Tag Archives: best UK exchange rates

What can we expect for GBPEUR rates from the Bank of England interest rate decision?

The pound to Euro exchange rate is trading in familiar ranges in a volatile manner as the market is trying to second guess what we can expect next from the Bank of England. The interest rate decision is at 12 noon today and we also have the latest Quarterly Inflation Report from Mark Carney and his team too. The pound has been very susceptible to changes in UK rate expectations and today is a day of reckoning.

The rates could rise to the previous highs today of 1.16 but this seems unlikely given the current expectation that the pound would actually lose value because of the Bank of England being now less likely to raise interest rates. Over the next few weeks, we are likley to see lots of volatility as the markets try to second guess just what the Bank of England are looking to do longer-term.

The outlook for sterling is undoubtedly more positive than the expectations previously set by the Bank of England but we are unlikely to actually see any actual hike today, I think it is more likely to be longer-term in the future when we will see a hike. GBPEUR will, therefore, be more than likely to rise higher in the future as we get more news regarding just what the final expectations are for the pound.

GBPEUR will more than likely trade within a range of 1.13-1.15 in my opinion. If you have a transfer buying or selling the pound against the Euro then I would be looking to make plans ahead of the event to ensure I can capitalise on the volatility.

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

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

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

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

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

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

GBP/EUR trading around a 6-week low, will the pair continue to fall?

The Pound has come under pressure once again today, not just compared to the Euro but across the board of major currencies. Those planning on making a large transfer from Pounds into Euros are seeing the cost of Euros become more expensive on almost a daily basis at the moment, and there are a number of reasons for this.

The financial markets had previously been pricing in an interest rate hike from the Bank of England, up to 0.75% which would be the highest rate since the UK exited the global recession almost 10-years ago. This rate hike is now looking a lot less likely after some disappointing GDP figures released lat week showed a slowdown in the UK economy. According to the preliminary GDP figures, the UK economy has slowed to its slowest level in 5-years and although much of this is being attributed to the terrible weather in the first quarter of this year.

At the same time Manufacturing data released this morning showed that the sector has dropped to a 17-month low. With the UK economy appearing to slowdown the chances of a rate hike have slipped and now Lloyd’s Bank are only expecting a 20% chance of the hike actually happening this month.

Tomorrow there is Construction data to be released and then on Thursday there will be Services data released, all out of the UK. Further weak data in my opinion is highly likely to result in a further sell-off of the Pound, so do feel free to register your interest with me if you would like to be notified should there be a major spike do feel free to get in touch.

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

GBP/EUR hits 1.15 (Daniel Johnson)

Draghi hints at prolonged QE

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

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

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

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

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

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

GBPEUR plummets due to Mark Carney

Late last night Governor of the Bank of England Mark Carney told the BBC that an interest rate hike would occur this year but failed to announce that it would happen at the May meeting. He did state Brexit negotiations and the performance of the UK economy will dictate when the hike occurs. This was seen as extremely dovish by investors and the pound was sold off.

The Governor also spoke about inflation and said as always inflation needs to be monitored closely. With inflation falling quicker than expected this month to 2.5%, if this trends continues I expect to only see one hike this year, which arguably is a bad situation for clients buying euros.

The pound had been making considerable gains against the euro over the last 6 weeks due to the hype of an interest rate hike and the shift in Brexit sentiment. However not that a hike may not occur, this could be the start of the slide for sterling against the pound. Furthermore with trade negotiations set to start in the upcoming months now is the time to buy pounds in my opinion.

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! **

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

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

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

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

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

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

Will GBPEUR rise further this week?

It is very tempting to track the GBPEUR rate now hoping for further improvements, the rates have risen to some of the best to buy Euros with pounds since May 2017. To understand whether this pair will rise further it is useful to track what has happened so far and understand why. We can then also look at events ahead to make a decision on what is likely to happen.

Overall I don’t expect the pound to Euro rate to rise significantly higher, I think actually there could be a danger the levels will fall back as the enthusiasm for the pound begins to wear off. Whilst there has been progress made with Brexit and the Bank of England should raise interest rates in May, this news is largely priced in now.

This means that any signs events are not going to progress as smoothly as previously believed could disrupt the currency and cause the pound to fall. There is still a huge amount to accomplish for the UK on Brexit plans and there is also many economic conditions for the UK to meet to warrant future hikes, which would cause the pound to rise.

