Tag Archives: buying sterling

Quiet end to the week for UK data releases, what could cause the GBP/EUR rate to move this week? (Joseph Wright)

Those hoping for better Pound to Euro exchange rates have taken a knock this morning after the much publicised Catalonian independence situation has cooled for the meantime.

Yesterday evening the Catalan President, Carles Puigdemont and other regional leaders signed a declaration of independence, but interestingly chose to suspend the move allowing some time to negotiate with Spain.

The situation had been under the microscope in recent weeks and was seen as a potential downside to the Euros value as political instability is often a reason for currency weakness, and I expect the cooling of this situation for now at least to take some pressure off of the Euro.

The Euro is up this morning against all major currency pairs, and at the time of writing the Euro to Pound rate is trading at its day highs.

There is little economic data out for the rest of this week that involves the UK economy directly, so I expect to see the GBP/EUR driven by sentiment or Eurozone specific data releases. The ECB president, Mario Draghi will be speaking tomorrow at 3.30pm so I expect markets to be glued to his comments as is normally the case when he speaks.

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.

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.

Sterling rises as negotiations begin, but will the Pound to Euro rate continue to climb as they continue? (Joseph Wright)

The Pound has edged up today against the Euro as well as against other major currency pairs, making the buying of oversea’s currencies a cheaper proposition than yesterday.

The reason behind the positive movements for the Pound can be put down to the latest updates regarding the Brexit process. It appears that the early stages of the Brexit negotiations are going quite well, which has boosted sentiment surrounding the UK economy moving forward and therefore the Pounds value.

I think that moving forward if the negotiations continue to go relatively smoothly, we can expect to see the Pound begin its recovery from its current levels, especially when when consider how the Pound is trading around historical lows against many currency pairs at the moment.

Against the Euro Sterling has lost around 5 cents over the past month or so, so there’s certainty scope for the currency to gain if things go to plan.

Next week Friday is likely to be once of the busiest days for GBPEUR as GDP data for the UK will be released around 9.30am. The expectations are for 2% annual growth so we’ll see how the currency performs in the wake of the news.

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.

Sterling to Euro rate continues to trade towards the lower end of its current range, will this trend continue? (Joseph Wright)

The Pound is continuing to come under pressure as we get closer to the election, especially as a number of prominent opinion polls this week have shown that the lead the Conservatives had is diminishing with some suggesting that they may not win a majority of seats required.

If the option polls are correct we could be looking at another Hung Parliament in the UK which I believe would push the Pound lower and probably back towards the 1.10 mark.

The current trend for the GBPEUR pair is between 1.1350 up to 1.1950 although a couple of times towards the back end of last year the rate did touch 1.10 twice before seeing support.

A steep drop for Sterling is in my opinion likely if a Hung Parliament is announced, and I don’t think that the current UK Prime Minister has done herself many favours this week by not attending the debates between the political rivals in the race for number 10.

If you would like to be kept up to date with the latest market updates do feel free to register your interest with me and I’ll be happy to keep you updated.

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.

Pound to Euro rate hits one-week low as Bank of England lowers growth forecast (Joseph Wright)

The Pound to Euro exchange rate has dropped to its lowest level in a week yesterday as data from the disappointed.

The Bank of England (BoE) slashed its growth forecast as yesterday’s quarterly inflation report confirmed that inflation levels within the UK will soon outstrip earnings growth. Sterling has dropped below 1.1850 this morning as the softening of the Pound continues although the currency is still towards the top of the current trading range.

Those considering a Sterling transfer should bear in mind that earlier this week analysts at Lloyds bank downgraded their GBP/EUR price target from 1.18 to 1.16 at the end of 2017. This level is below the Pounds current mid-market value, so it seems that some professionals expect the pound to fall as the year goes on.

I also think that if it surfaces that Brexit negotiations have begun badly, we could see a sell-off for the Pound as the setting up of new trade agreements is likely to be the governments priority as the UK enters a time of uncertainty. Now that economic data is playing a more prominent role in the value of the Pound it’s certainly worth paying a close eye on data releases as they’re impacting Sterling rates to a greater extent than last year when politics played a greater role.

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.

Pound to Euro rate drops in wake in Dutch election results, where to next for GBP/EUR? (Joseph Wright)

The Pound has continued to lose value against the Euro throughout the month, and despite making a few fight-backs the currency is now lodged below the 1.15 mark at the mid-market level.

Late last night it was announced that Dutch Prime Minister Mark Rutte won the most seats in the parliamentary election, and defeated far-right hopeful Gert Wilders who was predicted to put in a strong performance. Had Wilders of won more seats or put in a stronger performance I would have expected to see the Euro lose value on fears of his plans to remove the Netherlands from the EU, but the win for the current Prime Minister has eased these fears which has strengthened the Euro further.

The Euro had been boosted recently after the European Central Bank recently confirmed that they will be tapering the current quantitative easing programme due to signs of the economy improving.

Moving forward I think we could see the Euro gain even further as the Brexit begins, particularly if it becomes public that trade negotiations are going badly.

Later today there will be an interest rate decision from the Bank of England, and although no changes are expected it will be interesting to see what governor Mark Carney has to say regarding the UK economy.

If you are planning to make a currency exchange involving the Pound and the Euro, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Pound to Euro rate trades at a 7 week low, will today’s Spring Budget offer the Pound a boost? (Joseph Wright)

The Pound has lost value over the past few weeks, not just against the Euro but across the board of major currencies.

The reason behind the fall can be put down to the uncertainty as to when the UK will begin the Brexit process, and the situation is being made worse as the House of Lords continue to discuss the proposed bill and attempt to make amendments which is negatively impacting the Pound.

Today could be a busy day for GBP exchange rates as Philip Hammond will be going over the Spring Budget. No major changes are expected to the governments current spending plans but I do think a bullish outlook from the UK chancellor will offer the Pound some much needed support. GBP/EUR has lost almost 4 cents in value over the past few weeks after hitting its 2017 high off the back of Euro weakness.

The movements between the GBP/EUR pair in recent weeks may offer an insight into what we can expect between the pair throughout the year. With the Brexit likely to begin this month and a number of key political elections in the Eurozone this year, I think there could be a number of big moves between the pair throughout the year so do feel free to get in touch if you wish to be kept updated.

If you are planning to make a currency exchange involving the Pound and the Euro, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

A potential spike for GBPEUR exchange rates tomorrow? (Dayle Littlejohn)

With Brexit on the horizon it’s no surprise GBPEUR exchange rates have been falling in recent weeks. Within the last 14 days exchange rate have dropped 4 cents which means a €200,000 purchase is now £5,000 more expensive.

Tomorrow the UK Chancellor Phillip Hammond is set to address the public and give his latest budget. There is growing speculation that the chancellor could upgrade growth forecasts which could cause the pound to increase in value.

It was only earlier today that the Organisation for Economic Cooperation and Development (OECD) increased its forecast to 1.6% compared to 1% that was predicted last September.

For Euro buyers that are purchasing within the next 6 weeks, if the market does spike in your favor I would seriously consider taking advantage. Theresa May is set to trigger Article50 and start the process of leaving the EU within the next 3 weeks and I expect further falls once the Article is triggered.

Other data releases that will have a major impact on GBPEUR exchange rates this week is the ECB’s interest rate decision Thursday at 12:45 and UK Consumer inflation expectations released Friday at 9.30am.

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!

Will the prospect of a Marine Le Pen Presidential win in France boost the Pound’s value? (Joseph Wright)

Up until yesterday afternoon the GBP/EUR pair had struggled to break above the 1.18 mark, but yesterday Sterling surged all the way up to 1.19 at one stage after benefiting from a weakening Euro.

The Euro weakened across the board yesterday afternoon after far-right French Presidential candidate Marine Le Pen gained further traction in recent opinion polls, with the candidate now a realistic candidate for the Presidency after becoming a favourite.

Moving forward I expect her increase in popularity to weigh on the Euro’s value as she has previously outlined plans to withdraw France from the Eurozone. Moreover she has also suggested that France stops using the Euro and reinstates the French Franc. Should these plans materialise it would surely leave the door open for other Eurozone nations to follow suit which would be detrimental for the Euros value, and the potential of this taking place is already weighing on the Euros value.

Another reason the GBP/EUR exchange rate may see a boost is the UK economy has been posting some impressive economic figures, with the Bank of England hiking the UK’s growth prospects this year and next.

If you wish to be kept up to date with GBP/EUR exchange rates related news do feel free to register with us for updates.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Will February be a positive month for the Pound? (Joseph Wright)

The Pound has begun the day positively which could be an indication of how today will unfold, as there is a busy day on the cards for Sterling exchange rates.

