Tag Archives: eurozone

Macron wins but Euro remains flat against the Pound (Tom Holian)

Emmanuel Macron has been confirmed as the new President of France with a convincing win over the more controversial candidate Marine Le Pen.

What make this interesting in terms of the currency markets is that this has done little to move the Euro vs the Pound and if anything we have seen GBPEUR exchange rates make gains since the start of the week.

Tomorrow morning there is a host of economic data due out from Germany in the form of Industrial Production data as well as Trade Balance. As Germany is the leading economy in the Eurozone any data can affect GBPEUR exchange rates.

The focus is now likely to return to what is happening politically in the UK and with the general election due to take place a month from today I think we could see the Pound make some gains in the weeks ahead as it appears as though the Tories will win with a clear majority at the moment.

If this happens this could provide the UK with more stability which means Theresa May will be able to start progressing the Brexit negotiations.

Therefore, if you’re in the process of looking to sell Euros during this month it may be worth looking at a forward contract which allows you to fix an exchange rate with a small deposit for a future date.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you bank beating exchange rates but also help you with the timing of your transfer. 

If you have a currency transfer to make involving buying Euros or selling Euros and would like further information or a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

French election news strengthens the Euro vs the Pound (Tom Holian)

Sterling vs Euro exchange rates have fallen from their recent high reached five months ago after the UK announced a snap general election last week.

This gave the Pound a much needed boost vs the Euro but the gains have been short lived as the French elections announced their first round of results over the weekend.

The French public have voted for two candidates who will now go head to head in the next round which is due to take place on May 7th. The likelihood is that Emmanuel Macron will defeat the more controversial National Front leader Marine Le Pen.

This has led to the single currency recovering from its losses from the end of last week and the reason for the improvement in EURGBP exchange rates during today.

On Thursday there are a number of data releases likely to affect GBPEUR exchange rates with Services data from the Eurozone alongside a Business Climate indicator survey.

This will be followed by the latest European Central Bank decision due out and the subsequent statement released by ECB president Mario Draghi.

Having worked in the foreign exchange industryfor one of the UK’s leading currency brokers since 2003 I am confident not only of offering you bank beating exchange rates but also help you with the timing of your trade,

If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Pound to Euro rate drops in wake in Dutch election results, where to next for GBP/EUR? (Joseph Wright)

The Pound has continued to lose value against the Euro throughout the month, and despite making a few fight-backs the currency is now lodged below the 1.15 mark at the mid-market level.

Late last night it was announced that Dutch Prime Minister Mark Rutte won the most seats in the parliamentary election, and defeated far-right hopeful Gert Wilders who was predicted to put in a strong performance. Had Wilders of won more seats or put in a stronger performance I would have expected to see the Euro lose value on fears of his plans to remove the Netherlands from the EU, but the win for the current Prime Minister has eased these fears which has strengthened the Euro further.

The Euro had been boosted recently after the European Central Bank recently confirmed that they will be tapering the current quantitative easing programme due to signs of the economy improving.

Moving forward I think we could see the Euro gain even further as the Brexit begins, particularly if it becomes public that trade negotiations are going badly.

Later today there will be an interest rate decision from the Bank of England, and although no changes are expected it will be interesting to see what governor Mark Carney has to say regarding the UK economy.

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.

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 GBPEUR rates hit 1.20 or 1.10 again?

Most expectations centre around the likelihood sterling will rise further against a weaker Euro in the coming weeks and months since the general impression for the market is the Euro will become weaker on political uncertainty. GBPEUR is currently resting around 1.15-1.16 but I feel a move higher and both lower is feasible. With so many different events potentially to affect the rate clients looking to buy or sell the pound and euro should be I believe making careful plans sooner rather than later.

The first major hurdles begin next month when the triggering of Article 50 will take place and should see attention firmly on the UK. With most analysts predicting the pound will fall lower in the coming months I would not be surprised to the pound react badly. Whilst we have seen sterling stronger in many respects because we have some clarity over Brexit there are still numerous details to finalise. What kind of deal will the UK get? Will it be achievable in two years? Sterling is clearly going to remain in choppy waters and any pending economic damage from the recent rising Inflation rates could also torpedo sterling strength.

Turning to events across the Channel we are of course not too far from some major political uncertainty there too. Dutch elections scheduled for the 15th March could see GBPEUR come under some real pressure with the Euro likely to weaken further in the coming months. I would not be surprised to see GBPEUR come under further pressure with GBPEUR quite likely to reach the 1.20 mark although this is more than likely to be in the month of April.

