Tag Archives: ECB

GBP/EUR Drops below 1.15 (Daniel Johnson)

Draghi Delivers

Draghi showed his prowess at public speaking today. Addressing concerns in the Eurozone and providing solutions for potential problems. I have to admit this guy is good. He seems to address serious problems in the Eurozone with an “everything will be O.K fashion.”

I have witnessed Draghi convince the market with words in the past, despite actions to the contrary by the ECB in the past. I distinctly remember an occasion when it was announced Draghi would be increasing stimulus to the QE program to the tune of €20bn a month, the markets reacted to his reassurances of stability rather than the action of pumping €20bn into an struggling economy.

My opinion is that the Euro is in for a rough year. Three general elections will take place this year. There is the strong possibility a far right party gaining power in one of these elections which would could bring about a referendum. We have witnessed the damage caused to Sterling by the vote to leave the EU. Geert Wilder is ahead in the polls in the Holland (although it will be difficult for him to establish a coalition) and Marine Le Pen the leader of the National Front has a real chance of winning.

Let us also consider Italian bank’s bad loans, now in excess of €360bn due to their lack of a contingency plan. Greek debt, the problem that will not go away and unemployment within the bloc  bordering on 18 million.

Short to medium term the pound has potential to fall due to the uncertainty surrounding Brexit. But, my opinion is similar to that of Morgan Stanley analysts.

“The pound is one of the most undervalued currencies in the world and will  return to pre-Brexit levels.”

I do not think Sterling’s value will rise quickly, but as trade deals become more apparent I am of the strong opinion the pound will rally.

If I was holding Euros, I would sell now. Moving when GBP/EUR sits in the 1.14s is not a bad move considering what could lie ahead.

If you would like my assistance with your trades, do get in touch. I can be contacted at dcj@currencies.co.uk. Thank you for reading.

Today’s US FED Interest Rate Decision Likely to Affect Global Markets (Matthew Vassallo)

Today’s much anticipated interest rate decision by the US Federal reserve, is likely to have an influence on the global currency markets.

This means anyone with a GBP/EUR currency exchange to make should be keeping a close eye on market developments throughout the day.

Whilst there is no direct correlation, the high chanced of a rate hike means that investors could well move their money away from riskier currencies and back into the USD.

With pressure on both the UK and Eurozone economies this is harder to dissect but instinct is that the EUR will be seen as the weaker of the two and as such we could see EUR positions sold off this evening. In turn we could see EUR weakness against the Pound but whether or not it will be enough to push the apart through 1.20 I’m not so convinced.

The single currency has come under pressure since last week’s announcement by European Central Bank (ECB) President Mario Draghi, that they would be extending their current monetary policy programme beyond the current deadline of March 2017. With the new timeline set to continue their bond buying scheme until December next year, the markets immediately took this a sign of weakness in the Eurozone economy and the EUR weakened as a result.

Whilst this announcement was at least in part expected, it is proof that investor confidence in the Eurozone region is low and the Pounds value was inadvertently pushed up as a result of this.

GBP/EUR rates have moved through 1.19 and whilst I expect the EUR to find support around the 1.20 level, it is becoming increasingly clear that the EUR is unlikely to move back to the high we saw a few months ago, so those clients holding EUR positons should act accordingly. The EUR is still trading at extremely attractive levels against the Pound when you consider history on the pair and with so much un certainty surrounding the Eurozone, both politically and economically, now could be the time to act.

If you have an upcoming GBP or EUR currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

GBP/EUR Rates Retract Following Sterling Spike (Matthew Vassallo)

GBP/EUR rates have retracted over the early part of the trading week, with the pair falling below 1.18 on the exchange.

The Pound had made a move through 1.20 in the early hours of Monday morning, following the Italian referendum result and Italian Prime Minister Matteo Renzi’s subsequent resignation. This caused investors to panic due to the political and potential negative economic effects this would have on the Eurozone and Sterling benefited as a result.

However, this positive momentum was short lived and the EUR has fought back, proving how fragile the UK economy remains in the eyes of investors. The EUR has benefited from a strong run of economic data, including better than expected Retail Sales figures.

