Tag Archives: Best GBP/EUR exchange rates

All eyes on Inflation figures this morning (Joseph Wright)

This morning could be important for Sterling exchange rates, not just this morning but moving forward as analysts are expecting to see UK inflation levels hit a 5-year high.

The weakening of the Pound since the Brexit vote has pushed up the rate of inflation in the UK, and for a while now the inflation level has been well above the Bank of England’s 2% target. Many analysts in the city are expecting to see the rate hit 3% for September, and if this happens there is a high chance that the Bank of England may look to hike interest rates for the first time in over 10 years.

A 3% inflation level would be a 5-year high and the governor of the Bank of England has hinted at hiking rates as soon as next month.

A high reading this morning would likely result in Sterling strength as the markets would expect to see a rate hike from the BoE, and at the same time if the inflation level is lower than expectations, I think there’s a chance the Pound would fall.

Mark Carney will also be speaking later this morning as he testifies to MP’s on the Treasury this morning. It will be interesting to see whether he discusses inflation and potential rate hikes and if he does it will be interesting to see how the Pound reacts.

Aside from today’s busy morning this Thursday could also be busy as Retail Sales data will be released which could impact Sterling depending on how the figures perform.

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.

Will the pound continue to slide against the Euro?

Overall the pound looks like it could easily slip in the coming weeks as the uncertainty over Brexit looks like it could build further and this will undoubtedly present some opportunities for those clients looking to buy or sell. Exactly what happens in the future is very difficult to predict but hopefully this will create some movements for awaiting a firm reason to make their deal.

Expectations for the pound to slide are therefore very strong and we could easily see some big changes in the future, principally as a result of the key economic decisions by the Bank of England and also the European Central Bank decision. Overall markets are generally fearful over what lies ahead in the decisions by these two central bank beasts, big questions over to what extent the ECB will taper and to what extent the Bank of England will raise interest rates loom.

It would not be surprising to see the pound slip further against the Euro as political uncertainty for the UK outweighs the Eurozone. Yes, the problems in Spain and even Germany are reasons to fearful, over the future direction on the Euro. However the UK is as a result of the Brexit in a worse position. This is the current situation, it could of course change very quickly!

If you have a transfer to make buying or selling Euros for pounds this next couple of weeks will be vital to determining which way exchange rates could go in the future. Overall I would not be surprised to see the pound losing value as investors concerns resurface, a more positive ECB would also see the Euro stronger.

If you have a transfer to make in the future then keeping in touch with us and the latest trends and news is key. For more information at no cost or obligation please speak to me Jonathan Watson, by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you.

Quiet end to the week for UK data releases, what could cause the GBP/EUR rate to move this week? (Joseph Wright)

Those hoping for better Pound to Euro exchange rates have taken a knock this morning after the much publicised Catalonian independence situation has cooled for the meantime.

Yesterday evening the Catalan President, Carles Puigdemont and other regional leaders signed a declaration of independence, but interestingly chose to suspend the move allowing some time to negotiate with Spain.

The situation had been under the microscope in recent weeks and was seen as a potential downside to the Euros value as political instability is often a reason for currency weakness, and I expect the cooling of this situation for now at least to take some pressure off of the Euro.

The Euro is up this morning against all major currency pairs, and at the time of writing the Euro to Pound rate is trading at its day highs.

There is little economic data out for the rest of this week that involves the UK economy directly, so I expect to see the GBP/EUR driven by sentiment or Eurozone specific data releases. The ECB president, Mario Draghi will be speaking tomorrow at 3.30pm so I expect markets to be glued to his comments as is normally the case when he speaks.

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.

Political Uncertainty weighs down the Pound (Daniel Johnson)

Lack of Faith in May as PM

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

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

Catalan independence could give some respite for Sterling

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

Strong Eurozone Data could warrant tapering QE

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

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

 

 

What can we expect next on GBPEUR?

GBPEUR has risen as the pound strengthens on the back of increased expectation that the Bank of England will soon raise interest rates in the UK Investors are betting that this will happen and this will see the pound stronger in the future. If you have a future requirement to buy or sell Euros against pounds the coming weeks will be crucial to how the future direction on rates shape up.

As mentioned the Bank of England is talking about raising interest rates which could happen as early as 2nd November. If this is the case then the pound should rise since there is growing speculation that this will be the case. Ultimately I feel the expectation is too high and the Bank of England will be very cautious, the propensity for a volatile pound is high.

The Euro is looking very strong but it is weaker from the recent highs owing to the news regarding the German election. Angela Merkel’s diminished position has seen the Euro weaker, there is also key economic news to be concerned with too. So for example the latest ECB decision where we might learn of any tapering of their QE program could see a volatile period on the Euro.

Ultimately I expect the Euro to remain stronger against the pound since it is highly likely the uncertainty over Brexit will continue to be a weight around the neck of the pound. Therefore if buying Euros with pound moving sooner on any uncertainty is the best way forward to avoid the risk of losses.

