Tag Archives: gbp. eur

GBP EUR Moves Higher Towards 1.16

The pound continues to maintain the higher ground against the Euro with rates pushing towards 1.16 for the GBP EUR pair. There is currently an excellent opportunity for buying Euros and those looking to secure may be wise to take the risk out of the market place. So far this year when there has been a surge higher for the GBP EUR it has only lasted for a brief period before falling lower.

The outlook does appear to be brighter at present with rates for GBP EUR sitting at an 11 month high although any Brexit developments this week could see the pound fall lower. Sterling is performing better for a number of reasons which hare all contributing to a better economic outlook. UK unemployment is currently at a 43 year low and recent UK retail sales data arrived considerably better than expected. The last retail sales numbers arrived at -0.2% whilst the latest numbers jumped into positive territory at 0.4%.

Politics are likely to have a big impact on sterling exchange rates this week with a parliamentary discussion on Syria later today which follows on from yesterday’s marathon questions session. The other big factor is Brexit and this week sees the start of the third round of negotiations which will tackle the thorny issue of trade.

This is supposed to be the most complex issue to negotiate and any difficulties in these coming weeks could see the pound tumble form its recent highs. There is a still a long way to go in the Brexit negotiations and I would expect to see many more twist and turns creating added volatility for the pound and Euro.

For more information on sterling exchange rates and how to make the most of these opportunities in the currency markets then please get in touch with me James at jll@currencies.co.uk

GBP EUR Reaches Fresh Highs – 1.16 in Sight

The pound has rallied to fresh highs against the Euro with levels for the GBP EUR pair trading just below 1.16. There is currently an excellent opportunity for those clients looking to buy Euros with some of the best levels seen in the last 9 months.
The mood on Brexit is feeling considerably more optimistic and the fact that key figures from with thin the EU and notably from Germany have signalled that London will still remain the financial centre for the EU are in my view helping lend support to the pound.

Clients looking to buy Euros would be wise to consider securing at these higher levels whilst they are still available as there is still a long way to go on Brexit. The trade negotiations which will cover the future trade relationship between Britain and the EU will start next week and any noises are likely to see considerable volatility for GBP EUR. The trade element is believed to be the most difficult to reach agreement and if negotiations move forward badly then the pound is likely to fall.

The European Central Bank (ECB) next meet 26th April and there is likely to be considerable volatility around this time. The ECB should give more clarity as to when the ECB will conclude the tapering of its asset purchasing scheme and may look to signal when the first interest rate increase may happen. UK data next week however will be more pressing with the release of UK unemployment numbers as well as inflation data. Strong numbers here could help drive the pound higher although politics in my view has been lacking of late and so it should only be matter of time before the markets start reacting again to British politics.

For more information on Euro exchange rates and assistance in making transfer when either buying or selling Euros then please get in touch with me at jll@currencies.co.uk

GBP EUR Pushes Higher over 1.13

The pound has made some small inroads against the Euro with rates for the GBP EUR pair breaking over 1.13 this morning. The mood has been slightly positive following the Spring Statement from Chancellor of the Exchequer Philip Hammond earlier this week which has helped support the price of sterling. The upbeat speech certainly didn’t provide any reason to sell the pound and if anything provided some reassurance that the economy is still healthy.

The markets are now eagerly awaiting the EU summit 22nd/23rd March where the transitional arrangements for Brexit are likely to be agreed and finalised. This is widely expected to go through without any hitches and could see some relief for sterling exchange rates. However any gains are likely to be limited considering the much harder task of future trade must be negotiated which is expected to commence at the end of this month. The pound could come under pressure here against the Euro if both sides start with strong red lines and if an agreement seems unlikely. Any risk of a no deal scenario is likely to see the pound come under considerable pressure and cannot be ruled out at this time.

My view is that in the medium term should an agreement be reached that works well for both sides then the pound could see strong gains against all of the major currencies including the Euro. Those clients hoping for better opportunities to buy Euros would be wise to consider taking advantage of any spikes as they happen as there are likely to be many new developments over Brexit that are both positive and negative which the pound will almost surely react to.

Economic data is light today for both the UK and the EU although a speech from a European Central Bank member this afternoon could help shape the future direction of the Euro. Tomorrow however should be more interesting on the data front with EU inflation day. Any pick up in in inflation will almost certainly help boost the Euro.

