Tag Archives: buy euros

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.

GBP EUR Rates Rally Back Over 1.13

The pound has made good gains against the Euro today with levels breaking back over 1.13 in afternoon trade. GBP EUR has rallied by almost a cent from the lowest point today despite stronger EU inflation data. EU inflation numbers rose to 0.5% in December which was higher than the expected 0.4%. It bodes well for the Eurozone after the European Central Bank has battled with weak wage growth and low inflation for almost a decade.

UK retail sales released on Friday could make for an interesting end to the week and the expectation is for a big jump higher for December which covers the Christmas period. A big number would be welcome news for the British economy and hence the pound and could see some material gains. The December retail sales can be a big market mover so those clients with pending requirements either looking to buy Euros or sell Euros would be wise to get in touch to consider your options. UK unemployment data is released next week and this too has the potential to cause some volatility next week.

Rates for selling Euros remain incredibly attractive with all the ongoing uncertainty with Brexit although any further developments in the second round of negotiations could see things change very quickly. Any positive noises being made from either side would likely see the pound rally although it may take a little more time to get to that point.

My view is that the Brexit outlook is starting to look that much more optimistic now that the first phase has been completed which highlighted a will from all sides to put something together.

Those looking to make currency transfer are impacted by these daily events. To discuss your requirement and how to try and maximise on the rates of exchange as they become available then please feel free to get in touch with me James at jll@currencies.co.uk

Euro remains strong against the Pound but for how long (Tom Holian)

The Pound vs the Euro has been trading in a very tight range during the course of this week as the markets return for their first full week back since the start of the year.

It appears as though the currency markets are waiting for their first big move of the year and with the Brexit negotiations not due until March the Pound could remain under a lot of pressure for the next two months.

Economic data has been mixed and we have seen Sterling move up one day and then down the next and not yet settled in one direction or another.

The Euro has once again broken the 1.20 Interbank level against the US Dollar which is the highest the currency pair has been in a very long time which highlights how strong the single currency is at the moment.

Tomorrow afternoon could see the Euro end the week with a lot of movement as the US releases its latest set of inflation data in the afternoon.

Inflation is a key indicator as to which way a central bank may move interest rates so if you’re in the process of making a currency transfer involving Euros then keep a close eye out on tomorrow’s announcement.

US Retail Sales are also due to be published and like with inflation, I think we could see a lot of volatility at the end of this week.

If you have a currency transfer to make and would like a free quote compared to using your own bank or simply want to compare rates to buy or sell Euros against your current foreign exchange provider then feel free to get in touch for a free quote. Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help save you money on exchange rates.

Email me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

GBP EUR Rallies Towards 1.14 (James Lovick)

The pound has seen a volatile period after making good gains this week against the Euro. GBP EUR now sits at 1.1344 ahead of industrial and manufacturing production figures released tomorrow. The data has performed well in recent months as a result of the weakness in the price of sterling which is of course good news for British exporters.

The November figures are expected to show a jump higher on Octobers data which could help see the pound rally on the back of a strong number. UK data is generally lighter this week and focus next week will centre on the UK Consumer Price Index inflation numbers on Tuesday as well as retail sales figures released later next week. A pickup in inflation would which would be of concern to the Bank of England could see the pound rally.

With British politics continuing to drive the markets as the ongoing Brexit negotiation moves forward then any developments on this front are likely to see considerable volatility for GBP EUR exchange rates. The cabinet reshuffle which has been concluded today could now set the tone for 2018 after a bad summer for the Prime Minister when Theresa May lost her majority in the House of Commons. The Brexit negotiations however are likely to be the biggest driving force for GBP EUR exchange rates. Clients looking to buy Euros could see a window of opportunity to purchase if the second round of talks get off to a good start.

The Euro however could be in for a better period after stronger data this week impressed the markets and this should help support Euro exchange rates. EU retails sales have performed better whilst Germany has also had a good run of economic data with very high factory orders recorded. Those with pending requirements are likely to see a volatile start to the year. To discuss your won requirement and how we can assist with any transfers please feel free to get in touch with me James at jll@currencies.co.uk

GBP EUR Rates before EU Summit

The pound should be in for a volatile couple of days with Theresa May flying to Brussels today to meet the other 27 European leaders at this summit. It will be decided officially if sufficient progress has been made for talks to move on to the second phase in the negotiations and the outcome should have a sizeable impact on the price of GBP EUR.