We also saw their Gross Domestic Product (GDP) number come it at 1.7%, better than the expected 1.6% growth. This is such  key release for an economy as it gives us a key insight into the current economic standing, as well as an insight into future growth prospects.

This combined has helped the single currency to bounce back against Sterling and with the current Supreme Court ruling on whether the UK can leave the EU without Article 50 being ratified by MP’s, expect further market uncertainty over the coming days and weeks.

Personally I wouldn’t be prepared to gamble on the current market. There are concerns over whether the European Central Bank’s (ECB) will extend their current monetary policy (QE) programme beyond its current deadline of March, at tomorrow’s policy meeting. If this does occur it could start to heap pressure back on the EUR, so today may be an opportune moment to execute and short-term EUR/GBP currency exchanges.

If you have an upcoming GBP or EUR currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

GBP/EUR Rates Spike Again! (Matthew Vassallo)

Sterling received another welcome boost during yesterday’s trading, following the release of strong UK mortgage approvals for October from the Bank of England (BoE).

Mortgage approvals jumped to just over 67,500, which far exceeded the expected figure of 65,000. This helped boost Sterling value, with GBP/EUR hitting 1.1809 at yesterday’s high. This provided those clients holding the Pound with some of the best rates they’ve had over the past few months, with the Pound gaining over four cents at the high over the past few weeks.

Whilst Sterling has clearly found a foothold in the market, is investor confidence high enough to drive the Pound forward further or have we seen reach a peak in the short-term?

It is a difficult question to answer due to the high level of economic uncertainty surrounding both the UK and Eurozone economies.

The economic and social problems within the Eurozone are likely to manifest themselves over the coming months. Next month’s Italian referendum is likely to dominate headlines and if a No vote is reached by the public then the current Italian prime Minister Matteo Renzi is likely to step down. This could pave the way for the rise of the far right party in Italy, which will clearly change the political landscape and as such, cause further uncertainty in one of the Eurozone’s key economies.

We also need to consider the political unrest spreading across Europe and if this year’s Brexit decision and US election results are anything to go by then who knows which parties may be in power in Eurozone strongholds by the end of 2017.

There is also a distinct possibility that European Central Bank (ECB) President Mario Draghi will announce next month that they are extending their current monetary policy (QE) programme, beyond the current March 2017 cut-off date. If this is indeed the case, expect EUR weakness off the back of this decision.

On the flip side, you have to look at the on-going uncertainty surrounding the UK economy and with the Supreme Court ruling in December regarding how Article 50 can be triggered, only likely to cloud matters further, the Pound could well come under further pressure as we head towards the end of 2016.

This analysis leads me to believe that anyone with a short to medium-term GBP/EUR currency requirement should looking to take advantage of the current improvement if you are holding Sterling, or protect the huge gains made for EUR sellers over the past few months.

If you have an upcoming GBP or EUR currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

Tomorrow’s UK GDP Figures Key for Sterling Exchange Rates! (Matthew Vassallo)

Tomorrow’s UK Gross Domestic (GDP) figures are likely to be key for any clients holding Sterling or Euro. With the expectation for 0.3% growth I expect additional volatility on GBP/EUR exchange rates if the figure comes outside of this remit.

Sterling had started to regain some ground against it’s EUR counterpart but fell away during yesterday’s trading. Rumours surfaced ahead of Bank of England (BoE) governor Mark Carney speech that he was going to take a dovish tone, which the markets immediately took as a negative and this ended the Pound’s mini recovery.

Whilst his comments were not overly positive he did mention a prospective interest rate hike due to UK Prime Minister’s prospective policy changes and this helped boost Sterling’s value and eliminate some of the afternoon’s losses.

GBP/EUR rates dipped to a low of 1.1132 but recovered back towards 1.12 following Carney’s speech. We’ve seen Sterling threaten a mini recovery on more than one occasion and European Central Bank (ECB) president Mario Draghi’s speech also curbed any further Sterling advances, as he commented on the current Quantitative Easing (QE) programme and how he felt it was having a positive effect.

