Category Archives: Sell Euros

GBP/EUR Forecast – Sterling Finds Some Support After Last Week’s Heavy Losses (Matthew Vassallo)

The Pound has found a level of support against the Euro this week, following a poor run over the past couple of weeks.

GBP/EUR rates are now trading back above 1.14, which will be welcomed by any clients looking to execute a GBP/EUR currency exchange over the coming days.

It’s been well documented that the Pound has been under pressure of late. Investors quickly sold off their GBP currency position, when it became clear that the Bank of England (BoE) would not be raising interest rates at their recent policy meeting.

I do believe that the BoE and Mark Carney in particular have lost a lot of credibility and this could have an impact on Sterling’s value moving forward, which in turn could help support any increase in value for the EUR.

Looking at the GBP/EUR pair and the trend over the past 12 months has been repetitive, with the Pound seemingly finding a level of support only to be knocked back time and again.

It is unlikely that a move back towards the highs of last year, when the Pound was trading in the higher teens and one stage even seemed as if it could put pressure back on the dizzy heights of 1.20.

Fast forward and it those levels seem ambitious at best, especially when you consider that UK growth forecasts for 2018 have been cut once again to 1.4%.

Despite the current malaise, the Eurozone is not without its own problems. Political fragmentation across the region, Italy being the prime example, could potentially destabilise the Eurozone economy.

We have already seen a downturn from last year and for this reason, it still seems as though the downside risk, outweighs the upside benefits for those clients holding EUR.

If you have an upcoming Sterling currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

GBP EUR Strength – Will Rates Hit 1.15?

The pound has rallied against the Euro taking rates for GBP EUR to a high of 1.1451 today. The pound has actually seen a poor day against all of the major currencies the exception being the Euro. The pound has been supported against the Euro after positive employment and average earnings data performed well. Unemployment remains at 4.2% which sits at a 42 year low whilst average earnings overtook inflation, something the Bank of England has been very keen to see happen.

After the bank of England held interest rates last Thursday the markets are beginning to question when the next interest rate increase will happen. The expectation is for a rate increase in August by 0.25% taking levels to 0.75%. If all goes well with a Brexit and a free trade deal is in place then this should allow the Bank of England to hike again by another 0.25%. A move towards 1.15 is not unrealistic although there are some Brexit headwinds approaching which could see the pound fall.

Clients look to buy Euros could see some better opportunities if the economic data in the UK improves and there is an increase in Quarter 2 GDP. Strong data in my view will settle those fears that the slowdown is more deep rooted than just the Beast from the East cold weather front and could help lift the pound considerably.

In the short term though the markets are more interested in the more pressing issues of the Brexit negotiations and the hugely important vote in the House of Commons in the next few weeks.

The House of Lords have made a series of amendments that will attempt to keep Britain in the EU single market and customs union. If the government were to lose the vote there could be a series of political events that follow including the prospect of a new prime Minister and / or a general election. In my view this poses the biggest risk for the pound in what is already a very uncertain period. A change of government could put the pound on very shaky ground and clients with pending requirements would be wise to consider planning ahead of the key vote. There is likely to be a lot of market volatility at that time.

For more information on sterling or Euro exchange rates and assistance in making transfers at the best rates of exchange then please get in touch with me at jll@currencies.co.uk

GBPEUR remains range bound in the 1.13s

This morning the UK released their latest average earnings numbers and Europe released their latest GDP numbers and both economic data releases met the expectation. Due to there being no surprises GBPEUR exchange rates have remains fairly flat throughout the day. If anything the pound has made some minor gains against the euro and you could argue the fall in European production is the reasoning for this.

GBPEUR exchange rates have been gradually falling over the last 2 weeks since Governor of the Bank of England Mark Carney announced that the UK were unlikely to raise interest rates. With the central bank failing to hike last Thursday this story could have a major influence on the future of GBPEUR going forward.

UK economic data releases need to be watched closely if you are converting GBPEUR short term. Economic data for April was terrible, if we see a rebound now that the weather has changed the likelihood of a hike increases and therefore the pound should follow suit. However Brexit negotiations will also be a key driver for exchange rates.

UK Prime Minister Theresa May has warned Brexiteers today that she is not prepared for a no deal which would in turn create a hard border in Ireland. My opinion has not changed I would be extremely tempted to buy euros upfront as the Brexit story has the potential to crash the pound if the negotiations go horribly wrong.

