Tag Archives: European Central Bank

Sterling to Euro rate now sitting comfortably above 1.15, is a move closer to 1.20 now likely?

Yesterday GBP/EUR broke through 1.15 once again, although this time the pair have consolidated above this previous resistance level meaning that the pair are now trading in new territory.

Since the transitional agreement was agreed between the UK and EU negotiators sentiment surrounding the UK economy moving forward has improved, and this is behind much of the Pound’s recent gains. The Euro has also been coming under pressure as inflation levels within Europe aren’t quite as high as the ECB had hoped before cutting back on its asset purchasing program. Global concerns surrounding tensions in Syria and potential clash between the US and Russia are also impacting the Euros value due to the effects on the regions economy.

The interest rate hike next month is now almost a certainty and talk of whether the BoE will raise interest rates later in the year is now beginning to impact the rates, so if you’re planning on making a transfer soon do bear this in mind.

As the year continues I would expect Brexit related news to continue to impact the Pound’s value. The final Brexit agreement needs to be approved by the European Council and across all parliaments in the EU before it becomes official so I expect to see this topic continue to carry potential to move GBP exchange rates quite drastically.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Which data releases could influence the GBP/EUR rate this week? (Joseph Wright)

The Pound to Euro exchange rate has so far managed to hold onto its recent gains and remain trading above the 1.14 mark. This suggests to me that market sentiment surrounding the Pound has improved as previously this was the top end of the current trend and GBP/EUR would usually struggle to hold its ground at these levels.

The pair did reach 1.15 at one stage recently after news broke that the Brexit transitional deal had been arranged, much to the joys of the financial markets. This matter had been a concern previously and limited the upside for the Pound, so understandably Sterling spiked upward in the wake of the news.

Sterling has also been boosted after the Bank of England has hinted at raising interest rates in May of this year, meaning that the monetary policy of the BoE is likely to be more aggressive than many had initially expected. The pick up in wage growth has also increased these chances as wage growth begins to align with the increasing inflation levels.

Later this week there will be PMI releases covering a number of sectors within the UK, all of which are expected to show slowdowns. If you have an upcoming currency requirement involving the GBP/EUR pair, it may be wise looking into the current trade levels in case the PMI releases are worse than expected. They offer us forward looking insight into market sentiments so a gloomy outlook could result in a weaker Pound.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

GBP to EUR rate begins the week flat, will this week bring direction for the pair? (Joseph Wright)

After a very busy week for Sterling exchange rates last week, the Pound has begun the week in a quiet fashion with GBP/EUR trading exactly flat on the day at the time of writing.

Those watching the GBP/EUR rate should be aware that the pair reached the top end of their medium term trend last week after hitting 1.1450, and that it’s not unusual to see the pair dip shortly after hitting the 1.14/1.15’s as many within the markets don’t think the pair can breach this mark and push on into the later teens.

The lower end of the trend since the summer of last year is well below 1.10 at the 1.07/1.08 mark, so the pair are still trading towards the top end of the medium term trend.

It’s Brexit related news that’s continuing to be the main driver of GBP exchange rate movements at the moment. Last week’s spike up to 1.1450 was a result of bullish comments from the Bank of England so those hoping for another opportunity to trade around those levels should pay attention to comments from the BoE. Do feel free to register your interest with me if you wish to be notified in the wake of a big move for GBP exchange rates.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

How will the Pound move against the Euro in 2018? (Tom Holian)

The Pound has remained in a fairly tight range against the Euro since the start of the year as the market appears to be waiting for further progress with the Brexit talks.

With the last meeting going relatively well in early December we saw GBPEUR rates spike in an upwards direction but the gains were relatively short-lived.

The critical issue of Brexit is that it is not just the UK who will be affected but also the European Union.

When the talks initially began last year the Pound came under a lot of pressure as the cards appeared to be in the hands of the other 27 member states.

However, recently the talks have started to progress positively and I think we could see Sterling improve in the future when the next round of discussions begin again in March.

At the moment the market is relatively settled so if you’re happy converting your money at these rates and would like a free quote then contact me directly by calling 01494725353 and ask for Tom Holian when calling.

The next catalyst for change in the short term is due to come out later on this morning with the latest release of Eurozone inflation figures at 10am. Eurozone Inflation is extremely important for the central bank when deciding monetary policy so this morning’s data could impact GBPEUR exchange rates.

