Category Archives: Sell Euros

Sterling Euro rates at lowest level since November (Tom Holian)

Sterling vs the Euro exchange rates have hit their best level to sell Euros since November as the Pound continues to struggle against all major currencies.

The Brexit issue has continued to dominate the headlines with the current likelihood that the UK will opt for a hard Brexit rather than a soft Brexit.

This means if we opt for a hard Brexit then the UK will look at leaving the single market which has been one of the key reasons for the Pound’s demise vs the single currency.

The Pound has fallen against all major currencies and with GBPUSD rates close to their lowest level in history this has also started to affect the price of the value of goods in the UK.

With prices in the supermarkets expected to go up by between 5%-8% during the first 6 months of next year this is clearly going to impact inflation levels.

Typically the Bank of England would look to increase interest rates in order to combat rising inflation but with UK personal debt close to record levels seen in 2008 then it will be hard for the central bank to raise rates as quickly as they may want to in a more settled economic environment.

Prime Minister Theresa May is due to address the markets on Tuesday with a speech concerning her thoughts about how the UK will move forward but until the Supreme Court judgement is announced then I expect to see the Pound continue to struggle against the single currency.

In the next few weeks I expect Sterling to continue to fall against the Euro so if you need to send money to Europe in the short to medium term it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the currency markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also able with my experience to help you with the timing of your transfer.

To find out more or if you’d like a free quote when buying or selling currency then feel free to contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Hard Brexit Talk Continues to Devalue Sterling (Matthew Vassallo)

GBP/EUR rates have dropped again with the pair now trading around 1.1450.

The Pound continues to find life tough going with heavy losses earlier this week, following UK Prime Minister Theresa May’s comments regarding her plans for  a ‘hard Brexit’. If this were to happen we would be cutting nearly all ties with the EU, meaning we need to negotiate new trade deals and immigration rights.

The huge amount of uncertainty this would create regarding the future economic prosperity of the UK, has caused investors to pull their money away from the Pound and into safer haven currencies, which ultimately why the Pound has lost value this week.

However, EUR sellers should be aware that this is not yet been confirmed and the Pound did recover slightly on Wednesday  following comments by UK Chancellor Philip Hammond, who admitted no decision had yet been made as to whether the UK would stay in the single market post Brexit.

It may be that the Prime Minister is trying to give herself a strong bargaining position ahead of negotiations with the EU but wither way we just don’t have enough information to hand to make a firm decision either way.

With Theresa May confirming she will outline further plans for our Brexit in an interview next Tuesday, the markets may be preparing themselves for further talk of a ‘hard Brexit’ but I would not be prepared to gamble wither way., on what has become an increasingly unpredictable and unstable market.

If you have an upcoming current 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 us on 0044 1494 787 478 and ask one of the team for Matt.

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

Supreme Court Judgement causes volatility on GBP/EUR (Daniel Johnson)

The consequence of a hard or soft brexit on GBP/EUR

The supreme court judgement has been ongoing throughout January and will dictate the value of Sterling in the coming weeks. Theresa May has said she is set to make an announcement on Brexit next Tuesday which could cause further volatility. May has indicated her desire for a hard brexit during a sky news interview stating she would give up free trade in order to have control over immigration. The markets reacted and Sterling plummeted as a result.

If there is a hard brexit expect Sterling to suffer further losses. Sir Ivan Rogers recently resigned as UK ambassador to the EU over the unrealistic targets for an exit. The current target for a full departure from the EU is two years, Sir Ivan thinks it could take as long as 10.

I do think trade negotiations will be dragged out and problematic if a hard brexit occurs and this will have serious implications on the UK economy.

If the parliament do get to vote on the triggering of article 50 a soft brexit seems likely. Temporary trade deals could be put in place while the new deals are ironed out and this would provide some kind of stability for the UK economy and would cause Sterling to rise in value. If the supreme court judgement does go in this direction I would expect Sterling to breach 1.18.

