Tag Archives: euro strength

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.

Will GBPEUR slip below 1.10?

Dismissed as no longer a likely exchange rate the GBPEUR rate has been very close to the 1.10 level as investors take positions on the Euro which represents a much more secure currency versus the GBP and USD. The Euro has risen to a 2 1/2 year high against the US dollar and is currently enjoying close to a 9 month high against the pound. The outlook for the pound and Euro is such that it would not be at all surprising to see GBPEUR below 1.10 very soon. If you have a transfer buying or selling the pound and Euro making plans around this possible scenario is I believe very much recommended.

If you look at what is driving the pound it is obviously the uncertainty over the Brexit and the economic decline this has caused. More recently the pound had been higher on the prospects of the Bank of England raising interest rates but this is not materialising. Last week Inflation dropped leading to the pound dropping as this effectively rules out any UK interest rate hike in 2017 or maybe further.

There are no guarantees over an interest rate hike for the UK in the future and it is a dangerous gamble for clients buying Euros to be holding back from a purchase just hoping that rates will rise in their favour. Most clients looking to buy Euros should be preparing for further losses as this could easily fall lower.

The Euro is much stronger as politics and economic supports the Eurozone. Expectations on GBPEUR could easily the rate below 1.10, if you have a transfer to make buying or selling Euros for pounds making some plans in advance is wise. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk

Very important week for GBPEUR exchanges! Both Draghi and Carney to speak!

Clients looking to buy Euros with pounds have been treading on pretty precarious ground as the market continues to fret about the political make up of the UK in the coming months and years. Theresa May’s deal with the Democratic Unionist Party (DUP) did little to spark interest in the pound and with the all important commons vote on the Queen’s speech this week sterling should remain at the whim of political developments. I expect the pound could move in either direction with the Euro as much as 2  cents in the coming week depending on a series of important data and events that are taking place.

If you need to move any currency around then making plans in advance is sensible to avoid being caught out like many have in recent weeks as markets take an unexpected turn! We offer a proactive service to help monitor and track exchange rates with a view helping secure the very best levels. If you have a transfer to make and wish for us some assistance please do contact me to find out more.

There is a light belief the Bank of England are making plans to raise interest rates however with the Governor Mark Carney against the idea we could have quite a battle on for that to become reality. We will really need to see some big shifts in the economic data but should we start to see the economic data improving the case for a rate hike will increase. For the Euro the week is fairly light on data but we do have Mario Draghi speaking who with his comments could easily move the Euro rates.

A higher interest rate makes a currency stronger as it attracts investment into that currency. The mere mention of a hike or speculation of one can do lots to a currency and the back and forth nature of commentary over raising UK interest rates lately has seen sterling to Euro rates see-sawing with the sentiment. Both Carney and Draghi’s comments have the potential to move exchange rates and clients looking to buy or sell large volumes of pounds and euros for say an overseas property purchase or business should be prepared.

This week is another potential choppy one with a host of speakers who will be commenting on the potential for interest rates with Mark Carney due to speak today and tomorrow. Markets will be eagerly awaiting any news on how the Governor is viewing events with his Financial Stability report due today. If you have a transfer buying or selling pounds for Euros I would not be surprised to see movements of 1 – 2 cents as we learn principally of developments in UK politics and economics.

If you have a transaction to consider and wish to get any information on the market or trends then please do speak to me Jonathan Watson by emailing jmw@currencies.co.uk to get the latest insight and assistance with the timing and planning of your exchanges.

 

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.

Has Sterling’s rally vs the Euro come to an end? (Tom Holian)

The UK published a number of lower than expected economic data releases on Thursday which caused the Pound to hit a one week low vs the Euro.

The Pound has had a very good run in recent weeks but the combination of poor Industrial & Manufacturing data caused the Pound to fall vs the single currency.

The UK’s Trade Deficit figures came out at £13.4bn and this is not a good thing for the British economy and in particular the Pound vs the Euro.

Whilst the Bank of England kept interest rates on hold the governor of the central bank Mark Carney cut the UK’s growth forecast from 2% to 1.9% and this led to investor confidence waning in the UK and as such the Pound fell against the Euro.