The European Central Bank has already previously reduced their QE programme and if inflation remains as expected we could see the ECB possibly hint at raising interest rates at the next monthly meeting in the future which could see strength for the single currency.

If you have a currency transfer to make and would like a free quote compared to using your own bank or simply want to compare rates to buy or sell Euros against your current foreign exchange provider then feel free to get in touch for a free quote. Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help save you money on exchange rates.

Email me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

All eyes on Inflation figures this morning (Joseph Wright)

This morning could be important for Sterling exchange rates, not just this morning but moving forward as analysts are expecting to see UK inflation levels hit a 5-year high.

The weakening of the Pound since the Brexit vote has pushed up the rate of inflation in the UK, and for a while now the inflation level has been well above the Bank of England’s 2% target. Many analysts in the city are expecting to see the rate hit 3% for September, and if this happens there is a high chance that the Bank of England may look to hike interest rates for the first time in over 10 years.

A 3% inflation level would be a 5-year high and the governor of the Bank of England has hinted at hiking rates as soon as next month.

A high reading this morning would likely result in Sterling strength as the markets would expect to see a rate hike from the BoE, and at the same time if the inflation level is lower than expectations, I think there’s a chance the Pound would fall.

Mark Carney will also be speaking later this morning as he testifies to MP’s on the Treasury this morning. It will be interesting to see whether he discusses inflation and potential rate hikes and if he does it will be interesting to see how the Pound reacts.

Aside from today’s busy morning this Thursday could also be busy as Retail Sales data will be released which could impact Sterling depending on how the figures perform.

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.

When will the European Central Bank taper their QE Programme? (Tom Holian)

The Pound has seen some small gains during this week but I fully expect GBPEUR exchange rates to experience a huge amount of volatility later on today.

The European Central Bank are due to meet at 1245pm today and ECB president Mario Draghi is due to address the markets later this afternoon.

There has been much talk of the current QE programme and when the ECB may start to taper the programme.

The likelihood is that the tapering will commence later in the year in perhaps December so any absence of when this may take place could see the Pound make gains.

However, if Draghi does look to announce or at least suggest when QE may start this could cause the single currency to dramatically strengthen against the Pound.

Overall the market for GBPEUR exchange rates is likely to continue to be dominated by the Brexit talks and today’s ‘Great Repeal Bill’ will be hotly debated in the House of Commons later today.

The uncertainty and the ambiguity over the costs of Brexit and what Brexit actually means has caused Sterling to experience real problems lately and in the short to medium term I cannot see the Pound making any real gains vs the Euro.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Could Brexit send Sterling lower against the Euro? (Tom Holian)

The fears caused by the Brexit talks continue to weigh heavily on the Pound vs the Euro which is now trading at its lowest level to buy Euros with Pounds for 8 years.

The previous time the GBPEUR rates were lower than they are at the moment was back in 2008 during the credit crunch era when Sterling crashed against all major currencies including the Euro.

A lot of the large banks have been predicting that the Pound could hit parity vs the Euro and at the moment I am finding it difficult to work out how the Pound will be able to recover against the Euro whilst the uncertainty surrounding Brexit continues.

Indeed, the Euro has been trading at 18 month highs against the US Dollar as the suggestion is that the European Central Bank may look at tapering their current Quantitative Easing programme which could see further strength for the Euro vs the Pound.

In the short term we may see some small spike for Sterling owing to profit taking but medium to longer term could see GBPEUR rates lower than current levels.

 

A lot of my clients have been using a forward contract which allows you to secure an exchange rate for a future date for a small deposit and this has worked out very well for many of my Euro buyers over the last few weeks.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

 

Pound to Euro rate in focus as it’s trading at an 8-year low, will the sell-off continue? (Joseph Wright)

Sterling is continuing to come under pressure this morning after breaching the 1.09 mark during yesterday’s trading session.

The breach of 1.09 has continued this morning as the pair are now trading at their lowest levels since 2009, with 1.0868 the lowest level the pair have hit so far.

This comes at a time where risk appetite worldwide is on the decline after US President Donald Trump’s threat to end the NAFTA agreement and shut down the US government if he doesn’t receive funding for the wall he plans on building along the boarder of Mexico.

There have also been a number of forecasts from major financial institutions recently suggesting the Pound could fall as low as 1 for 1 with the Euro, with HSBC, Morgan Stanley and Citi all making this same prediction for the pair in 2018.