If the mood is positive from both the UK and EU side then this is likely to have a positive impact on sterling exchange rates. A move back over 1.15 for GBP EUR seems entirely plausible and could present some good opportunities for those clients looking to buy Euros. Those clients looking at selling Euros for pounds would be wise to consider securing a rate prior to any announcements as the odds would suggest that an agreement will be reached.

Theresa May goes to Brussels today having lost a key vote in the House of Commons last night which allows parliament to now have vote on the final deal offered by the EU and some would argue it weakens her hand in these important negotiations. This could cause problems further down the line in government as well as delays in delivering Brexit and in my view this is likley to create additional uncertainty for sterling exchange rates going forward. A key vote next week on the setting of a date for Brexit enshrining it into law will be crucial and if the government was to lose this vote then the pound could come under additional pressure. The Bank of England and European Central Bank interest rate decisions today are also likely to create more volatility for GBP EUR.

Today and tomorrow could see major market movement on the back of the summit so to discuss how your individual currency requirement is likely to be impacted by these events then please feel free to get in touch with me at jll@currencies.co.uk

GBP EUR Recovers Ground on Expected Brexit Deal

GBP EUR exchange rates have rallied in afternoon trade recovering the losses seen this morning for this pair. The pound has seen a hugely volatile couple of days as the Brexit negotiations continue to be the main driving force for sterling exchange rates. The lack of agreement at the last moment yesterday when the deal was scuppered by the Democratic Unionist Party (DUP) saw sterling fall from its recent highs although it is clear that an agreement is the preferred option from all sides.

Any breakthrough which could come later this week could see the pound rally as the prospect of a no deal scenario becomes less likely. Those who are optimistic could see some excellent gains for those clients looking to buy Euros. The crunch point will be the end of next week after the EU summit 14th & 15th December. Any deal should be worked out by this time and any failure in not doing so would almost certainly see the pound weaken.

Data is light for both the UK and EU on Wednesday so focus will move to UK house price numbers on Thursday and EU Gross Domestic Product data. The EU had suffered until recently from very weak economic growth and so these numbers will be closely scrutinised by the European Central Bank. Economic data has largely been positive in recent weeks and confidence in the EU reached a 17 year high in November.

With Brexit negotiations between the relevant parties continuing then developments here will almost certainly overshadow the economic data. Once again it is politics which is having the biggest impact on GBP EUR rates and this is unlikely to change anytime soon with discussions expected to continue right up to the wire in 2019.

For more information on the price of sterling and the Euro then please get in touch with me James at jll@currencies.co.uk

GBP EUR Rates Fall on Political Uncertainty

The pound has dropped sharply in afternoon trade with rates for GBP EUR falling to a low of 1.1136. The edited documents in British politics which highlight the impact on Brexit on 58 different sectors appear to have been watered down for other politicians to view in an attempt to try and keep certain elements which are commercially sensitive out of the public domain.

There have now been suggestions from the Labour party that the government could be in contempt of parliament if it refuses to release all details in the reports. This news is yet another issue for this government which is having to tread very carefully with everything going on in this Brexit negotiation and is weighing on sterling exchange rates.

With a stalemate in negotiations between Britain and the EU the markets now look forward to the EU summit in December which could see a hugely volatile period for GBP EUR rates. If the deadlock is broken then there could be a great opportunity to buy Euros. The risk remains however that there could be a no deal and this would likely see the pound tumble sharply which could help anyone looking to sell Euros.

EU data sees consumer confidence numbers tomorrow ahead of the eagerly awaited inflation and unemployment data on Thursday. The EU has suffered with low inflation for almost a decade but this year has managed to see a pick up in the numbers which is helping the Euro make a recovery. A strong number here will only help cement the view that the European Central Bank is coming to an end of its loose monetary policy which should help support the Euro further.

For more information on GBP EUR exchange rates and how these key upcoming events have a direct impact on the rates of exchange and how to maximise on the opportunities as they happen then feel free to get in touch with me James at jll@currencies.co.uk

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.

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! **

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.