For further information in regards to GBPEUR currency transfers 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! **

Important day for GBP/EUR exchange rates – U.K Unemployment and European growth figures the headlines

Today will be important for GBP/EUR exchange rates as we have the release of some key data for both the U.K and Europe which will no doubt have an impact on GBP/EUR exchange rates.

First and foremost we haver U.K unemployment and average earnings figures which will be focussed on by investors, speculators and the Bank of England as economic data at present is extremely important for where we may head next with interest rates.

A drop off in economic data for the U.K has recently dampened the chances of a rate hike which in turn has led to weakness for the Pound. An interest rate hike (or the mere speculation of one) can add value to a currency as we see an increase in demand due to it being more attractive to investors.

Governor of the Bank of England Mark Carney commented at his latest interest rate decision that as long as there were no economic disasters we should see an interest rate hike soon, so a slight lift in average earnings or drop in unemployment may give Sterling exchange rates a lift this morning.

European growth figures are due out at 10:00am this morning and expectations are for the figure to remain at 0.4% for Q1 of 2018 and 2.5% growth year on year, should this be the case then this may not impact the markets too much but any deviation from this could give the Euro a fairly volatile period mid-morning. There had been concerns over growth in many areas of the Eurozone so it wouldn’t be a great surprise to see these figures revised down a little.

If you are in the position that you need to carry out a currency exchange involving buying Euros with Pounds or exchanging your Euros back into Pound then you are more than welcome to get in touch with me and I will be  happy to help you personally. The brokerage I work for has been operating for 18 years now and we pride ourselves on getting clients not only the best exchange rates on the market but also offering the very highest level of customer service too.

If you would like to discuss a specific scenario or exchange with me then feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to get in touch personally.

GBP Rates Before Bank of England Meeting

The Bank of England meet tomorrow for the next interest rate decision where it is expected that interest rates will remain on hold. After a series of weaker economic data the pressure is now firmly off the central bank from raising interest rates tomorrow. A combination of weak retail sales data, a drop in the performance of the services sector and most importantly the sharper fall seen in the Gross Domestic Product numbers all make for a valid reason for the Bank of England to not raise rates. Clients looking to buy Euros may wish to consider moving before the event to avoid potential disappointment.

UK GDP for the first quarter arrived at just 0.1% indicating the lowest growth in the UK in five years. The cold weather brought from the Beast from the East is the main contributor to the weaker data but there hasn’t been a bounce yet which could restore some calm to the markets.

The pound could see a small rally if the central bank indicates that it is still set for additional hikes later this year. However in my opinion the Bank of England are more likely to highlight risks to the British economy especially when considering the continuing Brexit negotiations.

For the Eurozone the European Central Bank President Mario Draghi will be speaking tomorrow and he may offer some more clues as to future monetary policy. He has recently cited low inflation as a reason to continue with its asset purchasing scheme which has proved negative for Euro exchange rates. For the moment the central bank is continuing with the tapering of the vast asset purchasing scheme and more of this rhetoric should prove negative for Euro exchange rates.

For more information on sterling exchange rates and the Euro and how to take advantage of any spikes in the currency markets then please get in touch with me at jll@currencies.co.uk

Pound to Euro rate hits May high this morning, will Euro weakness continue to push the rate higher?

The Pound to Euro exchange rate has hit a month high this morning, after breaking through 1.14 quite comfortably earlier today for the first time in May.

At the time of writing the pair are trading at 1.1425, offering those exchanging Pounds into Euros the chance to make their trade at the best levels in a few weeks. The move this morning looks like its off the back Euro weakness, with the EUR/USD rate hitting a fresh 2018 low over the past day.

The Euro is the worst performing major currency of the past week, and talk of stubborn inflationary levels stopping the ECB from amending the current monetary policy are beginning to dampen sentiments surrounding the Euro also. The European Central Bank has confirmed that there will be no interest rate hikes this year which is also dampened sentiment towards the Euro, so I can understand why the single currency is dropping especially when we consider how strong it’s been over the last year.

There are a few downsides for the Pound that I think Sterling sellers should be aware of. With Brexit talks stalling in the House of Lords and the Northern Irish border also becoming a hot topic, I think there is a chance the Pound could see a sell-off should there be a negative Brexit related update, and the UK economy has also been showing signs of a slowdown to Sterling sellers should be weary.

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 is on shaky ground (Daniel Johnson)

GBP/EUR – The fragility of the pound is currently being demonstrated as political uncertainty and a host of poor data releases weigh down Sterling. We have had poor inflation, poor retail sales and GDP arrived at 0.1%, the lowest figures in five years. The highly anticipated rate hike from the Bank of England (BOE) in May now seems off the cards with little justification to do so other than unemployment hitting a 43 yr low. This however may not be so impressive, with many on zero hour contracts, not the most stable form of employment.

