Tag Archives: Foreign Currency Direct plc

Sterling rises as negotiations begin, but will the Pound to Euro rate continue to climb as they continue? (Joseph Wright)

The Pound has edged up today against the Euro as well as against other major currency pairs, making the buying of oversea’s currencies a cheaper proposition than yesterday.

The reason behind the positive movements for the Pound can be put down to the latest updates regarding the Brexit process. It appears that the early stages of the Brexit negotiations are going quite well, which has boosted sentiment surrounding the UK economy moving forward and therefore the Pounds value.

I think that moving forward if the negotiations continue to go relatively smoothly, we can expect to see the Pound begin its recovery from its current levels, especially when when consider how the Pound is trading around historical lows against many currency pairs at the moment.

Against the Euro Sterling has lost around 5 cents over the past month or so, so there’s certainty scope for the currency to gain if things go to plan.

Next week Friday is likely to be once of the busiest days for GBPEUR as GDP data for the UK will be released around 9.30am. The expectations are for 2% annual growth so we’ll see how the currency performs in the wake of the news.

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.

Sterling rises after Bank of England hints at a rate hike (Joseph Wright)

The Pound appears to have consolidated above 1.14 against the Euro, making the buying Euro rate cheaper for those holding Sterling.

There are current 8 voting members of the BoE and yesterday almost half of them voted in favour of hiking rates, which caused the Pound to jump by over half a cent as soon as the news broke around lunchtime.

The reason behind the Bank of England’s voting members that would like to see a hike is most likely the rising rate of inflation in the UK, which is eating into consumers spending power as wage growth is beginning to stall within the UK.

Raising the interest rate would act to lessen the blow and it’s also a positive for the Pound so I do think we can expect to see the Pound climb if rates are going to rise for the first time in a decade.

Later this morning the Bank of England’s Quarterly Bulletin will be released which could send the markets either way depending on what’s said. If you would like to be kept updated with data releases that can impact your upcoming currency exchange plans do feel free to get in touch.

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 can we expect from the GBPEUR rate in the coming weeks?

The overall implication for the pound from the UK election is likely to be some turbulence  as we get closer to the actual election, indeed we have already seen close to 5 cents movement between the high and the low since the snap-election was called back in April. Overall the the belief that the pound will rise after the election is I believe a little misplaced, I think there is a real risk the pound could actually fall because expectations will not be met. What I also believe is that the Euro will remain strong and this will continue to weigh on the pound to euro rate and continue to make buying Euros more expensive.

With the pound currently mid range against the euro based on the trends of this year I believe Euro buyers are still looking at some tempting opportunities. With an election comes uncertainty and whilst A strong Theresa May victory would see sterling rise, this cannot be guaranteed. If we look at the last two elections the polls have been wrong and we know that the polls before the Referendum pointed towards a Remain vote. Gambling that the outcome will be favourable for you could prove a costly mistake.

Political concerns in the Eurozone have abated with Le Pen failing to make her mark on the French Presidency and Emmanuel Macron helping to soothe nerves that France might be at threat from the right wing populism that many believed was sweeping across the world. The general belief for the GBPEUR rate is that the pound still remains on the back foot and susceptible to sudden deterioration as the market still tries to come to terms with the Brexit.

If you have a transfer to make buying or selling pound to Euros please get in touch to learn of the best deals and rates plus receive some practical assistance with the timing of any transfer too. Please email jmw@currencies.co.uk to learn more about the rates and services we can offer.

Is the Pound to Euro rate trading at the top of its current trend? (Joseph Wright)

Many of our clients planning a GBP to EUR currency exchange have been waiting for some time for the GBP/EUR rate to exceed 1.20.

The pair have been locked between a wide trading range of 1.10 to 1.20 pretty much since the initial shock of the Brexit vote last June, and on a number of occasions the pair have bounced off of 1.20 as the level appears to be acting as a psychological barrier.

Whilst many are playing the waiting game some have based their trades off of mid-market levels in the high teens such as 1.19 – 1.1950 and so far this appears to be the smartest move.

Interestingly analysts at Lloyds bank have recently stated that they believe the Pound is trading at fair value against the Euro at its current levels, and that they aren’t expecting to see the Pound climb much higher.