Should these predictions comes true then it may be worth looking into the current exchange rates if you’re planning a large GBP to EUR transfer as there is still some distance to go should they be correct.

Tomorrow at 9.30am there will be the release of UK GDP data for the month of July, and there could be movement between GBP/EUR if this figure is released some distance from its expectation.

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.

What next for GBPEUR rates?

Overall the belief on the GBPEUR rate is that it will now continue to ebb lower and lower as the uncertainty over the UK’s political and economic outlook is overshadowed by much improved economic data and also political certainty in the Eurozone. Those who predicted the demise of the Euro and the Eurozone a few years ago are now facing some serious questions as the outlook for the Eurozone continues to improve. If you are selling Euros the likelihood of further improvements cannot be ruled out. The extra 2 cents gained for Euro sellers this week is an extra £1500 in your pocket per €100,000 transferred. If you wish to learn more about rate movements and how much you could save please contact me jmw@currencies.co.uk.

If you have a transfer to make buying or selling the pound and Euro the current trend is looking likely to favour the Euro but there could be surprises on the way. For example Mario Draghi was actually quite ‘dovish’ or soft in his comments yesterday during the European Central Bank (ECB) Press Conference. Nevertheless the Euro rallied essentially as Mario revealed there are plans to taper their bond buying purchases in the future.

This strengthened the Euro but Mario didn’t actually reveal too much on timings, that means that the market might actually have overreacted to his comments. This can often be the case on markets so Euro strength is neither guaranteed or assured. However looking at the overall picture and particularly against a weaker pound a further decline in the GBPEUR rate looks to me likely.

If you have a transfer buying or selling Euros we are here to help with the planning and execution of any transactions for the future. We can help with the forecasting and devising of strategies to help you maximise the transaction. Thank you for reading and please contact me if you would like to discuss anything further by emailing jmw@currencies.co.uk.

Will the pound to Euro rate fall further?

The pound to euro exchange rate could now really suffer as we get closer to the UK election and any uncertainty of a strong Theresa May victory weighs on the pound and sees exchange rates fall. The overriding impression on the market is that we will soon see the pound rise higher on the back of a strong Theresa May victory. However the potential for a big improvement on the exchange rate is not as high as in previous years where we have seen the market fall and rise sharply owing to the uncertainty around the outcome. This morning’s Retail Sales figures are reason to expect some turbulence ahead of the bigger news in June.

Therefore if you have a currency requirement buying or selling the pound and Euro making some plans around this important event is crucial. Once the UK election is over there then begins a whole new set of problems as we learn of the latest news surrounding the Brexit deal and further problems. If you have a transaction you are considering in the future then making some plans in advance is sensible to avoid the risk of further uncertainty or surprises causing upset.

There is a strong belief that the pound to Euro rate will rise in the future as we get closer to understanding the true nature of the Brexit. However we could be waiting some time to find out exactly how this will pan out. With German elections later in the year the Euro might strengthen but assuming the Conservatives win a strong majority the outlook for GBPEUR is I believe to be close to 1.20 than the mid teens.

If you have a transfer buying or selling the GBPEUR currency pairing then the next few weeks look very interesting. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Euro on the charge, where next for GBPEUR exchange rates?

The pound to Euro rate dropped yesterday as UK Inflation data was shown to be rising at a faster pace than thought and this piles pressure on UK consumers. With consumers in the UK making up a large degree of the financial activity since Brexit, consumer behaviour is crucial to where the UK economy and sterling exchange rates ultimately heads.

The biggest factor for the Euro is at present is improved political news and also economic news. Eurozone GDP was confirmed at 0.5% yesterday and Emmanuel Macron made headway in forming a cabinet which has dispelled some of the fears relating to the Euro over the last few weeks. The economic outlook in the Eurozone is looking much more positive and with Angela Merkel’s party also faring well in the recent elections, much of the political fear and worry over the Eurozone is being neutralised.

This represents a shift as Donald Trump begins to encounter problems with not just the US economy but also politics coming under fire for leaking information to the Russians and also for firing the head of the FBI. The UK too is struggling politically, whilst Theresa May should win the election in June there is uncertainty there over just how it will effect the Brexit.

So all in all the Euro is benefiting from uncertainty elsewhere. I expect this trend to remain as we get closer to the UK election and Donald Trump continues to dance to his own tune with no tangible benefit to the US economy. GBPEUR could easily drift lower now down to 1.14 or 1.15 as we approach the UK election.