I do now expect rates for Euro buyers to remain favourable but any further good news will probably be met with limited confidence on the rates since the good news is already out there. If you need to buy Euros with pounds then making some plans around the current favourable levels seems very sensible to me.

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 anytime and assisting in the future.

If you need to transfer above £10,000 or Euros internationally and wish for some information on the best rates and assistance with the timing and planning of any transaction, please speak to me as above to achieve a preferential rate.

Will the Spring statement cause market volatility? (Daniel Johnson)

Will there be any surprises from Hammond?

Philip Hammond, UK Chancellor of the Exchequer is due to deliver the spring statement today. It is expected to be a no frills affair with no big surprises that could rock the markets. I tend to agree with this and I do not expected any breaking changes.

It will commence around 12.30pm and is due to last around 20 minutes. Hammond has stated  that no other major economy has two major fiscal set-piece events a year and “neither should we”.

He also added “If unexpected changes in the economy require it, then I will, of course, announce actions at the Spring Statement. But I won’t make significant changes twice a year just for the sake of it.”

I doubt this will have a significant impact on Sterling.

Single Market access for UK financial sector could be a point of contention

The key market mover will still be Brexit talks. The uncertainty surrounding single market access for the UK financial sector is probably one of the most significant point of the whole negotiation process. French Politician, Bruno Le Maire has stated that the UK will be forced to utilise a political mechanism know as equivalence. Equivalence gives countries outside the EU access to the single market for limited periods, when and whether they will have access is dictated by Brussels. Access can be revoked at any time.

May’s proposal for a mutual recognition situation with free single market access has been flatly denied. This does not bode well for the Pound.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor.

You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.

If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson

Factors impacting GBPEUR exchange rates

As always Brexit negotiations continue to drive GBPEUR exchange rates and at present GBPEUR has reached a key support level. Over the last 8 weeks every time GBPEUR has reached 1.12 we have seen the pound strengthen against the euro? The question is will this trend continue this month?

Negotiations are on going and UK Prime Minister Theresa May is asking for a bespoke trade deal with the EU, however Michel Barnier keeps reiterating that a bespoke trade deal is another phrase for cherry picking. If the transitional deal is reached this month and trade talks start early next, I expect the pound will make gains against the euro and reach the highs we were experiencing earlier in the year.

Politics in Europe are also having an impact on GPBEUR exchange rates. The good news for the Euros is that Angela Merkal has secured her position as Chancellor of Germany. However with a hung parliament in Italy at the moment and far right party 5-Star receiving the most amount of votes, people in Italy are questioning whether they should have a referendum like the UK. This story has the potential to have a considerable impact on euro exchange rates, nevertheless with 5 Star stating they will not work with any other party, it looks like a coalition could be formed by Northern League and Forza Italia.

This week the key data releases to look out for is the ECB’s interest rate decision Thursday afternoon. Interest rates are set to remain on hold, however any hint to the tapering of the quantitative easing program could strengthen the euro. The ECB have showed concern recently that the euro is overvalued due to the devaluation of the US dollar. Therefore I expect the statement by President Mario Draghi to not give to much away and therefore the euro to remain buoyant and against the pound.

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! **

Investors hang on Theresa May’s speech at 13.30 (Daniel Johnson)

May’s speech expected to cause volatility

GBP/EUR rates will be mainly dictated by the progress in Brexit negotiations. The Irish border situation has again come into the spot light. UK PM, Theresa May has turned down proposals from Brussels that could potentially annex Northern Ireland by keeping them in the single market.
The PM is due to speak later today and investors wait with baited breath to see if May gives some form of clarity on the Brexit situation. She is widely expected to rule out Britain being part of the customs union with the EU.
There has been recent talks at Chequers with members of her cabinet and it appears there is now some unity between the remainers and the leavers in the cabinet. This is neded considering many have been at loggerheads for some time. I feel many MPs have put their own personal agenda in front of focusing on getting a Brexit deal in place. I would expect May to state there is now a framework in place for negotiations and that she has the backing of her cabinet.

I think May will try and avoid any mention of a hard line stance which has the potential to hurt the Pound. Sterling does have the potential to strengthen, but nothing substantial. It is a question of whether investors believe her comments and credibility.

