Category Archives: Sell Euros

Pound makes gains vs the Euro at the end of the week (Tom Holian)

After experiencing a very difficult last few days the Pound vs the Euro has started to make a fightback vs the Euro during this afternoon’s trading session.

With the Europeans discussing what is happening with the Brexit talks things appear to be going better than previously expected. Indeed, European Council President Donald Tusk has suggested that the deadlock has been exaggerated and that ‘doesn’t mean there is no progress at all.’

Various leaders of the European Union have been involved in a two day summit and Tusk has also stated that he will try to be a ‘positive motivator for the next five or six weeks.’

Clearly the Pound has been suffering for most of the year with the uncertainty caused by the Brexit and the likelihood is that things will continue this way for some time to come. The ‘divorce bill’ which is the cost for the UK to leave the European Union has still yet to be decided and as yet we are still none the wiser.

As we go into the final quarter of the year we could get some progress with the discussions but until we agree a figure I think the talks will stall.

The other topic which is likely to have a big effect on the rate to buy or sell Euros with Pounds is the topic of whether or not the Bank of England will look at raising interest rates on 2nd November. The general expectation is that we will see a rate rise owing to inflation recently hitting 3%.

However, with average earnings lagging behind I think a rate hike could cause problems for the British economy and therefore I would not be surprised to see rates kept on hold and as the market expects a hike this could be to the detriment of Sterling.

Therefore, if you’re looking to buy Euros with Pounds it may be worth taking advantage of today’s short term spike.

If you would like further information or a free quote 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

Selling Euros? GBP EUR Falls after Weaker Retail Sales

GBP EUR exchange rates have continued to fall this week after yesterday’s UK retail sales data fell by 0.8% in September. The weaker numbers follow on from the other important economic data also released this week. Although inflation touched 3% on Tuesday which would normally suggest an imminent interest rate hike from the Bank of England, the weak wage growth numbers have created uncertainty over whether or not the central bank will raise interest rates on November 2nd. Inflation climbed to its highest level in five years this week but it may not be enough to persuade for a rate hike. As such the pound has actually weakened this week.

There are two doves on the Bank of England’s Monetary Policy Committee who are almost certain to keep rates on hold but whilst the vote could be close on the day I am still of the opinion that the Bank will hike at the next meeting. Clients looking to buy Euros could see a spike if action is taken considering the recent slide in sterling so there could be a small window of opportunity.

Clients looking to sell Euros would be wise to consider moving sooner rather than later and take advantage of what are still incredibly attractive trading prices. Rates for selling Euros are still some 20% better than two years ago which means on a €200,000 transfer the extra sterling generated is about £35,000 more with today’s exchange rates.

Expect volatility for the Euro over the weekend as developments unfold in Catalonia. If Madrid seeks to trigger Article 155 and impose direct rule on Catalonia then there could be civil unrest a huge escalation in political tensions. The Euro is likely to react to nay news on this.

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

GBP EUR Gains after EU Response to a Future Trade Deal

Sterling Euro exchange rates have seen a very eventful week with the fifth round of Brexit negotiations coming to an end yesterday. The pound had fallen sharply against the Euro immediately after the press conference given by Brexit secretary David Davis and his counterpart Michel Barnier highlighted that progress was still slow and there was a deadlock in the negotiations. Sterling fell by over 0.5% after it was clear that there was still insufficient progress before seeing a substantial rally in afternoon trade reversing all losses.

GBP EUR Outlook Improves Overnight!

It has been reported that the EU will begin preparing for post Brexit trade negotiations with the possibility of trade talks to commence in December and refers to the next phase to start as soon as possible. This has led to a major jump higher for the pound across all of the major currencies including the Euro. GBP EUR is climbing this morning and any developments from the EU are likely to create additional volatility for GBP EUR. The response today from EU leaders will be crucial to where rates go from here.

My view has been for some time that when that door for a future trade deal has been opened there could be some excellent gains for GBP EUR. Those clients looking to buy Euros could finally start seeing some better opportunities to purchase just around the corner.
Clients looking to buy Euros would be wise to get in touch to look at the options available to you and how to maximise on the rates of exchange as they become available. Clients looking to sell Euros should consider moving sooner rather than later as this has been a fairly major development.