I just feel that under the current market conditions the Pound will struggle to make any sustainable impact until at least next year, when key political elections and other factors in the Eurozone may start to drag the EUR value back down. If I was holding EUR I would still look to protect the gains I’d made and with a key data release tomorrow for the UK (UK Gross Domestic Product figures released at 09.30), I expect to see further market movement during Wednesday’s trading.

If you have an upcoming Sterling or Euro currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

 

An important day for Euro exchange rates (Dayle Littlejohn)

With the ECB set to release their latest interest rate decision this afternoon and President Mario Draghi’s press conference shortly after today could dictate euro exchange rates for the weeks ahead.

With interest rates at 0% I would be surprised to see any further cuts from the European Central Bank however all eyes will turn to Mr Draghi and his future plans in regards to the Quantitative Easing program that finishes March 2017.

Quantitative Easing is where a central bank buys assets which are normally  The central bank introduces a new money supply into the economy. The theory behind quantitative easing is to stimulate the economy however the currency does lose value.

If Mr Draghi does decide to extend the Q.E program I would expect major euro weakness however in my opinion an extension is very unlikely until early next year.

Short term I expect the ECB to keep their cards close to their chests and bat off questions from reporters about any extensions. Therefore the major talking point that should continue to impact GBPEUR exchange rates should be the Brexit.

UK Prime Minister has stated a Brexit will occur in March 2017 and this has been the main reason why the pound has lost value over the last two weeks. Looking ahead I expect the pound to continue to devalue and GBPEUR exchange rates to drop off. For euro buyers this year, a trade sooner rather than later is sensible. If you do not have all of your sterling available a contract that may interest you is a forward contract, which allows you to fix exchange rates now and pay later.

For more information in regards to the currency market, forward contracts or how I can achieve you the best exchange rates, feel free to email me with your requirements, timescales, the best number to reach you on and I will give you a call to discuss your options drl@currencies.co.uk.

** 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 tough time for the UK and Eurozone (Dayle Littlejohn)

Its been reported by European Council President Donald Tusk that Brexit talks could start as early as February 2017. UK Prime Minister Theresa May is keeping her cards close to her chest and has failed to comment so far.

Looking ahead it appears that the pound is going to come under severe pressure in the next 6 months and I believe we will see a contraction within the UK economy. Since the UK left the EU GBPEUR exchange rates have dropped 14 cents making a €200,000 purchase £18,000 more expensive and there’s a chance this could get worse for euro buyers.

For euro sellers, the UK’s referendum in regards to EU membership has provided you a window of opportunity. GBPEUR has dropped 14 cents which means if you convert €200,000 now compared to June 23rd you will receive an additional £18,000!

However cracks are also appearing within the Eurozone economy. Inflation remains at a worrying low even though the European Central Bank have been injecting a substantial amount of Euros into the economy for the last 18 months. Interest rates are at 0% and if the ECB want to change monetary policy they are going to have to cut rates to negative territory.

The point I am trying to make is that both the UK and Eurozone have a rocky road ahead therefore for people buying currency its important to analyse the market on a weekly basis and trade when the market spikes in your favour.

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! **

Will the Pound go back up past 1.20 vs the Euro next week? (Tom Holian)

The Pound has experienced a good recovery during August against the Euro after economic data published recently has shown that the Brexit didn’t have as much of a negative impact of some had suggested.

UK retail sales, manufacturing data and services have all been relatively strong showing huge gains compared to July and this has helped the Pound gain vs the Euro creating some better opportunities to buy the Euros at cheaper levels than last month.

The European Central Bank decided to keep interest rates on hold on Thursday as well as keeping the current amount of QE the same until March 2017. This briefly helped to strengthen the Euro vs Sterling but the gains were relatively short lived.

Next week the focus will return to what is happening to inflation both here and on the continent.

Since the Brexit the likelihood is that inflation will rise in the UK whilst in the Eurozone the rate of inflation is still worryingly low at just 0.2%.

The Eurozone are due to meet on Thursday and if we see the figures come out lower than expected this could put pressure on the ECB going forward as it demonstrates that the current policy is not having the desired effect.

