Tag Archives: Buying Euros

Could interest rates be going up this year and the impact on the Pound vs the Euro

The Pound has experienced a good period this week when many expected it to come under a huge amount of pressure caused by the farce of the EU Withdrawal Bill discussions.

We saw members of the SNP walk out on the talks and typically the instability would have caused the Pound to suffer but it appeared as though everyone was waiting for UK Retail Sales as well as the latest ECB meeting.

On Thursday UK Retail Sales came out much better than expected compared to the estimate and this led to the Pound starting the day off very positively against the Euro.

However, the main improvements came from the announcements made by the European Central Bank who confirmed that they would be ending their QE Programme at the end of the year.

The Euro fell on the news as the ECB also cut its growth forecast for this year and suggested that any interest rate hike would not be coming for a very long time and this has encouraged a big sell off for the Euro particularly against the Pound.

Indeed, GBPEUR exchange rates had their biggest positive daily movement all year on Thursday.

Next week the main day to influence GBPEUR exchange rates is likely to come on Thursday when the Bank of England hold their next monetary policy meeting.

The split last month was 7-2 in favour of keeping interest rates on hold and with Retail Sales suprising the markets this could provide some support in favour of a rate hike coming earlier than the market currently expects.

Therefore, if you’re in the process of buying Euros in the short term then keep a close eye out on Thursday as this could cause a lot of movement for the Pound vs the Euro.

If you would like to save money when buying or selling Euros compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Tom holian teh@currencies.co.uk

 

The Pound remains fragile (Daniel Johnson)

GBP/EUR – Sterling remains weak and it is the same old story. Brexit uncertainty. Top of the agenda is the Irish border deal, which is proving to be a point of contention. There seems to be little progress and talks could be elongated. There has been attempts to put a back stop plan in place, but even this is proving troublesome.

Ideally the UK government would like to have a back stop deal ready for the EU summit due to commence on 28th June. I am of the opinion bar unforeseen circumstances in order for GBP/EUR to exceed 1.16 there needs to be major progress in Brexit. GBP/EUR has been range bound between 1.12-1.1599 for over 12 months. 1.15 seems to be a point of resistance with anything above 1.15 only available for small windows of opportunity.

Yesterday we saw the release of UK manufacturing data came in down 1.4%, the largest fall since October 2012. Trade balance data showed a widening deficit which was another negative factor. GDP was up from 0.1% to 0.2%, but this was still below expectations of 0.3%.

There are still rumours of a possible rate hike this year from the Bank of England (BOE), but in this climate I find little justification to do so.

There is the European Central Bank (ECB) meeting on Thursday and it is anticipated that there will an announcement on a cut in Quantitative Easing (QE) or indeed that t could be cut completely. I am not so convinced, but this is definitely on the cards and if it does not happen now it could happen later in the year. This has the potential to cause substantial Euro strength.

If you are buying Euros short term I would not be aiming for much higher than 1.1430.

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.

EU withdrawal bill to dominate Sterling Euro rates next week

The Pound has remained in a relatively tight range against the Euro during the course of this week as the markets appears to be adopting a wait and see approach with next week’s EU withdrawal bill discussion.

Only recently the House of Lords voted against a number of terms in the bill and this will be debated on Tuesday and Wednesday next week. The main aim of the talks will be what happens to the Northern Ireland and Republic of Ireland issue as well as aiming to repeal the original European Communities Act of 1972.

The government are keen to get things resolved prior to the next meeting with the EU when the summit takes place on 28th June as the UK is keen to get things organised for once we officially leave the European Union.

The proposal is that on the day when we do leave, the UK will adopt all EU law otherwise things could be rather chaotic to say the least.

As we look forward to next week there are a number of economic data releases due out in the UK. On Tuesday morning UK average earnings as well as unemployment data is due out and both have been rather positive lately so this could provide a boost for the Pound.

However, the EU withdrawal bill is likely to dominate the Pound during next week so even if the data is positive I think any gains for Sterling vs the Euro will be limited.

If you would like to save money when transferring Euros compared to using your own bank then contact me directly and I look forward to hearing from you. With 15 years of experience at one of the UK’s leading currency brokers I am confident that I can also help you with the timing of your currency purchase.