Today we have key data with the latest Unemployment figures for the UK so if you have a transfer to make please keep your eyes peeled for this morning’s data at 09.30 am. All in all if you have any currency transfers to make understanding the market and all of your options is key. For a detailed analysis of your position and how we might be able to help please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

Sterling crashes to 2 month low vs the Euro (Tom Holian)

Why has Sterling fallen against the Euro this week? This is down to a number of factors with the rate to buy Euros now the lowest level since early January.

On late Friday afternoon rumours have surfaced that the International Monetary Fund may look to bailout Greece after previously suggesting that they they may slow down their loans.

This has helped the Euro to make gains vs the Pound with the biggest daily gains vs Sterling seen on Friday since last month.

The UK also posted poor Industrial Production & Manufacturing data yesterday morning and this caused the Pound to start the day off on a bad foot.

The Pound is still being negatively affected by what is happening politically in the UK with Article 50 predicted to be triggered at some point this month. However, as yet there has been no formal announcement as to when this will occur.

This has discouraged investors to hold Sterling and this is why we have seen the Pound react badly to the uncertainty.

Currency is generally affected by two main factors including economic and political data. Therefore, with a bad economic data release combined with the uncertainty of Article 50 is why we have seen the Pound fall against all major currencies including the Euro.

Next week the US Federal Reserve are almost 100% certain to put up interest rates which would typically result in Dollar strength and Euro weakness. However, with the European Central Bank having confirmed that they will taper their current amount of QE from EUR80bn to EUR60bn per month by early next year the rate rise from the US is likely to negatively affect the value of Sterling.

If you would like further information about expectations for Sterling vs Euro exchange rates or would like a free quote when buying Euros then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@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

All eyes on UK PM Theresa May’s Brexit speech later today, where to for GBP/EUR? (Joseph Wright)

Late on Friday’s trading session it was announced that the UK Prime Minister, Theresa May will be giving a speech later this morning outlining her Brexit plans.

The markets have reacted negatively to this news and many are expecting May to make a speech with a ‘Hard Brexit’ bias.

The Pound was already coming under pressure as May gave an interview with Sky News last weekend and commented that the UK cannot keep ‘bits’ of it’s EU membership. It’s comments such as these which are considered ‘Hard Brexit’ leaning and for those planning on making a currency exchange between the Pound and other currencies, any reference to a Hard Brexit from key government members is likely to have a negative impact on the Pounds value.

This morning’s speech is scheduled for for 11.45am, and during the speech May is expected to cover topics such as Brexit timescales, customs unions, immigration, potential transitional deals and EU funding arrangements.

Aside from this morning’s speech, the outcome of the Supreme Courts ruling on whether or not the government require parliamentary approval before invoking Article 50, and formally begin the Brexit process is likely to be one of the biggest movers of Sterling exchange rates. The outcome could be released any day now so it will be interesting to see how markets react. 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 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.

What trading rates can I expect on GBPEUR in 2017?

I would expect that the GBPEUR levels on offer for GBPEUR in the coming weeks and months will remain within the ranges we have seen since the Referendum. These are 1.2013 to 1.1068 on the interbank exchange rate. Simply knowing the ranges is helpful but what is more useful is the upcoming events that can move the rates and understanding in advance your options to help you navigate the markets. Understanding the FX markets is some respects simple, in others impossible to make sense of.

We could easily be looking at a quick change on GBPEUR at any point in the next week or so as the Supreme Court decision is released. We are looking to this result as the main driver on GBPEUR in the short term. If you have a transfer to consider you should be closely monitoring this decision or if you wish you can alert me to your position and I can monitor it for you. Just email jmw@currencies.co.uk to highlight your situation Other flashpoints include the inauguration of Donald Trump on the 20th December. Will we finally see this as the end of the Trump rally that has been taking place in recent weeks?

Looking further into 2017 we have also the Dutch and French elections. If you have a transfer to consider in the future then making sure you are aware of such issues and their potential to impact your exchange rate is sensible. Personally I feel the pound is undervalued at present. There is real potential for some upside in the coming weeks and months once we get some clarity on the Brexit plans. Ultimately this could take a few months to manifest so clients looking to move now or in the next 6 weeks might wish to take advantage of any short term spikes as the pound is likely to remain under pressure.