If you have a transfer to consider involving the pound or euro then making some firm plans in advance is I believe a sensible move. For more information at no cost or obligation 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

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.

Sterling Struggling to Find Support Above 1.20 (Matthew Vassallo)

Sterling has found a lot of resistance around 1.20 against the EUR, with the single currency continuing to find support under this threshold.

The Pound has touched this level on more than one occasion over the past couple of weeks but evidently does have enough market support, or investor confidence to breach this consistently under the current market conditions.

1.20 has become something of a glass ceiling for the Pound and whilst GBP has clearly found a foothold over recent weeks, I’m not convinced that we are going to see another aggressive move in the short-term.  Whilst the Eurozone is facing multiple problems of its own, both economically and politically, the UK economy’s  prosperity is currently being driven by our on-going Brexit from the EU.

This is likely dominate market sentiment for months, possibly even years to come and as such I would be wary about putting too much faith in sustainable Sterling strength. Until we have a clear picture of how we will facilitate our Brexit the uncertainty that this has created will handicap any major advances for the Pound in my opinion.

I do feel as we move into 2017 and assuming we do get some factual information released about how the UK economy will move forward post Brexit, that economic issues manifesting themselves inside the Eurozone will inadvertently push Sterling’s value up. However, I would be prepared to gamble on this and as such I would be taking advantage of the 4-5 cent improvement seen for those clients holding the Pound over the past month.

If you have an upcoming Sterling 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

 

GBPEUR may rise towards the end of this week!

The pound to euro exchange rate could experience volatility towards the end of this week following a key piece of economic news from the United States. The US will vote on whether or not to raise their interest rate this week Wednesday and it is widely expected they will vote to hike rates by 0.25%. If you are looking to make GBPEUR exchange this news will have an impact on your exchange rate and the currency markets.

The US dollar is the worlds most traded currency and as such has very strong relationships with each currency. Simply put movements on the US dollar have bearing on all currencies. Therefore with the big decision on Wednesday night we could see the pound and the Euro reacting individually to the US dollar which will influence their own relationship.

The outcome of tomorrow’s decision will in my opinion weaken the Euro since the pound has generally been holding up against the US dollar. Therefore as the US dollar strengthens (assuming the Fed do raise rates) then the Euro should weaken which will present some better opportunities to buy the Euro with the pound.

This morning at 09.30 am is the latest UK Inflation data which will of course effect the pound, then tomorrow is the latest UK Unemployment data. Retail Sales for the UK is released Thursday when of course we will also have the latest news from the US Interest rate decision. Another factor in all of this will be the Inflation Eurozone data released Thursday, all in all this is a busy week for the GBPEUR rate.

I expect the GBPEUR rate to be higher towards the end of the week, if you have any transfers to consider please speak to me about how to go about forming a strategy to help you capitalise on any improvements. Please either email jmw@currencies.co.uk or call 01494 787 478. I would be very interested to speak with you and offer assistance with your plans.

Sterling Euro hits 3 month high on single market comments (Tom Holian)

Sterling Euro exchange rates hit a 3 month high during yesterday’s trading session breaking through 1.19 on the Interbank level after comments from Brexit secretary David Davis that the UK may still make payments to the EU even after we’ve left in order to stay in the single market.

These comments really helped the Pound to gain vs all major currencies and hence the 3 month high to buy Euros yesterday.

This weekend could possibly result in even higher levels for GBPEUR exchange rates when the Italians hold their own referendum on constitutional reform on Sunday.

Matteo Renzi is looking to change the banking sector centrally but if the vote doesn’t go his way he has threatened to resign and if this does happen then this is likely to cause political uncertainty for one of the strongest nations in the Eurozone and therefore this could result in Euro weakness vs the Pound.

The Euro has really struggled vs the US Dollar hitting close to a decade low recently and owing to the Dollar strength this has helped the Pound to make gains vs the single currency.

Also next week the European Central Bank are due to meet to discuss their latest interest rate decision on Thursday and although I don’t expect a rate cut to come I think the central bank will discuss the problems with low inflation on the continent and this could lead to further Quantitative Easing being announced which could see GBPEUR rates go in an upwards direction.