Tom Holian teh@currencies.co.uk

GBP Exchange Rates in Politically Driven Week

The pound is set for a hugely volatile week as the House of Commons Brexit withdrawal vote approaches next Tuesday. The pressure is now very much on Prime Minister Theresa May who will be meeting Brexit ministers today to discuss the final arrangements for a backstop plan. This proposal has been very controversial within cabinet with a public clash between Brexit secretary David Davis and Theresa May. If no agreement can be reached today then this could prove problematic for sterling exchange rates with the pound likely to come under further pressure.This of course is all ahead of the voter next week which will see 15 amendments from the House of Lords voted on. If the government is defeated on a number of these votes then this could freeze the Brexit process and delay things which in my view would be negative for the pound due to more uncertainty both politically and economically.

Clients looking to buy or sell Euros are likely to see a very volatile period on the back of any developments and should consider their options at this stage. Rates for buying Euros are very close to the recent 1 year highs seen a couple of months ago.

European Central Bank members Praet, Hansson and Knot will be meeting this week and are likely to offer forward guidance. Any clues here as to when the ECB will conclude its asset purchasing scheme are likely to see the Euro react. If the Quantitative Easing programme is stopped in its entirety then the Euro is likely to strengthen on renewed confidence. However any suggestion that the tapering of the scheme could be extended is likely to result in Euro weakness.

EU GDP data is released this morning and could be one to watch. Any pick up in the numbers today could also prove Euro positive.

Fore assistance in making transfers and how to maximise on the rates of exchange when they happen then please get in touch with me at jll@currencies.co.uk

Euro strengthens as ECB board member drops hint

We’ve seen the Euro strengthen during today’s trading session, as a member of the European Central Bank has dropped a hint regarding next week’s June ECB meeting.

The ECB’s Peter Praet has given us a strong hint during a speech in Berlin that next weeks meeting could see the ECB signal the end of their assett-purchasing programme. Some economists are expecting to see September as the cut off point which is actually an shorter time frame than initially expected. Personally, I’m expecting to see the Euro strengthen further if this announcement is made, especially after seeing the Euro react positively in the wake of Praet’s comments today in Berlin.

After some weak data releases recently and the Euro’s poor performance, the bullish comments today are a welcome change for Euro sellers as the Euro has been under pressure for a while now.

One downside for the Euro is the current political situation in Italy, and it could determine whether the ECB decides to amend their programme. The government that’s been formed through the coalition of Lega and 5 star movement is considered Eurosceptic and thrifty, and this has concerned the markets may cause the ECB to delay any key decisions.

If you would like to be updated in the event of a major move for the markets, do feel free to register your interest with me. Next week’s meeting will take place on Thursday at lunchtime, so our readers have plenty of time to get in touch and plan around this event.

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

GBP/EUR hits 1.15 (Daniel Johnson)

Draghi hints at prolonged QE

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

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

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

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

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

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

GBPEUR plummets due to Mark Carney

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

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

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

For further information in regards to GBPEUR currency transfers feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

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

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

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

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

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

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

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

Sterling to Euro rate now sitting comfortably above 1.15, is a move closer to 1.20 now likely?

Yesterday GBP/EUR broke through 1.15 once again, although this time the pair have consolidated above this previous resistance level meaning that the pair are now trading in new territory.

Since the transitional agreement was agreed between the UK and EU negotiators sentiment surrounding the UK economy moving forward has improved, and this is behind much of the Pound’s recent gains. The Euro has also been coming under pressure as inflation levels within Europe aren’t quite as high as the ECB had hoped before cutting back on its asset purchasing program. Global concerns surrounding tensions in Syria and potential clash between the US and Russia are also impacting the Euros value due to the effects on the regions economy.

The interest rate hike next month is now almost a certainty and talk of whether the BoE will raise interest rates later in the year is now beginning to impact the rates, so if you’re planning on making a transfer soon do bear this in mind.

As the year continues I would expect Brexit related news to continue to impact the Pound’s value. The final Brexit agreement needs to be approved by the European Council and across all parliaments in the EU before it becomes official so I expect to see this topic continue to carry potential to move GBP exchange rates quite drastically.

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.