If you would like further information on sterling 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

Political Uncertainty weighs down the Pound (Daniel Johnson)

Lack of Faith in May as PM

There is little economic data of consequence this week from the UK.  Although data releases have the power to influence the exchange the core issues behind Sterling weakness against the Euro is the uncertainty surrounding Brexit and the lack of stability within the government.

Theresa May’s position as prime minister is coming under increasing pressure with members of her own party showing a lack of confidence in her ability to continue as PM. Former conservative party chairman, Grant Shapps has suggested that there are around thirty MPs who are of the opinion May should step down. There have been calls for a leadership election. During times of political uncertainty the currency in question historically weakens and this is what we are witnessing at present. This also raises the question of how we are going to negotiate Brexit, one of the biggest events for the UK in the last fifty years when the government is complete disarray.

Catalan independence could give some respite for Sterling

The referendum for Catalan’s separation from Spain is being deemed as illegal by the Spanish government. The result from the referendum show a clear victory for those who wish independence, this however has to be taken with a pinch of salt as many did not vote. Many Spanish unionists gathered in Barcelona to demonstrate against Catalan’s separation from Spain. Catalan leader Charles Puigdemont is due to meet parliament today to give credence to the referendum. There could be fireworks which could create Euro weakness.

Strong Eurozone Data could warrant tapering QE

We have seen positive economic data spread geographically and across industry sectors. We are seeing sustained growth from the Eurozone something which hasn’t happened in the past. If this continues we could well see the the ECB make a change to the current QE programming. Quantitative Easing is pumping money into an economy in order to stimulate growth. The ECB are currently adding €60bn a month into to the economy, if this tapered expect the Euro to strengthen significantly.

If you have a currency requirement I would b happy to assist. You need to have an experienced broker on board in order to take advantage of rates when a brief spike occurs, especially in the current climate. If you have a currency provider already in place I am prepared to perform a comparison against them. It will take minutes and could potentially save you hundreds or even thousands of pounds. I can be contacted at  dcj@currencies.co.uk.

 

 

Pound falls against the Euro owing to political uncertainty (Tom Holian)

The Pound has made some very positive gains vs the Euro in September with gains of over 6% during last month against the single currency but Sterling has now started to struggle.

Since the start of this month Sterling has fallen by almost 2% vs the single currency or the difference of £3,500 on a currency transfer of €200,000.

This highlights the importance of being kept up to date with what is happening at the markets by using an experienced currency broker.

There are a few economic data releases due out on Tuesday morning which are likely to cause a lot of volatility for the Pound against the Euro. On Tuesday morning UK Manufacturing & Industrial production data is due as well as the latest set of UK Trade Balance data.

The Pound was listed as the best performing global currency in September so we could see a fall in demand for British exports during last month and I think this could be reflected in a lower than expected UK Trade Balance.

There are problems ahead for the UK with the political situation still under a lot of pressure.  Former Tory Party Chairman Grant Shapps has suggested this week that there are  approximately 30 MPs who are in favour of holding a leadership election.

Since April when the conservatives lost their majority and had to form a coalition there has been a feeling that many are gearing up for a change in the Prime Minister.

Therefore, I think we could see a very difficult week ahead for the Pound vs the Euro.

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

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

GBP EUR Falls to below 1.12 after German Intervention

The pound has fallen against the Euro from its recent peak with levels having fallen below 1.12 for this pair and sliding. Clients who need to buy Euros may wish to consider securing sooner rather than later to take the risk of rates falling further out of the equation. The news yesterday from German industry that German firms that are based in the UK should start preparing for a very hard Brexit has had an instant negative effect on GBP EUR.

The BDI, federation of German industry has made clear that the priority must be to defend the single market and its four freedoms. This rhetoric combined with the political uncertainty in the UK and the fact that Britain is drafting contingency plans for a no deal situation is keeping the pressure on sterling exchange rates.

If the Brexit negotiations continue to go badly then the pound could see a material fall and there is a good chance there will be more headwinds to come for the UK.

This lunchtime sees a speech from Bank of England member Andy Haldane and any clues as to when that first interest rate hike will take place that are offered may have a sizeable impact for those clients looking to buy or sell Euros. Any suggestion from Andy Haldane that he supports a rate hike in November could see the pound rally on the news and this in my view is likely considering his recent stance on monetary policy. He has previously said that a rate hike would be good for the economy.