Inflation has been predicted to rise to 2.8% whilst average earnings are predicted to fall to just 2% which effectively means that the cost of living is going up whilst wages are falling.

German economic data out this morning showed an improvement in GDP compared to the first quarter from 0.4% to 0.6% and this helped the Euro to end the week on a high vs the Pound which has provided some good opportunities to sell Euros to buy Sterling compared to recent times.

We ended this week with US Retail Sales falling in April and typically when we see Dollar weakness this results in Euro strength which has been evident this afternoon.

As we go into next week the focus is likely to return to the UK’s political landscape and with the Tories looking like they will win without any significant challenge could this provide the Pound with a recovery against the Euro?

Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you bank beating exchange rtes compared to using your own bank .

Therefore, if you would like further information or a free quote when buying or selling currency then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

What will happen to GBPEUR after Article 50 is triggered?

Once Article 50 is triggered I expect the pound to enter a new phase against the Euro although at the moment I cannot see it breaking it out of the recent ranges of 1.13-1.18 we have been trapped in. The pound and the Euro have both found support in recent weeks as solid economic data and improved political certainty aid both currencies. The US dollar has also weakened lately, the main beneficiaries being the pound and the Euro. Both GBPUSD and EURUSD have both risen 3-4 cent in the last couple of weeks ever since the US failed to increase their interest rate hike expectations.

There is a distinct lack of volatility in the market on GBPEUR at present with only 60 pips (0.6 of 1 cent) movement between the high and the low yesterday. Eager Euro buyers may well see some improvements once Article 50 is triggered but I cannot see it lasting long as there are some big questions on the horizon which I foresee as likely to contribute to a decline in the value of the pound. I cannot see how the UK can come out of these negotiations with a better deal than it has already with the EU.

Clients reading GBPEUR for spikes to buy Euros could find some relief around the time of the French elections although Marine Le Pen is not expected to win so any spikes could prove short-lived. I also feel it would be a risky strategy holding on since who knows how weak the pound will be at that time?

The UK’s relationship with the EU has been the downfall of many a Prime Minister and a politician, David Cameron the most recent example. Can Theresa May navigate this rocky road with her reputation and the Conservative party intact? History tells us that the odds are stacked against any success here.

If you have any requirements to buy or sell pounds and Euros in the coming weeks and months then tomorrow’s news and the political fallout on both sides of the Channel will be key to determining the direction on GBPEUR in the future. If you would like some proactive assistance with the timings of any transfer then please feel free to get in touch as I would be interested in speaking to you and offering some information on when may be the best time to buy your currency.

Please email jmw@currencies.co.uk to learn more.

Jonathan Watson

 

GBPEUR drops to 1 month low

The pound to euro rate has slipped to a 1 month low as sterling buckles under fresh economic uncertainty from the Brexit. Many commentators now feel the UK is likely to enter a period of slow growth which does not bode well for the future. As the economy begins to slow down this is being attributed to the weak pound as it makes overseas purchases more expensive and pushes up costs for many businesses and consumers. The weaker pound we are seeing is likely to continue in the coming weeks particularly as we get closer to the triggering of Article 50.

Article 50 could be triggered any day now and the viewpoint that the pound will strengthen is perhaps not as entrenched as first might have been believed. The overall trend on GBPEUR has been lower lately and personally, I wouldn’t be surprised to see further losses. Much of the recent Euro weakness has now been priced into the current GBPEUR offering which will I believe see the rate struggle to rise much higher.

If you have a transfer involving the pound and the euro making some plans in advance is crucial to understanding what we will expect next. The rate could just as easily slip to 1.10 as fly up to 1.20. I expect the level will find some support now we have had all the bad news in the market priced in.

If you have a transfer to make please speak to me Jonathan Watson by emailing jmw@currencies.co.uk for the latest trends and themes and some proactive assistance to meet and secure your currency.

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.

Could Sterling improve against the Euro? (Tom Holian)

Sterling Euro rates have ended the week close to a high after the release of better than expected GDP data as well as positive manufacturing and industrial production data but have still struggled to make any significant gains vs the Euro recently.

The Pound is still being weighed down by the uncertainty caused by Article 50 and at the moment although the government look to be in control there are undoubtedly more obstacles ahead prior to the triggering of Article 50 next month.