Many have coined today ‘Super Thursday’ due to the volume of economic updates which could create volatility between GBP exchange rates. Although no interest rate change is expected the official outcome of the Bank of England’s voting members decision will be announced at 12.00 along with an update on the BoE’s current Quantitative Easing program.

Perhaps the most price sensitive time of the day will be at 12.30 this afternoon when Mark Carney, the governor of the Bank of England will be giving a speech.

Sentiment surrounding the Pound is positive at the moment as the UK economy continues to impress. Last week GDP figures released showed that the UK is the fastest growing economy within the G7 set of countries and the inauguration of Donald Trump has also boosted sentiment surrounding the UK economy and therefore, the Pound’s value.

If you wish to be kept up to date with the Pound’s price movements and potential key news that could move the markets, feel free to get in touch.

If you are planning to make a currency exchange involving the Pound and the Euro, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

GBP/EUR exchange rate now approaching 1.17, but will new Brexit fears weaken the Pound? (Joseph Wright)

Yesterday morning the Supreme Court delivered its verdict on whether or not the UK government require parliamentary approval before invoking Article 50, creating some large swings between the GBP/EUR exchange rate.

The Supreme Court decided to uphold the High Court’s decision, meaning that Theresa May will need to consult parliament before formally beginning the Brexit process. Many had expected this outcome to result in Sterling strength and initially the Pound did spike upward, but further complications soon weighed on the Pound causing it to drop.

Moving forward the Pound could continue to come under pressure as one of the key announcements yesterday was that the UK government does not need the permission of the UK’s devolved nations before invoking Article 50. Scottish First Minister, Nicola Sturgeon was quick to raise this point and suggested the need for another Scottish Independence referendum.

Sterling came under significant pressure during the last referendum on Scottish independence, and should the matter surface once again it’s likely we can expect to see the Pound soften in value due to further uncertainty on the horizon.

Outside of Brexit related news tomorrow morning could be eventful for Sterling exchange rates as UK GDP figures will be released at 9.30 am tomorrow morning, and the expectation is for a 0.5% through the 4th quarter of 2016.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

 

GBP/EUR Spikes to the high 1.16s (Daniel Johnson)

We have seen GBP/EUR hit the high 1.16s this afternoon following positive retail sales data. This is the best opportunity to buy Euros for a considerable time. Considering the uncertainty surrounding the majority of trade negotiations post-Brexit it may be wise to take advantage of current levels. The catalyst for the Spike occurred after Trump’s election, Theresa May played the smart move by not lambasting Trump during his campaign. Trump’s stance on trade negotiations differs to that of Obama as he is one of the few persons of power willing to be accommodating to the UK. This caused Sterling to spike, coupled with positive retail sales we have seen GBP/EUR move very close to 1.17.

With the UK  government now looking like they will have to vote on whether to invoke Article 50 and Nicola Sturgeon making her presence fault hinting that Scotland should have a say on Article 50 it looks as though an EU exit could be long and arduous which does not bode well for the pound.

If  you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is vital during such volatile  times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better nearly very competitors rate of exchange. You would also be looking as much as 4% in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.

Thin trading ranges continue for GBP/EUR as Danske Bank downgrade their forecast for the pair (Joseph Wright)

Today the Sterling to Euro exchange rate has traded within a very thin range of just 54 pips up to the point of writing.

With little major economic data releases today all eyes have been on ECB President Mario Draghi’s speech along with the governor of the Bank of England’s Mark Carney’s speech as well. Neither have impacted the pair which is a reflection of the current marketplace as the Pound seems to have consolidated below 1.20 now.

Some of the major news today came in the form of a Bank downgrade as opposed to the usual economic output release. Danske Bank, a major European bank based out of Copenhagen have actually increased their price forecast for the GBP/EUR pair over the long term, yet in the short term future they expect another drop down to levels as low as 1.08’s and another interest rate cut from the BoE down to 0.1% from the current 0.5%.

We have systems in place that can help clients lock in the current rate of exchange on an amount of money they may not yet have access to, like on a property sale for example. Our client’s just simply need to send us 10% of the total value they wish to secure at the current rate, and they can then send us the outstanding amount in anytime up to 1 year.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk and I will be more than happy to contact you personally to discuss the various options we have available to you.

The UK economy is performing better than expected since the ‘Brexit’ vote, with GBP/EUR likely to continue recovery (Joseph Wright)

Sterling exchange rates have posted another positive day across the board, with GBP/EUR now comfortably trading above 1.17 at the inter-bank level and with the day’s high hitting 1.17675.