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 rate drops as UK Construction sector contracts, will today’s data push the Pound lower? (Joseph Wright)

Despite issues within the Eurozone at the moment such as the Catalonian independence referendum, the Pound fell against the Euro yesterday after Sterling weakness outweighed Euro weakness.

The past week has yielded some negative data for the Pound which has seen it dip from its highs last month of 1.14. Revised yearly GDP figures were revised downward to 1.5% from the previous figure of 1.7%, mortgage approvals were down by 3000, manufacturing in the UK dropped slightly and UK construction figures dropped quite heavily yesterday.

Today’s data release covers the services sector within the UK which is arguably the more important release as the services sector covers around three-quarters of the UK economy and therefore the figure tends to be watched very closely.

Aside from today’s data release a member of the Bank of England, Andy Haldane will be giving a speech later this week which could cause further movements between the GBP/EUR rate if any hints at future monetary policy are given, especially after talk of an interest rate hike from the BoE has begun to heat up in recent weeks.

The situation in Catalonia looks set to continue which I think could push the Euro lower, so it will be interesting to see if the Pound will recover back to its August highs if the data out of the UK turns more positive.

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

 

GBP/EUR hits a 10-week high, but will the Pound manage to hold on to its recent gains? (Joseph Wright)

The Pound has risen quite dramatically against the Euro in recent weeks, with the pair hitting 1.14 both yesterday as well as this morning which is a 10-week high point for the pair.

Brexit uncertainty appears to have taken a back seat for now, which has seen GBP/EUR rise over 6 cents in recent weeks making the exchanging of Pounds into Euros a more attractive proposition.

The Pounds gains have been aided by a weakening Euro which has mostly been caused by the German election which took place over the past weekend. Although Angela Merkel’s Christian Democratic Union (CDU) party won for a forth consecutive term as expected, the talking point of the election is the rise of the far-right Alternative for Germany (AfD) party as they were the third best performing party.

This has softened the Euro and with the unofficial Catalan election in Spain also just around the corner and threatening to cause tensions in the region I think there’s a chance we could see the Pound continue to climb.

On Friday there will be the release of UK GDP data which could provide the Pound with a boost if the figure released is better than expected. The release comes out at 9.30am and the expectation is for 1.7% year on year and 0.3% for the 2nd quarter of this year.

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

Be wary of recent gains for the pound over the Euro, they may not continue. (Daniel Johnson)

Potential Rate hike based on misinterpretation of data

Despite Sterling moving above 1.14 this morning against the Euro be wary of thinking a resurgence on the cards. The main catalyst for Sterling strength is the market factoring in a potential interest rate  rate hike. Mark Carney, the head of the Bank of England recently stated there may be the need for a rate hike in the coming months which drove investor confidence and caused the pound to strengthen. This is a technique call jawboning, a technique Carney has used in the past during his role at the Bank of Canada. Essentially rather than making any changes to monetary policy you talk up the value of the currency. This is one of the rare occasions the technique worked. Keep in mind those who actually vote on a change in rates, the monetary policy committee (MPC) voted 7-2 in favour of keeping rates on hold.

The justification behind the potential rate hike is high inflation and low unemployment. High inflation is only healthy for an economy if average wage growth keeps in pace with inflation, at present it isn’t, it actually fell to 2.1%. Unemployment figures are at the best levels since the 70s, but a large contribution to this is down to zero hour contracts. My opinion is the reasoning behind a hike is false, but investors are biting with a 50% chance of a hike in November and a hike factored in by February next year.

The uncertainty surrounding Brexit is still a major concern and if negotiations are not going well, the pound could fall considerable. May’s opportunity to provide clarity on Friday was not taken and at one point she stated “no deal is better than a bad deal.”

If you have a currency requirement I would be happy to assist. You need to have an experienced broker on board in order to take advantage of rates when a brief spike occurs, especially in the current climate. If you have a currency provider already in place I am prepared to perform a comparison against them. It will take minutes and could potentially save you hundreds or even thousands of pounds. I can be contacted at  dcj@currencies.co.uk.

GBP EUR Slides from Recent Peak

The pound has slipped back to below 1.13 for GBP EUR after the incredible gains seen last week. Despite the slippage the pound continues to be supported on expectations that the Bank of England will look to raise interest rates in the near term. There is now a 50% chance that there will be a rate hike as soon as November and the markets are fully pricing in the prospect of a rate hike by February 2018.