GBP/EUR has been sat between 1.12 – 1.15 for some time. 1.15 being a resistance point with the GBP/EUR quickly retracting when 1.15 is hit. If you have to move short term buying Euros aim to move around 1.1430 as having too high expectations could prove costly.

If you have a currency requirement I will be happy to assist. If you let me know the details of your trade I will endeavor to produce a free trading strategy. During a period of such uncertainty it is important to be in touch with an experienced broker if you wish to maximize your return. We have tools at our disposal to make sure you do not miss out if there is a spike in your favour.
If you already have a currency provider in place. Drop me an email with what you are being offered and I am very confident I will be able to demonstrate a significant saving. It will only take you two minutes and I am sure it will be worth your while. You can trade in safety knowing you are with a Foreign Currency Direct PLC, a firm trading for over 16yrs and FCA registered.
If you would like my help feel free to email me at dcj@currencies.co.uk.
Thank you for reading.

Will today’s speech from Theresa May offer the GBP/EUR rate direction? (Joseph Wright)

Today could prove to be a busy day for GBP exchange rates, as the UK’s Prime Minister is scheduled to speak around lunchtime today according to reports with the Brexit being in focus.

Brexit related news and updates are proving to be the biggest mover of GBP exchange rates at the moment, and time is running out for the UK and the EU to come to an arrangement so I don’t expect to see this pattern change anytime soon.

May is expected to focus on a number of topics in today’s speech such as protecting jobs, protecting any deals that are being arranged and ensuring that any deals made benefit both parties.

As we’ve seen recently the relationship between the UK and EU negotiators is quite frosty, and the issues surrounding the Northern Irish border and the customs union appear to be sticking points.

Mark Carney will also be speaking this morning so there could be movement for GBP/EUR for this reason also, especially if there are references to future monetary policy as the global pick up in the economy is likely to result in a more aggressive monetary policy for the Bank of England than previously expected.

If you would like to be updated in the event of a major move for the GBP/EUR rate today, 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.

Where next for GBPEUR exchange rates?

The pound has risen against the Euro presenting some excellent fresh opportunities to buy Euros with pounds. We are not quite at the top of the market but are only a couple of cents from the highs of 1.15 seen earlier this month. This is the best level we have had since May 2017 during the UK election. The overall position for Euro buyers might improve further but these levels should not be taken too much for granted at this time in my opinion.

Friday is Theresa May’s speech on Brexit and this could be a big mover for the pound against the Euro, clients looking to buy and sell Euros will of course be aware of the importance of the Brexit which is driving sterling exchange rates. The next big news will be the Italian election on Sunday which could see the Euro weaker, there are lots of worrying scenarios we can paint from the Italian election on Sunday but ultimately I don’t think the Euro will find itself in too much trouble.

With so many different parties the likelihood is a coalition government which struggles to make any real policies stick and ensures that Italian politics stays loosely in its current framework, the chance of it going down a more populist and right-wing route is a possibility but I feel ultimately, unlikely.

If you need a transfer buying or selling the pound against the Euro then making some plans around these key events is vital to maximising any deal and exchange rate you receive. For more information at no cost or obligation then please feel free to contact myself Jonathan Watson by emailing jmw@currencies.co.uk.

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

Will the release of the Brexit plan result in a stronger Pound? (Joseph Wright)

The negotiations between the UK and EU regarding the Brexit have been heating up recently, and we’re shortly expected to know what the UK’s stance is.

Just yesterday UK Prime Minister, Theresa May held emergency talks with senior cabinet members behind closed doors. The talks took place at her country residence, Chequers and one MP told the press that she ‘played a blinder’. Within the next month we’re expected to know what the Brexit plans are so I think although the markets are quite calm at the moment, we could see a lot of movement for the Pound to Euro rate in the next month.

Next week Theresa May will also be giving a speech again outlining her stance on Brexit talks so far and plans moving forward.

Although economic data is once again having an effect on the Pounds value I think that politics is likely to be the main driver of GBP exchange rates in the current climate, which makes it harder to judge where the Pound will move next and when.

If you would like to be notified in the event of a major spike for the Pound in either direction, do feel free to register your interest with me as working on a trading floor allows us to react in the wake of a major move.

Later today there will be the release of EU Inflation data which could move the markets depending on how the figure comes out.