Selling Euros? GBP EUR Falls after Weaker Retail Sales

GBP EUR exchange rates have continued to fall this week after yesterday’s UK retail sales data fell by 0.8% in September. The weaker numbers follow on from the other important economic data also released this week. Although inflation touched 3% on Tuesday which would normally suggest an imminent interest rate hike from the Bank of England, the weak wage growth numbers have created uncertainty over whether or not the central bank will raise interest rates on November 2nd. Inflation climbed to its highest level in five years this week but it may not be enough to persuade for a rate hike. As such the pound has actually weakened this week.

There are two doves on the Bank of England’s Monetary Policy Committee who are almost certain to keep rates on hold but whilst the vote could be close on the day I am still of the opinion that the Bank will hike at the next meeting. Clients looking to buy Euros could see a spike if action is taken considering the recent slide in sterling so there could be a small window of opportunity.

Clients looking to sell Euros would be wise to consider moving sooner rather than later and take advantage of what are still incredibly attractive trading prices. Rates for selling Euros are still some 20% better than two years ago which means on a €200,000 transfer the extra sterling generated is about £35,000 more with today’s exchange rates.

Expect volatility for the Euro over the weekend as developments unfold in Catalonia. If Madrid seeks to trigger Article 155 and impose direct rule on Catalonia then there could be civil unrest a huge escalation in political tensions. The Euro is likely to react to nay news on this.

If you would like further information on Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

GBPEUR to fluctuate 5% in the upcoming months (Dayle Littlejohn)

Brexit negotiations seem to be heating up as both parties have promised to accelerate negotiations therefore I am expecting major volatility with GBPEUR exchange rates. 

Rewind the clock to the end of July, many of the leading banks were predicting by the end of the year parity for GBPEUR exchange rates, however UK interest rates gave the pound a boost which has led to Banks re thinking their forecasts.

At the moment GBPEUR exchange rates appears to be fluctuating in the lower teens and I expect by Christmas or potentially in the early new year for GBPEUR exchange rates to be either in the 1.06-1.07 or 1.17-1.8 range and the factor that is going to drive the pound higher or lower will be the Brexit negotiations.

A no deal puts the UK under more uncertainty and therefore I expect the pound to plummet, where as an agreement in regards to EU citizen rights and the divorce settlement bill will lead to trade negotiations and therefore a stronger pound.

The problem we have is we are unaware how the upcoming negotiations will go. For clients that are selling pounds to buy euros or euros to buy pounds, the question you have to ask yourself is what do you think will happen between the UK and EU. If you are unsure and not prepared to take the gamble, as some people are saying it’s like playing roulette, feel free to get in touch to discuss how we can save you money on your transfer.

For further information in regards to currency 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! **

 

GBP EUR Gains after EU Response to a Future Trade Deal

Sterling Euro exchange rates have seen a very eventful week with the fifth round of Brexit negotiations coming to an end yesterday. The pound had fallen sharply against the Euro immediately after the press conference given by Brexit secretary David Davis and his counterpart Michel Barnier highlighted that progress was still slow and there was a deadlock in the negotiations. Sterling fell by over 0.5% after it was clear that there was still insufficient progress before seeing a substantial rally in afternoon trade reversing all losses.

GBP EUR Outlook Improves Overnight!

It has been reported that the EU will begin preparing for post Brexit trade negotiations with the possibility of trade talks to commence in December and refers to the next phase to start as soon as possible. This has led to a major jump higher for the pound across all of the major currencies including the Euro. GBP EUR is climbing this morning and any developments from the EU are likely to create additional volatility for GBP EUR. The response today from EU leaders will be crucial to where rates go from here.

My view has been for some time that when that door for a future trade deal has been opened there could be some excellent gains for GBP EUR. Those clients looking to buy Euros could finally start seeing some better opportunities to purchase just around the corner.
Clients looking to buy Euros would be wise to get in touch to look at the options available to you and how to maximise on the rates of exchange as they become available. Clients looking to sell Euros should consider moving sooner rather than later as this has been a fairly major development.

If you would like further information on sterling exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Pound falls against the Euro owing to political uncertainty (Tom Holian)

The Pound has made some very positive gains vs the Euro in September with gains of over 6% during last month against the single currency but Sterling has now started to struggle.

Since the start of this month Sterling has fallen by almost 2% vs the single currency or the difference of £3,500 on a currency transfer of €200,000.

This highlights the importance of being kept up to date with what is happening at the markets by using an experienced currency broker.

