Tag Archives: Currency Exchange

Euro buying opportunity as Italian politics causes concern

The Euro has weakened as investors struggle to make sense of the latest news from Italy and their political situation as we wait to learn the latest coalition proposals. This has been directly linked to the latest news from the 5-Star party and also the far-right league who have both indicated that they are pursuing an agenda which does not conform to the current visions embodied by Merkel and Macron.

Aiming for deeper integration we have seen the Euro rising on the back of previously held views which believe the Eurozone is likely to grow close together and represent a more solid foundation for the future. This highly held view is now under threat as we begin to see a worrying picture emerging of political uncertainty which might create some concerns for future.

The Italian situation could easily spiral out of control as markets being to digest the latest news which is emerging of a government that does not correspond to the high expectations being placed on them. Any breakdown in talks or pursuit of policies which go against the current sentiments from the EU will ultimately lead to a concern for the markets that the Eurozone has some tough questions to answer on the politics front.

GBPEUR has nearly hit 1.15 this morning and EURUSD hit 1.17 today, these are excellent fresh opportunities which may not last if the current viewpoint suddenly deteriorates. If you have a transfer to consider in the future then making plans in advance is sensible to try and avoid the prospect of the market suddenly moving against you.

For more information at no cost or obligation please don’t hesitate to contact me Jonathan buy emailing jmw@currencies.co.uk

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

Has GBP/EUR already hit its 2018 high, and what factors could drive its value as the year progresses?

The Pound to Euro exchange rate is currently trading around the 1.14 mark, after seeing a slight boost yesterday off the back of some positive data.

After beginning yesterday’s trading session closer to the 1.13 mark the Pound was boosted when the Office of National Statistics (ONS) announced that UK unemployment sits at the record low of 4.2%, and that wage growth in the UK has outpaced the rate of inflation for the first time in a year.

Despite this positive data the Pound to Euro rate is still a couple of cents from its highest levels this year when the pair almost hit 1.16. The positive sentiment surrounding the Pound has since dropped off after the Bank of England voted against a rate hike at last weeks monetary policy meeting.

In order for GBP/EUR to hit a new 2018 high I think there will need to be a breakthrough regarding the final Brexit deal, as such positive news would likely push the Pound higher. I also think that if talk of a rate hike returns later in the year we could see a stronger Pound, especially if the European Central Bank (ECB) continue to hold off of raising interest rates this year.

For those following the pair, its worth noting that Morgan Stanley are predicting short term weakness in the Pounds value, before a longer term recovery as they believe the Pound is oversold and that this will continue in the short term future.

There is a lack of data out of the UK for the rest of the week, but this mornings inflation data from the Eurozone may influence exchange rates.

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.

GBPEUR remains range bound in the 1.13s

This morning the UK released their latest average earnings numbers and Europe released their latest GDP numbers and both economic data releases met the expectation. Due to there being no surprises GBPEUR exchange rates have remains fairly flat throughout the day. If anything the pound has made some minor gains against the euro and you could argue the fall in European production is the reasoning for this.

GBPEUR exchange rates have been gradually falling over the last 2 weeks since Governor of the Bank of England Mark Carney announced that the UK were unlikely to raise interest rates. With the central bank failing to hike last Thursday this story could have a major influence on the future of GBPEUR going forward.

UK economic data releases need to be watched closely if you are converting GBPEUR short term. Economic data for April was terrible, if we see a rebound now that the weather has changed the likelihood of a hike increases and therefore the pound should follow suit. However Brexit negotiations will also be a key driver for exchange rates.

UK Prime Minister Theresa May has warned Brexiteers today that she is not prepared for a no deal which would in turn create a hard border in Ireland. My opinion has not changed I would be extremely tempted to buy euros upfront as the Brexit story has the potential to crash the pound if the negotiations go horribly wrong.

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! **

GBP/EUR trading around a 6-week low, will the pair continue to fall?

The Pound has come under pressure once again today, not just compared to the Euro but across the board of major currencies. Those planning on making a large transfer from Pounds into Euros are seeing the cost of Euros become more expensive on almost a daily basis at the moment, and there are a number of reasons for this.

The financial markets had previously been pricing in an interest rate hike from the Bank of England, up to 0.75% which would be the highest rate since the UK exited the global recession almost 10-years ago. This rate hike is now looking a lot less likely after some disappointing GDP figures released lat week showed a slowdown in the UK economy. According to the preliminary GDP figures, the UK economy has slowed to its slowest level in 5-years and although much of this is being attributed to the terrible weather in the first quarter of this year.