This is good news for sterling exchange rates as the prospect of interest rate hikes in the UK means more funds move towards Britain as the return on the investment is higher which drives the price of the pound higher.

Bank of England Governor Mark Carney also spoke again yesterday and highlighted that there is likely to be a movement from historical interest rate lows. However he also cited some concerns over Brexit and this appears to be one of the reasons why the pound has just tailed off from its recent peak.
Clients looking to buy Euros would be wise to consider getting in touch to take advantage of the excellent rates which are available at the moment. A major intervention by UK Prime Minister Theresa may could see additional volatility for the pound this Friday. If the stalemate in the Brexit negotiations continues then there is a chance the pound could fall lower.

However I am of the opinion that an offer of goodwill from the UK is likely to be made and this could see the pound strengthen across the board. There could be a small window of opportunity to buy Euros this Friday.

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

Sterling rallys against the Euro following Interest rate decision (Daniel Johnson)

Is Sterling’s advance warranted?

Today saw the UK interest rate decision. The Monetary Policy Committee (MPC) consist of nine members who vote on whether there should be a change in rates. Today’s vote came in at 7-2 in favor of keeping rates on hold. It was the speech after the event that caused sterling to gain strength.

Mark Carney, the governor of the Bank of England (BOE)  spoke following the discussion and stated the BOE may need to adjust interest rates in the coming months. In my opinion this is jawboning, talking up the value of the currency  as apposed to making an actual change to monetary policy, let us not forget the vote was 7-2 to keep rates on hold.

They are justifying a potential hike on the rise in inflation to 2.9%. Inflation is only a positive to an economy if average wage growth is increasing at a similar pace. Wage growth fell to 2.1%, something the BOE have seemingly swept under the carpet. I believe a rate hike is not the solution to the inflation problem. Brexit is the reason for the weak value of the pound and in turn the rise in inflation due to the increase in cost of exports, a solution to the problem would be clarity on Brexit and the pound will rally with out monetary policy action.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at dcj@currencies.co.uk.

 

 

 

Will the Pound continue to make gains vs the Euro and the Bank of England (Tom Holian)

The Pound has hit its best level to buy Euros since early August as the UK has announced two positive things this week.

Early on Tuesday morning the EU Repeal Bill was approved by every single Conservative member which showed that Theresa May is now moving closer towards a ‘strong and stable government.’

We also had UK inflation which came out at 2.9% hitting a 5 year high which has led to the Pound making gains against the single currency.

With inflation rising this will put a bit of pressure on the Bank of England to think about what to do with interest rates going forward.

The expectation is for rates to go up in 2019 so with a meeting today any talk of a rate hike being brought forward could see the Pound rising against the Euro later on today.

With Germany set to go to the polls in the next two weeks we could see a bit of volatility coming for GBPEUR rates but if Merkel wins again which appears very likely this could see the Euro fight back.

Therefore, if you’re thinking about buying Euros it may be worth getting this organised in the next fortnight.

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

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

 

GBPEUR holds steady above 1.10

Yesterday the Office for National Statistics released the latest Consumer Price Index numbers for the UK and inflation had risen 0.3% compared to last months figure of 2.6%. With inflation now sitting at 2.9% it appears that speculators have purchased the pound in anticipation that the Bank of England could give some indication about a future interest rate hike on Thursday.

However I actually believe the complete opposite and wouldn’t be surprised to see the Governor of the Bank of England Mark Carney to talk down sterling. In recent weeks the Governor has made it clear that the weaker pound is the reason for the shift in inflation and the Bank of England will act off the back of Brexit developments.

With this in mind I believe the spike above 1.10 is a spike and in the upcoming weeks GBPEUR exchange rates will fall back towards the 8 year lows we were experiencing only 2-3 weeks ago. Therefore anyone looking to purchase euros short term should consider buying there euros upfront. For euro sellers rates are still fantastic however if you can hold your nerve rates could improve towards the end of the month.

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!