Political uncertainty has been another catalyst for Sterling’s fall. Theresa May is facing criticism for her stance on access to the customs union following Brexit. Keep an eye on developments as they will influence GBP/EUR.

If you have a Euro requirement short term move if the market hits the 1.14s.

Euro sellers – short term you could see gains, but be wary of holding on for too long with high expectations as Sterling is chronically undervalued. Clarity on Brexit will cause the Pound to rally.

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.

Sterling Weaker Ahead of Local Elections

UK Prime Minister Theresa May held her Brexit cabinet meeting yesterday afternoon which could offer further direction for the Brexit negotiations and hence the pound. The issue of the day is whether Britain should remain part of the customs union with the EU. Brexit negotiator Oliver Robbins is trying to steer the government towards a customs partnership that would keep some of the benefits of the single market although members of the cabinet are unlikely to vote in favour of this option.

Overnight there has been a strong backlash within the government against the proposed customs partnership and this only adds to the uncertainty for the pound ahead of local elections tomorrow. GBP EUR has fallen to a low of 1.322 this morning. This could be a milestone in the Brexit process and any developments are likely to see new direction for the pound. Political uncertainty continues to be a major driving force for sterling exchange rates.

The pound is set for a volatile few months but it will be later in May when the House of Commons will be forced to vote on a number of amendments that will try to enforce a close relationship with the EU with a view to keeping Britain in the single market. This will be a huge test for Theresa May and a vote of confidence has been mooted which would take the country close to the prospect of a general election.

UK Purchasing Managers Index data for the construction sector could give the pound a boost if there is any pick up following the awful winter which has helped push down UK Gross Domestic Product after the Beast from the East. The services sector numbers will be released tomorrow and could also provide a rally if there is some relief for the markets that it is not all doom and gloom

For more information on the Euro and how to make the most of any opportunities when buying or selling Euros then please get in touch with me James at jll@currencies.co.uk

GBP/EUR stuck at pivotal point of 1.15 – Will rates break above or head back down?

Sterling is currently sat around the 1.15 mark against the Euro and appears to be fairly range bound as we head towards the end of the trading week. Yesterday saw the most volatility for the pairing that we have seen this week following the European Central Bank interest rate decision and press conference, this led to a little Euro weakness and Sterling moving back up through 1.15.

This rise was short lived however, as profit taking knocked the pound back below 1.15 and now we appear to be sat at a pivotal point for where GBP/EUR exchange rates will head next. This morning we have growth figures released for the U.K and this will be the first set of GDP (Gross Domestic Product) figures for quarter 1 of 2018.

Expectations aren’t great for this data set due to the extremely poor weather that we had in the U.K in the early part of the year. Cold snaps and lots of snow ground the U.K to a halt on more than one occasion which can only dent economic productivity.

The release is due out at 09:30am this morning so if you have a Euro exchange to carry out in the coming weeks then this will be key for you. This release will also impact on the Bank of England’s next interest rate decision on May 10th. members of the MPC are currently watching every U.K data release extremely closely and the chance of an interest rate hike is currently in the balance, if they go ahead and do it we may see Sterling strength, if they hold off then the Pound may weaken.

Should you be in the position that you need to carry out an exchange in the coming days, weeks or months ahead then it is well worth getting in touch with me personally as I can help you with your transfer. We do not only offer the highest levels of exchange but also an extremely efficient level of customer service too. Feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to speak to you personally.

GBP/EUR hits 1.15 (Daniel Johnson)

Draghi hints at prolonged QE

Today at the European Central Bank (ECB) monetary policy meeting Mario Draghi the head of the ECB has indicated that Quantitative Easing (QE) could well continue into 2019 despite earlier hints that it would be ending this year. QE is pumping money into an economy in order to stimulate growth, current monthly increments are €30bn, if there was to be a cut you would expect the Euro to strengthen significantly. News that  QE could continue has caused GBP/EUR to move above 1.15.

In my opinion considering the current situation in the UK in regards to ongoing talks on the custom union situation it is a favourable time to buy Euros. 1.1599 has been the peak of the market in the last 11 months. We currently sit at 1.15, buying a cent away form an 11 month high is not a bad idea if you have to move short term.

