Tag Archives: buy euros

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.

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.

 

 

 

GBPEUR holds steady above 1.10

Yesterday the Office for National Statistics released the latest Consumer Price Index numbers for the UK and inflation had risen 0.3% compared to last months figure of 2.6%. With inflation now sitting at 2.9% it appears that speculators have purchased the pound in anticipation that the Bank of England could give some indication about a future interest rate hike on Thursday.

However I actually believe the complete opposite and wouldn’t be surprised to see the Governor of the Bank of England Mark Carney to talk down sterling. In recent weeks the Governor has made it clear that the weaker pound is the reason for the shift in inflation and the Bank of England will act off the back of Brexit developments.

With this in mind I believe the spike above 1.10 is a spike and in the upcoming weeks GBPEUR exchange rates will fall back towards the 8 year lows we were experiencing only 2-3 weeks ago. Therefore anyone looking to purchase euros short term should consider buying there euros upfront. For euro sellers rates are still fantastic however if you can hold your nerve rates could improve towards the end of the month.

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!

 

 

GBP/EUR Back Under 1.09 (Ben Fletcher)

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

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

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

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

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

Eurozone PMI data arrives below expectations

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

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

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

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

Could we see QE tapering from the ECB?

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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.

GBP EUR Exchange Rates Find Support over 1.10

The pound has slipped in afternoon trade despite making some attempts at a rally earlier in the day. Sterling exchange rates have found support against the Euro at around 1.10 for GBP EUR.

A gloomy post Brexit outlook which is being portrayed by much of the media is not helping reassure the markets and ultimately British consumers. There are also concerns of a consumer slowdown as a result of higher inflation and there are some concerns in the construction and housing sectors which are helping push the pound lower although so far these are not that significant. The Bank of England reduced the growth outlook for the UK last week which has also taken the shine off sterling.

As a result those clients looking to sell Euros are seeing excellent trading prices which are still available. When parliament returns from the summer recess in September there is likely to be considerable market volatility for the pound. Discussions surrounding Brexit which have been held in private are expected to come into the public domain very shortly and this could have the effect of strengthening the price of the pound.

One of the reasons the pound is so weak against the Euro is because of the lack of detail as to what the future relationship between Britain and the UK will ultimately look like. In my view any detail offered here should only be seen as positive for the pound. Depending on what comes out there could be some better buying opportunities in the coming months. For those clients who need to buy Euros rates are struggling at present but the targets of 1.15 – 1.18 for GBP EUR should become available again. Anyone with a pending requirement would be wise to make contact to discuss your options and how to make the most of the weaker exchange rates which we are starting to become used to.

If you would like further information on GBP EUR 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

GBP/EUR Short Term Forecast – Will Sterling Strengthen? (Ben Fletcher)

Sterling has been under continuous pressure these past few months presenting the opportunity for people to sell Euros back at some of the best levels in 9 months. Each week the range in which the GBP/EUR rate resides at has fallen nearly a cent suggesting there is more potential for the rate to continue to fall. If you have been waiting to sell Euros back to Pounds and are still holding on, the next month might be the best time.

German Election

At the end of September Germany will head to the polls in what is thought to be a non-event to re-elect current Chancellor Angela Merkel. Whilst Merkel is the major favourite there has been some surprising events that have taken place around the globe in the past year and anything unexpected could create Euro weakness. At the moment there doesn’t really appear to be any major rivals and the concern that Nationalist parties were coming back seems to have died down. Merkel was heavily criticised by many in her own country for welcoming 1 million refugees, however in the light of no other viable leaders her tenure looks set to continue.

From the perspective of the GBP/EUR rate, over the next month we may see some Euro weakness start to creep in due to election uncertainty. But by that point the GBP/EUR may be close to moving below the 1.10 level, which in my opinion would be a best case scenario for Euro sellers.

If you have a upcoming requirement you would like to discuss or ask any questions about the comments please send me an email briefly explaining your requirement at brf@currencies.co.uk. I would be more than happy to share my thoughts and try to help you develop a plan that will enable you to maximise your transfer. I will aim to respond within a few hours.

