Tag Archives: best UK exchange rates

Will rates on GBPEUR can we expect in December?

The pound has risen higher against the Euro nudging back over 1.12 this morning as the Euro softens slightly, partly on the back of concerns over the Irish political situation. Sterling is bouncing back against most currencies too on the back of the news that all banks had passed the stress tests as well. What events are upcoming in December and how will they influence the GBPEUR?

The main event for sterling I believe is the EU summit on the 14th – 15th December where the EU will decide whether or not the UK can now progress to the next stages for the trade talks to begin. Whilst the expectation is that this will all pass off relatively easily as the UK is now pledging more money to the situation, the potential for this to upset sterling remains high. Historically ‘deadlines’ with the UK and the EU see eleventh hour talks and excessive volatility.

The 21st December sees a big development on GBPEUR with the Catalonian election taking place which is effectively a referendum on independence or self rule. The possibility of this setting off fresh Euro fears is now increased, particularly when you consider there is also increased worry over Ireland, Germany and also Italy for next year.

GBPEUR has occupied a range of 1.08-1.14 in the last 3 months, with the worst fears over Brexit removed for now (eg a ‘no deal’ scenario), the potential for GBPEUR to now occupy a range between 1.10-1.15 seems more likely.

If you have a transfer to make buying or selling Euros and pounds and wish for the best rates and some of the latest news and market insight, please don’t hesitate to 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 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.

Be wary of waiting for further gains for the pound (Daniel Johnson)

Interest Rate hike by the BOE a knee jerk reaction

The recent gains for the pound last week were based on the predicted rate hike by the Bank of England (BOE) and tapering form the European Central Bank (ECB) along with the uncertainty surrounding the situation in Catalonia. The UK economy is shocking state considering where we could be had we not voted to leave the EU. Inflation is now at 3% and average wage growth is at 2.1%, In order to have a stable economy these figures need to be moving at a similar pace, they are not. Unemployment is being lauded as the best levels since the 70’s, but the data has only recently incorporated zero hour contracts. The rate hike from the BOE was a knee jerk reaction to the inflation problem and it is a coin flip as to whether it will have any impact.

There was very little justification for the hike and I am of the opinion we could be in for further losses for the pound against the Euro. Buoyancy levels have been between 1.08-1.15 since June,the last time we hit 1.15 was June. The highest we have seen the market in several months is 1.1450 and if you have a Euro requirement short to medium term it could be wise to move if the market moves close to 1.14 again.

In order for a significant rise Sterling value we need a stable government and clarity over Brexit, both of which I can’t see happening for the foreseeable future.

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.

 

Bank of England interest rate decision looming (Dayle Littlejohn)

The Bank of England meet today to announce the latest interest rate decision, and forecasters are suggesting that an interest rate hike will occur. If the Bank of England decide to raise interest rates this will be the first hike in 10 years and the likelihood is that GBPEUR exchange rates will receive a further boost. Personally I expect GBPEUR exchange rates to break through 1.1450 if the central bank raises by 0.25%.

However if the central bank disappoint and fail to live up to their own hype, I expect the pound could plummet like a stone and GBPEUR exchange rates  could drop 1-2%. To summarise I think buying euros will become a little cheaper or become a lot more expensive.

After the decision the Governor of the Bank of England will address the public in regards to the monetary policy committee decision. For new readers the Governors words have the potential to shift exchange rates by the matter of cents, therefore keeping a close eye on his wording is important. Unfortunately for many of my clients they haven’t got the time to watch Mr Carney’s speech this afternoon and that’s where I come in. If you are buying euros short term and would like to be kept up to date with today’s announcements feel free to get in touch.

For further information in regards to GBPEUR exchange rates 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 the options available to you and the process of using the company I work for 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 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.

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.

 

 

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.

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.

 

 

 

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.

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

The number of GBP to EUR parity forecasts increases, will GBP/EUR hit 1.1 by the end of the year? (Joseph Wright)

The talk of Brexit negotiations beginning badly is having an impact on the Pounds value against all major currency pairs, but it appears that the GBP/EUR rate has been the biggest loser in all of this so far.

Recent comments from David Davis, the Brexit secretary have added fuel to the fire after he revealed that Michel Barnier ‘is getting quite cross with us’. Michel Barnier is the EU’s chief negotiator which just goes to show that the UK going to need to get a move on regarding its Brexit negotiation plans.

With there being less likelihood of an interest rate hike this year from the Bank of England now that inflation pressures have subsided there have been a number of major financial institutions forecasting parity between the Pound and the Euro in 2018.

In just the last week, Morgan Stanley, HSBC and now City Index have all made this prediction which gives those planning on making a large GBP to EUR transfer a decision to make as the rate is currently just below 1.10.

If you would like to be kept updated regarding the Pound to Euros price movements do feel free to register your interest with me.

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.