If you have time to play with I am confident Sterling is c undervalued. Pre- Brexit levels were in the 1.40s, as further clarity is provided on Brexit the pound will rally, when, depends on the competence and attitude of those negotiating, throwing into the mix other UK political parties with their own agendas complicating matters.

If you have a currency requirement I would be happy to assist. If you wish to maximise your return it is important to be in touch with an experienced broker. If you let me know the details of your trade I will endeavour to produce a trading strategy to suit your needs. If you have a currency provider in place I am willing to perform a live comparison and I am confident I will be able to demonstrate a considerable saving. It will only take  a couple of minutes and could be well worth your while.

You can trade in safety knowing your trading with Foreign Currency Direct PLC, a company  trading for over 16 years. Our accounts are published online at companies house and we are FCA registered.

If you would like my help I can be contacted at dcj@currencies.co.uk. I look forward to hearing from you.

GBP EUR Moves Higher after Weaker EU Manufacturing Data (James Lovick)

The pound remains close to some of the highest levels we have seen against the Euro in the last months creating a good opportunity for those clients looking to buy Euros. UK politics is still going to the big driver for sterling exchange rates in these coming weeks and months with the main topic of Brexit dictating the direction of travel. The pound has been boosted considerably against the Euro now that the second round of the Brexit negotiations have been concluded which covers the transitional arrangements for after when Britain leaves the EU in March 2019.

However the issue of a customs union is still to be decided and there have been reports that the UK Prime Minister Theresa May could be considering remaining in the Customs Union. However there are members of the House of Lords that would like to see the UK remain in the EU’s Customs Union and there was a majority that voted in favour last week. The government’s response is that Britain will not be staying in the Customs Union but there is still likely to be considerable volatility for the pound as Theresa May does not command a large enough majority to safely push her vision of Brexit through. There are a number of politicians within the conservative government that will vote against Theresa May which could result in a high degree of political uncertainty if tensions rise considerably.

The Euro has is also starting to come under a bit of pressure after it was reported yesterday that manufacturing in the EU has fallen to its lowest level in 14 months. Manufacturing data released yesterday as per the Purchasing Managers Index fell to the lowest levels in 14 months. Any further deterioration in EU economic data could help see the pound push higher against the Euro with a move towards 1.18 a real possibility despite the usual Brexit concerns.

For more information on Euro exchange rates and how to maximise on these developments which create better opportunities then please get in touch with me James at jll@currencies.co.uk

Is the trend of a strong April for the Pound about to end?

The seasonal trend of the Pound gaining throughout the month of April looks set to end this month, which is coincidentally the 13th month unlikely when the Pound is compared with the US Dollar.

The Pound tends to perform well against most major currency pairs including the Euro during April, with the trend being attributed to the new tax year and a lot of dividend payments being made around this time in GBP denominated equities.

It looks like 13th time unlikely as the Pound is trading below its starting point versus the US Dollar and the Euro when the month begun. Sterling has been coming under pressure recently after some poor Retail Sales figures and lower inflation and wage growth figures. The drop in the Pounds value and sentiment surrounding it have led the Bank of America Merrill Lynch to drop their bet on the Pound gaining in value during the month of April.

I also think that Governor of the Bank of England, Mark Carney failing to confirm the expected interest rate hike from the BoE next month has also impacted the Pound negatively, and the issues surrounding whether or not the UK will leave the EU Customs Union is also weighing on the Pounds value.

If you would like to discuss any upcoming transfers you’re planning, I think next months BoE meeting on the 10th of May is key, and feel free to get in touch to plan around this event and ask for my opinion.

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.

GDP to influence exchange rates this week

The recent positive run for GBPEUR exchange rates came to an end last week, when UK inflation feel sharply and Governor of the Bank of England Mark Carney couldn’t confirm the prospects of an interest rate hike in May. Sterling fell from the 1.16s to the 1.14s causing concern for euro buyers. Any further commentary from the Bank of England over the next couple of weeks before the decision will have the potential to cause further fluctuations.

Other UK economic data in the form of Retail sales was another reason why the Governor failed to state a hike is just around the corner. UK GDP numbers are set to be released this week and the predictions are for a slight fall as the adverse weather conditions continue to cause a problem for the UK. If GDP falls I expect that an interest rate hike may not occur which could be a problem for euro buyers but good news for Euro sellers.

In other news the house of commons is set to meet this week to discuss the customs union. The House of lords voted in favour of remaining within the customers union, however Theresa May has made it clear that the  UK is leaving. If this story continues to escalate again this could put pressure on the pound.