For more information about sterling or Euro exchange rates then please get in touch with me James at jll@currencies.co.uk

GBP EUR Rates ahead of Philip Hammond Speech Today (James Lovick)

The pound has struggled to perform this week trading in a very tight range against the single currency. Rates for GBP EUR have fallen to 1.1180 this morning as the markets focus on a speech today from Chancellor of the Exchequer Philp Hammond. The speech is likely to be a very important speech ahead of key trade negotiations which are expected to start later this month. The French economy minister Bruno Le Maire has made clear his views that Britain is not to have a free trade deal for financial services and there is little chance of doing so. Due to the size of the financial services sector and its huge contribution to Gross Domestic Product means this is a very serious issue the British government faces.

The chancellor is expected to make the case that it is very much in both the the British and EU’s interests whilst highlighting that the EU has in fact looked at including financial services in a trade arrangement with the US.
For the time being Brexit continues to hold back the price of sterling ahead of key negotiations which will tackle the future trading relationship between Britain and the EU later this month. This lack of certainty has presented clients looking to sell Euros with an excellent opportunity to convert Euros into pounds.

UK manufacturing and industrial production numbers are released on Friday and could make an interesting end to the week. Clients with a US dollar requirement could also see a volatile day on Friday with the release of US non-farm pay roll numbers. A strong number in the US could see the dollar strengthen and a jump higher for USD EUR.

For more information on Euro exchange rates and how we can assist with your currency transfer then please get in touch with me at jll@currencies.co.uk

GBP EUR Rates before Theresa May Speech (James Lovick)

The pound continues to see a volatile period this week ahead of a key speech from UK Prime Minister Theresa May this Friday. GBP EUR is currently sitting just below the 1.14 level and not far off that recent 9 month high seen for the pair presenting some of the best levels seen for buying Euros. Politics in the UK will have a huge bearing on the direction of the pound from here on and Theresa May’s speech is likely to be the trigger for this. After the cabinet meeting at Chequers last week it has been reported that there is some unity between members and may help pave the way forward with Brexit.

Clients looking to buy or sell Euros should keep a close eye on the speech as there is likely to be high volatility on the back of it. If more details emerge as to the future path of Brexit and the approach is viable from all sides then the pound could see a sizeable jump higher. Much will of course depend on how well the EU side in this negotiation receive the speech and if it is immediately discredited then the pound could fall in this scenario. There could be an excellent opportunity to secure funds after the speech so do get in touch to position yourself ready.

European Central Bank President Mario Draghi has been speaking this week and remains of the view that the outlook for the EU is positive. However on the political front there is likely to be a volatile weekend ahead. The Italian election taking place on Sunday is potentially going to see a rise of more right wing parties including the 5-Star Movement. The anti-establishment party is leading in the polls and could create some issues for the European Union. More details about the proposed grand coalition in Germany are also expected to be announced on Sunday.

To discuss the pound and the Euro and how to achieve the most of market movements then please get in touch with me James at jll@currencies.co.uk

GBP EUR Falls on Weaker Unemployment Data

The pound has slipped from the spike seen yesterday after UK unemployment surprised the markets with a weaker headline figure. Rates for GBP EUR are currently sitting at 1.1330 for the pair having fallen lower after the headline UK unemployment figure rose to 4.4% from 4.3%. Unemployment unexpectedly rose from in the last quarter and represents the sharpest increase in the headline figure for almost five years. Although unemployment is still extremely healthy it is still a sign that there the economy is seeing some small cracks emerging and the fear is that economic growth may start to falter. It also lends support to the view that the Bank of England may not be so keen to raise interest rates which it signalled last week.

The pound had see a good jump higher on the back of Brexit comments suggesting the EU would be prepared to look at an exclusive arrangement for single market access although any gains gave proven limited.

UK Gross Domestic product figures are released tomorrow morning and could create even more volatility for sterling exchange rates. Any drop in the numbers is likely to be seen as negative for the British economy and hence the price of sterling. The important numbers are released at 09:30 and any clients looking to buy Euros or sell Euros would be wise to be in touch around the event to avoid potential disappointment.

The Euro is also likely to see major volatility on the back of the ongoing German political situation. A vote by members of the Social Democratic party will be eagerly awaited and could see the Euro react if there is no agreement on the formation of the grand coalition.