GBP/EUR 2017 Outlook

I do think there is potential for further falls on Sterling short term, but medium to long term I expect Sterling to rally. The pound is currently chronically undervalued when you consider December 2015 we were sitting at 1.42 on GBP/EUR. The Eurozone has three general elections this year, the Netherlands,France and Germany. There is the possibility of far right parties getting in power in all of these elections. If just one gets in office there is the possibility of a referendum and the Euro will drop heavily.

There are also the continued problems in Greece, serious inflation troubles and the struggling Italian banks.

If you have a currency requirement and would like my free, no obligation assistance feel free to get in touch at dcj@currencies.co.uk. I am confident in beating any competitors rates and will also provide an individual trading strategy. Thank you for reading and I look forward to hearing from you.

Will the pound continue to fall against the euro? (Dayle Littlejohn)

For euro buyers exchange rates have taken a tumble this week due to UK Prime Ministers Theresa May’s press conference with Sky on Sunday. She insinuated that the UK only have one option and that’s to leave the EU and single market. Mrs May has commented on the recent decline for the pound and is actually blaming the media.

Today the Chairman from HSBC has warned the UK that more clarity is needed as the leading bank are considering moving many jobs from the UK to Paris. If this materialized I am convinced this would have a detrimental impact on the pound and if other large companies follow suit buying euros could become more expensive.

Looking ahead the key decision this month that will continue to impact sterling exchange rates is the Supreme Court decision, which is set to be released any day. The Supreme Court need to decide whether Mrs May has the power to invoke Article50 or if she needs parliament approval.

This decision could potentially drive exchange rates back towards 1.16 however if the Supreme Court vote in favour of the PM I believe it wont be long until GBPEUR is back to the lows of 2016 (1.10-1.12).

For further information in regards to currency 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 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! **

 

Will the GBP/EUR pair fall back to their 2016 lows? (Joseph Wright)

Further Brexit jitters have caused the GBP to EUR exchange rate to plummet over the past couple of trading sessions.

In an interview over the weekend the UK Prime Minister, Theresa May commented that her primary focus is likely to be control over immigration as opposed to retaining access to the single market. This suggests a bias towards a ‘Hard Brexit’ as opposed to a softer approach and the currency markets have reacted to this news with the GBPEUR pair breaking below 1.15 and approaching the early 1.14’s at the time of writing.

May announced that the UK would not be able to keep ‘bits’ of EU membership, and since the comments the Pound has been falling across the board and notably against the Euro.

There is some distance for the pair to fall before hitting the lows of 2016. GBP/EUR hit 1.1028 at the beginning of November of last year and as the planned Brexit approaches I wouldn’t rule out further moves towards this level and I think that if the government is able to invoke Article 50 by the end of March as Theresa May plans, I think we could see the pair fall below 1.10 potentially.

Although economic data isn’t the predominant mover of exchange rates currently involving the Pound, investors should pay close attention to UK releases as negative updates have the potential to cause sell-offs in an already under pressure Pound. UK GDP figures will be released tomorrow so feel free to get in touch if you wish to be kept up to date regarding this event.

If you are planning to make a currency exchange involving the Pound and the Euro, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Sterling Crashes after Interview with Theresa May on Sky News (James Lovick)

The pound has crashed to a two month low on a reality check that Britain will be leaving the EU as well as the now perceived likelihood that Britain will also come out of the single market. UK Prime Minister Theresa May gave a rare interview with Sky News yesterday and made clear that Britain was absolutely coming out of the EU and that there would not be a mix of some parts remaining part of the EU and others not. The strong comments point to what has been dubbed a hard Brexit which the markets react badly to.

GBP EUR has slipped below 1.15 this afternoon which takes the pair down to a 2 month low. Politics is clearly the main driving force for the price of sterling and this is set to continue as we approach the end of March. Those clients needing to buy Euros would be wise to get in touch sooner rather than later as the pound ,may have a good way further to fall.

The Supreme Court Ruling which may come as soon as this week is also likely to create fireworks and the outcome will create new direction for the pound.