Thank you for reading and for any further information regarding the best rates of exchange buying and selling Euros please do contact me by emailing jmw@currencies.co.uk

Thank you for reading and I look forward to hearing from you.

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

Potential Rate hike based on misinterpretation of data

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

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

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

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

Will GBPEUR rise on the German election?

Many clients are looking to the German election as a possible event to which could create some fresh opportunities on the GBPEUR exchange rate. Many clients are predicting the pound will lose value against the Euro expecting the Euro will strengthen on the back of renewed political certainty in the region. Angela Merkel is widely predicted to win the Chancellorship, the market moving element will be the extent to which any anti-EU or immigration party performs in the share of the votes.

Overall the Euro is significantly stronger against the pound compared to the last few months and years but in the last few weeks the pound has fought back, mainly on the back expectations the UK will raise interest rates. Markets are predicting the UK will raise interest rates in the future but personally I would be skeptical about this happening. Nevertheless the market has to price this potential outcome into the rates and this is the reason for the strength of the pound lately.

If you have a transfer buying Euros with pound you are almost 5% higher than the lower points only two weeks ago. It is unlikely this will just keep rising particularly with the Euro performing so well on the back of improved political certainty in the region. Therefore clients buying Euros with pound should be very conscious of the potential for further setbacks or surprises working against them in the same fashion as events have helped them.

If you have a transfer to make in the future buying or selling Euros then why not speak to me by emailing jmw@currencies.co.uk, we can then help guide you through the processes and expectations on the rates plus ensure you get the best rates in the market.

Will GBPEUR keep rising?

The pound has risen to fresh 3 month highs against the Euro as we get closer to understanding when the Bank of England might raise interest rates. Overall there is a much stronger belief that the Euro will rise after the German election but of course there are no guarantees as to what will ultimately happen down the line. It would not be surprising to see this rally for the pound carry on but of course the German election will be a thorn in the side of Euro buyers next week.

The actual election is on the 24th September but that is a Sunday so Friday next week and Monday will be the main days we will see movement on the currency markets. Therefore if you have a transfer to buy or sell Euros for pounds making some plans around the upcoming events is sensible, I am sure if you need to buy Euros and you see the rate go back down to 1.10 you would be most disappointed!

The pending German election could be a good opportunity for any Euro sellers who failed to capitalise on the improvements we saw two weeks ago to recoup some losses. However overall I would not be surprised to see the pound much stronger overall owing to the outcome from yesterday’s Bank of England meeting.

If you have a transfer to make soon or even in the coming weeks then making some plans around this latest twist on the market is I believe very sensible. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you in the future.

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

Is Sterling’s advance warranted?

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

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

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

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

 

 

 

Inflation data gives the pound a boost (Daniel Johnson)

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

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

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

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

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

 

GBP/EUR Back Under 1.09 (Ben Fletcher)

This afternoon the GBP/EUR rate had one of its most volatile days in months. The European Central Bank provided their latest interest rate decision which as expected saw the rate remain at 0%. However in the statement afterwards President Mario Draghi’s speech caused major volatility, significantly helping the Euro find support against Sterling and the US Dollar. Draghi did stay fairly close to the expected narrative saying that there could changes to economic policy, however they’re there just yet. One consideration for the future that Draghi raised was continuous Euro strength culd we have consequences in the short term

The cost of exports will increase with the currency and may encourage importers from other regions to look elsewhere for goods. This will eventually have an effect on the Eurozone economy and potentially could cause inflation to slow down. Whilst there isn’t expected to be a interest rate hike in the EU for a considerable time, a decrease in inflation would be incredibly detrimental especially considering the amount of stimulus that has gone into forcing a rise.

The Euro strength may continue and unless Sterling gains some support in positive Brexit talks the market isn’t likely to move much in my opinion. However if the Euro weakens and the Brexit talks do stat to slowly find some resolve then we may not be far to breaking back through the 1.10 level.

If you do have a upcoming currency requirement and would like to discuss what might be the best option, please send me an email to Ben at brf@currencies.co.uk. The currency markets are always moving and timing a transfer can help make sure you achieve the most for your funds. Working at a brokerage I am able to help you achieve the best rates of exchange and set alerts to make sure you capitalise on any movements on your favour.

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

Eurozone PMI data arrives below expectations

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

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

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

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

Could we see QE tapering from the ECB?

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

GBPEUR bounces back but for how long?

The pound has bounced back against the Euro today largely because of the swing on EURUSD as investor concerns over the US dollar fade. EURUSD has risen to almost 1.21 yesterday but it is now back to 1.19 representing a series of profit taking and market fluctuation which has presented some improved levels for Euro buyers. Tomorrow is a very busy day for the Euro with all important Unemployment and Inflation data due out. The pound could find further form against the Euro in my opinion, not because of any fundamental reasons, eg news but more positioning as traders look to take profits on existing trades.