To discuss how the pound is likely to be impacted by these events and how to try and maximise on the rates of exchange as they happen then please get in touch with me at jll@currencies.co.uk

GBP EUR Rates ahead of Boris Johnson Valentines Day Speech

The pound could see considerable volatility against the Euro later today following an expected valentines day speech from Foreign Secretary Boris Johnson. Politics and Brexit continues to be the biggest driver for sterling exchange rates and any developments here are likely to see market reaction for GBP EUR. The speech which is anticipated to unite remain and leave supporters may give some clues as to the future direction of Brexit. Boris Johnson when he joined the Leave side of the argument back in 2016 resulted in a drop in the price of sterling by around 2% which highlights there could be a considerable market reaction today.

UK inflation data arrived slightly higher than expected yesterday at 3% compare to the expected 2.9% which should in theory help support the pound. The Bank of England have hinted strongly that there may have to be an interest rate quite soon and the markets are beginning to price in such a hike for May.

EU GDP data from Germany was released this morning which arrived at a healthy 2.3% which was above expectation of 2.2% helping support the Euro in morning trade. The official figures for the EU as a whole will be released later this morning at 10am and a good number should help reinforce Euro exchange rates today.

German politics are also set to be the main focus after it has been reported that the Social Democrat Party leader Martin Schulz has resigned as party leader putting into question the future of the proposed coalition government. UK Prime Minister Theresa may will also be in Munich on Saturday meeting leaders where she is set to make a speech about security and cooperation between Britain and the EU. Once again any clues on the future path of Brexit will be eagerly awaited by the markets.

To discuss how these events are likely to impact on your Euro requirement then please get in touch with me at jll@currencies.co.uk

GBP EUR Falls Lower as Brexit Discussions Resume

The pound has fallen further today against the Euro with rates falling to a low of 1.1219 before picking up some lost ground in afternoon trade.
The driver for the weakness in the pound is largely as a result of Brexit uncertainty and this week holds a number of important government cabinet meetings which could provide more clues as to where Brexit is heading.

The Brexit negotiations which have resumed this week haven’t started on a particularly optimistic outlook with question marks surrounding the single market and whether or not Britain will have access to it. The other sizeable issue of course is whether UK financial services will be included in any deal and considering services represents 80% of the British economy.

We are likely to see a lot of volatility for GBP EUR as developments unfold surround the terms of any deal. The prospect of a no deal scenario is also a worry for those clients holding sterling who are looking at buying Euros. Those clients who need to sell Euros would be wise to get in touch and consider taking advantage of the recent fall in the price of sterling against the Euro.

Focus now moves to the Bank of England interest rate decision on Thursday which could result in an even more volatile end to the week. Any positive noises from Mark Carney or any suggestion that interest rates will in fact rise later this year could help see the pound rally although my view is that Mark Carney will be relatively tight lipped at this meeting. Any discussion on Brexit however could see market volatility and this is a subject the Governor has been known to wade into.

To discuss how these key events this week are likely to impact on your own individual currency requirements then please feel free to get in touch with me at jll@currencies.co.uk

GBP EUR Rallies ahead of EU Inflation Data

The pound has seen a mixed day against the Euro with losses in the morning for the pound before picking up nicely in afternoon trade. Rates for GBP EUR have now broken back over 1.14 taking levels close to the 9 month high seen last Thursday.

With no UK economic data tomorrow eyes look forward to Nationwide House Price data which can at certain times result in market movement. The consensus is that the London property market is cooling and this could start to be reflected in the official data. Any sudden drops could see the pound come under a new wave of pressure although so far the official numbers have proved fairly resilient.

UK manufacturing Purchasing Managers Index data is released on Thursday and should give some clues as the performance of the sector.

EU Consumer Price Index inflation numbers are released on Wednesday alongside December unemployment figures which are likely to create Euro volatility tomorrow.

The ongoing Brexit negotiations are likely to remain the single biggest driver for GBP EUR exchange rates for the rest of 2018. This week continues to tackle the transitional arrangement whilst March should be particularly interesting when the negotiations move on to the future trade deal. This is perhaps the most complex part to deal with and there could be considerable volatility if talks break down. Any suggestion that there could be a no deal scenario could see considerable weakness for the pound.

Clients looking to buy Euros are seeing some of the best levels seen for 9 months but any negative tome could see the pound fall sharply. The no deal scenario is still a possibility and this is likely to remain a hindrance for the price of sterling for the foreseeable future.