However, although Article 50 will be the main factor in determining what happens to Sterling Euro exchange rates over the next few weeks after that the focus will turn to what is happening politically in Europe.

Political uncertainty causes problems for a currency and with the Dutch and French due to go to the polls in March and May respectively then I think we could see problems in the second quarter for the Euro.

Therefore, if you’re looking at selling Euros in the next few weeks now may be close to your best chance.

Indeed, according to some reports we could see the Euro lose up to 10% of its value if Marine Le Pen gets elected.

Le Pen is in favour of leaving the European Union and the Dutch are also voicing a lot of discontent about the European Union so if we see some political change on the next continent over the next few months then I think this will be Sterling’s real chance of longer term recovery.

In the short term UK inflation data is due out on Tuesday which could cause volatility so if you’re considering making a currency transfer then this is likely to have a big impact on GBPEUR rates so make sure you’re prepared to move quickly.

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

Tom Holian teh@currencies.co.uk

 

 

What can we expect on GBPEUR exchange rates today?

Well folks it is the morning we have been waiting for, today we have the release of the UK’s Supreme Court decision which is at 09.30 am. This long awaited decision by the court will determine whether or not it is legal for the Prime Minister and her Government to trigger Article 50 without the consent of Parliament. It is widely expected to lead to turbulence on rates but the general impression is the previous decision will be upheld and sterling will strengthen.

The outcome is not too clear but GBP strength does seem the likelihood. The reason it is not clear is because the decision might be that Theresa May wins the case and can act without parliament. However we are already aware Theresa May will be seeking more of a ‘clean’ or ‘hard’ Brexit from her speech last week. Therefore it can be argued that if the decision is upheld by forcing Theresa May to go through parliament the pound may weaken because it is derailing some of the plans Theresa May outlined last week which were so well received by the markets. So where before last week we would have expected GBP strength, now there is a possibility the pound may weaken.

Expectations on GBPEUR could be as high as 1.18 and as low as 1.13 in my opinion. Whilst the potency of today’s decision is somewhat tamed by the recent speech from Theresa May where she said she would give parliament a vote on the final bill there are various reports stating the PM has already planned many a contingency plan. With most MP’s expected to back the Article 50 bill for fear of going against the will of the people parliament’s power will be somewhat limited anyway.

I expect GBPEUR to be trading a bit closer to 1.17 by the close of business but expect this could largely be a bit of a damp squib. For GBPEUR buyers however this could be the opportunity you have been waiting for and with the pound likely to come under further fresh pressure in the future whatever the outcome today, clients buying Euros with pounds should probably be looking to capitalise on any improvements.

For fresh updates and analysis on what the Supreme Court case means for your currency exchanges please speak to me Jonathan by emailing jmw@currencies.co.uk.

GBPEUR rises to fresh highs, what next?

GBPEUR rates have risen to fresh highs presenting some new opportunities for Euro buyers to buy Euros at much better exchange rates than previously thought. The pound to Euro rate rose to almost 1.16 which is a big improvement from the 1.12 that was on offer only a few days ago. Most analysts are worried about the pound in the coming months but Theresa May’s speech has given us fresh direction which could be well worth taking advantage of.

The pound has risen as Theresa May looks to set out a clear vision on her plans for Brexit. This will be in contrast to some of the EU leaders who will give a speech today and may well be looking to dampen May’s position. Expectations are for the UK to now approach the negotiations with some more vigour but it will interesting to see just the pound to euro rate reacts as we learn of updates from the EU as to how they have viewed the recent comments by May.

There is still plenty happening this week which could move the GBPEUR rate including the release of the latest UK Unemployment data today and then the European Central Bank interest rate decision and meeting tomorrow. Markets are very much focused on what is happening for the pound over Brexit but these events  could present some short term opportunities.

Friday is also Donald Trump’s inauguration which could really move the market as investors second guess the market and how Donald Trump’s policies will move global indices on currency and commodities. Most investors are now awaiting with baited breath the next twists and turns on GBPEUR, personally if I was buying Euros I would be cautious about holding on for too long.