 

 

Inflation data gives the pound a boost (Daniel Johnson)

CPI data increases the chances of a rate hike from the BOE

GBP/EUR now sits above 1.11, the best levels of exchange for over a month for euro buyers.  The catalyst for the rise in the pound was Consumer Price Index (CPI) data. CPI is a measure of inflation, if provides a comparison in price changes on goods and services. Inflation is a major concern for the UK and is a direct result of Brexit. The uncertainty surrounding Brexit has weakened the pound considerably. Pre-referendum announcement GBP/EUR sat at 1.42.

With imports now becoming far more expensive businesses are raising prices to consumers. In order for consumers to continue spending average wage growth needs to be increasing at a similar pace to inflation, at present it is not, currently sitting at 1.8%. New wage data is released this morning at 9.30.

Inflation showed an increase yesterday above expectations to 2.9%. The pound benefited as a result. This is due to rumours the Bank of England could consider a rate hike if inflation continues to rise. I am of the opinion a change in monetary policy is not the solution. In order for inflation to fall we need a stable government and clarity over the big issues in Brexit, namely trade and the freedom of movement of people.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at dcj@currencies.co.uk.

 

GBP EUR Breaks over 1.10

The pound has found a small degree of support which may be set to continue now that the “great Repeal Bill” has passed through parliament and found its way through the first hurdle. GBP EUR rates have now broken over 1.10 which is welcome news for those clients looking to buy Euros who were recently caught out when levels recently fell below 1.08 in the last two weeks.

The Great Repeal Bill which brings European law into British law to avoid any legal cliff edge scenarios is a major factor for the Brexit process. It’s not over yet though and it is widely believed that the Labour party will try and vote down the bill at second reading.

As such sterling Euro exchange rates are likely to be particularly volatile for the next month with no guarantees the government will ultimately get the bill through. Clients looking to sell Euros continue to see excellent treading prices but the tide may have now turned with the recent rise in sterling.

The Bank of England meet this Thursday and any change in policy could see a big market reaction for the pound. Only two members on the Monetary Policy Committee voted for a rate hike at the last meeting but should anyone else join Ian MaCafferty and Dave Ramsden then the pound could see welcome strength.

Those clients looking for a real opportunity with the potential for a sizeable increase in rates should pay attention to the expected speech from Theresa Mya later this month. For more information on how this speech could impact the rates then please get in touch and I will be happy to give you my thoughts.

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

Euro Rates Before ECB Meeting

GBP EUR exchange rates look set for a roller coaster today tomorrow with two major events. The UK sees a debate in parliament over the Great Repeal Bill which will discuss the movement of EU law into British law to hopefully avoid any disaster scenarios. The issue for the British government is that there is only a very small working majority so any renegade conservatives who are not prepared to vote with the bill could create major problems for government.

Labour have already made clear that they will try and vote down the bill which in my view would create additional uncertainty although the general feeling is that the bill will go through.

The European Central Bank also meet tomorrow which could see major market volatility. The markets will be listening out for any words that suggest the central bank will look to taper its Quantitative Easing programme. The last few meetings have seen considerable market volatility to the extent that Mario Draghi has had to issue statements effectively saying the markets had misinterpreted what he had said. Any suggestion of tapering could see the Euro strengthen very quickly although the recent strength of the Euro could mean the ECB pauses until the next meeting.

Those clients with a Euro requirement either buying Euros or selling Euros would be wise to get in touch tomorrow morning to look at the options available to try and take advantage of any spikes which occur. The key here is to be proactive and have things set up ready if there is a big jump higher.

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

Services PMI causes Sterling spike against the Euro (Daniel Johnson)

Eurozone PMI data arrives below expectations

Services Purchase Mangers Index (PMI) was released yesterday in the UK and the Eurozone. Services PMI is a measure of health in the sector and can move markets. The UK saw a fall of 0.3% and saw a slight rise in German data by 0.1%. Italian PMI came in 0.4% down and French PMI was also down by 0.6%. This caused GBP/EUR to move above 1.09, the best levels for Euro buyers for over two weeks.

I am of the opinion this could be a small window of opportunity. Citibank, J.P Morgan, Morgan Stanley and HSBC are all predicting parity on GBP/EUR by the end of the year. Sterling is going to find it particularly hard to make any significant gains due to political uncertainty and a lack of clarity on Brexit.

Political uncertainty historically weakens the currency in question. With a growing number of conservatives pushing forward a vote of no confidence in Theresa May the pound stays anchored below 1.10. Until we have a stable government the pound stands little chance of a sustained rally.