Having worked in the foreign exchange industry since 2003 I am confident that not only can I offer you bank beating exchange rates when buying or selling Euros but also help you with the timing of your transfer.

If you have a currency transfer to make and would like to buy or sell Euros then please email me for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

GBP/EUR Spike Following False Memo (Matthew Vassallo)

GBP/EUR rates have recovered this morning following yesterday’s losses for the Pound. Sterling lost value yesterday following the release an apparent leaked memo, which indicated that up 30,000 additional civil servants would be required to facilitate our Brexit following the triggering of Article 50.

This memo was widely renounced last night and this morning and the Pound has benefited as a result. Despite today’s spike yesterday’s sudden dip proves how fragile the UK economy and GBP remains in investors eyes and for that reason I would still be keen to take advantage of the improvement seen since last week.

GBP/EUR movements have been unpredictable ever since the UK’s decision to leave the EU and with pressure on both the UK & Eurozone economies I do not anticipate this trend to change anytime soon. Unless you are a gambler or extremely risk adverse, I would be tempted to make provisions to try and limit further negative market movement by locking in any short-term currency exchanges. You can also look to protect longer-term positions by way of a forward contract, which will completely eliminate the chance of future negative market movement.

The global impact of US President elect Donald Trump is yet to take full effect and with so much uncertainty surrounding the UK and our upcoming Brexit, alongside vast political and economic positons inside the Eurozone, I would not be prepared to risk heavy losses in such an uncertain and unstable market.

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

GBPEUR exchange rates for the remainder of the week (Dayle Littlejohn)

This morning at 9.30am the UK are set to release their latest Gross Domestic Product (GDP) numbers. GDP is a measure of the total goods and services produced by the UK and because of the loss in confidence in the UK due to the Brexit, the quarterly figures are set to show a decline. The prediction is a fall to 0.3% from 0.7%. If this is the case I expect GBPEUR will fall.

Friday the Eurozone are set to release a host of data releases including  Consumer Confidence, Services Sentiment, business climate and industrial confidence. The releases are set to be a mixed bag therefore expect volatility.

Since the UK voted out of the EU a general trend we have seen is for GBPEUR to fall Friday afternoons. With limited data releases on a Friday afternoon, I believe speculators are moving their assets out of the pound as they are unsure about events that could occur over the weekend when they are not studying the market.

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! **

Sterling Rallies Against the EUR – Will the Current Trend Last? (Matthew Vassallo)

Sterling battled back during Tuesday’s trading, giving those clients holding Sterling some much needed respite after weeks of seeing their Pounds lose value.

GBP/EUR rates moved back above 1.12 at the high, following a host of better than expected UK inflation data released yesterday morning.

All eyes will now switch to this morning UK employment data, with the official unemployment rate released at 09.30. With the figure expected to remain unchanged at 4.9%, expect additional volatility on GBP/EUR exchange rates if it comes outside of this remit. If we see a figure below the 4.9% I would expect Sterling to find further support and a move back towards 1.13 is certainly feasible but anything above this and the Pounds recent gains are likely to be wiped out.

The Pound did find support around 1.10 so I think we would need to see an extremely poor figure in order to fall back to this level or below but with further key data releases coming up this week, anyone with a GBP/EUR position should be keeping a close eye on market developments.

Looking ahead and tomorrow we have the latest European Central Bank (ECB) interest rate decision and this is likely to have a big impact on the short-term outlook for clients holding both GBP and EUR. Whilst it is widely anticipated that rates will be kept on hold at 0%, it is ECB president Mario Draghi’s subsequent press conference that is likely to have the most impact on exchange rates, as any indication of a future rate cut or hike, along with any bullish or dovish statements about the Eurozone economy will more than likely drive the amkrets over the coming days.

Based on recent mixed messages I would not be prepared to gamble on the outcome of this. Those clients holding EUR still sit close to a five year high against Sterling and these levels, in such an uncertain climate should be protected and taken advantage of.

Similarly those clients holding Sterling will be buoyed by yesterday’s move, which on a £200,000 GBP/EUR exchange will have gained them approximately 2,500 EUR more than it would have on Monday.

If you have an upcoming GBP or EUR currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The current levels may not be around for long as the currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.