There are a few economic data releases due out on Tuesday morning which are likely to cause a lot of volatility for the Pound against the Euro. On Tuesday morning UK Manufacturing & Industrial production data is due as well as the latest set of UK Trade Balance data.

The Pound was listed as the best performing global currency in September so we could see a fall in demand for British exports during last month and I think this could be reflected in a lower than expected UK Trade Balance.

There are problems ahead for the UK with the political situation still under a lot of pressure.  Former Tory Party Chairman Grant Shapps has suggested this week that there are  approximately 30 MPs who are in favour of holding a leadership election.

Since April when the conservatives lost their majority and had to form a coalition there has been a feeling that many are gearing up for a change in the Prime Minister.

Therefore, I think we could see a very difficult week ahead for the Pound vs the Euro.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as I can.

GBP EUR Falls to below 1.12 after German Intervention

The pound has fallen against the Euro from its recent peak with levels having fallen below 1.12 for this pair and sliding. Clients who need to buy Euros may wish to consider securing sooner rather than later to take the risk of rates falling further out of the equation. The news yesterday from German industry that German firms that are based in the UK should start preparing for a very hard Brexit has had an instant negative effect on GBP EUR.

The BDI, federation of German industry has made clear that the priority must be to defend the single market and its four freedoms. This rhetoric combined with the political uncertainty in the UK and the fact that Britain is drafting contingency plans for a no deal situation is keeping the pressure on sterling exchange rates.

If the Brexit negotiations continue to go badly then the pound could see a material fall and there is a good chance there will be more headwinds to come for the UK.

This lunchtime sees a speech from Bank of England member Andy Haldane and any clues as to when that first interest rate hike will take place that are offered may have a sizeable impact for those clients looking to buy or sell Euros. Any suggestion from Andy Haldane that he supports a rate hike in November could see the pound rally on the news and this in my view is likely considering his recent stance on monetary policy. He has previously said that a rate hike would be good for the economy.

If you would like further information on sterling or Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Will GBPEUR rise on the German election?

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

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

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

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

GBP EUR Slides from Recent Peak

The pound has slipped back to below 1.13 for GBP EUR after the incredible gains seen last week. Despite the slippage the pound continues to be supported on expectations that the Bank of England will look to raise interest rates in the near term. There is now a 50% chance that there will be a rate hike as soon as November and the markets are fully pricing in the prospect of a rate hike by February 2018.

This is good news for sterling exchange rates as the prospect of interest rate hikes in the UK means more funds move towards Britain as the return on the investment is higher which drives the price of the pound higher.

Bank of England Governor Mark Carney also spoke again yesterday and highlighted that there is likely to be a movement from historical interest rate lows. However he also cited some concerns over Brexit and this appears to be one of the reasons why the pound has just tailed off from its recent peak.
Clients looking to buy Euros would be wise to consider getting in touch to take advantage of the excellent rates which are available at the moment. A major intervention by UK Prime Minister Theresa may could see additional volatility for the pound this Friday. If the stalemate in the Brexit negotiations continues then there is a chance the pound could fall lower.

However I am of the opinion that an offer of goodwill from the UK is likely to be made and this could see the pound strengthen across the board. There could be a small window of opportunity to buy Euros this Friday.

If you would like further information on sterling or Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Pound hits 2 month high against the Euro following Bank of England meeting (Tom Holian)

Sterling Euro exchange rates are now trading at their highest level since July after the Bank of England claimed that they may be considering raising interest rates earlier than markets currently expect.

Bank of England governor Mark Carney said that he was pleased with UK economic growth which has been positive in recent months and combined with record low levels of UK unemployment this could be a justification for raising interest rates.

Inflation continues to run high after hitting 2.9% during August which is the highest in 5 years and this also helped the Pound to make gains vs the Euro.

Indeed, rumours are that the Bank of England may be considering raising interest rates early next year compared to the previous expectation of 2019.

However, I don’t think we see a rate hike coming anytime soon so I think this was just posturing in order to help the Pound make gains.

On Friday next week Prime Minister Theresa May will be in Florence to set out her vision of post-Brexit Britain in which she will talk about the UK ‘leaving the EU but not leaving Europe.

This could potentially cause a lot of movement for GBPEUR exchange rates so keep a close eye out for what may happen to rates at the end of next week.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.