For further information on the getting the best exchange rates please speak to me Jonathan by emailing jmw@currencies.co.uk. I am very confident I can help with some useful information and an exchange rate that will save you money over other sources, please feel free to contact me.

Thank you for reading.

Jonathan Watson

GBP/EUR spikes upward on hopes of a Soft Brexit, will the pair breach 1.20? (Joseph Wright)

The Sterling to Euro exchange rate spiked to a new 3 month high yesterday afternoon off the back of comments from David Davis, the Brexit Secretary.

Those that have been following the Pounds performance this year will be aware that any talk of or indications of a ‘Hard Brexit’ has resulted in Sterling weakness, and the opposite can be said regarding allusions towards a ‘Soft Brexit’.

When answering a question in the House of Commons yesterday Mr Davis suggested that the UK government may be willing to pay for access to the single market and this comment was met with positivity, as the Pound reached 1.1956 at it’s highest point.

The Pound entered December in bullish fashion and this was a continuation of how it performed in November after the currency gained around 7-8 cents through the month.

Those waiting for the right time to convert Pounds into Euros have been presented with a substantially better trading level than they would have been if they made the deal a month before.

At our brokerage we’re able to offer commercial exchange rates meaning that the rates we offer are closer to the inter-bank level than those offered by typical high street banks/providers.

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

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 easily hit 1.10 now?

The GBPEUR rate could now easily hit the 1.10 level if we see some of the key data for the pound slip as many are predicting. The pound has maintained a level of buoyancy against the euro with some much better than expected economic data. However many of the business surveys are pointing to big falls in consumer and business confidence. What is going on? The mixed picture is likely to continue but with the market looking ahead sterling has fallen.

Key data this month will be the latest GDP and Unemployment data which will be released next week and towards the end of the month. I am predicting the data might not be as bad predicted but unless it is really showing the UK economy is doing very well we might find the Bank of England looks to consider an interest rate cut. This is a big worry on financial markets since as we get closer and closer to the decision the outside chance of a rate cut will weigh on the pound even if we aren’t actually looking at one. The market will take into account all possible considerations! This is where we might see a move towards 1.10.

If you are looking to buy or sell the Euros in the coming months then making some plans in advance is key to fully understanding and managing your risk. Most analysts suggest the GBPEUR rate will slide further and clients buying and selling the pound need to prepare themselves for further volatility.

For more information on what lies ahead and how to best prepare yourself foe all eventualities please contact me Jonathan on jmw@currencies.co.uk

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.

GBPEUR rises

GBPEUR has risen today as markets embrace the prospect of a Theresa May Premiership in the UK. The big news is on Thursday when the Bank of England release their latest Interest rate decision which is widely expected to show the bank cutting interest rates. The Bank is expected to cut the base rate to 0.25% a fresh record low and it would not be surprising to see the pound fall on the back of this news. There is also the prospect of a much bigger fall should the Bank inject fresh monetary stimulus into the economy to help boost confidence. The pound is likely to be very volatile on the day and whilst GBPEUR is back up at a 2 week high following the news the UK now has a PM, it might not last long.

Thursday is the big day for me and I would not be surprised to see the pound slip as we see the rates fluctuating greatly on the day. Interest rates are a key often overlooked factor on exchange rates but they can have dramatic consequences which markets need to take account of. If you look at the pound versus the Euro it is much better today at 1.18 but could easily slip back to 1.15 or  1.16 by the end of the week after the UK Interest rate decision.

If you have a transfer involving buying or selling the pound and euro making some firm plans is a very sensible move to mitigate any uncertainty. The pound and the euro are in tricky places as the outcome of Brexit remains to be settled. If you have a transaction to consider then please get in touch with me on with me to learn more by emailing jmw@currencies.co.uk

 

Will the pound rise or fall against the Euro

Will the pound rise in the future against the Euro or is it now doomed and destined to lose value? We do not know the full implications of the Brexit on the pound and it might take many months before we know the full extent of the outcome. I think personally it will not be quite the nightmare scenario some are predicting but it would also be a mistake to be overly confident about either the UK or the pound’s prospects. GBPEUR rates were comfortably over 1.30 last year rising to peaks of 1.40. There is no doubt that the Brexit and economic worries it has triggered have caused the pound to lose value against the Euro. The Euro has also itself been doing quite well owing to improvements in the economic picture in the Eurozone which has helped the single currency. Expectations for the coming months and weeks seem to point to GBP weakness, I would not be surprised to see the pound to euro rate a bit closer to 1.10 than 1.20 in the next few weeks.

