Tag Archives: best Sterling exchange rates

Phase 2 of Brexit Talks could prove problematic (Daniel Johnson)

Brexit Negotiations

It looks as thought the next round of Brexit talks could be problematic which does not bode well for the pound. It seems Brussels have been making contingency plans fro a “no deal” scenario due to the possibility of UK firms losing out.

In a letter to Theresa May, Brexit Secretary, David Davis has warned that firms may have to relocate to Europe or there is the risk of seeing contracts terminated.  The second phase of talks, covering transitional arrangements after the UK leaves and economic and security co-operation moving forward are due to begin towards the end of the month.  Theresa May has said it is right to plan for all possible outcomes, including no deal. She has however stated she is confident the UK and the EU can reach a deal on their post Brexit relations in time for the UK’s departure target. I am of the opinion this is optimistic and that their could be an extension.

There are British concerns about Brussels’ preparations for Brexit with David Davis suggesting they are “frequently damaging to UK interests.” In his letter to May Davis warned it was potentially discriminatory of EU agencies to have issued guidance to businesses stating that Britain would become a “third country” outside the EU without any reference to a future trade deal sought by both parties.

Davis warned that the EU’s current stance amounted to “potential breaches of the UK’s rights as a member state”, he also said he wants the European Commision’s Brexit task force to withdraw the statements so far in light of the deal reached in December to begin trade talks.

The comments from both sides does not bode well for Sterling, it may be wise to take advantage of current levels if you are a Euro buyer.

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.

A volatile start to the week for GBPEUR exchange rates and what to expect next?

This week we have seen major fluctuation for GBPEUR exchange rates off the back of the Brexit negotiations. To start the week rumors emerged that the UK had secured the three key aspects to start Brexit negotiations and the pound made substantial gains against the euro.

However throughout Monday afternoon Theresa May confirmed no deal has been secured and the DUP added to Theresa May’s problems by stating they are not happy with a different border control to the rest of the UK, in other words having a soft border with the Republic of Ireland.

I’m still of the opinion that in the upcoming weeks the UK and EU will agree to start trade negotiations at some point early next year, which will provide a period of sterling strength for clients buying euros. Therefore if I had time I would hold off for the time being.

For euro sellers at present you are still receiving what I like to call the ‘Brexit discount’. What I mean by this is compared to Pre Brexit levels you are receiving an additional 15%. To put this into monetary value on a €200,000 transfer you are receiving an additional £25,000.

I would recommend emailing me with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company 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! **

What can we expect in the coming weeks on GBPEUR?

The pound to Euro rate has risen against the odds as the UK appears to be getting further ahead with its Brexit plans. The European Union is meeting with the UK at the latest Brexit summit on the 14th and 15th December which is the next major phase of the plans. If there is anything you need to look at, whether buying or selling Euros there are two key events to be aware of which may move the market.

The EU Summit is vital but also the Catalonian independence election on the 21st December. The overall belief is that the pound could rise further against the Euro. The overall impression is that the pound could rise further against the Euro if the EU summit does prove interesting for the UK and the pound but actually we need to be careful that all of the goodwill so far towards sterling does not quickly undo itself.

If you have a transfer buying the pound in the future then there is a real chance the Euro will weaken further so it might make sense to be looking to maximise the transfer sooner than later. Overall expectations are that the pound could rise further although there are no guarantees. I would personally be very conscious sterling could suffer longer term because of the Brexit.

If you have a transfer to make buying or selling the pound or the Euro this month there are two key releases which will be important. For more information at no cost or obligation please get in touch by emailing jmw@currencies.co.uk.

Will GBPEUR keep on rising?

The pound has finally bounced back against the Euro as weakness and uncertainty in the German political situation opens the door to a more unsettled Euro. The prospect of a second election or Angela Merkel stepping down as Chancellor has seen the Euro undo many of its gains over the last few weeks. What lies ahead for the German Chancellor and how could this influence the Euro?

I expect that there will either be fresh German elections or that Merkel will be forced to step down in order to allow a fresh coalition. It appears that the outlook for the GBPEUR is now much better for clients looking to buy Euros with pounds, we have seen the rate rise above 1.13 this morning.

