Tag Archives: Buying Euros

How will the Pound move against the Euro in 2018? (Tom Holian)

The Pound has remained in a fairly tight range against the Euro since the start of the year as the market appears to be waiting for further progress with the Brexit talks.

With the last meeting going relatively well in early December we saw GBPEUR rates spike in an upwards direction but the gains were relatively short-lived.

The critical issue of Brexit is that it is not just the UK who will be affected but also the European Union.

When the talks initially began last year the Pound came under a lot of pressure as the cards appeared to be in the hands of the other 27 member states.

However, recently the talks have started to progress positively and I think we could see Sterling improve in the future when the next round of discussions begin again in March.

At the moment the market is relatively settled so if you’re happy converting your money at these rates and would like a free quote then contact me directly by calling 01494725353 and ask for Tom Holian when calling.

The next catalyst for change in the short term is due to come out later on this morning with the latest release of Eurozone inflation figures at 10am. Eurozone Inflation is extremely important for the central bank when deciding monetary policy so this morning’s data could impact GBPEUR exchange rates.

The European Central Bank has already previously reduced their QE programme and if inflation remains as expected we could see the ECB possibly hint at raising interest rates at the next monthly meeting in the future which could see strength for the single currency.

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

Will the Euro continue to strengthen and will Carillion drag the Pound down? (Joseph Wright)

The headlines surrounding the Euro at the moment are that the currency is currently trading at an all time high against the US Dollar. The gains are generally being put down to the strong economic outlook for the Euro and also expectations that the European Central Bank will begin to cut back on the current stimulus package as the economy justifies it.

Many economists expect to see the Euro hold its ground at the current levels, and when compared with the Pound I think we may even see the Euro to Pound rate improve further especially if Brexit related issues continue to negatively impact sentiment surrounding the UK economy both during and after the Brexit process.

The case for a stronger Pound hasn’t been helped in the past week as it’s emerged that the UK’s second largest construction company, Carillion is likely to go into liquidation shortly. There is up to 20,000 jobs that could be lost as a result and a number of industries and sub-contractors could also run into issues as a result of this. The company has close links with the UK government and it’s emerged that up to 8 contracts were taken out with the company by the government since profit warnings were announced.  This is likely to be looked into further and I certainly don’t think we’ve heard the end of it.

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.

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.

Brexit talks dominate GBPEUR exchange rates (Tom Holian)

The next round of Brexit negotiations are due to start later today at the meeting currently being held in Brussels.

Hopefully this could mean that things could move on to the longer-term relationship between the European Union and the UK and if the talks go well we could see the Pound make some gains vs the Euro.

Indeed, if the talks progress we could see discussions moving forward about a transition deal for what will happen once the UK has left the European Union in 2019.

The Pound made some small improvements against the Euro yesterday hitting 1.14 on the Interbank level but it appears as though GBPEUR exchange rates are waiting to see what happens with the Brexit negotiations before making their move.

I personally think we could see the Pound move in an upwards direction if the talks progress as it shows that we are getting closer to agreeing a solution.

However, whatever happens over the next few days even if the Pound does rise against the single currency I think the movements will be relatively short-lived.

Indeed, German Chancellor Angela Merkel said that progress had been made but there was ‘much more work to be done and time is of the essence.’

As we go into the start of next week Eurozone inflation data is due to be released on Monday which could cause some movements for Sterling vs the Euro but ultimately I think the market will mainly be moved by whatever happens with the Brexit discussions so make sure you’re prepared for any eventuality.

If you’re in the process of either buying or selling Euros and would like to be kept updated with what is happening over the next few days then contact me directly for a free quote.

Having worked for one of the UK’s leading currency brokers since 2003 I am confident not only of being able to offer you better exchange rates than using your own bank but also help you with the timing of your trade.

Contact me directly Tom Holian teh@currencies.co.uk and I look forward to hearing from you.

The impact of exchange rates when selling a property in Europe (Tom Holian)

If you’re in the process of selling a property abroad the chances are that you’re doing research about how to save money when selling Euros to buy Pounds.