Much of the currency market’s movements are to do with speculators who essentially move money to make money. That doesn’t mean one man trading for personal gain at home, but hedge funds, banks, investment companies and pensions funds. Much of their work will be to manage FX positioning, essentially trying to make money from the market in a speculative manner. This will account for a large degree of the movement on the currency market so trying to understand this thinking helps explain the movements.

With GBPEUR having moved down below 1.10 it will find it increasingly difficult to rise above 1.10 and we could now struggle to see rates rise back above 1.10. What might be more likely is the market and speculators trying to push the level down to parity. If you need to buy Euros with pounds you could easily find this gets more expensive over the long run. However tomorrow or at present could offer a good short term opportunity.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you.

Can GBP/EUR Recover Yesterdays Losses Anytime Soon? (Ben Fletcher)

Yesterday the GBP/EUR rate dropped to 1.081 which is the lowest level in over 8 years. Over the past 3 weeks there has been a continuous weakening of Sterling and this has culminated in the rate reaching record lows. The big question now remains is will the rate continue to fall or rise?

The basic argument would be that there is likely to be further weakness simply as the trend looks set to continue. The Eurozone is showing increasing strength through strong data and this isn’t showing signs of changing anytime soon. Secondly there are current expectations that the European Central Bank’s economic stimulus could be close to being reduced, showing further confidence in the economy. Tomorrow the Head of the ECB Mario Draghi will speak at the Jackson Hole Symposium in the US and this should provide further insight into the central banks position.

From a Sterling perspective the Brexit uncertainty could have finally caught up with investors. Whilst the Government are looking to release economic white papers to provide clarity on their position, there is no solid results coming from the Brexit talks. One potential avenue for Sterling against the Euro could be some concerns that the GBP/EUR rate is dropping to low. The Eurozone could start to see a reduction in exports if the price of goods increase to much with the current rate. We therefore may see Mario Draghi or other ECB members try to talk down the currency by holding off any economic changes.

If you do have a question with regards to my forecast please get in touch. When you come to moving large sums of money a movement of a cent can often relate to a significant difference in your returns. Helping you formulate a strategy could make sure you’re in the best position to exchange currency when the market is in your favor, please contact me at brf@currencies.co.uk

Pound to Euro rate in focus as it’s trading at an 8-year low, will the sell-off continue? (Joseph Wright)

Sterling is continuing to come under pressure this morning after breaching the 1.09 mark during yesterday’s trading session.

The breach of 1.09 has continued this morning as the pair are now trading at their lowest levels since 2009, with 1.0868 the lowest level the pair have hit so far.

This comes at a time where risk appetite worldwide is on the decline after US President Donald Trump’s threat to end the NAFTA agreement and shut down the US government if he doesn’t receive funding for the wall he plans on building along the boarder of Mexico.

There have also been a number of forecasts from major financial institutions recently suggesting the Pound could fall as low as 1 for 1 with the Euro, with HSBC, Morgan Stanley and Citi all making this same prediction for the pair in 2018.

Should these predictions comes true then it may be worth looking into the current exchange rates if you’re planning a large GBP to EUR transfer as there is still some distance to go should they be correct.

Tomorrow at 9.30am there will be the release of UK GDP data for the month of July, and there could be movement between GBP/EUR if this figure is released some distance from its expectation.

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.

Eurozone Inflation To Cause Volatility (Ben Fletcher)

This morning the latest Inflation data will be released for the Eurozone which should provide an indication as to what the European Central Bank will decide to do in the next few weeks. Many analysts at the moment believe the ECB will start to reduce the amount of economic stimulus as early as September however if the EU economic data is not strong then that’s less likely to happen.

The Euro has been putting significant pressure under Sterling with many investors choosing to back the single markets major currency. There has been considerable growth across the EU with output data at one of its highest in years and future confidence soaring. Most of this strength has come from France and Germany but there also appears to be optimism that the Greek and Italian economies will this year grow.

There is still the small issue of multi-billions worth of bailout funds and it seems incredibly unlikely that those funds will ever be paid back. The Greek pension fund has already been completely raided and the higher tax bracket is considerably over 60%, which makes you think if the economy doesn’t start to grow there is nothing more to give and no more room for squeezing.

Today with the general downward movement of the GBP/EUR I would not be surprised to see the 1.09 level tested.

I am in a position to help you execute a transfer and I am confident I can offer you the best rates. Therefore if you do have a question with regards to my forecast please get in touch. When it comes to moving large sums of money a movement of a cent can often relate to a significant difference in your returns. Helping you formulate a strategy could make sure you’re in the best position to exchange currency when the market is in your favor, please contact me Ben Fletcher at brf@currencies.co.uk