To discuss your requirement and how to achieve the best rates of exchange when they happen then please feel free to get in touch with me James at jll@currencies.co.uk

Will GBP EUR Break Through 1.15? (James Lovick)

The pound has seen an excellent rally against the Euro today taking rates for GBP EUR to a high of 1.1493. The general economic outlook for the UK appears to have improved following the upward revision on global growth for 2018. The UK is expected to benefit from increased trade and may help offset any of the negative consequences which stem from Brexit.

French President Emmanuel Macron also suggested earlier in the week that Britain would be offered a bespoke trade deal which is also helping to lift the price of sterling although he did also highlight that UK financial services will not be permitted under the same terms as now.

Clients looking to buy Euros would be wise to consider taking advantage of the higher levels which have suddenly become available. The pound has seen a rocky start to the New Year and any good gains have generally proven to be very short lived. With Brexit negotiations recommencing next week which will tackle the transitional arrangements the pound could come under pressure once again on any negative rhetoric coming from either the UK or EU side.

Any suggestions that there will be no cherry picking or no access to the single market for financial services could see considerable weakness for the pound. Of course the real trade negotiations are not expected to commence until sometime in March and clients looking to either buy Euros or sell Euros should pay particularly close attention to political developments over Brexit.

UK Gross Domestic Product figures are released on Friday and could make for an interesting end to the week. I am optimistic that there could be a higher figure and that possible a jump higher to 1.8% could be seen. This would present a good spike for GBP EUR on such a release.

To discuss how the Brexit is likely to have a direct impact on your own currency requirement in these coming months then please feel free to get in touch with me James at jll@currencies.co.uk and I will be happy to give you my thoughts on the markets.

GBP EUR Rates Rally Back Over 1.13

The pound has made good gains against the Euro today with levels breaking back over 1.13 in afternoon trade. GBP EUR has rallied by almost a cent from the lowest point today despite stronger EU inflation data. EU inflation numbers rose to 0.5% in December which was higher than the expected 0.4%. It bodes well for the Eurozone after the European Central Bank has battled with weak wage growth and low inflation for almost a decade.

UK retail sales released on Friday could make for an interesting end to the week and the expectation is for a big jump higher for December which covers the Christmas period. A big number would be welcome news for the British economy and hence the pound and could see some material gains. The December retail sales can be a big market mover so those clients with pending requirements either looking to buy Euros or sell Euros would be wise to get in touch to consider your options. UK unemployment data is released next week and this too has the potential to cause some volatility next week.

Rates for selling Euros remain incredibly attractive with all the ongoing uncertainty with Brexit although any further developments in the second round of negotiations could see things change very quickly. Any positive noises being made from either side would likely see the pound rally although it may take a little more time to get to that point.

My view is that the Brexit outlook is starting to look that much more optimistic now that the first phase has been completed which highlighted a will from all sides to put something together.

Those looking to make currency transfer are impacted by these daily events. To discuss your requirement and how to try and maximise on the rates of exchange as they become available then please feel free to get in touch with me James at jll@currencies.co.uk

GBP EUR Rallies Towards 1.14 (James Lovick)

The pound has seen a volatile period after making good gains this week against the Euro. GBP EUR now sits at 1.1344 ahead of industrial and manufacturing production figures released tomorrow. The data has performed well in recent months as a result of the weakness in the price of sterling which is of course good news for British exporters.

The November figures are expected to show a jump higher on Octobers data which could help see the pound rally on the back of a strong number. UK data is generally lighter this week and focus next week will centre on the UK Consumer Price Index inflation numbers on Tuesday as well as retail sales figures released later next week. A pickup in inflation would which would be of concern to the Bank of England could see the pound rally.

With British politics continuing to drive the markets as the ongoing Brexit negotiation moves forward then any developments on this front are likely to see considerable volatility for GBP EUR exchange rates. The cabinet reshuffle which has been concluded today could now set the tone for 2018 after a bad summer for the Prime Minister when Theresa May lost her majority in the House of Commons. The Brexit negotiations however are likely to be the biggest driving force for GBP EUR exchange rates. Clients looking to buy Euros could see a window of opportunity to purchase if the second round of talks get off to a good start.