News that the UK is agreeing a Brexit bill of up to £40bn is also helping the pound which is now benefiting from some of the uncertainty in Germany. With the Spanish Catalonian election next month and then the Italian election next year the outlook for buying Euros has suddenly improved. If you have a transfer buying Euros then making some plans around this potential rise is a smart move since Euro buyers have not had a huge amount to cheer in recent weeks!

We are close to the best time in 3 months to buy Euros with pounds and the rate could rise even further depending on the way the market is going. Overall impressions of the rates are that of course sterling could come under renewed pressure owing to Brexit but for now the tide has turned. Euro buyers should not be too greedy but should be carefully making plans around this improvement.

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.

 

Pound to Euro rate improves after German PM Merkel’s future looks uncertain! (Joseph Wright)

The Euro dropped in value today after Germany, the engine room of the EU is currently facing a political crises with many political commentators calling it the biggest crises of current Angela Merkel’s tenure.

Late on Sunday exploratory talks broke down between her Christian Democrats, Bavaria’s Christian Social Union and the Liberal Free Democrats broke down, ruling out an obvious path for Merkel to form a coalition government.

With German coalition talks collapsing it’s not surprising to see the Euro fall, as political uncertainty tends to weigh on the underlying currency.

An issue for the UK moving forward may be a pause to Brexit negotiations due to Merkel’s issue, but as it stands the GBP/EUR rate has benefited from the headline grabbing story.

At the same time the Pound opened the week strongly against all major currency pairs after speculation regarding the UK’s Brexit Bill continues. The current rumours suggest that the bill will increase to £38bn and the Pound has been boosted off the back of this news as if it’s true, it may clear the path for Brexit negotiations to progress.

If you’re following the GBP/EUR pair because you have an upcoming currency requirement involving the pair, feel free to get in touch and register your interest.

This week the Autumn Budget will take place so there could be movement, so this event is certainty worth watching.

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.

Major volatility expected for GBPEUR exchange rates

With the spotlight beaming down on UK Prime Minister Theresa May, the pound remains under severe pressure against the euro providing euros sellers with a fantastic opportunity.

Reports were leaked at the weekend that 40 Conservative MPs plan to persuade another 8 Conservative MPs to sign a vote of no confidence in the Prime Minister. This is a key reason to why the pound started the week so poorly against all of the major currencies.

Head Eu negotiators Michel Barnier is also mounting the pressure as he gave the UK a 2 week deadline for progression, this announcement was released last Friday therefore we have 8 days until crunch time. Mr Barnier wants to be able to report clear progression at the EU commission meeting in December.

With Brexit negotiations now in full swing and clearing heating up, I expect major volatility for GBPEUR exchange rates for the remainder of the year. If no progression is made I believe Theresa May’s time at number 10 will be limited and therefore GBPEUR exchange rates could fall to the lows that we saw 8 months ago (1.07).

However if progression is made pressure will be released, and GBPEUR could hit a 6 month high (1.15). If you are converting GBPEUR in the upcoming weeks devising a strategy now is wise!

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! **

Will the GBP/EUR rate break out of its current trading range anytime soon? (Joseph Wright)

The Pound to Euro exchange rate is now trading towards the bottom end of its current trading range, as the pair have dropped down to the 1.11’s.

For some time now the pair have struggled to breach the 1.14 mark, and with there being talk of Theresa May’s (UK Prime Minister) position coming under pressure along with some disappointing inflation data yesterday, the Pound has been under pressure which has pushed it to the lower levels of the current range which I believe is roughly 1.10 to 1.14.

Now the likelihood of further rate hikes in line with the Bank of England’s plans are looking less likely, we’ve seen the Pound drop off and I think that the rate could continue to soften should this continue.

Those selling Euros into Pounds are still in a great position when we consider that the current EUR/GBP rate is trading towards the top end of a 10-year range, which mid-market levels now close to 0.90. This may continue mostly owing to GBP weakness, but I do think the Catalonian independence issue could scupper the Euros strong position should it resurface once again.