Personally I think we will see the Pound to Euro rate test 1.20 once again but I think there will need to be a large weakening of the Euro specifically if we are to see the GBP/EUR pair exceed 1.20.

Later today UK GDP data will be released with 0.4% on a quarterly basis the expectation, so expect any deviations from this level to result in GBP/EUR volatility, and feel free to get in touch if you wish to be kept updated regarding this figure.

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

Will GBPEUR rates rise to 1.20?

It is now looking much less likely but remains a distinct possibility. The overall expectation for the market is that we may possibly see a higher pound but there does definitely remain a risk the pound will slip from the recent highs as the Euro is stronger and might strengthen further as we get the result from the French election. It is now apparent just how much the French election was priced into the value of the Euro as we got Sunday’s results. The market now appears to believe that Macron will win but there is always the chance of a surprise.

On balance, if I was buying Euros I would be looking to move sooner than later ahead of the results from the French election. The expectation for the market is that we will see the Euro gain against a weaker pound. June sees the UK election which is more than likely to contribute to a weaker pound, the overall impression is that Theresa May will win but that doesn’t mean sterling wouldn’t suffer as we get closer to the result. The market will have to debate the likelihood of that victory against the strength of any majority, in recent years the polls have been very wrong!

The pound has recently struggled to break the 1.20 barrier and has also failed to rise above this level at every attempt since the June Referendum. The likelihood of 1.20 is now obviously higher than a few months ago but a challenge above this level will not be easily completed. It will take a big chance of sentiment so if you have a transfer to make buying Euros taking stock of current levels is I believe very sensible.

If you have a transfer to make buying or selling the Euro or pound then the next few weeks will be key! For more information to help with the planning and execution of any currency exchanges please don’t hesitate to contact me, Jonathan Watson, directly on jmw@currencies.co.uk.

GBP/EUR breaks 1.17 as services sector remains strong, will the pair hit 1.20? (Joseph Wright)

The UK economy was given a boost yesterday as data showed that its most important sector is performing well.

Economists had anticipated growth in the UK’s services sector but the figure came out higher than they had expected, and the reason Sterling saw a boost of the back of this data release is because the services sector accounts for around 75% of the UK’s economy.

For this reason data releases reflecting the health of this area of the economy can result is swings within GBP exchange rates. Due to the UK entering what could be considered a sensitive time as Brexit is now underway I expect to see these figures followed closely and I think we may see dips within the Pounds value should these figures disappoint.

Another news release which could be watched closely is Gross Domestic Product figures as these will also reflect the health of the UK economy. The next release comes out tomorrow at 1pm and the expectation is for a figure of 0.6% so expect any major deviations from this figure to result in swings within GBP/EUR exchange rates.

If you would like to be kept updated regarding major movements between the Pound and the Euro do feel free to register your details with me.

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.

Pound drops as UK government plans to trigger Article 50 this afternoon (Joseph Wright)

Late last night Prime Minister Theresa May signed the letter triggering Article 50, and this letter will be delivered to the President of the European Council, Donald Tusk later this afternoon at 12.30pm.

This will officially start the Brexit process in which the UK has 2 years to leave the European Union, and in this time the UK will be doing its best to set up trade negotiations both in Europe and outside of it.

In the early hours of this morning the Pound dropped, which is a change to the currency’s general direction over the past week or so as we’ve seen the currency gain. Yesterday the pair hit 1.16 which was GBP/EUR’s highest level since the beginning of the month, and since this mornings drop the Pound has recovered some ground as it appears the currency is struggling for direction.

I think there could be some further swings during today’s trading session, especially this afternoon once Article 50 has been triggered and May offers a speech. Should she give anything away regarding the UK’s plans moving forward I think there could be movement in either direction for the Pound’s value.

If you would like to be kept updated regarding major news and movements within GBP exchange rates do feel free to get in touch.

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.

 

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.

Pound to Euro rate trades at a 7 week low, will today’s Spring Budget offer the Pound a boost? (Joseph Wright)

The Pound has lost value over the past few weeks, not just against the Euro but across the board of major currencies.

The reason behind the fall can be put down to the uncertainty as to when the UK will begin the Brexit process, and the situation is being made worse as the House of Lords continue to discuss the proposed bill and attempt to make amendments which is negatively impacting the Pound.