Could the Pound break 1.15 against the Euro? (Tom Holian)

The Pound has been performing well of late against the Euro and has briefly touched 1.15 during March and I expect to see it break past that resistance level during the course of this month.

The EU transitional deal appears to have been agreed and although the Irish border issue still remains unresolved I think we could still see the Pound make further gains against the Euro.

UK Services PMI data is due out at 930am this morning with the expectation for 50.8 so any deviation could cause movement for GBPEUR exchange rates.

Indeed, if the data is positive I think this could see the market break past 1.15 later today.

The political problems in Italy appear to also be holding back the Euro from making any gains vs Sterling. Yesterday, the Eurozone unemployment level dropped to its lowest level in 9 years and with Eurozone inflation rising this could provide support to the European Central Bank to consider ending their QE programme later this year.

In theory this would usually strengthen the single currency but it did not have the expected effect which suggests to me that the political uncertainty in Italy is causing the Euro to wobble.

At the moment the Five Star Movement and the Lega Party have still not yet concluded the talks so Italy remains in a hung parliament which is never a positive for the currency involved.

Having worked in the foreign exchange industry for 15 years I am confident of being able to offer you both bank beating exchange rates as well as helping you with the timing of your currency transfer.

For further information or a free quote then please send me an email detailing your requirement and I can look at proposing a strategy for you when buying or selling Euros.

I look forward to hearing from you

Tom Holian teh@currencies.co.uk

 

Which data releases could influence the GBP/EUR rate this week? (Joseph Wright)

The Pound to Euro exchange rate has so far managed to hold onto its recent gains and remain trading above the 1.14 mark. This suggests to me that market sentiment surrounding the Pound has improved as previously this was the top end of the current trend and GBP/EUR would usually struggle to hold its ground at these levels.

The pair did reach 1.15 at one stage recently after news broke that the Brexit transitional deal had been arranged, much to the joys of the financial markets. This matter had been a concern previously and limited the upside for the Pound, so understandably Sterling spiked upward in the wake of the news.

Sterling has also been boosted after the Bank of England has hinted at raising interest rates in May of this year, meaning that the monetary policy of the BoE is likely to be more aggressive than many had initially expected. The pick up in wage growth has also increased these chances as wage growth begins to align with the increasing inflation levels.

Later this week there will be PMI releases covering a number of sectors within the UK, all of which are expected to show slowdowns. If you have an upcoming currency requirement involving the GBP/EUR pair, it may be wise looking into the current trade levels in case the PMI releases are worse than expected. They offer us forward looking insight into market sentiments so a gloomy outlook could result in a weaker Pound.

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 further this week?

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

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

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

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

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you anytime and assisting in the future.

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

GBPEUR hits fresh highs!

The pound to Euro rate has risen to some of the highest levels since the May 2017 General Election. This was the last time GBPEUR was trading at the highs we witnessed today, if you have a transfer buying Euros with pounds then making plans around the current market sentiment is a wise move as the enthusiasm over sterling will probably subside quickly.

The pound is doing better against the Euro already on the positive expectations which have been in place for the last few weeks with the best levels now being realised. With the market looking very strong for the pound the prospect for the rate to keep rising higher is probably limited now.

If you have a transfer buying Euros with pounds it is now worth remembering just how fragile positive news can be on the currency markets and how strong the Euro has been in recent weeks. General impressions for the pound against the Euro are also linked to what is happening on the US dollar. The market has been happy to buy up the pounds this week but those sentiments can quickly change next week with more data due.

If you need to buy the Euro with the pound I would consider making plans around the latest news today and considering what your target is. Tomorrow sees the latest UK GDP (Gross Domestic Product) news from the UK, much of the important news has already been released today and this week which might mean a less volatile week.

Nevertheless, it is well worth getting any plans to buy Euros well in place in advance to make sure you don’t miss out on the spikes. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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

The French cause unrest in Brexit Talks (Daniel Johnson)

Concerns over UK Financial Sector could weigh on Sterling

The French are making things difficult for the UK in Brexit talks. French Economy Minister, Bruno Le Maire has stated there is very little chance of Britain securing a free trade deal for the financial services that would provide the level of access the UK seeks. Le Maire said the UK would have to use a legal mechanism known as equivalence. Equivalence allows countries outside the EU limited access to the single market, controlled by Brussels, access can be revoked at any time which would certainly not sit well with large financial firms. Indeed Goldman Sachs has already started moving UK employees to Frankfurt due to the uncertainty surrounding Brexit.

May’s call for a mutual recognition system which would still give UK financial services access to the single market has already been rejected. Single Market access for financial services is one of the most important points of negotiation in the Brexit process and this could be a major stumbling block. The financial services sector is the UK’s biggest form of tax income.

France’s thinly veiled ploy to turn Paris into the new focal point of financial services is causing real trouble for the UK economy and the Pound as a result.

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.

ECB tomorrow the major news on the Euro!

The Euro is benefiting from improved certainty from the political situation in the Germany and stronger economic news for the Eurozone. Political and economic factors are encouraging investors to increase their holdings of the Euro as there is a belief the currency will only improve in the future. Tomorrow is a key economic event from the ECB (European Central Bank) which could see volatility on the Euro.

It is quite surprising the Euro did not come unstuck following the Italian election, the lack of clarity over the final outcome from the result could easily have seen the Euro losing value. Despite anti-establishment parties gaining over 50% of the vote the single currency has held its own. Whilst the Italian news is concerning, the other factors mentioned above, political strength from Germany and good economic news across the whole Eurozone region, have all seen the Euro stronger.

If you need to or wish to look at any currency transfers buying or selling Euros then understanding these events can help to make an informed choice about when to enter the market. The ECB decision on interest rates tomorrow and Press Conference that follows could really help you to achieve a better deal for both buyers and sellers, depending on what happens. Personally, I would not be surprised to see the Euro stronger but often any movements on such events are quick and catching these ‘spikes’ requires a bit of planning.

For more information about securing an exchange rate at the best ‘time’, why not get in touch with us to learn more. We can offer a safe, secure system to transfer money internationally at the very best rates of exchange. Please contact myself Jonathan Watson on jmw@currencies.co.uk.

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

Sterling drops as Brexit talks take centre stage, will GBP/EUR drop below 1.12? (Joseph Wright)

The Pound to Euro exchange rate has dropped this afternoon, as its emerged that draft guidelines on a trade agreement between Britain and the EU are published on Wednesday.

Donald Tusk, the chairman of EU leaders was in London to discuss the Brexit negotiations with UK Prime Minister, Theresa May recently. It will be him that presents the draft guidelines tomorrow so those interested in how the GBP/EUR rate is performing should be aware of this.

In the morning there will be GDP figures released out of the EU which also hold the potential to move markets. 0.6% is expected on a quarterly basis and 2.7% annually so expect any deviations from these figures to result in movement for the pair.

Then on Thursday at 12.45pm the ECB (European Central Bank) interest rate decision will be announced. No change is expected but those monitoring the rates should follow the statement at 1.30pm as any reference to future monetary policy may result in movement for the GBP/EUR pair.

It’s data this that can move the markets and a bout of poor data for the Pound is likely to see the Pound dip into the 1.11’s and consolidate there. The rate has dipped into the 1.11’s at times today so those with plans involving the pair should be aware of this.

If you would like to register your interest with me due to planning an upcoming currency transfer, 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 Rates before Theresa May Speech (James Lovick)

The pound continues to see a volatile period this week ahead of a key speech from UK Prime Minister Theresa May this Friday. GBP EUR is currently sitting just below the 1.14 level and not far off that recent 9 month high seen for the pair presenting some of the best levels seen for buying Euros. Politics in the UK will have a huge bearing on the direction of the pound from here on and Theresa May’s speech is likely to be the trigger for this. After the cabinet meeting at Chequers last week it has been reported that there is some unity between members and may help pave the way forward with Brexit.

Clients looking to buy or sell Euros should keep a close eye on the speech as there is likely to be high volatility on the back of it. If more details emerge as to the future path of Brexit and the approach is viable from all sides then the pound could see a sizeable jump higher. Much will of course depend on how well the EU side in this negotiation receive the speech and if it is immediately discredited then the pound could fall in this scenario. There could be an excellent opportunity to secure funds after the speech so do get in touch to position yourself ready.