If you wish to kept updated regarding any short term price movements between the pair, do feel free to register your interest with me. Yesterday the Euro hit a 1-month high against the Pound so those that wished to be kept updated were able to take advantage of our service.

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.

Trade Balance and Production Data boosts the Pound (Daniel Johnson)

Pending Euro purchase? When should I move?

We have seen a spike on GBP/EUR this morning following a series of positive UK data releases, going against the grain. Trade Balance data was positive across the board and was followed by Manufacturing and Industrial production data. Both moving up by 0.4%. GBP/EUR has hit a day high today of 1.1348 up from 1.1263.

If I had a Sterling to Euro requirement I would be considering moving at current levels. Political uncertainty and a lack of clarity on Brexit talks could drag the pound back. 1.1340 does not seem like a bad time to move considering the best rates we have seen since June is 1.1450. With the recent resignations of Michael Fallon and Preti Patel it is difficult for investors to have faith in the Tory government who seem to be more concerned with their only political agendas and protection than sorting out the UK economy and focusing on the most important negotiations of the last fifty years.

I am of the opinion we will be anchored at current buoyancy levels between 1.10-1.1450 unless these situations are rectified \or indeed something unpredictable occurs to weaken the Euro. The situation in Catalonia is one of the few reasons I can base Euro weakness on. Be wary of hoping for  1.15 + if you have to move sort to medium term buying Euros.

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.

Sterling rebounds after last week’s sell-off, will GBP/EUR reach 1.14 again soon? (Joseph Wright)

The Pound to Euro exchange rate has been trading in quite a volatile fashion over the past week, after the pair breached 1.14 before trading in the 1.11’s in the immediate aftermath of the Bank of England’s rate hike yesterday.

The rate hike from the Bank of England (BoE) was the first in the last decade and widely expected to happen within financial markets even if not everyone agreed with the decision.

Personally I think the sell-off was simply profit taking from the likes of day traders, although I am surprised to see the Pound recover so quickly back to the levels seen just before the BoE decision.

Moving forward I think we may see a more resilient Pound and despite some negative economic data out of this UK recently, we’re still seeing the Pound slowly recover from the lows seen just a couple of months ago when I think the Pound was oversold.

Later today there will be the release of UK GDP data for the past 3 months, and this data will be released by a leading UK-based think tank. Data releases such as this one have the potential to move the markets, so if you would like to be kept updated regarding price movements as soon as possible, do feel free to register your interest with me.

For now at least it appears that the Catalonian independence issues have subsided somewhat, but should this matter surface once again I wouldn’t rule out a downward move for the Euro which would benefit the GBP/EUR rate.

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 GBPEUR rise or fall on the Bank of England decision?

The Bank of England meet tomorrow to discuss their latest interest rate decision which is predicted to see the pound higher but there are no guarantees! The pound has already been rising against the Euro, the Euro itself weaker from the outstanding problems in the Catalonia region of Spain. GBPEUR will largely be driven by the Bank of England decision at 12 noon, plus the commentary after. GBPEUR could be in for a very busy day so if you need to buy or sell Euros getting in touch sooner than later could be best!

Overall the pound is stronger as markets are pricing in positive news but there could easily be surprises along the way. If you have a transfer to make then we could easily see some improvements for the pound but with much of the good news priced in for the pound we will need to see some very positive news to see a big change.

With much of the good news priced in, the scope for disappointment is high. Expectations are set for the Bank of England to raise rates but if they don’t then the GBPEUR level could easily slip and probably come down by as much as 2-3 cents. On good news however it may only climb a cent. Currently GBPEUR is at the best rates in 3 months so if you need to buy Euros gambling on further improvements carry risk!

If you are looking to buy or sell the pound against the Euro in the future then please make sure you are up to date with the latest trends and themes on the market. I am a specialist currency broker here to help with the planning and execution of any transfers that you will need to make in the future. Thank you for reading and I look forward to hearing from you!

Please email me Jonathan on jmw@currencies.co.uk to learn more.

