Category Archives: Sell Euros

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

 

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

 

Pound to Euro rate hits one-week low as Bank of England lowers growth forecast (Joseph Wright)

The Pound to Euro exchange rate has dropped to its lowest level in a week yesterday as data from the disappointed.

The Bank of England (BoE) slashed its growth forecast as yesterday’s quarterly inflation report confirmed that inflation levels within the UK will soon outstrip earnings growth. Sterling has dropped below 1.1850 this morning as the softening of the Pound continues although the currency is still towards the top of the current trading range.

Those considering a Sterling transfer should bear in mind that earlier this week analysts at Lloyds bank downgraded their GBP/EUR price target from 1.18 to 1.16 at the end of 2017. This level is below the Pounds current mid-market value, so it seems that some professionals expect the pound to fall as the year goes on.

I also think that if it surfaces that Brexit negotiations have begun badly, we could see a sell-off for the Pound as the setting up of new trade agreements is likely to be the governments priority as the UK enters a time of uncertainty. Now that economic data is playing a more prominent role in the value of the Pound it’s certainly worth paying a close eye on data releases as they’re impacting Sterling rates to a greater extent than last year when politics played a greater role.

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.

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

 

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.

Is the Pound to Euro rate trading at the top of its current trend? (Joseph Wright)

Many of our clients planning a GBP to EUR currency exchange have been waiting for some time for the GBP/EUR rate to exceed 1.20.

The pair have been locked between a wide trading range of 1.10 to 1.20 pretty much since the initial shock of the Brexit vote last June, and on a number of occasions the pair have bounced off of 1.20 as the level appears to be acting as a psychological barrier.

Whilst many are playing the waiting game some have based their trades off of mid-market levels in the high teens such as 1.19 – 1.1950 and so far this appears to be the smartest move.

Interestingly analysts at Lloyds bank have recently stated that they believe the Pound is trading at fair value against the Euro at its current levels, and that they aren’t expecting to see the Pound climb much higher.

Personally I think we will see the Pound to Euro rate test 1.20 once again but I think there will need to be a large weakening of the Euro specifically if we are to see the GBP/EUR pair exceed 1.20.

Later today UK GDP data will be released with 0.4% on a quarterly basis the expectation, so expect any deviations from this level to result in GBP/EUR volatility, and feel free to get in touch if you wish to be kept updated regarding this figure.

 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.

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.

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 

GBP/EUR breaks 1.17 as services sector remains strong, will the pair hit 1.20? (Joseph Wright)

The UK economy was given a boost yesterday as data showed that its most important sector is performing well.

Economists had anticipated growth in the UK’s services sector but the figure came out higher than they had expected, and the reason Sterling saw a boost of the back of this data release is because the services sector accounts for around 75% of the UK’s economy.

For this reason data releases reflecting the health of this area of the economy can result is swings within GBP exchange rates. Due to the UK entering what could be considered a sensitive time as Brexit is now underway I expect to see these figures followed closely and I think we may see dips within the Pounds value should these figures disappoint.

Another news release which could be watched closely is Gross Domestic Product figures as these will also reflect the health of the UK economy. The next release comes out tomorrow at 1pm and the expectation is for a figure of 0.6% so expect any major deviations from this figure to result in swings within GBP/EUR exchange rates.

If you would like to be kept updated regarding major movements between the Pound and the Euro do feel free to register your details with me.

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.

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.

 

 

 

 

GBP EUR Falls after Weaker Manufacturing (James Lovick)

The pound has taken a tumble against the Euro after weaker than expected manufacturing numbers released yesterday from the Purchasing Managers Index. The numbers represent the third month running where the figures were not up to scratch which has helped see the pound fall lower. The numbers came out at 54.2 against expectation of 55.1 and whilst still in expansionary territory the weaker numbers do highlight concerns of a slowing down in the British economy. Clients selling Euros may see a small window of opportunity in these coming days.

This morning sees UK construction data from the Purchasing Managers Index and any weakness here could wee further weakness. The construction sector is usually one of the first sectors to show problems at the start of a downturn although it is unlikely there will be a material drop off.