An estimate of UK GDP will be provided later in the week which may create some added volatility for the pound. However GDP has fared well over the last 6 months and Britain has actually performed extremely well in the G7 so much to say it is now the fastest growing economy. As such a steady figure is likely. Politics will continue to be the main driver for the pound in this unchartered period.

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

 

Will Sterling continue to fall against the Euro? (Tom Holian)

Sterling vs the Euro exchange rates have had to endure a difficult beginning to 2017 as the Pound has witnessed falls against all the other major currencies since the festive break.

Uncertainty surrounding Brexit have caused the Pound to experience losses against the single currency even though the economic data published recently has come out better than expected.

Both services and construction data for the UK were both strong but this did little to lift Sterling which highlights the problems that the Pound is facing caused by the ongoing Brexit issue.

Recently Prime Minister Theresa May has stated that if we are not able to have full control of our borders then we will look to leave the single market and this has not boded well for Sterling exchange rates.

The single market is what is driving the GBPEUR rate at the moment and until; we have some clarity I expect the Pound to continue to struggle.

In the next week or two we should have the announcement of the recent Supreme Court judgement as to whether or not the Prime Minister can trigger Article 50 or whether is needs full parliamentary approval.

Depending on the outcome this is likely to have a big effect on the foreign exchange market towards the latter part of the month.

Therefore, if you’re worried about the potential outcome and need to either buy or sell Euros then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the industry since 2003 I am confident that not only can I save you money on exchange rates when buying or selling currency but I can also help you with the timing of your transfer.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

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 Gains after Stronger Manufacturing Outlook (James Lovick)

Happy New Year! 2017 looks firmly set to be the year of politics both in the UK and Eurozone with the European elections this year. It will inevitably mean another rollercoaster for sterling Euro exchange rates.

The pound received a good boost as we started the New Year with UK Purchasing Managers Index (PMI)numbers for the manufacturing sector. PMI for December climbed to 56.1, the highest reading since June 2014 whilst touching a 2 ½ year high blowing away those Brexit blues and seeing some renewed confidence in the price of the pound.

Anyone with a Euro currency requirement either buying or selling Euros must be aware of the Supreme Court ruling which is expected in the next week or two. The outcome which could go either way as it will be decided by the judges will create new direction for the pound and the implications should not be underestimated. Even if Theresa May loses the appeal then l wouldn’t expect major sterling strength as Brexit is still destined to happen. It could also open up the prospect of a UK general election which would in my view be very damaging for the pound. If Theresa May wins the appeal then the pound is likely to fall quickly and lose most of the gains it has made over these last two months.

Those clients looking to buy Euros may be wise to consider taking advantage of the improved rates seen over the last couple of months as there is a huge amount of uncertainty for the pound as we now fast approach March when Article 50 is invoked which will give notice of Britain’s intent to leave the European Union.

If you would like further information on the pound or the Euro 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 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.

Today’s US FED Interest Rate Decision Likely to Affect Global Markets (Matthew Vassallo)

Today’s much anticipated interest rate decision by the US Federal reserve, is likely to have an influence on the global currency markets.

This means anyone with a GBP/EUR currency exchange to make should be keeping a close eye on market developments throughout the day.

Whilst there is no direct correlation, the high chanced of a rate hike means that investors could well move their money away from riskier currencies and back into the USD.

With pressure on both the UK and Eurozone economies this is harder to dissect but instinct is that the EUR will be seen as the weaker of the two and as such we could see EUR positions sold off this evening. In turn we could see EUR weakness against the Pound but whether or not it will be enough to push the apart through 1.20 I’m not so convinced.

The single currency has come under pressure since last week’s announcement by European Central Bank (ECB) President Mario Draghi, that they would be extending their current monetary policy programme beyond the current deadline of March 2017. With the new timeline set to continue their bond buying scheme until December next year, the markets immediately took this a sign of weakness in the Eurozone economy and the EUR weakened as a result.

Whilst this announcement was at least in part expected, it is proof that investor confidence in the Eurozone region is low and the Pounds value was inadvertently pushed up as a result of this.

