we see a figure below the 4.9% I would expect Sterling to find further support and a move back towards 1.13 is certainly feasible but anything above this and the Pounds recent gains are likely to be wiped out.

The Pound did find support around 1.10 so I think we would need to see an extremely poor figure in order to fall back to this level or below but with further key data releases coming up this week, anyone with a GBP/EUR position should be keeping a close eye on market developments.

Looking ahead and tomorrow we have the latest European Central Bank (ECB) interest rate decision and this is likely to have a big impact on the short-term outlook for clients holding both GBP and EUR. Whilst it is widely anticipated that rates will be kept on hold at 0%, it is ECB president Mario Draghi’s subsequent press conference that is likely to have the most impact on exchange rates, as any indication of a future rate cut or hike, along with any bullish or dovish statements about the Eurozone economy will more than likely drive the amkrets over the coming days.

Based on recent mixed messages I would not be prepared to gamble on the outcome of this. Those clients holding EUR still sit close to a five year high against Sterling and these levels, in such an uncertain climate should be protected and taken advantage of.

Similarly those clients holding Sterling will be buoyed by yesterday’s move, which on a £200,000 GBP/EUR exchange will have gained them approximately 2,500 EUR more than it would have on Monday.

If you have an upcoming GBP or EUR currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The current levels may not be around for long as the currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.

If you 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 Sterling continue to decline and can we expect to see parity with the Euro? (Joseph Wright)

One pattern we’ve seen between Sterling and Euro since the Brexit vote is whenever there has been talk of a ‘Hard Brexit’ the Pound has weakened, as this is because many had hoped for a long drawn out period of negotiations but those hopes are now fading fast.

This so called ‘Hard Brexit’ is currently in the news once again as yesterday evening the European Council President Donald Tusk said that the only alternative to a ‘Hard Brexit’ would be no Brexit, and the Pound have softened slightly off the back of this announcement as has usually been the case.

Tusk warned the UK that the EU will not compromise on its insistence that freedom of movement will be a condition for Britain’s access to the single market.

The reason for the above explanation is that its likely to weigh on the pounds value as we approach the invocation of Article 50 next year towards the end of March. This is a key date as from the date that Article 50 is invoked, the UK will have 2 years to have separated from the EU .

A number of major financial institutions such as Unicredit and HSBC are outlining 1 for 1 between GBP and EUR in the upcoming months and HSBC suggested that the par will be trading at this level towards the end of next year.

If you are planning a currency exchange between Sterling and the Euro, it’s 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.