We have seen the Pound come under a lot of pressure since June 2016 when the UK voted with a majority to leave the European Union and although the Pound has been improving recently the gains could be very short lived.

The next EU summit is due to take place next Thursday and Friday and up for discussion will be the Irish border issue as well as trying to kick start the trade negotiations.

At the moment the Irish border issue is clearly far from being sorted and I think unless this gets resolved by next week the Pound could face some real problems next week as the trade talks could stall making the whole meeting almost rather pointless.

The UK announces both Industrial and Manufacturing data in the morning so this could cause some short term movements tomorrow and as we go into the afternoon the latest NIESR GDP data is announced for the last three months.

Although these are not the official figures they are usually very accurate and therefore could be an indicator as to which way GBPEUR exchange rates will move towards the end of the week.

Many of my clients who are buying or selling a house in Europe have been buying forward contracts recently in order to avoid the uncertainty as to where exchange rates could be by the time completion comes around.

This involves paying a small deposit with the balance to be paid at a later stage to guarantee an exchange rate.

If you need to make a currency transfer over the next few days or weeks and would like further information or a free quote when buying or selling currency then feel free to get in touch.

Having worked in the foreign exchange industry since 2003 I am confident of not only being able to offer you bank beating exchange rates but also help you with the timing of your currency transfer.

To find out more contact me directly Tom Holian teh@currencies.co.uk

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

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

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

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

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

I would recommend emailing me with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

What can we expect in the coming weeks on GBPEUR?

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

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

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

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

Will rates on GBPEUR can we expect in December?

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

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

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

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

If you have a transfer to make buying or selling Euros and pounds and wish for the best rates and some of the latest news and market insight, please don’t hesitate to speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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

Brexit negotiations to dominate Sterling vs Euro exchange rates (Tom Holian)

Brexit talks are again set to dominate Sterling Euro exchange rates as Prime Minister Theresa May has been told that she has a fortnight before she has to add more money to the pot if she wants talks to progress between the UK and the EU.

EU Council President Donald Tusk is preparing to take things forward but he has said that he wants the UK to move forward on the issue of the divorce bill as well as the Irish border.

At the moment the ‘divorce bill’ is still yet to be decided and this needs to see further progress before the next official summit due to take place on 14th December.

Tusk is due to meet with Theresa May next week but things are likely to stall at least until next year if things don’t get resolved during the next two weeks.

As we go into next week all eyes will be focused on next Wednesday’s Autumn Statement. The Chancellor Philip Hammond could face a lot of pressure from Tory Euro skeptics to be bullish about the Brexit so it will be interesting to see what plans he has for tax cuts and plans to encourage spending.

Hammond has been relatively cautious so far so further evidence of this could cause a lot of movement for Sterling vs the Euro during the middle of next week so make sure you keep a close eye out on the markets and the impact of the Autumn Statement and ongoing Brexit saga.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me with details of your requirement and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

Brexit Date and UK Economic Data – Pound vs Euro rates (Tom Holian)

Prime Minister Theresa May has set out guidelines for the UK’s date and time to leave the EU in law and claiming that she will not ‘tolerate’ any potential plans to block the Brexit.

May has claimed that the EU Withdrawal Bill will be formally changed on Friday 29th March 2019 and as we are already almost 6 months into the discussions this is a clear line in the sand by Theresa May.

This means that the government are absolutely committed to pushing through Brexit but she will still have to get it through a number of attempts to pass it via parliament.

There are still a number of opponents to the Bill but it looks at though there is at least an attempt to provide the markets with certainty.

Turning the focus back to the UK economy we have a lot of economic data due out during the course of the day starting with UK Manufacturing & Industrial Production data due out at 930am this morning.

This will be followed later this afternoon with the latest NIESR GDP estimate for the last three months.

The UK has been going through a mixed period with economic data so keep a close eye on the data releases over the next few hours.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

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

Interest Rate hike by the BOE a knee jerk reaction

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

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

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

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

 

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

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

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

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

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

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

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

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

Brexit Talks, Inflation and European Union Summit – Impact on GBPEUR exchange rates (Tom Holian)

Pound vs Euro exchange rates have remained range bound during today’s trading session in anticipation of what could be a huge day on the currency markets tomorrow.

Both UK inflation and Eurozone inflation is due to be released tomorrow morning and this could cause big movements for GBPEUR exchange rates.

The reason for Sterling’s gains back in September was the rumours that the Bank of England may be considering hiking interest rates and so if inflation comes out high this could cause Sterling strength vs the Euro but if we see inflation falling I expect to see the Pound drop against the single currency as it means the BoE will be less likely to consider raising rates on November 2nd.

UK unemployment figures are due on Wednesday and like with the inflation data this could cause volatility on the markets.

To end the week the European Union will be holding a summit which will include the topic of Brexit and any trade deals that could be proposed between the continent and the UK so overall a busy end to the week for Sterling vs Euro exchange rates.

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.

Political Uncertainty weighs down the Pound (Daniel Johnson)

Lack of Faith in May as PM

There is little economic data of consequence this week from the UK.  Although data releases have the power to influence the exchange the core issues behind Sterling weakness against the Euro is the uncertainty surrounding Brexit and the lack of stability within the government.

Theresa May’s position as prime minister is coming under increasing pressure with members of her own party showing a lack of confidence in her ability to continue as PM. Former conservative party chairman, Grant Shapps has suggested that there are around thirty MPs who are of the opinion May should step down. There have been calls for a leadership election. During times of political uncertainty the currency in question historically weakens and this is what we are witnessing at present. This also raises the question of how we are going to negotiate Brexit, one of the biggest events for the UK in the last fifty years when the government is complete disarray.

Catalan independence could give some respite for Sterling

The referendum for Catalan’s separation from Spain is being deemed as illegal by the Spanish government. The result from the referendum show a clear victory for those who wish independence, this however has to be taken with a pinch of salt as many did not vote. Many Spanish unionists gathered in Barcelona to demonstrate against Catalan’s separation from Spain. Catalan leader Charles Puigdemont is due to meet parliament today to give credence to the referendum. There could be fireworks which could create Euro weakness.

Strong Eurozone Data could warrant tapering QE

We have seen positive economic data spread geographically and across industry sectors. We are seeing sustained growth from the Eurozone something which hasn’t happened in the past. If this continues we could well see the the ECB make a change to the current QE programming. Quantitative Easing is pumping money into an economy in order to stimulate growth. The ECB are currently adding €60bn a month into to the economy, if this tapered expect the Euro to strengthen significantly.

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

 

 

GBP/EUR hits a 10-week high, but will the Pound manage to hold on to its recent gains? (Joseph Wright)

The Pound has risen quite dramatically against the Euro in recent weeks, with the pair hitting 1.14 both yesterday as well as this morning which is a 10-week high point for the pair.

Brexit uncertainty appears to have taken a back seat for now, which has seen GBP/EUR rise over 6 cents in recent weeks making the exchanging of Pounds into Euros a more attractive proposition.

The Pounds gains have been aided by a weakening Euro which has mostly been caused by the German election which took place over the past weekend. Although Angela Merkel’s Christian Democratic Union (CDU) party won for a forth consecutive term as expected, the talking point of the election is the rise of the far-right Alternative for Germany (AfD) party as they were the third best performing party.

This has softened the Euro and with the unofficial Catalan election in Spain also just around the corner and threatening to cause tensions in the region I think there’s a chance we could see the Pound continue to climb.

On Friday there will be the release of UK GDP data which could provide the Pound with a boost if the figure released is better than expected. The release comes out at 9.30am and the expectation is for 1.7% year on year and 0.3% for the 2nd quarter of this year.

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

Be wary of recent gains for the pound over the Euro, they may not continue. (Daniel Johnson)

Potential Rate hike based on misinterpretation of data

Despite Sterling moving above 1.14 this morning against the Euro be wary of thinking a resurgence on the cards. The main catalyst for Sterling strength is the market factoring in a potential interest rate  rate hike. Mark Carney, the head of the Bank of England recently stated there may be the need for a rate hike in the coming months which drove investor confidence and caused the pound to strengthen. This is a technique call jawboning, a technique Carney has used in the past during his role at the Bank of Canada. Essentially rather than making any changes to monetary policy you talk up the value of the currency. This is one of the rare occasions the technique worked. Keep in mind those who actually vote on a change in rates, the monetary policy committee (MPC) voted 7-2 in favour of keeping rates on hold.

The justification behind the potential rate hike is high inflation and low unemployment. High inflation is only healthy for an economy if average wage growth keeps in pace with inflation, at present it isn’t, it actually fell to 2.1%. Unemployment figures are at the best levels since the 70s, but a large contribution to this is down to zero hour contracts. My opinion is the reasoning behind a hike is false, but investors are biting with a 50% chance of a hike in November and a hike factored in by February next year.

The uncertainty surrounding Brexit is still a major concern and if negotiations are not going well, the pound could fall considerable. May’s opportunity to provide clarity on Friday was not taken and at one point she stated “no deal is better than a bad deal.”

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

Will the Pound continue to make gains vs the Euro and the Bank of England (Tom Holian)

The Pound has hit its best level to buy Euros since early August as the UK has announced two positive things this week.

Early on Tuesday morning the EU Repeal Bill was approved by every single Conservative member which showed that Theresa May is now moving closer towards a ‘strong and stable government.’

We also had UK inflation which came out at 2.9% hitting a 5 year high which has led to the Pound making gains against the single currency.

With inflation rising this will put a bit of pressure on the Bank of England to think about what to do with interest rates going forward.

The expectation is for rates to go up in 2019 so with a meeting today any talk of a rate hike being brought forward could see the Pound rising against the Euro later on today.

With Germany set to go to the polls in the next two weeks we could see a bit of volatility coming for GBPEUR rates but if Merkel wins again which appears very likely this could see the Euro fight back.

Therefore, if you’re thinking about buying Euros it may be worth getting this organised in the next fortnight.

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.

 

Inflation data gives the pound a boost (Daniel Johnson)

CPI data increases the chances of a rate hike from the BOE

GBP/EUR now sits above 1.11, the best levels of exchange for over a month for euro buyers.  The catalyst for the rise in the pound was Consumer Price Index (CPI) data. CPI is a measure of inflation, if provides a comparison in price changes on goods and services. Inflation is a major concern for the UK and is a direct result of Brexit. The uncertainty surrounding Brexit has weakened the pound considerably. Pre-referendum announcement GBP/EUR sat at 1.42.

With imports now becoming far more expensive businesses are raising prices to consumers. In order for consumers to continue spending average wage growth needs to be increasing at a similar pace to inflation, at present it is not, currently sitting at 1.8%. New wage data is released this morning at 9.30.

Inflation showed an increase yesterday above expectations to 2.9%. The pound benefited as a result. This is due to rumours the Bank of England could consider a rate hike if inflation continues to rise. I am of the opinion a change in monetary policy is not the solution. In order for inflation to fall we need a stable government and clarity over the big issues in Brexit, namely trade and the freedom of movement of people.

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.

 

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.

Euro Rates Before ECB Meeting

GBP EUR exchange rates look set for a roller coaster today tomorrow with two major events. The UK sees a debate in parliament over the Great Repeal Bill which will discuss the movement of EU law into British law to hopefully avoid any disaster scenarios. The issue for the British government is that there is only a very small working majority so any renegade conservatives who are not prepared to vote with the bill could create major problems for government.

Labour have already made clear that they will try and vote down the bill which in my view would create additional uncertainty although the general feeling is that the bill will go through.

The European Central Bank also meet tomorrow which could see major market volatility. The markets will be listening out for any words that suggest the central bank will look to taper its Quantitative Easing programme. The last few meetings have seen considerable market volatility to the extent that Mario Draghi has had to issue statements effectively saying the markets had misinterpreted what he had said. Any suggestion of tapering could see the Euro strengthen very quickly although the recent strength of the Euro could mean the ECB pauses until the next meeting.

Those clients with a Euro requirement either buying Euros or selling Euros would be wise to get in touch tomorrow morning to look at the options available to try and take advantage of any spikes which occur. The key here is to be proactive and have things set up ready if there is a big jump higher.

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