GBP/EUR rates have moved through 1.19 and whilst I expect the EUR to find support around the 1.20 level, it is becoming increasingly clear that the EUR is unlikely to move back to the high we saw a few months ago, so those clients holding EUR positons should act accordingly. The EUR is still trading at extremely attractive levels against the Pound when you consider history on the pair and with so much un certainty surrounding the Eurozone, both politically and economically, now could be the time to act.

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

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 Rates Retract Following Sterling Spike (Matthew Vassallo)

GBP/EUR rates have retracted over the early part of the trading week, with the pair falling below 1.18 on the exchange.

The Pound had made a move through 1.20 in the early hours of Monday morning, following the Italian referendum result and Italian Prime Minister Matteo Renzi’s subsequent resignation. This caused investors to panic due to the political and potential negative economic effects this would have on the Eurozone and Sterling benefited as a result.

However, this positive momentum was short lived and the EUR has fought back, proving how fragile the UK economy remains in the eyes of investors. The EUR has benefited from a strong run of economic data, including better than expected Retail Sales figures.

We also saw their Gross Domestic Product (GDP) number come it at 1.7%, better than the expected 1.6% growth. This is such  key release for an economy as it gives us a key insight into the current economic standing, as well as an insight into future growth prospects.

This combined has helped the single currency to bounce back against Sterling and with the current Supreme Court ruling on whether the UK can leave the EU without Article 50 being ratified by MP’s, expect further market uncertainty over the coming days and weeks.

Personally I wouldn’t be prepared to gamble on the current market. There are concerns over whether the European Central Bank’s (ECB) will extend their current monetary policy (QE) programme beyond its current deadline of March, at tomorrow’s policy meeting. If this does occur it could start to heap pressure back on the EUR, so today may be an opportune moment to execute and short-term EUR/GBP currency exchanges.

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

Will Sterling get stronger against the Euro after the Italian referendum? (Tom Holian)

Pound Euro exchange rates are now trading at their best level to buy Euros in 3 months after the Pound recovered against all major currencies this week.

On Thursday Brexit secretary David Davis spoke out about the single market and suggested that he may look to make payments to the EU even after we have left in order to keep rights to the single market. With the tone of a soft Brexit becoming more likely this helped the Pound to make the gains this week particularly against the Euro.

Tomorrow the Italians will hold their own referendum on constitutional reform in an attempt to organise their ailing banking sector. Prime Minister Matteo Renzi has stated that he may resign if the vote doesn’t go his way and if he does end up resigning this could throw up another bout of political uncertainty and this could weaken the Euro causing Sterling to perhaps break past 1.20 if this happens.

During this year we have seen a change in the voting patterns of the public with firstly Brexit back in June and the Trump win last month. It appears as though there is a feeling of protest to the establishment and I would not be surprised to see the vote go wrong for Renzi tomorrow. Therefore, if you’re in the process of buying Euros this could be the catalyst that sends GBPEUR rates in an upwards direction.

Next week the government will be challenging the High Court ruling on Article 50 by going to the Supreme Court and although we may not get any answers until January I’m sure the rumours will be flying out over the next few days so next week is likely to be rather volatile for Sterling vs the Euro to say the least.

Having worked in the currency markets since 2003 I am confident that with my experience I can help you with the timing of your transfer as well as save you money when buying or selling Euros compared to using your own bank.

For a free quote please email me directly with details about the volume you’re looking to convert and the timescale involved and I look forward to hearing from you.

teh@currencies.co.uk

 

 

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

GBP EUR Slides away from 1.18 High (James Lovick)

The pound has fallen from its recent peak taking losses against nearly all of the major currencies today. Rates for GBP EUR remain attractive with levels sitting just over 1.17 but struggling to climb any higher with Brexit uncertainty still weighing on the pound.

European Central Bank President Mario Draghi was speaking today and signalled that Britain would be worse off after Brexit when compared to the EU. His comments may have just put the pressure back on the pound today considering his status and influence.