After posting some better than expected Retail and Manufacturing figures recently, the post-brexit vote UK has once again demonstrated that it’s holding up better than expected as overnight the CBI’s most recent Service Sector Survey revealed that the volume of business is little unchanged over the quarter, and this isn’t expected to change anytime soon.

Employment numbers have also remained robust, and it’s also been noted that oversea’s investment in the UK is at record numbers.

These are all positive signs for the Pound moving forward, as a healthy economy is likely to result in a higher Pound. Whilst the Pound may continue to rise as it has been over the past week, Sterling sellers should also keep a close out out for a further interest rate cut which would likely wipe out the recent gains for the Pound (up from the 1.14’s and now in the 1.17’s).

Euro sellers on the other hand are looking at close to 3 year highs when it comes to value of the Euro. Anyone who plans to convert their Euros into Pounds and would like to discuss timings can feel free to get in touch with me on the details below. A number of our clients have benefited not just from our exchange rates (up to 3% more competitive when compared the high street banks) but also from our proactive approach, so it’s worth getting in touch for a quick discussion as it’s free to become a client.

 If you are planning to use GBP to buy a foreign currency, it’s worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Pound gains for a second day in a row, will this trend continue? (Joseph Wright)

The Pound has gained once again versus the Euro as well as a number of other major currencies today, as improved investor sentiment coupled with some better than expected Manufacturing Data has boosted the Pound.

In turns out that the weaker Pound, experienced since the electorate voted to leave the EU back on the 26th of June, has actually boosted the Manufacturing sector within the UK as exports have increased as demand for UK goods increases with their cheaper value.

The Industrial Trends survey within the UK came in better than analysts expectations and that helped an already upbeat Pound which has been coming off of it’s 52 week lows.

This upward spike may be one for Pound sellers to take advantage of as should the negativity resume I think we can expect to see the Pound decline below it’s current 52 week low of 1.1456. This low level is nowhere near the lows of 3-4 years ago so we’re not even close to uncharted territory, and if the Eurozone can put it’s bad debt issues to bed I see no reason as to why the current downtrend could resume.

If you would like to discuss a planned currency requirement you have to make soon or in future, do get in touch with me (Joseph) on jxw@currencies.co.uk with an outline of your requirements. Not only can I help you with the timing but our specialist currency exchange brokerage can offer exchange rates up to 4% better than what your bank can offer. We’re here to save you money on bank to bank transfers and have been in existence for 17 years. 

Sterling weakens ahead of today’s Bank of England Interest Rate Decision (Joseph Wright)

Today is likely to be the most volatile day of trading this week for Sterling exchange rates across the board, as at 12pm the Monetary Policy Committee (MPC) will announce their latest Interest Rate Decision.

This is an important announcement because an Interest Rate cut is expected within currency markets, and if the 9 voting members of the Bank of England’s Monetary Policy Committee decide to amend Interest Rates it will be the first time since May of 2009, so it the decision would be significant.

Mark Carney, the governor of the Bank of England has previously alluded to making the cut. He did this in the aftermath of the ‘Brexit’ decision that shocked the financial world. The MPC has already had one opportunity to cut rates and when they opted not to (8 votes to 1) the Pound did bounce upward across the board.

My predictions for today are as follows. Should the rate be cut down to 0.25% as expected today could be a non-event, with markets already pricing in the change. If rates are not cut I think we could see the Pound spike upward, perhaps even breaching the key current threshold of 1.20 vs the Euro. If rates are cut by more than 0.25% I’m expecting quite a drop for the Pound, so anyone making a currency conversion today or this week should bear in mind the importance of today’s decision and the potential movement within GBP/EUR exchange rates.

Feel free to get in contact with me (Joe) if you wish to discuss an upcoming currency exchange between GBP and EUR on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

GBP/EUR sell-off pauses momentarily with the pair finding support at 1.20, but for how long? (Joseph Wright)

The downward pressure on Sterling exchange rates was eased today as the Pound gained on most major currencies pairs, and now that the brunt of the downward pressure on the Pound seems to be over, I think we can access the impact on each pair and identify the new trading channels moving forward.

In the aftermath of the ‘Brexit’ announcement the Pound fell against the Euro faster than ever before, it was the biggest drop in 30 years and that indicates just how surprised the market was by the result. UK Prime Minister David Cameron resigning shortly afterwards added fuel to the fire creating further downward pressure on the Pound.

A key level for those with a GBP/EUR currency requirement is currently the 1.20 mark. It’s acting as a support level and each time the level is breached we’ve witnessed support for Sterling with GBPEUR bouncing upwards almost immediately.

I think if 1.20 is substantially breached, and this weeks GDP figures could be the catalyst for that on Thursday should they disappoint, then we will see another big selloff in the GBP/EUR exchange rate so it may be an idea for those considering a currency conversion between the pair to think about implementing a strategy around how best to trade the pair at present levels.

If you are planning a currency exchange between GBP and EUR, feel free to get in contact with me (Joseph Wright) on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

 

 

Is the bullish run for GBP exchange rates now coming to an end? (Joseph Wright)

Sterling exchange rates have had a poor start to May with a few exceptions, with GBPEUR now trading over 3 cents below the almost 3 month high of 1.2900 that it hit last month.

It would seem that the recent boost to Sterling exchange rates are now dwindling, which isn’t surprising considering we have the EU Referendum just around the corner and the upwards spike was quite surprising anyway.

Many within the marketplace had been expecting a slow gradual decline in Sterling’s value as we approach the EU Referendum on the 23rd of June. Political uncertainty usually drags down the value of the underlying currency and that’s why Sterling’s recent bounce came as a surprise to many, and the upwards bounce in the GBPEUR exchange rate was down to the most recent ‘Brexit’ polls pointing to a strong ‘Remain’ lead.

This swing within the polls was down to a number of world leaders such as Christine Lagarde, Barack Obama and Mark Carney all offering their support for the ‘Remain’ campaign and warning of the risks to the UK economy moving forward should the public opt to leave.

I think that those looking to convert GBP into another currency such as Euro’s should consider making that conversion sooner as opposed to later, as the polls could always change once again and it only takes one or two significant persons to lend their support to the ‘Leave’ campaign and we could see another swing like when Boris Johnson pledged his allegiance to the ‘Leave’ campaign.

If you have an upcoming currency requirement involving GBPEUR it may well be worth your time getting in contact with me (Joseph Wright) on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible. You can also call me directly on 01494 787 478.

Will GBPEUR drop even further now? Exchange Rate Predictions!

The pound to euro exchange rate keeps defying expectations having dropped nearly 20 cents since November. This massive slide is a result of continued uncertainty over the Brexit and quite frankly I am sure it is going to get worse. The pound lost serious ground in the run up to the recent General Elections (2010 and 2015) as well in the approach to the Scottish Referendum so it is very realistic we will see further ground lost. If you are planning on buying Euros in the coming months I would not be banking on any big improvements, I expect the rate to be trading at 1.20-1.25 for the rest of April, dropping to 1.17-1.25 for May and June’s ranges to be 1.15-1.30 depending on the outcome of the vote.

The Brexit is the biggest single worry to financial markets and this is why it is causing such upset for sterling. The Brexit fear is exacerbating existing fears and worries in the British economy  such as uncertainty over the UK’s negative Trade Balance and Current Account deficit. Basically the UK imports more from overseas than it exports to the rest of the world meaning the pound is sold more than it is bought in such transactions.

All in all the outlook for the pound is not good so if you need to buy euros with pounds making some plans now is very sensible. For more information at no cost or obligation please contact me Jonathan by emailing jmw@currencies.co.uk

Terrorist Attacks in Brussels Create Uncertainty for GBP/EUR

This mornings terror attacks in Brussels have created further uncertainty for GBP/EUR.  There is the question as to whether more may be on the way, in which case the market could become volatile. Which way the market moves will depend on where the attacks take place.

The EU Referendum is still the key factor in any GBP – EUR trade, there is a strong possibility of an exit and if this is the case the pound could  well plummet in value. HSBC have predicted if the UK were to leave the EU we can expect parity on GBP/EUR exchange rates.

Many of our clients are taking advantage of forward contracts to protect against such a fall. A Forward is essentially buy now pay later, which requires a 10% deposit. It is definitely worth considering if you have  a Euro requirement. If you have currency needs please feel free to get in touch, I will be able to make you a significant saving compared to your bank and I will be happy to provide a free quote. I can be contacted on (0044) (0)1494 787478 and ask for Daniel Johnson or e-mail me at dcj@currencies.co.uk. Thank you for reading my blog.