If you need to buy or sell the pound and euro making some plans in advance is generally a good idea to avoid the uncertainty and problems of missing out on a potential good exchange rate. Looking at the latest news it is difficult to be too positive about the pound although this is good news for Euro sellers buying pounds. If you have a transfer to make involving buying the pound or euro this is not a market to be too complacent in. The factors at work are not predictable and the outcomes are wide ranging giving high potential for something unexpected to occur causing exchange rates to move quickly.

If you need to make a transfer and wish for more information please speak to me Jonathan by emailing jmw@currencies.co.uk

Huge losses for Sterling vs the Euro following Brexit vote (Tom Holian)

Sterling has fallen by as much as ten cents vs the Euro during this morning’s trading session after the EU referendum vote showed that the Leave campaign has won.

This went against all bookies’ expectations and there has been huge losses for Sterling not just against the Euro but against all major currencies.

Indeed, GBPUSD rates have dropped by 10% which is the lowest level for the currency pair since 1985 and the vote has also caused £120bn to be wiped off the FTSE already this morning.

Prime Minister David Cameron has announced his resignation this morning and will be leaving by October and this has also added to the economic and political uncertainty.

Sterling is in for a very rocky road ahead and further volatility is expected over the weekend. This has created the best opportunity to sell Euros into Sterling for months.

Whether or not the trend will continue is very difficult to say but clearly GBPEUR rates will be uncertain for quite some time to come.

Nicola Sturgeon has also just spoken and is discussing potentially another vote at some stage for Scottish independence as the Scottish vote was unanimous in favour of remaining in the European Union.

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 more immediate response in light of the market movement please also supply your name and phone number when emailing me. Tom Holian teh@currencies.co.uk

 

 

Expect Volatility as the EU Referendum nears (Daniel Johnson)

The EU referendum is the key factor in any GBP/EUR trade. Buoyancy levels are heavily dependent on where the polls sit at the time. We have UK manufacturing and industrial production figures tomorrow at 09.30, but I expect little movement on GBP/EUR, if anything a slight decline due to the uncertainty created by a potential Brexit. In the build up to the referendum I expect GBP/EUR to move in both directions. If you are buying Euros I would be looking to move if the market hits 1.29, selling Euros 1.26.

If I had to put my neck on the line. I would go with the remain camp. The bookies still have the remain camp as favorite, Betfair have the remain camp at 72%. The bookies called it correctly on both the Scottish referendum and the  General Election. They are putting their money where the mouth is.

If you have a currency requirement I am happy to help. I will guarantee to  beat any competitors rate of exchange and also provide an individual trading strategy to try and maximise your return. Feel free to get in touch by e-mailing me at  dcj@currencies.co.uk.

Sterling Euro rates set to fall next week? (Tom Holian)

Sterling Euro exchange rates had a poor end to the week and with just less than 2 months to go before the UK goes to the polls to decide whether or not to stay in the European Union it is likely that Sterling exchange rates will remain uncertain.

The polls are currently very close and although the Remain campaign looks to be leading the UK economy has clearly started to falter in recent times.

During the week UK Manufacturing data showed its lowest level in 3 years as overseas orders have reduced owing to the uncertain political situation.

Next week the UK announces industrial production data on Wednesday and I think we could see further negative news causing Sterling to weaken against the Euro.

Arguably the most important day for Sterling Euro exchange rates will be Thursday when the UK Quarterly Inflation Report is published closely followed by the latest Bank of England interest rate decision.

Falling inflation is a global concern for central banks and if inflation is predicted to fall lower then this could influence the BoE when they announce interest rates.

If we see any of the members voting for an interest rate cut then we could see Sterling fall vs the Euro as it shows that the UK economy is remaining under pressure.

Eurozone GDP is released on Friday and with data in the Eurozone showing signs of recovery in recent months then I would not be surprised to see this data come out better than the expected 1.6% year on year prediction.

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