EU retail sales numbers are released this morning and should give some clues as to the strength of the consumer across the European Union. ECB president Mario Draghi will be making a speech later today and any comments are likely to have an impact on the price of the Euro. It has been reported that the ECB have been concerned over what has been described as a market over reaction to his comments from the last policy meeting. His words will be carefully chosen today so expect volatility.

Politics surrounding Brexit will continue to be the main driving force and any statements from British and EU leaders are likely to have a direct impact on the pound. My view remains that any gains are likely to be very limited in the short term.

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 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

 

GBP EUR after Tusk Statement (James Lovick)

Now Article 50 has been invoked the markets are paying close attention to any clues as to what the negotiations will ultimately look like when they commence. The European Union confirmed today that negotiations concerning the exit bill and a future trade agreement must be discussed independently and the exit bill settled first. This is in stark contrast to the desired approach by the British government insisting that both issues must be discussed simultaneously.

Despite the suggestion that Britain could be off to a bad start the pound has proven extremely resilient so far. There is likely to be an uncertain period as we approach 29th April which is when the EU next meet to discuss the issue of Britain.
Politics will now be the main driver for sterling Euro exchange rates for the next two months in particular and potentially next two years.

The French election is also fast approaching with the first round being held 23rd April. In my view the Euro could see some considerable market weakness as the date approaches as Marine le Pen may have a big last push to win votes. This would materially change the shape of the European Union and could put the EU in an extremely precarious position. A Le pen win cannot be ruled out and I am of the opinion the markets have not yet started to price in such an eventuality. Those clients selling Euros may wish to move sooner rather than later should the Euro fundamentally weaken.

UK Gross Domestic product figures (GDP) released this morning were not revised up as many had hoped although the pound has remained relatively well supported against the Euro having briefly touched 1.17.

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

GBP EUR Reaction to Article 50 (James Lovick)

Despite a muted reaction for GBP EUR exchange rates yesterday after the Article 50 letter was given to Brussels, the pound has made considerable gains against the Euro this afternoon. GBP EUR has broken through 1.16 and has 1.17 firmly in its sights. The mood has been generally positive after Article 50 has been invoked but there does now appear to be a considerable amount of support for GBP EUR. Those clients looking to buy Euros may see some further gains as the markets appear to be at ease with Brexit. Clients selling Euros may be wise to consider moving sooner rather than later and take the excellent selling prices which have been available for these last nine months.

Will the Pound Strengthen?

Politics is likely to be the main driving force in these coming days and weeks and the first decision to be made will be whether or not the EU are prepared to discuss the negotiations of an exit bill and future trade deal in tandem. This is the first key decision that will set the scene of the next two years and any clues as to the process could see considerable volatility.

The Brexit negotiation has in effect already begun with both German Chancellor Angela Merkel and French President Francois Hollande already insisting that the exit bill must be discussed first. This may of course change and no official line from EU27 has been offered yet.

UK GDP numbers are released tomorrow and a positive number could help see the pound strengthen. EU inflation numbers are also released tomorrow and could create some market reaction. The European Central Bank managed to give the wrong signals at the last interest rate meeting so anything out of the ordinary could muddle things further in these uncertain times.

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

Pound drops as UK government plans to trigger Article 50 this afternoon (Joseph Wright)

Late last night Prime Minister Theresa May signed the letter triggering Article 50, and this letter will be delivered to the President of the European Council, Donald Tusk later this afternoon at 12.30pm.

This will officially start the Brexit process in which the UK has 2 years to leave the European Union, and in this time the UK will be doing its best to set up trade negotiations both in Europe and outside of it.

In the early hours of this morning the Pound dropped, which is a change to the currency’s general direction over the past week or so as we’ve seen the currency gain. Yesterday the pair hit 1.16 which was GBP/EUR’s highest level since the beginning of the month, and since this mornings drop the Pound has recovered some ground as it appears the currency is struggling for direction.

I think there could be some further swings during today’s trading session, especially this afternoon once Article 50 has been triggered and May offers a speech. Should she give anything away regarding the UK’s plans moving forward I think there could be movement in either direction for the Pound’s value.

If you would like to be kept updated regarding major news and movements within GBP exchange rates do feel free to get in touch.

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.