There needs to be clarity on the UK’s stance on Brexit. The white paper documents that are being released are not addressing the main points on immigration and trade. In the currency market no news is worse than bad news. These points need to be addressed if investors are to regain confidence in the UK economy.

Could we see QE tapering from the ECB?

With sustained growth geographically and in the majority of business sectors in the Eurozone there has been talk of tapering Quantitative Easing (QE) from the European Central Bank (ECB). QE is pumping money into an economy to stimulate growth. The ECB are currently injecting €60bn a month, if this is reduced to €40bn we could see GBP/EUR fall below 1.05. This may not be a wise move as if the Euro becomes too strong it could hinder exports and damage the Eurozone economy.

If you have a currency requirement I would be happy to assist. You need to have an experienced broker on board in order to take advantage of rates when a brief spike occurs, especially in the current climate. If you have a currency provider already in place I am prepared to perform a comparison against them. It will take minutes and could potentially save you hundreds or even thousands of pounds. I can be contacted at  dcj@currencies.co.uk.

 

UK Services data released this morning likely to drive GBP/EUR today, what other data should be watched closely? (Joseph Wright)

This morning the most important sector for the UK economy will be under the spotlight as Services PMI data is scheduled for release.

The figure will be released at 9.30am and it will cover business sentiment in the sector, which is particularly important for the UK economy as the services sector covers around 80% of the UK economy. Whether this figure impresses or not is likely to move the Pound to Euro exchange rate due to its importance, and those following the GBP to EUR exchange rate should kind in mind that the manufacturing and construction figures released over the past couple of days have been mixed which has resulted in a mixed performance for the Pound.

The services sector figure has higher potential to result in price movement and the figure expected for releases is 53.5 so this is the figure to look out for.

We’re able to provide our clients with guidance regarding the news releases and expected figures that could potentially impact their currency transaction requirement. If you would like to be kep updated regarding the markets do feel free to register your interest with me and I’ll be happy to discuss it with you.

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

Sterling flat despite positive words from a key Bank of England figure (Joseph Wright)

Sterling has failed to see a boost to it’s value this morning despite a member of the Bank of England suggesting that its time for an interest rate hike in the UK.

The member is Michael Saunders and his comments won’t of come as a surprise to many after his votes to raise the rate in the last two voting meetings. The current Pound to Euro exchange rate is sitting at 1.0850 after hitting a new 8-year low earlier this week due to Brexit uncertainties.

There have been a number of predictions for the Pound to Euro rate to hit parity within the next year and at the moment we’re not far from this level as Brexit fears continue to weigh on sentiment surrounding the UK economy. The fears mostly surround how the UK is yet to agree on the final Brexit bill and also the European Commission becoming frustrated with a lack of clarity from the UK regarding it’s plans.

A little later this morning there will be the release of Eurozone Inflation levels for August which could potential move the markets, those following the GBP/EUR rate should keep an eye on releases like this and we can help keep our clients updated if they wish.

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

GBP EUR Falls to Near 8 Year Low

The pound continues to remain on the back foot as we end a week where Brexit uncertainties have largely hampered the pound. GBP EUR has fallen to a near 8 year low this week although the pound has found a degree of support as we approach the Bank Holiday weekend. Next week could bring new opportunities as politics start coming back in to full force and with the Brexit negotiations recommencing. Any positive dialogue between Britain and the EU could see an improvement in the pounds fortunes although I wouldn’t hold your breath just yet. To date EU negotiatior Michel Barnier has reinforced his view that the divorce bill must be established before any future trade deal can be discussed which isn’t boding well for the pound.

The Jackson Hole Symposium will be concluded today and speeches from European Central Bank President Mario Draghi and US Federal Reserve Chair Janet Yellen are widely tipped to create market volatility for the Euro, pound and US dollar in particular. Any mention of Mario Draghi tapering the asset purchasing scheme could see additional strength for the Euro although much of this should be priced into the market by now.

Another volatile period also awaits any clients with a requirement to buy Euros or sell Euro. The German election in September could see a period of volatility with some weakness for the Euro be expected as the election looms. However it is highly likely that that German Chancellor Angela Merkel will end up serving a fourth term which could bring about additional gains for the single currency.

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