Tomorrow sees UK mortgage approvals which should give some more clues as to how well the British housing sector is performing. To date things are holding up pretty well with prices staying firm and a relative healthy number of mortgages being approved.

For the Euro the next big day is Wednesday with the release of official inflation numbers and this has the potential to be a market mover. Inflation has been a real problem for the EU and the European Central Bank having remained well below target for three years now. Weak economic growth has also done the Euro no favours and a weak number on Wednesday could force European Central Bank President Mario Draghi to extend its Quantitative Easing program which would be Euro negative.

Clients with sterling are seeing some much better times for buying Euros. Rates are still attractive and are trading just below the peak of 1.18 seen at the end of last week.

If you have an upcoming currency requirement either buying or selling Euros 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 James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Will the Pound make further gains vs the Euro? (Tom Holian)

The Pound has seen big gains since the start of the month and we are now at the best level to buy Euros since late September. Good news if you’re in the process of buying a property in Europe.

The Euro vs the USD is close to its lowest level in over 10 years and the huge amount of Dollar strength has caused an enormous amount of Euro weakness which has helped GBPEUR exchange rates go in an upwards direction.

The problems appear to be mounting on the continent with the Italians due to hold their own referendum in the next fortnight. The Italians have had 65 different governments in the last 80 years and I think we could see further political uncertainty as the Italians go to the polls in December.

Looking to France controversial candidate Marine le Pen is gaining in popularity and with 2016 so far being the year of political change and an anti-establishment feel about it I would not be surprised to see a change in the leadership in France next year.

Clearly there are huge problems for the UK going forward owing to the uncertainty of what is happening with the issue of Article 50 and until we get some further resolution we could encounter some problems but at the moment I think we will continue to see support for the Pound owing to the problems in Europe.

For the first time in a long time I am more positive for Sterling than Euro and I think we could see GBPEUR rates challenge 1.20 before the end of the year but the sticking point could be the Supreme Court challenge to Article 50 which takes place in December.

If you’re concerned about the volatility with exchange rates in the weeks and months ahead then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

As Dealing Director for one of the UK’s leading currency brokers then feel free to contact me for further information or for a free quote when buying or selling Euros then email me and I look forward t0 hearing from you.

Tom Holian teh@currencies.co.uk

 

 

GBP/EUR hits 1.18 (Daniel Johnson)

Following Philip Hammond’s Autumn statement we saw Sterling rally against the Euro.  He immediately made it clear that Osbourne’s plan to balance to the country’s books by 2020 is no longer feasible following the vote to leave the EU. The Office for Budget Responsibility  (OBR) dropped the UK growth estimate by 2.4% and have also indicated that borrowing could exceed £122bln. It is important to realise that the OBR who are responsible for these estimates are a bit like Scooby and Shaggy before an ad break, clueless. No one has any idea how trade negotiations post-brexit vote will pan out.

Hammond did state his intention to make the UK resilient to the uncertainty in the markets, pointing out our growth forecasts are on par with Germany and better than that of France.

There were some key factors to the speech that boosted investor confidence.

  • Banning up front fees from lettings agents
  • National Wage increase to £7.50
  • £60m a year for Grammar School expansion
  • Further Spending for Housing projects – now up to £3.7bn

Mr Hammond’s non-flamboyant to the point delivery combined with a realistic outlook brought some much needed calmness to the markets and GBP/EUR has touched 1.18. Considering we have the Supreme Courts Judgement on whether the government will be able to vote on whether to trigger article 50 it may be wise to take advantage of current levels if you are a Sterling seller.

If you have a currency requirement I will be happy to assist. I am prepared to provide a individual strategy to suit your needs and also perform a comparison against any competition. I work for one of the best brokerages in the Country, Foreign Currency Direct PLC which enables me to acheive the most competitive rates of exchange. We are registered with the FCA and have been trading for more than 16yrs. If you would like my no obligation help, feel free to e-mail me at dcj@currencies.co.uk.

Daniel Johnson – Executive Dealer

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.