Rate hike expectations pushing up the Pound, will this trend continue? (Joseph Wright)

The Pound has continued to climb against the Euro in the lead up to this Thursday’s interest rate decision by the Bank of England.

It will be at 12pm tomorrow when the decision will be announced and markets are expecting to see the base rate hiked by 25 basis points to 0.5%. This will be the first hike in 10 years if it goes ahead and likely to make financial headlines, although should it go ahead like many expect I think there will be quite a muted response by markets as the hike is already being priced in to the Pound’s value.

I think the risk lies in the not being a rate hike, as the Pound would be likely to fall quite dramatically due to there being many disappointed investors as well as speculators quick to try and take advantage of the fall.

For those of our readers planning an upcoming currency exchange involving the Pound, and hoping the expected rate hike will make the Pound gain more value I would be weary as due to the expectations of it happening I personally think it’s unlikely there will be much market reaction.

If you wish to be updated should there be any major movement do feel free to register your interest with me, as working on a trading floor allows us to react instantly to market movements.

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 GBPEUR rise or fall on the UK and Eurozone Interest rate decisions?

The GBPEUR rate has been very volatile lately and uncertain as markets try to digest which direction rates will take in the coming weeks. Overall sterling seems to be on the back foot but we have risen sharply from the lows of 1.07 a few weeks ago, today’s positive GDP (Gross Domestic Product) data is also a big help for the pound.

I do not feel the pound will however just keep rising, tomorrow ECB’s news will be the main driver for the rest of the week, I see around a 70% chance of Euro strength, 30% Euro weakness. This is all based on the fact that the Euro has really been finding favour in 2017 as investors back the Eurozone economy and political situation.

However the latest political uncertainty with Spain, Germany and Austria has unsettled the rates and further weakness down the line could not be ruled out. Longer term weakness on the Euro does seem a real possibility, particularly since the pound has found some form with an improving economy and some certainty over the outcome on Brexit.

If you are making a transfer in the future making plans in advance is key and tomorrow’s news could be a big market mover. I would not be surprised to see some swings of up to 2 cents in either direction as markets digest the latest trends and news on the rates. If you have a transfer to make involving the pound or Euro then tomorrow’s ECB meeting will be important, as will next week’s UK interest decision.

Leaving everything until the last minute is generally not a good idea on the currency markets as it can prove a very costly and stressful situation. Understanding your options and the market is usually the best way forward, for more information at no cost or obligation please speak to me Jonathan Watson to learn more.

Please email me Jonathan Watson on jmw@currencies.co.uk with a brief overview of your position and I can help to provide some information on the best way forward.

Will GBPEUR continue to slide?

The pound to Euro rate has been slipping since Monday when we challenged the 1.13 but were ultimately unsuccessful as investors looked to the uncertainty surrounding a UK interest rate hike. The next direction on rates is all going to come down to, in the main, the prospect of a UK interest rate hike and then a Eurozone QE taper. I personally see GBPEUR losing more ground and retesting the 1.10 level in the coming weeks and months.

QE is Quantitative Easing and it is effectively pumping money into an economy through the purchase of assets and bonds by a central bank. The European Central Bank is currently engaging in €60 bn worth per month and investors believe they will scale this back. What this means is that the Euro will on such news, ore than likely strengthen.

Overall expectations are for the Euro to rise in value longer term but just lately the worries over Spanish independence and also the Austrian and German elections have seen the Euro weaker. Longer term I feel the strength in the Eurozone economy will see it through, I see more chance of the ECB acting to reduce their QE than the UK and the Bank of England raising interest rates.

If you are looking to buy or sell pounds against Euros the next two weeks are critical and will likely lead to swings and opportunities that might not be around for long. The best strategy I believe is to look at the market with our expert assistance to try and determine the most opportune moments to capitalise.

Sometimes exchange rates spike for just a few seconds and it is only through being prepared that we can help you. We are here to help you maximise any transfer, for more information on getting the best rates of exchange plus expert service and assistance, please email me Jonathan Watson on jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you and helping you maximise your exchange.

 

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.

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.

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.

 

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.

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.

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.