UK Data and Carney to Dictate GBP/EUR (Ben Fletcher)

This we will see a whole flurry of UK data including the Producer Price Index along with the latest Consumer Price Index. The CPI data which currently sits at 2.9% compared to this time last year, is a key indicator of inflation levels. If this level moves above 3%, which it isn’t expected to however the recent climb would suggest other wise, he market could move. If inflation continues to rise faster than average earnings consumers will start to feel the pinch, however the Bank of England could have a solution.

Governor of the Bank of England is expected to deliver a speech just after lunchtime today discussing his latest thoughts on the UK economy. The big question for investors at the moment is the potential of a UK interest rate hike in the short term. The Bank of England can encourage people to stop spending by raising interest rates, alternatively if people start to save more that has consequences on retail as a whole.

There is a very fine balance with so much uncertainty surrounding namely Brexit. Whilst the data and speeches are happening in the UK, David Davis along with his Brexit negotiations team are sat around a table with the EU team. We’re not likely to see any outcomes to the talks in round two of discussions, but we may receive news that the talks are going well and any concessions for Sterling will be seen as positive.

When the markets are this volatile there will always be spikes and drops, making timing a transfer vital to maximise your funds. If you have any questions with my forecast above or would like to simply discuss an upcoming requirement you have please send me an email to brf@currencies.co.uk. I would be happy to share my thoughts with you and I may be able to offer a viable solution to help you complete a trade, as I have several years experience working for a brokerage

Where next for the GBPEUR exchange rate?

When looking for indications as to the future direction of GBPEUR exchange rates it can be helpful to consult the information of a currency specialist who can highlight the important trends and themes that will move the market. A 1 cent improvement selling €100,000 at current levels would result in a £800 saving! We offer assistance to clients looking to increase the value of their currency exchange by offering information on the market to help them time and execute their transfer for maximium effect.

If you are looking to buy or sell Euros for pounds then the last month has see a fairly choppy range developing in a tight band of 2 cents. Whilst we haven’t broken free of the 1.1260 to 1.1470 range, the movement within these parameters has been rather unpredictable with the market jumping back and forth according to speculation on various factors.

One key point to be noting is the prospect of a UK interest rate hike or the European Central Bank (ECB) considering to withdraw their economic stimulus. These two factors are example of two highly unpredictable factors which could see the pound rising or falling against the Euro rather suddenly.

With tremendous pressure on sterling and there appearing to be no easy way out of the current situation for the pound and the UK, GBPEUR seems like it could easily spend much of the coming weeks and months in a 1.10-1.15 range. It is very difficult to see what would lead to sterling rise dramatically but there could be surprises.

If you need to make a transfer of more than £10,000 worth buying or selling Euros then understanding the best steps forward in advance will give you the greatest chance of securing the best rate. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk or please call 01494 787 478.

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

 

 

GBP/EUR Rate Close to 1.15 Jump (Ben Fletcher)

The Sterling Euro rate could be on the verge of a positive upwards movement as a several week high is touched upon this morning. The rate moved up to 1.142 which provided optimism there could be more to come.

Governor of the Bank for England Mark Carney will speak tomorrow and after his speech last week caused over a cent movement that could happen again.

If you’re looking to purchase Euros then tomorrow may present a window of opportunity for you. If Sterling does start to move upwards then I do think it will be a significant jump. The currency has been oversold in the last few months which is why the rate has dropped so low, but there could be a turn of events coming.

Inflation Report Next Week

The UK’s latest inflation report was expected to be released this week however it has been postponed to next week. Inflation data is a double edged sword at the moment; firstly if it keeps rising and wage growth doesn’t it will feel like a wage cut, alternatively if it does continue to rise the Bank of England will be forced to raise interest rates. The home currency when there is a interest rate hike, can often benefit by several percent which could see the rate move back towards the high teens.

If you’re a Euro seller who is waiting to complete a transaction at an even lower level than what is currently available I believe you’re playing a risky game. Sterling seems to have found a resistance at the 1.13 level and would take a serous series of events to fall much lower than this point, never say never but the bottom may have been reached.

Whilst this is quite a speculative plan, but certainly plausible if you do have a more specific requirement please don’t hesitate to ask any questions about the forecast above. I would be more than happy to share my thoughts and discuss what might be the best option for you moving forwards. Please send me an email with a brief description of what you’re looking to do at brf@currencies.co.uk