If you would like to be kept up to date with all the latest market movements, 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

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! **

It’s been another volatile week for investors with GBP & EUR positions, as the markets reacted to some key economic data releases for both the UK and Eurozone. The Pound had made strides against its EUR counterpart last week following a positive run of data, personified by better than expected Construction & Manufacturing figures. This helped to push GBP/EUR levels towards 1.20 on the exchange and whilst this was level was tested it was never breached. Since then the EUR has found support, with the pair now floating between 1.17-1.18 as head towards the end of the trading week.

The markets were primed yesterday as the latest Bank of England (BoE) interest rate decision was released, along with the subsequent minutes. This was preceded by UK Retail Sales figures, alongside a host of Eurozone and US inflation data released throughout the day.

Whilst the BoE decided to keep rates on hold at 0.25% as widely anticipated, it was the summary and minutes which caused the markets to shift. The BoE remained very cautious in their address and left themselves open to a further rate cut if necessary. The fact they mentioned this could come before the end of the year threw the markets into chaos and the Pound took a hit across the board as a result.

Sterling immediately lost value against the EUR and this once again proves how fragile the UK economy remains and how investor confidence remains cautious at best. For this reason, I continue to stress to any clients holding Sterling positons that they should be looking to protect themselves at every opportunity, as uncertainty breads fear and fear is likely to cause the currency in question to contract.

Whilst so much uncertainty continues to engulf the UK economy, which seems to be stuck in a relative state of limbo, the Pound will struggle to make a sustainable impart against either the EUR under current market conditions.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one, then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the UK, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me directly on mtv@currencies.co.uk and I will be more than happy to contact you personally to discuss the various options we have available to you.

European Banking Stress Tests to cause volatility for Sterling Euro exchange rates (Tom Holian)

Sterling Euro exchange rates have been trading in a rather large range during today’s trading session in anticipation of tonight’s European Banking stress tests due to be published at 9pm this evening.

The tests will involve 51 European banks with a minimum of €30bn worth of assets and the chances are that we’ll see some of the banks potentially fail the test conditions.

Most at risk of failure are some of the Italian banks and with their current debt levels as much as €550bn with almost half of that due to French banks we could see some Euro weakness if the results are negative.

Across Europe today generally speaking the banks involved have all seen their share price go in an upwards direction but could this be due to speculation or because the tests could show all the banks involved come out better than expected.

The likelihood to me is that we’ll see some of the banks in the Eurozone fail and owing to the fact that the data is not released until 9pm this evening which is suspiciously outside trading hours I think the market could react very quickly on Monday morning as I think the results could cause a lot of volatility.

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

I look forward to hearing from you.

 

 

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

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

 

 

Sterling Euro exchange rates – Bank Holiday Round Up (Tom Holian)

Sterling Euro exchange rates have had a good month during April improving by as much as 4% or the difference of £4,000 on a currency transfer of £100,000, which can mean the difference of being able to afford to make that exchange.

The good news for Sterling exchange rates came in the form of President Obama’s recent visit to the UK when he stated that he would prefer to see the UK stay in the European Union when the EU referendum vote takes place on 23rd June.

At the same time this was backed up by the International Monetary Fund, the European Central Bank, Bank of England and UK government.

However, Sterling’s recent positive gains came to an end towards the end of the week when the Eurozone announced that its economy had grown much better than expected.

The Eurozone announced growth of 0.6% compared to the expectation of 0.4% which saw the single currency fight back against the Pound putting paid to a 2 month high to buy Euros with Sterling.

Eurozone unemployment figures also came out better than expected and the best level in over 4 years at just 10.2%.

This is another sign that the Eurozone economy appears to be improving and although inflation was still lower than the estimate the signs of positive growth and unemployment figures helped to strengthen the single currency vs the Pound.

Next week the Eurozone announces data in the form of Services as well as Retail Sales on Wednesday.

I would not be surprised to see both announcements also come out strong giving further support to the Euro vs the Pound during the middle part of the week.

With just less than 2 months to go before the EU referendum takes place on 23rd June the currency markets are likely to remain uncertain during this time and if you have need to buy or sell Euros over the next 2 months and are worried about the outcome you may wish to consider buying a forward contract.

This allows you to fix an exchange rate and removes the uncertainty of where exchange rates may be during this time.

Having worked in this industry since 2003 not only am I confident of offering you a better exchange rate than using your own bank but also helping you with the timings to help you save money when it comes to making your decision.

If you have a currency transfer to make then contact me directly for a free quote and email me a brief outline of your particular requirement. Tom Holian teh@currencies.co.uk