At the same time Manufacturing data released this morning showed that the sector has dropped to a 17-month low. With the UK economy appearing to slowdown the chances of a rate hike have slipped and now Lloyd’s Bank are only expecting a 20% chance of the hike actually happening this month.

Tomorrow there is Construction data to be released and then on Thursday there will be Services data released, all out of the UK. Further weak data in my opinion is highly likely to result in a further sell-off of the Pound, so do feel free to register your interest with me if you would like to be notified should there be a major spike do feel free to get in touch.

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.

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! **

Will the GBP/EUR rate breach 1.16 this month, and what’s causing the Pound to gain in value?

Sterling has performed well once again today, gaining by almost half a percent against the Euro and almost hitting 1.16 at its highest point.

Sentiment surrounding the UK economy and the Pound’s value moving forward has been improving recently, as the economy and a number of important stumbling blocks have been passed. Hopes of an interest rate hike from the Bank of England next month have jumped to the extent that the hike is almost set in stone. The BoE has hinted on numerous occasions that the rate hike is on the cards so I actually think that the interest rate hike has already been priced in so I’m not expecting to see a jump in the rate if it actually takes place. The risk is perhaps more to the downside as if there is no hike I think the Pound will fall.

The Brexit transitional agreement has already been agreed which is another reason for the stronger Pound. Moving forward there is the issue surrounding the Northern Irish border and I think this may pose a threat to a stronger Pound as the year goes on.

This week there will be the release of wage growth for the UK. This is a key area as wage growth had lagged inflation but now it’s expected to overtake the inflation level and therefore firm up the BoE’s interest rate plans. If you would like to discuss this economic data release in more detail do feel free to get in touch.

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 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.

Will GBPEUR hit 1.20 this year?

The pound has risen against the Euro and we are now much closer to hitting the 1.20 level than we had been in recent months and really since the Brexit vote. Whilst the rate has been higher than where we are currently, it has been in the 1.19’s at times last February and just after the vote in 2016, the current conditions point towards improvements ahead.

This is down to the progress that is being made on Brexit plus the prospect of the Bank of England raising interest rates. This is being evidenced from the recent twists and turns on the Irish border which are expected to be completed by the end of June. The Irish Prime Minister has stated he wants this finalised by then which should trigger GBP strength once it happens.

Further hints of a deal being reached on a trade basis with the EU would also see the pound much higher in the coming weeks and months. This might take until the autumn but is a real possibility to trigger GBPEUR towards 1.20. The Bank of England might also be looking to raise interest rates or raise their forecast of raising interest rates, this would also be supportive for the pound.

Is 1.20 a guarantee?

Well no, of course not. Nothing is guaranteed on exchange rates! If however, the above conditions are satisfied then it is very possible but this will rely on the Euro not being too strong. The ECB meeting later this month could see a stronger Euro if the ECB are more positive about hiking their rates and withdrawing monetary policy in the future. Any hurdles on Brexit would also hinder the pricing too.

If you need to buy Euros with pounds the outlook is now much more positive but nothing should be taken for granted on exchange rates. For more information on how to track the best rates and assistance with strategies to help maximise your currency exchange, please speak to me Jonathan Watson by emailing jmw@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.

Will GBPEUR hit 1.15 again?

The pound to Euro rate hit 1.1520 on the highs yesterday as the Bank of England released their latest meeting summary and interest rate decision. The pound spiked up to this level presenting some of the best opportunities to buy Euros since May 2017. Will this level be hit again and what can clients looking to buy Euros with pounds do to capitalise?

The rates move very quickly and to buy at the highs you need to be prepared. This means highlighting your situation to us here so that we can monitor the rates and track levels for you, this might sounds expensive but it isn’t, it is free. We make our money from any trades we do but can offer an exchange rate which we are positive will save you money over other sources of currency.

If you would like to make any kind of comparison I would be more than happy to speak to you to provide some quotes and discuss the forecast for GBPEUR longer-term.Whilst the positive news from the Bank of England bodes well for the future on GBPEUR the Euro is very strong, the biggest thorn in the side of Euro buyers with pounds is the strong Euro.

To help my clients trade at the higher levels we can offer a Limit order which is an automatic order which will trigger at a pre-determined rate once it is hit. I would suggest an order at 1.15 in the coming weeks may well be hit, if you wish to get an update on the rates please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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

Factors impacting GBPEUR exchange rates

As always Brexit negotiations continue to drive GBPEUR exchange rates and at present GBPEUR has reached a key support level. Over the last 8 weeks every time GBPEUR has reached 1.12 we have seen the pound strengthen against the euro? The question is will this trend continue this month?