Next week if you need to buy Euros it may be worth looking to organising this later in the week and if selling Euros then it may be worth doing this prior to Thursday’s release.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Will the Pound continue to make gains vs the Euro? (Tom Holian)

Sterling vs the Euro has started to make big gains since the middle of August as the economic data released by the British economy appears to have been better than expected since the vote to leave the European Union.

The rate to buy Euros has hit its highest level in 4 weeks this week following the UK manufacturing data which showed the biggest monthly increase in 25 years for the sector.

This has helped the Pound to make gains vs the single currency providing a ray of light for anyone needing to buy Euros with Sterling.

This afternoon US non-farm payroll data came out strong as well as US unemployment which is now at 4.9%. This created Dollar strength vs the Euro as it could encourage the US to look at raising interest rates later this month.

The result has caused the Euro to weaken and the Pound to make gains against the single currency.

Next week the focus will turn towards the Eurozone with the European Central Bank due to meet on Thursday.

With Eurozone inflation still struggling at just 0.2% this is likely to put pressure on the ECB to look at monetary policy and provides additional evidence that the previous QE has not been as successful as planned.

Next week could provide us with the best opportunity since Brexit for Sterling to break past 1.20 against the Euro but the gains could be short lived if the resistance barrier is broken.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

Francois Hollande Holds Firm on Free Movement (Ben Fletcher)

The French President made it very clear when meeting with Theresa May that if the UK wants to have access to the single market, then they must accept the freedom of movement. Hollande suggested that if the UK didn’t accept freedom of movement then they would have to accept a different status than the existing relationship.

Despite this firm stance from Hollande, the GBP/EUR rate has moved above the 1.20 level. Whilst Hollande is under a lot of pressure domestically to make sure Britain are given a tough time, there is plenty of Anti-EU sentiment growing in France.

May was able to have what appeared much friendlier talks with German leader Angela Merkel on Wednesday night. Considering that the UK imported over twice as much from Germany last month as they did France, it’s clear which talks are more important. The markets are beginning to recognise some strength for Sterling which could start to create good Euro buying levels.

Yesterday Mario Draghi President of the European Central Bank during his post interest rate decision statement suggested Brexit has not taken effect yet. Draghi emphasised that at the minute the consequences have blown over, but he is of the opinion that there will eventually be some fallout. Whether it comes in the form of businesses putting future projects on hold and not borrowing funds or consumers spending less it’s yet to be seen. But one thing that’s certain is there was very little opportunity in savings before the vote, due to low interest rates so spending may be the only way to improve your pension.

As a trader in a currency brokerage I am able to help you achieve the best rates possible, whilst also assisting with the timing of a transaction to make sure you get the most for your money. If you do have a currency requirements please feel free to send me Ben Fletcher an email at brf@currencies.co.uk.

What to expect next week for Sterling Euro exchange rates (Tom Holian)

Sterling Euro exchange rates have touched 4 month highs during the week after a recent opinion poll showed the Remain camp leading the polls.

With just less than 4 weeks to go before the Brexit vote Sterling Euro exchange rates are in for an extremely uncertain month ahead.

On Tuesday Eurozone inflation data is published and this has been a real concern for the European Central Bank.

If inflation shows a fall when it is released we could see this cause some problems for the ECB when it meets on Thursday.

The main driver of Sterling Euro exchange rates is down to the sentiment surrounding the EU referendum and depending how things go during the next few weeks in the run up to the vote this is likely to cause big swings.

Sterling is trading relatively high against the single currency at the moment and I think these rates may not last much longer as investors will be looking to take advantage of these current highs.

If you’re thinking about making an exchange at some point then Thursday is the key day to watch out for next week.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Will Sterling Euro exchange rates improve before the EU Referendum? (Tom Holian)

During the last few days Sterling Euro rates have fallen to their lowest level since November 2014 as fears of a Brexit continue to gather pace.

Recent opinion polls have shown the vote has been getting closer and whilst the uncertainty continues this is likely to weigh heavily on Sterling exchange rates as it means global investors are selling Sterling in favour of other currencies.

If we look back to what happened during the Scottish referendum and last year’s general election we saw huge negative movements for GBPEUR rates in the run up to both events and I think this will be the case during the next 3 months in the run up to the EU referendum.