For further information in regards to GBPEUR currency transfers 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! **

 

Pound weakens after hopes of a rate hike in May are dampened, where to next for the GBP/EUR rate? (Joseph Wright)

Financial markets had been pricing in an interest rate hike from the Bank of England since some bullish comments from the Bank of England last month.

The hopes of a rate hike have since dampened after some important comments from the governor of the Bank of England. Yesterday evening whilst speaking to the BBC, Mark Carney cooled expectations of a rate hike next month after not confirming that it would actually happen. There have been a few members of the BoE that have already voted in favour of hiking interest rates, and with the rate of wage growth in the UK now picking up and similar to inflation levels, many were expecting the base rate in the UK to rise to its highest level since the UK exited the recession.

Carney commented that he didn’t want to become too focused on the precise timing of the next rate hike, and although he didn’t rule out the hike he didn’t confirm it which has caused the Pound to weaken in value.

Sterling had been strengthening recently after the Brexit transitional deal has been agreed and hopes of the rate hike next month, so seeing the GBP/EUR rate drop from its highs isn’t a surprise.

There is still a rate hike likely this year although when it will happen remains to be seen. Next week UK GDP is due out on Friday, so if you’re planning on making a transfer involving the Pound and the Euro do feel free to get in touch as there is plenty of time to plan around next Friday’s release.

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.

Drop in Inflation decreases probability of BOE Rate hike (Daniel Johnson)

Is a rate hike in May by the BOE still likely?

Yesterday we saw the release of Consumer Price Index (CPI) data. CPI is a key measure of inflation and there was a fall to 2.5%. In order to have a healthy economy it is important that average wage growth be close to parity with inflation and this is currently the case, with average wage growth (2.8%) currently sitting above inflation. Although this could be seen as very positive, could it be considered a danger that people are making more money but are not willing to spend it?

Also if inflation in coming into line with the Bank of England’s (BOE) 2% target, could this put the potential rate hike in May on hold?

This is the concern and this is the reason we saw Sterling fall in value yesterday. I am of the opinion a rate hike will still take place due to previous strong economic data. Although Retail sales data to be released this morning could change that. There is expected to be a fall from 0.8% to – 0.5%. I would be surprised to see it the predicted – 0.5% so this could indeed strengthen the pound if there is only a slight decline. If it falls below -0.5% however this could indeed really put a rate hike in May in question.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving.  I can be contacted at dcj@currencies.co.uk . (Daniel Johnson) Thank you for reading.

GBP EUR Moves Higher Towards 1.16

The pound continues to maintain the higher ground against the Euro with rates pushing towards 1.16 for the GBP EUR pair. There is currently an excellent opportunity for buying Euros and those looking to secure may be wise to take the risk out of the market place. So far this year when there has been a surge higher for the GBP EUR it has only lasted for a brief period before falling lower.

The outlook does appear to be brighter at present with rates for GBP EUR sitting at an 11 month high although any Brexit developments this week could see the pound fall lower. Sterling is performing better for a number of reasons which hare all contributing to a better economic outlook. UK unemployment is currently at a 43 year low and recent UK retail sales data arrived considerably better than expected. The last retail sales numbers arrived at -0.2% whilst the latest numbers jumped into positive territory at 0.4%.

Politics are likely to have a big impact on sterling exchange rates this week with a parliamentary discussion on Syria later today which follows on from yesterday’s marathon questions session. The other big factor is Brexit and this week sees the start of the third round of negotiations which will tackle the thorny issue of trade.

This is supposed to be the most complex issue to negotiate and any difficulties in these coming weeks could see the pound tumble form its recent highs. There is a still a long way to go in the Brexit negotiations and I would expect to see many more twist and turns creating added volatility for the pound and Euro.

For more information on sterling exchange rates and how to make the most of these opportunities in the currency markets then please get in touch with me James at jll@currencies.co.uk

Will the GBP/EUR rate breach 1.16 this month, and what’s causing the Pound to gain in value?

Sterling has performed well once again today, gaining by almost half a percent against the Euro and almost hitting 1.16 at its highest point.

Sentiment surrounding the UK economy and the Pound’s value moving forward has been improving recently, as the economy and a number of important stumbling blocks have been passed. Hopes of an interest rate hike from the Bank of England next month have jumped to the extent that the hike is almost set in stone. The BoE has hinted on numerous occasions that the rate hike is on the cards so I actually think that the interest rate hike has already been priced in so I’m not expecting to see a jump in the rate if it actually takes place. The risk is perhaps more to the downside as if there is no hike I think the Pound will fall.

The Brexit transitional agreement has already been agreed which is another reason for the stronger Pound. Moving forward there is the issue surrounding the Northern Irish border and I think this may pose a threat to a stronger Pound as the year goes on.

This week there will be the release of wage growth for the UK. This is a key area as wage growth had lagged inflation but now it’s expected to overtake the inflation level and therefore firm up the BoE’s interest rate plans. If you would like to discuss this economic data release in more detail do feel free to get in touch.

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 Reaches Fresh Highs – 1.16 in Sight

The pound has rallied to fresh highs against the Euro with levels for the GBP EUR pair trading just below 1.16. There is currently an excellent opportunity for those clients looking to buy Euros with some of the best levels seen in the last 9 months.
The mood on Brexit is feeling considerably more optimistic and the fact that key figures from with thin the EU and notably from Germany have signalled that London will still remain the financial centre for the EU are in my view helping lend support to the pound.

Clients looking to buy Euros would be wise to consider securing at these higher levels whilst they are still available as there is still a long way to go on Brexit. The trade negotiations which will cover the future trade relationship between Britain and the EU will start next week and any noises are likely to see considerable volatility for GBP EUR. The trade element is believed to be the most difficult to reach agreement and if negotiations move forward badly then the pound is likely to fall.

The European Central Bank (ECB) next meet 26th April and there is likely to be considerable volatility around this time. The ECB should give more clarity as to when the ECB will conclude the tapering of its asset purchasing scheme and may look to signal when the first interest rate increase may happen. UK data next week however will be more pressing with the release of UK unemployment numbers as well as inflation data. Strong numbers here could help drive the pound higher although politics in my view has been lacking of late and so it should only be matter of time before the markets start reacting again to British politics.

For more information on Euro exchange rates and assistance in making transfer when either buying or selling Euros then please get in touch with me at jll@currencies.co.uk

GBP/EUR Forecast – Sterling Struggling to Make an Impact Above 1.15 (Matthew Vassallo)

Sterling has held its been position against the EUR of late but so far has struggled to make any impact above 1.15.

The EUR continues to find support around this threshold, as it has done every time it has been tested over recent months.

There is no doubt the Pound has gained a foothold following a strong run of UK economic data and progress in Brexit talks but is the Pound likely to break through the current levels any time soon?

Whilst it is impossible to predict exactly how the markets will evolve, any clients with an upcoming Sterling currency exchange to execute should be wary about assuming that the Pound’s upward will last. Despite the UK and EU agreeing on terms for a transitional period ahead of the UK’s inevitable Brexit, this agreement has simply kept the ‘wolf from the door’ for another couple of years.

There are still many unanswered question regarding the UK’s future trade status both with our European neighbours and globally and as such I feel the Pound is still likely to be handicapped over the coming months, at least to some extent.

Looking at the Eurozone itself and its economy continues to perform admirably, with the European Central Bank (ECB) likely to tie up their current monetary policy programme before the end of this year. If this dopes happen it is a show of strength and again it means the ECB no longer feel the Eurozone economy need propping up.

In the short-term UK data tomorrow in the form of Manufacturing & Industrial Production figures is expected to be mixed, so it unlikely the Pound will receive much support following these releases, unless of course they come out above the markets predicted result.

If you do have an upcoming GBP or EUR currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

European economic data a little worse than expectations but still reasonably strong

European data released over the past few days has mainly missed analysts expectations, however we have seen the Euro remain fairly stable as the figures were still reasonably good.

Poor weather across Europe can be blamed as one of the main issues in March and I feel that because the snow was just so bad in places this slight miss has been overlooked by most investors and speculators.

We have very little out in terms of economic data today from  the Eurozone but what may be the main market mover for Euro exchange rates today would more than likely be non-farm payroll data over inn the U.S which can impact all major currencies.

EUR/USD is the most traded currency pairing in the world so any larger news from the U.S can impact Euro exchange rates too, positive news from the States can weaken the Euro and negative news can strengthen it.

At the stage of writing this the Pound is the worst performing major currency of the week, although it hasn’t made major losses it still has dropped off a little, economic data for the U.K has not been great but again I would personally focus the main reasons for that on the weather we witnessed in the U.K in March.

If you have a requirement to move Pounds into Euros in the coming weeks and you would like our assistance with your currency exchange then it is well worth getting in contact with me directly. You can email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to get in touch with you personally to discuss the various options available to you, including our rate alerts, top exchange rates and the very highest levels of customer service too.