Negotiations are on going and UK Prime Minister Theresa May is asking for a bespoke trade deal with the EU, however Michel Barnier keeps reiterating that a bespoke trade deal is another phrase for cherry picking. If the transitional deal is reached this month and trade talks start early next, I expect the pound will make gains against the euro and reach the highs we were experiencing earlier in the year.

Politics in Europe are also having an impact on GPBEUR exchange rates. The good news for the Euros is that Angela Merkal has secured her position as Chancellor of Germany. However with a hung parliament in Italy at the moment and far right party 5-Star receiving the most amount of votes, people in Italy are questioning whether they should have a referendum like the UK. This story has the potential to have a considerable impact on euro exchange rates, nevertheless with 5 Star stating they will not work with any other party, it looks like a coalition could be formed by Northern League and Forza Italia.

This week the key data releases to look out for is the ECB’s interest rate decision Thursday afternoon. Interest rates are set to remain on hold, however any hint to the tapering of the quantitative easing program could strengthen the euro. The ECB have showed concern recently that the euro is overvalued due to the devaluation of the US dollar. Therefore I expect the statement by President Mario Draghi to not give to much away and therefore the euro to remain buoyant and against the pound.

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

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

What to expect for GBPEUR exchange rates moving forward?

In recent weeks GBPEUR exchange rates have come under pressure once more due to the developments surrounding Brexit. Head EU negotiator Michel Barnier told the press last week that the transitional talks have broken down and if the UK and EU cannot come to an agreement then the likelihood is there wont be a transition.

No suprises the uncertainty sent the pound tumbling from the 1.14 highs and GBPEUR exchange rates are now floating in the 1.12s. Good news for any client selling euros to buy pounds.

Looking further ahead UK Prime Minister Thersa May is set to address the public on Saturday. This speech will be watched closely by any person involved with the pound and Conservative MPs. It was only last weekend Pro European Conservative MP Anna Soubry warned that MPs could rebel against the PM if she decides to take a hard Brexit approach.

Personally I expect the transitional talks to continue to put pressure on the pound and exchange rates could fall back towards 1.10 in the upcoming 4 weeks. However, I expect the deal will be reached between the UK and EU which will pave the way for trades talks and therefore GBPEUR will improve back to the highs we experience earlier this month. If my predictions materialise then there may be opportunity for both euro buyers and sellers.

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!

 

Where next for GBPEUR exchange rates?

The market is looking more favourable for the pound lately but unfortunately for Euro buyers with sterling, this is not being reflected on the rates with better higher levels. This is because the Euro is stronger too, today we reconfirmed that Eurozone growth numbers have hit the best in a decade.

General expectations are for the pound to continue to perform better, particularly on the likelihood of an interest rate hike in May for the UK. The real question is will it be enough to outperform the expectations on the Euro. Improving economic conditions are linked to the global economy recovering which will see potentially both the UK and Eurozone enjoying better numbers.

Big news left this week is the UK’s Retail Sales figures on Friday which will highlight the performance of consumer behaviour in the UK, this is a key driver on the UK economy and could see some movement on GBPEUR exchange rates. If you are considering a transfer buying or selling the pound against the Euro then the Euro will continue to be an expensive currency to be betting against!

We offer a range of options to secure your currency that will ensure you limit your exposure to these volatile markets which can change suddenly and without warning. Keeping in touch with the latest news is the best way to mitigate the uncertainty, we offer a specialist system to update our clients on the news that will alter their rates.

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.

Super Thursday results in a stronger Pound, where to now for the GBP/EUR rate? (Joseph Wright)

The Pound was boosted across the board of major currency pairs yesterday afternoon after the Bank of England delivered a far more bullish statement than many had expected.

Although interest rates were held at 0.5% there was talk of the stronger than expected global economy likely to result in a more aggressive approach from the BoE as soon as this year.

Financial markets are now pricing an interest rate hike into the Pounds value and it’s predicted that this could happen as soon as May.

There have also been forecasts of a higher GBP/EUR rate this year with TD Securities predicting that the rate will hit 1.1627 in the first quarter of this year. The rate went over 1.14 yesterday afternoon although there has been a bout of profit taking since as the pair have since dropped below this mark.

In such a sensitive political environment the rates can move quite dramatically so if you’re planning on making a currency exchange involving the pair, it’s worth making me aware of your plans so that if the rate spikes, I can keep you updated.

Those hoping for a stronger Pound should be aware that if there has less bullish comments from the BoE regarding monetary policy, the Pound is likely to lose a lot of the gains from yesterday very quickly.

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.

 

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.

What will be happening with the pound to Euro forecast this month?