Today could be a busy day for GBP exchange rates as Philip Hammond will be going over the Spring Budget. No major changes are expected to the governments current spending plans but I do think a bullish outlook from the UK chancellor will offer the Pound some much needed support. GBP/EUR has lost almost 4 cents in value over the past few weeks after hitting its 2017 high off the back of Euro weakness.

The movements between the GBP/EUR pair in recent weeks may offer an insight into what we can expect between the pair throughout the year. With the Brexit likely to begin this month and a number of key political elections in the Eurozone this year, I think there could be a number of big moves between the pair throughout the year so do feel free to get in touch if you wish to be kept updated.

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

A potential spike for GBPEUR exchange rates tomorrow? (Dayle Littlejohn)

With Brexit on the horizon it’s no surprise GBPEUR exchange rates have been falling in recent weeks. Within the last 14 days exchange rate have dropped 4 cents which means a €200,000 purchase is now £5,000 more expensive.

Tomorrow the UK Chancellor Phillip Hammond is set to address the public and give his latest budget. There is growing speculation that the chancellor could upgrade growth forecasts which could cause the pound to increase in value.

It was only earlier today that the Organisation for Economic Cooperation and Development (OECD) increased its forecast to 1.6% compared to 1% that was predicted last September.

For Euro buyers that are purchasing within the next 6 weeks, if the market does spike in your favor I would seriously consider taking advantage. Theresa May is set to trigger Article50 and start the process of leaving the EU within the next 3 weeks and I expect further falls once the Article is triggered.

Other data releases that will have a major impact on GBPEUR exchange rates this week is the ECB’s interest rate decision Thursday at 12:45 and UK Consumer inflation expectations released Friday at 9.30am.

If you reading this website for the first time as you need to convert GBPEUR, feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

If you are already using a brokerage and would like to a free quote email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands.

Common clients I help on a daily basis are Sole traders, MD or FD of a company, property buyers and sellers. If you are one of the three and are currently using the bank to transfer your currency you need to be made aware that you could be saving money!

Will 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

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.

What will happen to the GBPEUR rate next?

Today we learn of key information on the GBPEUR rate with two important speeches from Mario Draghi and Mark Carney. The outlook on GBPEUR remains fairly subdued for Euro buyers with I believe a strong prospect of further sterling weakness. The speeches today will help to provide some clarity on just what we can expect, personally I would not be expecting too much good news if I was buying Euros with pounds although there is some more data later this week which might help you if you are buying Euros with pounds.

The rate has fallen from its lofty heights of almost 1.20 6 weeks ago as investors learn of the UK’s apparent approach to the Brexit negotiations. Most commentators suggest Theresa May will be opting for more of a hard Brexit since trying to control the UK borders is incompatible with access to the single market. Just what kind of deal lies ahead we cannot tell for sure but it seems that it will not be one that is beneficial to sterling in the short term.

This Thursday is the latest UK GDP (Gross Domestic Product) data for the UK where we will earn of the latest news for the UK economy for Q3. This release is the latest release and the most up to date snapshot for the UK economy in this period. Expectations are for a slight decline in the rate of growth but hopefully no contraction. Whilst some areas of the economy struggled others performed well but overall it would appear activity will have been lower.

Despite the figures coming in lower the fact that they will still show the UK economy grew will I believe provide a temporary lift in the pound which could be supportive for anyone buying Euros with pounds. If you need to buy or sell the pound and the Euro I am your personal account manager here to help with any transfers you will need. For more information on the future direction of the rates and the planning and management of your deal please contact me Jonathan directly on jmw@currencies.co.uk

Finally some restbite for the Pound, and will it continue? (Joseph Wright)

Demand for the Pound has been in short supply recently as a number of brexit fears have resurfaced.

Since the disappointing inflation figure at the beginning of last week and then Boris Johnson subsequently suggesting that Article 50 may be invoked early next year, the Pound has been under pressure and we’ve seen it hitting levels levels very close to it’s 52 year low (1.1456) which is also it’s 3 year low.

Today has been the first day in a while where we’ve seen the Pound perform strongly, with the GBP/EUR exchange rate hitting a high of 1.1614. These gains are being put down to a number of positives for the Pound that that emerged over the past 24-48 hours.