With Iain Duncan-Smith having resigned earlier this week this has also caused Sterling to fall against the Euro as political uncertainty is never good for the currency involved, in this case Sterling.

On Wednesday next week German inflation data is published and as the Eurozone’s leading economy if the data is better than expected this could cause Euro strength as it will provide further support for the ECB’s recent decision to cut interest rates and increase Quantitative Easing.

If you’re buying a property in Europe during the next 3 months you may wish to consider buying a Forward Contract which allows you to fix an exchange rate for a future date.

Buying forward means you will eliminate the risk of the market falling even further against you.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Sterling expected to rise against the Euro next week (Tom Holian)

Sterling Euro exchange rates ended the week on a high after hitting their lowest level to buy Euros since November 2014 following the release of the Budget Statement.

On Thursday however all the losses were reversed when the Bank of England surprisingly announced that rather than cutting interest rates in the future the next move would more than likely to for a rate hike.

With the US Federal Reserve keeping interest rates on hold on Wednesday evening and the ECB cutting rates to 0% last week global investors have relished this news and one of the reasons for such Sterling strength against both the Dollar and Euro during the end of the week.

UK inflation data is published on Tuesday morning and if better than the 0.3% expected this could see further Sterling strength against the single currency as it would provide further support that the Bank of England could be right in that interest rates could be increased.

The main reason for the ECB cutting interest rates and launching further Quantitative Easing this month is in an attempt to combat falling inflation as this also hampers growth.

On Thursday the UK releases Retail Sales data and I think this could be better than expected and I think we could get close to reaching the 1.30 levels again towards the end of the week.

Good news if you’re buying Euros.

However, over the next three months the issue and uncertainty of a possible Brexit is likely to weigh heavily on Sterling Euro exchange rates so although I think we could see some gains in the short term we could see Sterling struggle in the months ahead.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Will the ECB Rock GBP/EUR by Increasing QE? (Daniel Johnson)

ECB Interest Rate Decision 12.45pm Thursday 10th March

Mario Draghi the President of the European Central Bank is poised to push the button on a new stimulus package in the Eurozone.  We have seen a return to deflation and stunted growth figures coming out of Europe. There is strong possibility he will decrease the ECB’s key overnight deposit rate from -0.3% to -0.4% a severe penalty for investors leaving their funds at the Central Bank. He is also tipped to increase monthly increments to the Quantitative Easing (QE) program from €60bn to €70bn. QE is essentially pumping money into an economy in order to stimulate growth. If the increase occurs expect the Euro to weaken significantly.

When Should I buy Euros?

If you are a Euro buyer I would move after the 10th March but before 16th March. George Osbourne is set to deliver the budget on 16th and there is the possibility of some substantial cuts which could bring down the value of Sterling. I would be looking to move before this, voting on the side of caution to avoid any potential losses.

When Should I sell Euros?

Move today or tomorrow morning, to hang on to your Euros until after the QE decision is a massive gamble. I would vote on the side of safety. There could be as much as a 5 cent drop for the Euro against the Pound.

If you have a currency requirement feel free to get in touch. I will be happy to assist with your trade and I will guarantee to beat any competitors rate of exchange. I will come up with a trading strategy to suit your individual needs with no obligation to trade. Contact me at dcj@currencies.co.uk or call me on 01494 787478 and ask for Daniel Johnson. Thank you for reading my blog.

Will Sterling Euro Rate Break 1.30 next week? (Tom Holian)

Sterling has had a good run this week against the Euro after seeing big falls the week before following Boris-Gate.

Next week could be arguably one of the biggest weeks of the year so far for Sterling vs Euro exchange rates.

Eurozone GDP data is published on Tuesday followed by the ECB’s next monetary policy meeting on Thursday.

Eurozone inflation has fallen to just 0.1% recently and this has been a long standing problem for the ECB.

During March 2015 the central bank introduced QE to the market and GBPEUR rates hit a 6 year high following the intervention and if they look at doing more next Thursday I think we could see some positive movement for Sterling vs the single currency.

ECB president Mario Draghi has said on a number of occasions that the ECB is ready to do ‘whatever it takes’ to combat falling inflation I would not be surprised to see a change in policy next Thursday.