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 to expect for GBPEUR exchange rates moving forward?

In recent weeks GBPEUR exchange rates have come under pressure once more due to the developments surrounding Brexit. Head EU negotiator Michel Barnier told the press last week that the transitional talks have broken down and if the UK and EU cannot come to an agreement then the likelihood is there wont be a transition.

No suprises the uncertainty sent the pound tumbling from the 1.14 highs and GBPEUR exchange rates are now floating in the 1.12s. Good news for any client selling euros to buy pounds.

Looking further ahead UK Prime Minister Thersa May is set to address the public on Saturday. This speech will be watched closely by any person involved with the pound and Conservative MPs. It was only last weekend Pro European Conservative MP Anna Soubry warned that MPs could rebel against the PM if she decides to take a hard Brexit approach.

Personally I expect the transitional talks to continue to put pressure on the pound and exchange rates could fall back towards 1.10 in the upcoming 4 weeks. However, I expect the deal will be reached between the UK and EU which will pave the way for trades talks and therefore GBPEUR will improve back to the highs we experience earlier this month. If my predictions materialise then there may be opportunity for both euro buyers and sellers.

If you reading this website for the first time as you need to convert GBPEUR, 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 a free quote 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.

Common clients I help on a daily basis are Sole traders, MD or FD of a company, property buyers and sellers. If you are one of the three and are currently using the bank to transfer your currency you need to be made aware that you could be saving money!

 

Brexit talks dictate GBP/EUR levels (Daniel Johnson)

Davis and Barnier loggerheads

We have seen GBP/EUR fall following poor economic data releases from the UK and also negative comments from Michel Barnier in regards to Brexit negotiations. We have seen since Stelring rally back to 1.13 in this afternoons trading.

GBP/EUR will be largely dictated by the progress of phase two Brexit talks. David Davis, the UK chief negotiator and EU chief negotiator, Michel Barnier are at loggerheads. Davis has accused EU services of advising UK businesses to leave the UK or risk losing their contracts. This does not sit well with the UK negotiation team considering the UK is still a member of the EU. Barnier could be accused of playing hard ball in an attempt to warn off other members of the EU following in the UK’s foot steps and exiting the bloc.

Despite the uncertainty surrounding Brexit talks I am not of the opinion we will see huge falls in Sterlng value. The market moves on rumour aswell as fact and the level of uncertainty surrounding Brexit at present makes me think it does not have much room for further falls. I would be surpised to see GBP/EUR fall below 1.11 short term. If you a Euro seller I would not be hanging on for small gains.

If you are buying Euros short to medium term I would not have high expectations. The highest GBP/EUR has been in nine months is 1.15 and it has only been available for very small windows of opportunity. Considering the current situation, if the market hits above 1.14 I would consider performing my trade.

If you have a currency requirement I would be happy to assist. If you wish to maximise your return it is important to be in touch with an experienced broker. If you let me know the details of your trade I will endeavour to produce a trading strategy to suit your needs. If you have a currency provider in place I am willing to perform a live comparison and I am confident I will be able to demonstrate a considerable saving. It will only take a couple of minuites and could be well worth your while.
You can trade in safety knowing your trading with Foreign Currency Direct PLC, a company trading for over 16 years. Our accounts are published online at companies house and we are FCA registered.
If you would like my help I can be contacted at dcj@currencies.co.uk. I look forward to hearing from you.

 

GBP/EUR hits nine month high (Daniel Johnson)

Sterling hits nine month high against the Euro

Sterling hit a nine month high today against the Euro. The spike was caused by several contributing factors. Lord Jim O’Neill gave a very positive forecast on a recovery for the UK economy post Brexit early in the week. This was coupled with news that Dutch and Spanish finance ministers would like a close relationship in regards to trade with Britain. Angela Merkel, the German Chancellor also announced her intention to have a close bond with the UK post-Brexit. This was key, as Germany is the engine room of the Eurozone, but this is not necessarily a surprise due to the large volume of German exports to the UK, particularly cars of which the UK is a large consumer.

There is however concerns for Sterling. The biggest of which is Phase two of Brexit talks. Chief negotiator for the EU, Michel Barnier and UK Chief negotiator David Davis are at loggerheads. Barnier would like the financial sector included in any deal and Davis has stated Brussels will not be able to cherry pick aspects of the deal. Davis is clearly not happy, EU services have apparently been approaching UK companies and advising them to leave the UK or risk losing their contracts. The deal is set to be initially agreed in October, but I feel this target is unrealistic as is a full exit by 2019. I think talks could well prove problematic and I think Sterling could suffer as a result.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.
If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson

What will happen on GBPEUR for the rest of January?

The pound to Euro rate has been trading in a very tight range for the last few weeks with a high to low variation of 1.12-1.1360. This is presenting a good time of consolidation for clients looking to buy and sell Euros to make plans surrounding better times to look at any currency exchanges. What is definite is that the rate will not stay like this forever and sooner or later we will see a change.

Key events will focus on the European Central Bank (ECB) meeting next Thursday 25th January. Investors will be closely monitoring any changes we might see in the economic policy of the ECB which might see a shift on the Euro. Overall expectations for the Euro centre around the reduction in their QE program and possibly the prospect of raising interest rates.

The Bank of England will meet in February, general impressions are that the pound will continue to rise if they do raise interest rates but this might not be until much later in the year. The UK has now falling inflation which would actually see the pound falling as it removes the pressure on interest rate hikes.

GBPEUR has been trading in a range of 1.10-1.145 since October so the prospect of any major deviation from this is limited. I would personally be expecting GBPEUR to remain this kind of range for the end of January. Most prospects for the future focus on the outlook on the pound to Euro rates remaining at these more favourable levels for Euros buyers.

If you have a transfer to consider in the future then making plans in advance is key to maximising the position. For more information at no cost or obligation on the best strategies to maximise your position please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

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.

GBP/EUR – Where Next? (Daniel Johnson)

Brexit phase two could cause prolonged Sterling weakness

The main driver on GBP/EUR at present is Brexit. There is still a great deal of uncertainty surrounding how Brexit talks will progress. GBP/EUR hit 1.15 recently following the announcement a deal had been agreed in regards to Irish borders. The small window of opportunity for euro buyers soon closed however following stupid comments from David Davis. Davis, the secretary of state for exiting the European Union, he thought it would be a bright idea to state the border deal was not legally binding.  The pound fell in value as a result.

There was then the eleven tory MPs who managed to win a vote that any deal agreed by Theresa May at the recent European summit would have to be given the ok by parliament, substantially weakening May’s position and again sterling fell.

Phase two of negotiations is set to be far more difficult than phase one. The important issues such as immigration and trade are set to be addressed. Negotiations are expected to be problematic and lengthy. At present GBP/EUR seems range bound between 1.10-1.15

Potential Opportunity for Euro Buyers

Tomorrow Spanish regional elections will commence. There are several parties that are in favour of Catalonian independence. If it looks like Catalonia will leave Spain and indeed the EU the euro could suffer. Although Catalonia makes up a significant amount of Spanish GDP it is the threat that other regions could follow suit and leave the EU that is the threat to the Euro.

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.

Catalonian election could create Euro weakness (Daniel Johnson)

Close election in Spain could weaken the Euro

Regional elections in Spain commence on Thursday and they are a cause for worry for Brussels. The election is expected to be close between pro and anti independence parties. I would be surprised if any of the seven parties involved mange to secure a majority victory. Political uncertainty is a main factor in currency weakness so this  could create an opportunity for euro buyers.

Catalans have a tough decision. They must stick with a unstable separatist coalition whose leaders have been placed in prison or left the country, or take a chance on alternative parties that fall in line with a united Spain which would no doubt suit Spanish Prime Minister, Mariano Rajoy’s wishes.

Recent polls suggest a lead for Catalonian secessionists who have used a the slim victory in the last regional parliament to declare independence  and cause a clash over sovereignty and popular that have caused worry far beyond Spain. There was less than half of the electorate involved in that vote.

Catalonia makes up a significant amount of Spanish GDP, but it is the threat that other regions follow suit if independence becomes a reality. If other regions, not just in Spain decide to campaign for independence this could create a serious threat to the Euro.

If you are buying euros with Sterling however be wary of hanging on for significant gains. I would suggest moving if the market hits above 1.14, the uncertainty surrounding Brexit negotiations is seemingly anchoring GBP/EUR below 1.15,it is something of a resistance point at present.

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.