For more information on events that will shape your exchange rate please speak to me Jonathan by emailing jmw@currencies.co.uk. I am your personal account manager here and will be very happy to hear from you and offer some assistance.

Thank you for reading, I look forward to answering your questions.

Will the GBP/EUR pair fall back to their 2016 lows? (Joseph Wright)

Further Brexit jitters have caused the GBP to EUR exchange rate to plummet over the past couple of trading sessions.

In an interview over the weekend the UK Prime Minister, Theresa May commented that her primary focus is likely to be control over immigration as opposed to retaining access to the single market. This suggests a bias towards a ‘Hard Brexit’ as opposed to a softer approach and the currency markets have reacted to this news with the GBPEUR pair breaking below 1.15 and approaching the early 1.14’s at the time of writing.

May announced that the UK would not be able to keep ‘bits’ of EU membership, and since the comments the Pound has been falling across the board and notably against the Euro.

There is some distance for the pair to fall before hitting the lows of 2016. GBP/EUR hit 1.1028 at the beginning of November of last year and as the planned Brexit approaches I wouldn’t rule out further moves towards this level and I think that if the government is able to invoke Article 50 by the end of March as Theresa May plans, I think we could see the pair fall below 1.10 potentially.

Although economic data isn’t the predominant mover of exchange rates currently involving the Pound, investors should pay close attention to UK releases as negative updates have the potential to cause sell-offs in an already under pressure Pound. UK GDP figures will be released tomorrow so feel free to get in touch if you wish to be kept up to date regarding this event.

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.

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.

GBPEUR rates could be in another volatile period!

GBPEUR rates have fallen since the beginning of October which begs us the questions what can we expect next? Since the 7th October and the settling following the ‘flash crash’ which saw the pound fall to below 1.10 GBPEUR rates have traded in a tight range of 3 cents between 1.096 and 1.125. with plenty of uncertainty coming up soon clients looking to buy or sell pounds and euros should be considering all of their options ahead of any changes or breaks from these recent ranges.

This week is the beginning of a new month so we have a whole host of new fresh data to pore over and give us clues as to how the relevant economies are performing. Yesterday Inflation data in the Eurozone was shown to be rising but there is still mounting speculation that a stubborn Unemployment rate and meagre growth will lead to further stimulus from the European Central Bank (ECB) in the future. This prospect is weighing on the Euro which is why this morning we sit around 1.1150.

The next event to keep an eye on is this morning’s UK Manufacturing data which I believe could help anyone selling the pound. Manufacturing is a big staple of the UK economy at around 12% of GDP and the weak pound has seen this area of the economy perform very well. Despite sterling not reacting too well to the recent good news of higher GDP ni Q3, I believe this release could help anyone buying Euros with pounds.

Wednesday, Thursday and Friday are all filled with more data from the UK most notably the UK Interest rate decision and Quarterly Inflation Report both on Thursday. Then we have the US Interest rate decision on Wednesday evening and Unemployment data and Non-Farm Payroll numbers Friday afternoon. These two releases will be very important for US Dollar rates which will undoubtedly feed into GBP and Euro rates too.

If you ask me the market has been too quiet in the last few weeks. This week’s data really has the scope to change the picture on GBPEUR rates so if you have a transfer in the coming weeks and wish to learn more please fill in the form or contact me Jonathan Watson directly on jmw@currencies.co.uk. I work as a Chief Analyst fort he UK’s largest independent currency brokerage and would be very interested to offer some support and information to help with your currency transfer.

European Central Bank Meeting and impact for Sterling vs the Euro (Tom Holian)

Sterling has started to fall against the Euro after hitting the best levels to buy Euros since early August during the early part of this week.

Poor manufacturing and industrial data showed signs of a struggling economy caused by the vote to leave the European Union. The lack of certainty as to when or even if Article 50 will be triggered is also causing problems for Sterling.

Later today the European Central Bank will meet to announce their latest interest rate decision.

I don’t think we’ll see any change to monetary policy this month but the meeting held later in the afternoon could provide us with clues as to whether there’s any appetite for a change in the future.

This announcement could set the trend in the short term for Sterling vs the Euro and if you’re looking to buy or sell Euros then keep a close eye on this data release.

Tomorrow morning the UK releases Trade Balance data and any change to the expectation or any falls owing to the post-Brexit period could pile the pressure on Sterling exchange rates vs the Euro.

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.