European Central Bank President Mario Draghi has been speaking this week and remains of the view that the outlook for the EU is positive. However on the political front there is likely to be a volatile weekend ahead. The Italian election taking place on Sunday is potentially going to see a rise of more right wing parties including the 5-Star Movement. The anti-establishment party is leading in the polls and could create some issues for the European Union. More details about the proposed grand coalition in Germany are also expected to be announced on Sunday.

To discuss the pound and the Euro and how to achieve the most of market movements then please get in touch with me James at jll@currencies.co.uk

Brexit Talks continue to dictate Sterling levels (Daniel Johnson)

Points of Contention could lengthen Brexit talks

Brexit talks will be the main factor in Sterling value for the foreseeable future. The European Council has said that Brexit talks between Britain and the EU have moved on sufficiently to begin the new phase of negotiations.
A definitive withdrawal arrangement must include the terms in the transition stage and also a policy statement setting out the framework for the future trade relationship between the EU and Britain.
The EU would like a framework similar to the trade agreement with Canada which also goes along with Britain’s desire to exit the single market. The UK would also like to have the services sector included into any trade agreement.

There are points of contention, however. Michel Barnier, Chief EU Negotiator has warned that a transitional deal is “not a given”. Barnier also said that the EU and Britain are struggling to agree on several points of the deal. The March deadline is in place to provide much needed clarity to the public.
The main issues are the lifetime rights of residency to EU citizens who arrive in the UK following Brexit , but before 2021 and having to agree to new laws from Brussels with the UK having to accept these laws with no power to negotiate.
I am not of the opinion talks will run through smoothly and this has the potential to create weakness for the Pound. We may see short term gains when Theresa May speaks with Angela Merkel later today. Merkel has been forthcoming recently in regards to getting a deal in place with the UK.

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.

 

Major swings for GBPEUR exchanges rates

Today GBPEUR exchange rates have been up and down like a roller-coaster. At midday the Bank of England released their last interest rate decision which provided a fantastic window for clients that were purchasing euros. GBPEUR central levels of exchagne reached 1.1450 as the Bank of England hinted an interest rate hike is on the horizon.

The reason for the change in stance comes down to the quarterly inflation report suggesting wage growth numbers which improved last month, will continue to improve throughout 2018. Furthermore the Bank of England announced a recent survey showed private sector companies believe they will be paying their staff an additional 3.1% by this time next year.

Also in the inflation report, the Bank of England are suggesting that the worrying inflation levels will continue to decline back towards the 2% target. Their reasoning is that they believe the pound will receive a boost throughout the year, making goods and services cheaper followed by at least 1 interest rate hike within the year. Mark Carney the Governor of the Bank of England also helped the value of the pound by suggesting the jobs market will remain strong with unemployment remaining at a four decade low.

However investors have sold off the pound this afternoon looking for higher returns, which has meant the pound has fallen back below 1.14.

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 Monday morning 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.

GBP EUR Falls Lower as Brexit Discussions Resume

The pound has fallen further today against the Euro with rates falling to a low of 1.1219 before picking up some lost ground in afternoon trade.
The driver for the weakness in the pound is largely as a result of Brexit uncertainty and this week holds a number of important government cabinet meetings which could provide more clues as to where Brexit is heading.

The Brexit negotiations which have resumed this week haven’t started on a particularly optimistic outlook with question marks surrounding the single market and whether or not Britain will have access to it. The other sizeable issue of course is whether UK financial services will be included in any deal and considering services represents 80% of the British economy.

We are likely to see a lot of volatility for GBP EUR as developments unfold surround the terms of any deal. The prospect of a no deal scenario is also a worry for those clients holding sterling who are looking at buying Euros. Those clients who need to sell Euros would be wise to get in touch and consider taking advantage of the recent fall in the price of sterling against the Euro.

Focus now moves to the Bank of England interest rate decision on Thursday which could result in an even more volatile end to the week. Any positive noises from Mark Carney or any suggestion that interest rates will in fact rise later this year could help see the pound rally although my view is that Mark Carney will be relatively tight lipped at this meeting. Any discussion on Brexit however could see market volatility and this is a subject the Governor has been known to wade into.

To discuss how these key events this week are likely to impact on your own individual currency requirements then please feel free to get in touch with me at jll@currencies.co.uk