The pound is looking much better against the Euro following the withdrawal agreement which has improved the outlook on the Brexit. Sterling has found some support against the Euro and despite plenty of uncertainty over what lies ahead, sterling is enjoying a much higher range of rates than we have had. The range has been  1.07 to 1.14 so the current levels of 1.12 are not to be easily ignored.

2018 will undoubtedly offer us some better opportunities to buy Euros with pounds following a number of key events including the Italian election in March and the resolution (or not) of the Spanish situation. We will also be looking to the German situation to see if the coalition agreement will actually take place and hold. Whilst agreed today the coalition could struggle and this could see the Euro weaker, if looking to sell Euros and hanging on hoping for big improvements you could end up disappointed!

2018 could be a better year for Euro buyers but the pound could struggle if the Euro continues to find favour which it has been doing recently. Expectations for the pound to struggle can also not be discounted so I would personally be imagining some ranges in the 1.10-1.16 level for Q1 of 2018.

If you have a transfer buying or selling Euros against the pound making the most of the situation and trying to cover your bases on the predictions is sensible. Most clients looking to sell Euros have not had rates this good since September, the lows we hit then were in the 1.08 range, this is the best rates for Euro sellers in nine years!

Overall 2018 has begun fairly quietly on the rates with no major changes but this will not last for long. Market sentiment is leaning towards improvements for the pound against the Euro should the Euro weaken but sterling has many hurdles to overcome. The best way to plan for the future is to create it, if you have a transfer that you are considering please don’t hesitate to contact me Jonathan Watson to discuss further.

Please email me on jmw@currencies.co.uk to get the latest news and information on this situation.

EU summit to take centre stage

Tomorrow and Friday EU officials will meet at the EU summit in Brussels to discuss everything that is impacting the Eurozone at present but the main focus will be the Brexit negotiations.

In recent weeks the UK and EU have come to a gentleman’s agreement in regards to the divorce bill, EU citizens rights and the Irish border. Nothing has been finalised however Michel Barnier has announced that stage 2 negotiations can now begin.

At the EU summit all of the EU leaders should confirm Mr Barnier’s thoughts which could give the pound a further boost against the euro. However as news broke last week that a deal has been reached i’m not expecting to see major fluctuations. In fact I would expect that GBPEUR breaks through and sits above 1.14 by the end of the week.

It’s quite clear to see that the UK and EU officials are trying to come to an agreement in regards to Brexit, and therefore I am optimistic the pound could continue its recovery against the euro in the early months of 2018.

For clients that are converting euros into pounds a €200,000 transfer generates you an additional £25,000 now compared to Pre Brexit levels. Personally I wouldn’t take the gamble any longer and would look to sell my euros and buy sterling as soon as possible.

The other key economic event that will impact GBPEUR exchange rates this week is the Bank of England’s interest rates. The Bank of England will keep interest rates on hold at 0.5%, however as inflation has risen to a 6 year high, the minutes should outline how the central bank plan to tackle the worrying high levels.

If you are buying or selling euros this year, today is the day to get in touch. Many people still believe the only way to transfer large amounts of money is through the bank and this is not the case. The company I work for enables me to give better exchange rates than high street banks which consequently means the individual saves money.

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! **

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! **

Will GBPEUR slide below 1.10?

The pound to Euro exchange rate has been bouncing between 1.11 and 1.14 in the last month but lately seems to be on a gentle slide owing to uncertainty over Brexit and the UK government, plus the strengthening Euro. The Eurozone economy was shown to be growing at a very fast pace at 0.6% which has outpaced the US for the year on year at 2.5% versus the US’ 2.3%. Once again it is a case of the Euro rising and the pound weakening, will this continue?

On balance I would expect it probably will, trying to predict the longer term outcome’s are always tricky but we do need to bear in mind the great legal and political challenges ahead for the UK. In my mind these far outweigh what the Eurozone has to go through so ultimately I feel that this see the Euro outperforming the pound.

If you have a transfer buying or selling the pound at present, next week or even in the New Year now is a good time to be making plans. With the all-important UK and Eurozone interest rate decisions out of the way we are now focused on path ahead which will encounter the next developments with Brexit plus the Spanish independence election for Catalonia. Plus 2018 sees the Italian election which will be very closely monitored for signs of anti-EU feelings…

I suspect rates will be trading at fairly similar levels between 1.10 and 1.15 between now and early next year, however any shocks could easily see sterling much lower back below 1.10 again. I would not be ruling this move out and for any clients looking to buy Euros I would be cautiously monitoring the situation for any spikes. If you need to make a transfer and wish to be alerted to any spikes please speak to me Jonathan Watson by emailing jmw@currencies.co.uk with an outline of your position.

Thank you for reading this post and I hope to discuss your situation and the best strategy very soon.