Therefore, if you need to buy Euros it may be worth seeing what happens at the end of the week as you may be provided with a better opportunity to buy Euros than where we are at the moment.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

GBPEUR rates hit 1.30 – will rates go further?

GBPEUR rates have been preforming well over the last week with some positive gains. These have importantly been coming from EURO WEAKNESS rather than STERLING STRENGTH. The negative tone for the pound has been continuing generally from an economic point of view and this is expected to continue tomorrow with the latest inflation data from the UK and the big event a week on Wednesday with the UK budget. Also be aware that the Brexit is still on the horizon and widely expected to cause some server sterling weakness in late spring/early summer.

Saying that we do have an opportunity now whereby a £200,000 transfer into euros now will by you over €6,000 more compared to just Monday of this week.  This again is down to euro weakness as investors get wary of the euros future due to their unclear policy on fighting deflation. They currently have a QE program and policies in place to avoid deflation but with arguments within the bank suggesting a number of different potential paths they could take the euro is weakening.

We will get the latest update form the European Central Bank next Thursday at their next meeting and this is an event to keep an eye open on. Until that event there is an argument to suggest you could get better levels.

For help timing transfers and being informed of spikes please feel free to get in contact with myself, email my at hse@currencies.co.uk or call and ask for me STEVE EAKINS on 01494-787478

Will Sterling fall further against the Euro? (Tom Holian)

Sterling Euro exchange rates have fallen by over 7 cents during the month of December as the ECB extended QE and the US Federal Reserve decided to finally raise interest rates.

Sterling has fallen across the board against all major currencies and I think we could be in for further falls as we go into the new year.

Eurozone inflation is released early next week and one of the main reasons for the extension of QE was to combat falling inflation.

Therefore, if the data shows signs of improvement we could see the Euro strengthen vs Sterling creating some excellent opportunities to sell Euros into Sterling.

There is increasing pressure on Sterling with fears of a Brexit and the lack of an interest rate rise until earliest 2016 which is another reason why I think Sterling will fall against the Euro in January.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

What next for the Euro?

The Pound to Euro exchange rate is likely to come under some real pressure in the future as Inflation becomes a problem yet again. Today markets are celebrating the UK has come out of its deflationary phase. Yet the falling Oil prices suggest to me that the problems for sterling are far from over. Inflation is very likely to drop in the future which will push back further any interest rate hike expectations leveled at the pound and the UK. For this reason I believe that if you need to buy or sell the pound or Euro your transfer time is critical and making careful plans is very sensible. Understanding the markets and all of your options in advance will be key to achieving the most for your money. The gamble is to do nothing!

For a full overview of your position and for assistance in achieving the very most for your money please contact me Jonathan using jmw@currencies.co.uk

Euro Fights back against Pound Sterling Exchange rates (Tom Holian)

The Euro has strengthened against the Pound by as much as 4 cents from the high on Thursday morning to the low seen by the close of business on Friday afternoon.

The ECB have decided to cut interest rates for deposit accounts to -0.3% which in theory means that banks will be encouraged to lend which ultimately should help to raise inflation levels.

ECB president Mario Draghi has stated on a number of occasions that the ECB will do whatever it takes to combat falling inflation and with the further addition of QE this has been taken well by the currency markets and therefore a huge movement for Euro exchange rates.

With Eurozone GDP data due to be published on Tuesday morning and the expectations for 1.6% growth year on year this could see further Euro strength.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Eurozone Unemployment could briefly strengthen the Euro Today (Tom Holian)

Sterling Euro rates have been trading above 1.42 this week as rumours are increasing that the ECB may look to add further QE at this Thursday’s meeting.

However, prior to that we see the release of Eurozone unemployment due out later on this morning with the expectation for 10.8%.

With unemployment rates improving recently for the Eurozone I think the data this morning could be positive for the single currency and therefore a brief recovery for the single currency vs Sterling later on today.

Tomorrow sees the release of Eurozone inflation data and this could be the factor in deciding whether or not the ECB will look at further QE on Thursday.

With low inflation a big problem for the Eurozone this could affect the ECB’s decision this week.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk