Tag Archives: currency market

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.

Queens speech vote to influence GBPEUR exchange rates (Dayle Littlejohn)

As Theresa May failed to win the General Election by a majority the Conservative Prime Minister has been in negotiations with the Democratic  Unionist Party (DUP) and a minority Government has been formed. Members of Parliament will have the final vote on the minority Government later this afternoon.

For Jeremy Corbyn to win and effectively vote down the queens speech members of the conservative party will have to vote against Theresa May and I just cant see this happening. Therefore I expect the minority government to be officially formed by the end of the week which could lead to further sterling strength against the Euro and exchange rates to drift towards the mid teen territory.

Looking further ahead Theresa May’s position as Prime Minister will continue to be scrutinised and I wouldn’t be surprised to see the PM resign in the upcoming 6 months. This view is supported by American Financial Service City Group as they informed all of their clients that they expect Theresa May will resign in the upcoming months due to a Conservative rebellion. If she did resign the new Prime Minister could call another General Election which would weigh down on the pound further.

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! **

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 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 the Pound to Euro exchange rate struggle to break through 1.18? (Joseph Wright)

It’s been an interesting 24 hours for the GBP/EUR exchange rate after some key economic data releases out of both the UK and the Eurozone.

The Pound to Euro exchange rate did break through 1.18 yesterday morning as investors hoped for a high inflation reading out of the UK for the month of January, but as the figure released came out below analysts expectations the Pound was sold off and almost fell below 1.17 at the inter-bank level.

The reason for the fall is there is less likely to be an interest rate hike from the Bank of England whilst inflation readings aren’t surpassing market expectations.

Now that foreign exchange markets appear to have accepted that the UK will go ahead with a ‘Hard Brexit’ and that it’s likely to begin next month, economic data is beginning to have more of an impact on Sterling’s value whereas prior to the UK PM, Theresa May outlining the governments plans it was mostly sentiment that drove the Pounds value.

Interestingly the Pound has since recovered from yesterday’s fall and the GBP/EUR pair is currently trading around the 1.18 mark once again. It will be interesting to see whether this level will act as a resistance, and I think any readers with an upcoming currency requirement involving the converting of Pounds into Euros may wish to consider the current levels as we could see a fall in the Pounds value as the Brexit begins.

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.

How long until GBPEUR hits 1.20?

There s now growing speculation GBPEUR could hit 1.20 in the coming weeks as investors brace themselves for the Italian Referendum next month. That is likely to be a period of uncertainty for the Euro with also fresh economic worries as the European Central Bank (ECB) debates whether or not to look at further QE (Quantitative Easing). If you are looking to get the latest news on the rates and make sure you are up to date then this blog is perfect for an outline of the latest news that could affect your exchange rate.

Sentiments are now leaning towards Euro weakness as investors fears over the single currency come back into the firing line. Clients looking to buy or sell Euros for pounds should be watching this market very closely as the next stages of the trend will undoubtedly establish themselves very soon. This will present some better opportunities to buy Euros at a higher rate and personally I would not be surprised to see 1.20 by Christmas if not before.

If you are buying or selling Euros for pounds then understanding the market and all of your options is key to getting the best deal. For clients who are not quite ready to buy but require a higher or better level we can offer a range of contract options including the Limit or Stop Loss orders to help trade at a better price. There is also the forward contract option which allows you to fix an exchange rate for up to 18 months in advance.

For more information at no cost or obligation please contact me Jonathan directly by emailing jmw@currencies.co.uk or please call 01494 787 478.

Will GBPEUR go higher?

GBPEUR rates could actually get a small lift this week as we learn of some important economic data and personally I think there is some potential we could see GBPEUR rates higher towards the end of the week. The are three main pieces are economic data which could lift the rates, either supporting the pound or weakening the Euro or perhaps both. Make no mistake the ball is firmly in the court of those looking to sell Euros for pounds but anyone looking to buy Euros with pounds needs all the help they can get right now.

UK economic data has actually been fairly robust since the Brexit vote with the economy growing and some areas such as Manufacturing benefiting from a weaker pound. The upshot for the economy overall has been better than expected but of course it is the political concerns and the prospect of what lies ahead which is the overriding factor. This was witnessed in the first week of October when a 2 year high on Manufacturing output was lost amidst the breaking news of Theresa May’s apparent decision to seek a ‘hard’ Brexit. Sterling crashed and very few took any notice of the good news on the Manufacturing data that same week.

Despite this some data will I believe have the potential to provide some small spikes in the value of sterling by reflecting that overall Brexit hasn’t so far been the disaster many had predicted. Today we have Inflation data and tomorrow Unemployment for the UK , both of which could help the pound slightly. These are post Brexit vote data releases and will reflect the period following the vote which should attract lots of attention. Thursday attention turns to the Eurozone with the latest ECB (European Central Bank) meeting which may see some discussions of QE (Quantitative Easing) which may unsettle the Euro.

GBPEUR rates may find some improvements if this data goes your way but waiting until these days could be too late. Even if you don’t need to transfer funds today making some plans in advance is usually the best way to reduce your risk and stress! As specialist foreign exchange brokerage we can provide all the information and tools you need to make an informed decision on the markets.

Life has been cruel for Euro buyers and this might finally be some good news which can help you to purchase Euros at a better rate than is currently available.

The author is Jonathan Watson, Chief Analyst and Associate Director at one of the UK’s largest private currency brokerages. You can contact Jonathan directly with your enquiries  by email on jmw@currencies.co.uk for more information at no cost or obligation.

What next for GBPEUR exchange rates?

The outlook on GBPEUR is as complicated as ever with no real progress on Brexit and no sign of a quick resolution. Political uncertainty is a huge driver on exchange rates, the current market is very much geared towards uncertainty with sterling showing little signs of improving. This week there are some data releases which could move the market, Notably today was a speech by Mario Draghi where he talked about the UK’s access to the single market, essentially he reiterated the fact the UK had to respect all four freedoms, that is the free movement of capital, services, goods and labour. That means there can be no special deal for the UK that would see it secure access to the single market whilst allowing controls on immigration.

This point plus the noise from Boris Johnson that perhaps the UK would invoke Article 50 early in the New Year has all pointed to a strong likelihood that the UK will be forced into a ‘hard Brexit’. This means there would be a quick break and the UK would literally go it alone into the world and trade. There is much pressure on the Prime Minister Theresa May to do something from the more Brexit minded politicians. Expectations and pressure is mounting, the lack of action and lack of clarity over what is happening will not last forever!

If you have a transfer GBPEUR is at a critical juncture. Now is not a time to be complacent, some of the major banks predict GBPEUR could fall to 1.08, earlier in the year HSBC was predicting parity! If you need a transfer please email me Jonathan Watson on jmw@currencies.co.uk

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.

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.

When will Sterling Recover Post-Brexit? (Daniel Charles Johnson)

A new cabinet is now in place with Theresa May at the helm and I think we will see the pound gradually strengthen. There are two events which could hinder any pound rally however. Firstly on the 4th August we have  the Bank of England’s (BOE)interest rate decision. There was the high chance of a rate cut at the Monetary Policy Committee’s (MPC) vote this month but rates remained unchanged at 0.25%. Usually if a data release goes a against the grain you will see a big change market. GBP/EUR  only saw a slight change, briefly moving to 1.21 before levelling out  at around 1.20. Only a cent away from the previous day’s 1.19. This could be due to the strong possibility of a rate cut in August. It is the general consensus this will happen, therefore I would not expect the pound to drop substantially when a cut does occur. The other event which could cause Sterling to fall in value is if the button is pushed on article 50. Article 50 engages the UK’s exit from the EU, this will  weaken the Pound. I do not expect this to happen until early 2017 however.

If you have a currency trade it is important to be in touch with a seasoned broker. The timing of your trade is vital during such a volatile  times, If you have a veteran broker on board he can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to help with your trade I will be happy to help. Let me know 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 UK and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving 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.

UK Interest Rates on Hold. Where Next for Sterling? (Daniel Charles Johnson)

Yesterday the Bank of England (BOE) kept interest rates on hold at the record low of 0.5%. It was anticipated there would be cut to 0.25% following Brexit.  Historically if there is a significant economic event that goes against the grain you will see a considerable movement in the currency market. On this occasion however there was only a slight movement with the GBP/EUR for example sitting at 1.20 when it was in the early 1.19s per-interest rate decision. I think this is due to the very strong possibility a rate cut will occur in August. This information is common knowledge and as such I think the cut has largely been factored into the markets already and due to this there was not a large swing in the market nor do I expect one if there is a cut in August.

I think the new political stability created by Theresa May’s appointment and new cabinet will cause a gradual Sterling rally. If I was a Euro seller I would be looking to take advantage of current levels.

If you have a currency trade it is extremely important to be in touch with an experienced broker. The timing of your trade is vital during such a unpredictable  times, If you have an experienced broker on board he can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to assist with your trade I will be happy to help. Let me know 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 UK and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving 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.

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.

 

 

What next for GBPEUR Rates?

Whilst attention is squarely on the UK’s EU Referendum on the 23rd June and the expected GBP weakness at this time markets must also take note of events in the Eurozone. The European Central Bank meet tomorrow to discuss their latest Interest Rate decision and most reports are warning of the likelihood we might see some Euro weakness as it becomes apparent that the European Central Bank (ECB) must look to further stimulus to kick start the flagging Eurozone economy. Look for hints tomorrow afternoon as investors eye up the possibility of the Euro weakening in the future and consequently sell off positions.

Friday is US Non-Farm Payroll data which will likely impact USD exchange rates and this will also weigh on the pound and the Euro having an effect on GBPEUR rates too. If you need to buy or sell pounds and Euros making some plans around these two important events is a sensible move to try and avoid the uncertainty of the next few weeks. 3 weeks today we will know the outcome from the Referendum, some predictions on GBPEUR Range from 1.18 up to about 1.40! Making plans around this important event is in my opinion a very sensible move.

For more information please email me Jonathan on jmw@currencies.co.uk

The Strong Week For GBP Continues, But For How Long?

Sterling bulls and those looking to convert their Sterling into Euro’s have had a great start to the week, with GBPEUR levels hitting as high as 1.2685, a major improvement for sterling sellers when we consider that GBPEUR was trading in the low 1.23’s just last week.

The Pound’s recent gains have been due to improved market sentiment as oil has recovered some of of its losses from earlier in the week, after the most recent OPEC meeting ended unsuccessfully. Additionally the most recent polls regarding the upcoming EU referendum are pointing to a ‘Remain’ lead, which has boosted sentiment towards Sterling and driven the price up these recent highs.

Importantly, the 1.26 level hasn’t acted as a resistance for GBPEUR, which is a positive sign for Sterling bulls as it was the previous support level for around 2 months.

From a personal perspective I’m dovish on the value of the Pound moving forward, i think the political uncertainty will continue to weigh on GBP’s value whenever the subject of a ‘Brexit’ is a headline, and I think current levels offer a great buying opportunity to those looking to convert GBP to EUR that may not be around for much longer in the medium term.

If you are planning to use GBP to buy a foreign currency 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.

Sterling Drops Again as Brexit Fears Resurface After Brussels Attacks

The Pound was the biggest loser within currency markets yesterday, with the terrorist attacks in Brussels and poor inflation data taking most of the blame for Sterling’s slide.

UK consumer prices advanced at 0.3% year on year for the month of February, this was the same figure for January but still 0.1% below analysts’ expectations which has undermined market sentiment towards Sterling’s value.

I think yesterday’s attacks in Brussels have also weighed on GBP as support for a ‘Brexit’ could well be boosted after an attack like this, with migration and free movement within the EU again dominating news headlines, and supporters of the ‘leave’ camp building a case for leaving the EU as attacks like this become a regular occurrence.

The Euro gained almost a percentage point against the Pound yesterday as ‘Brexit’ fears gained off the back the attacks, additionally the most recent ZEW Survey (a measure of institutional investor sentiment) figures came out better than expected which boosted sentiment towards the Eurozone economy.

Thursday sees a number of UK Retail Sales figures released along with the Targeted LTRO (Long Term Refinancing Operation) figure from the Eurozone. The Targeted LTRO figure is scheduled for release at 10.15 am and I’m expecting this to be the most important economic release for GBPEUR this week.

If you have an upcoming currency requirement involving both GBP and EUR 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.