One of the leading German banks, Deutsche Bank, is coming under increasing pressure at the moment as news of significant bad debt is surfacing. This coupled with the World Trade Organisation (WTO) announcing that they expect the UK to avoid a post-referendum recession has given the UK a real boost and today we’ve seen the Pound gain by almost a 1% vs the Euro.

Moving forward I’m expecting the Pound to come under pressure once again, and I think that those that took advantage of today’s spike have done well. Contacting our clients when there are positive spikes for the Pound is a service we provide so feel free to get in touch if you would like to take advantage of this free service.

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

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

Thin trading ranges continue for GBP/EUR as Danske Bank downgrade their forecast for the pair (Joseph Wright)

Today the Sterling to Euro exchange rate has traded within a very thin range of just 54 pips up to the point of writing.

With little major economic data releases today all eyes have been on ECB President Mario Draghi’s speech along with the governor of the Bank of England’s Mark Carney’s speech as well. Neither have impacted the pair which is a reflection of the current marketplace as the Pound seems to have consolidated below 1.20 now.

Some of the major news today came in the form of a Bank downgrade as opposed to the usual economic output release. Danske Bank, a major European bank based out of Copenhagen have actually increased their price forecast for the GBP/EUR pair over the long term, yet in the short term future they expect another drop down to levels as low as 1.08’s and another interest rate cut from the BoE down to 0.1% from the current 0.5%.

We have systems in place that can help clients lock in the current rate of exchange on an amount of money they may not yet have access to, like on a property sale for example. Our client’s just simply need to send us 10% of the total value they wish to secure at the current rate, and they can then send us the outstanding amount in anytime up to 1 year.

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

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

GBP/EUR continues it’s slump despite the release of some upbeat data, will this trend continue? (Joseph Wright)

Those with an upcoming currency requirement involving the Pound and Euro should take note of the Pounds current trend vs the US Dollar for an indication of how Sterling is performing in the current climate.

Cable is worth discussing because the Pound has fallen for 5 consecutive days vs the US Dollar which for me indicates the negativity and bearishness surrounding the Pound, and this is despite some upbeat economic news releases yesterday whereby we discovered that Total Sales increased by 1.9% in July (according to the British Retail Consortium and KPMG) and this was the best figure in 6 months.

The fact that Sterling exchange rates have been dropping since the Bank of England’s latest raft of financial stimulus packages coupled with the Interest Rate cut down to 0.25% indicates to me that the Pound is under pressure, as positive economic news releases are having little to no positive effect on Sterling’s value.

Another notable release during yesterday’s trading session was the National Institute of Economic and Social Research’s latest GDP estimate. The figure has dropped to 0.3%, down from 0.6% which was the previous figure so the indications up to this post are reduced economic activity out of the UK in it’s new post-brexit environment.

I’m expecting this negativity to continue to weigh on Sterling’s value as the year progresses, and whilst the central level is currently just below 1.17, I wouldn’t be surprised to see the Pound fall below it’s current 52 week low before the year ends.

If you would like to discuss your upcoming currency requirement it may well be worth your time getting in contact with me (Joe) 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

GBP/EUR sell-off pauses momentarily with the pair finding support at 1.20, but for how long? (Joseph Wright)

The downward pressure on Sterling exchange rates was eased today as the Pound gained on most major currencies pairs, and now that the brunt of the downward pressure on the Pound seems to be over, I think we can access the impact on each pair and identify the new trading channels moving forward.

In the aftermath of the ‘Brexit’ announcement the Pound fell against the Euro faster than ever before, it was the biggest drop in 30 years and that indicates just how surprised the market was by the result. UK Prime Minister David Cameron resigning shortly afterwards added fuel to the fire creating further downward pressure on the Pound.

A key level for those with a GBP/EUR currency requirement is currently the 1.20 mark. It’s acting as a support level and each time the level is breached we’ve witnessed support for Sterling with GBPEUR bouncing upwards almost immediately.

I think if 1.20 is substantially breached, and this weeks GDP figures could be the catalyst for that on Thursday should they disappoint, then we will see another big selloff in the GBP/EUR exchange rate so it may be an idea for those considering a currency conversion between the pair to think about implementing a strategy around how best to trade the pair at present levels.

If you are planning a currency exchange between GBP and EUR, feel free to get in contact with me (Joseph Wright) on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

 

 

What next for GBPEUR Rates?

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

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

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