The Euro however could be in for a better period after stronger data this week impressed the markets and this should help support Euro exchange rates. EU retails sales have performed better whilst Germany has also had a good run of economic data with very high factory orders recorded. Those with pending requirements are likely to see a volatile start to the year. To discuss your won requirement and how we can assist with any transfers please feel free to get in touch with me James at jll@currencies.co.uk

GBP EUR Rates before EU Summit

The pound should be in for a volatile couple of days with Theresa May flying to Brussels today to meet the other 27 European leaders at this summit. It will be decided officially if sufficient progress has been made for talks to move on to the second phase in the negotiations and the outcome should have a sizeable impact on the price of GBP EUR.

If the mood is positive from both the UK and EU side then this is likely to have a positive impact on sterling exchange rates. A move back over 1.15 for GBP EUR seems entirely plausible and could present some good opportunities for those clients looking to buy Euros. Those clients looking at selling Euros for pounds would be wise to consider securing a rate prior to any announcements as the odds would suggest that an agreement will be reached.

Theresa May goes to Brussels today having lost a key vote in the House of Commons last night which allows parliament to now have vote on the final deal offered by the EU and some would argue it weakens her hand in these important negotiations. This could cause problems further down the line in government as well as delays in delivering Brexit and in my view this is likley to create additional uncertainty for sterling exchange rates going forward. A key vote next week on the setting of a date for Brexit enshrining it into law will be crucial and if the government was to lose this vote then the pound could come under additional pressure. The Bank of England and European Central Bank interest rate decisions today are also likely to create more volatility for GBP EUR.

Today and tomorrow could see major market movement on the back of the summit so to discuss how your individual currency requirement is likely to be impacted by these events then please feel free to get in touch with me at jll@currencies.co.uk

Sterling Rates Steady after UK Budget

After a very safe budget from Chancellor of the Exchequer Philip Hammond yesterday the pound has seen little in the way of volatility on the back of it. The ongoing uncertainty of Brexit remains the main sticking point however and continues to weigh heavily on sterling exchange rates.

GBP EUR is currently sitting at 1.1255 and the markets now wait for the end of next week for the end of a two week ultimatum set by Michel Barnier for Britain to offer more in the divorce bill to try and break the deadlock and move discussions on to future trade. Rumours are circulating that UK Prime Minster Theresa May will offer €38 billion in the first week of December although where rates for GBP EUR move to will very much depend on how well such an offer is received by the EU.

Will the pound strengthen?

Should trade discussions open then this in my view would be very good for sterling exchange rates and there could be a good shift higher for GBP EUR. The risk for those clients waiting for rates to improve is that is the conversation does not move on to trade then this could see the pound weaken materially across all of the major currencies including the Euro. The prospect of a no deal scenario continues to keep the pound at bay. The problems for the pound is that the negotiations will continue right through up until 2019 which leaves a very long period of uncertainty.

Clients looking to buy or sell Euros should pay close attention to developments surrounding the EU ultimatum for more money and would be wise to get in touch to look at the options available and how to take advantage of the better rates when they become available. Feel free to contact me James at jll@currencies.co.uk

GBP EUR Rallies On Expectation of Increased EU Divorce Offer

The pound has found some support at the end of this week after a poor performance across nearly all of the major currencies. GBP EUR has pushed back over 1.12 this morning after rumours have circulated that UK Prime Minister Theresa May will possibly look to increase her offer of a financial settlement to the EU from €20 billion to €40 billion. Theresa May is in Sweden so any commentary here is likely to have an impact on the price of sterling.

If an offer is made later today the pound could react depending on how well that offer is received. The key to the direction will be the response from EU leaders but if received badly then the pound could fall against the Euro. The response today could also tie in to next week’s budget which will be delivered by Chancellor Philip Hammond and this is likely to be a big market mover next week.

UK data softened this week after retail sales numbers fell to their lowest level since 2013. Although the figure was higher than expected the fact that it is materially lower than four years ago is a concern for the British economy and hence the pound. With no UK economic data releases today the focus will be on a speech from European Central Bank President Mario Draghi and construction numbers this morning.

UK Gross Domestic product figures are released next week and any improvement here could help lend support to the pound. Considering the NIESR estimate pointed to stronger GDP going forward then there is the potential to see some upside for sterling exchange rates.

It is clear there are so many factors revolving around politics and Brexit which are having a direct impact on the price of sterling and the next week will be crucial in where rates will be heading next. Clients selling Euros continue to see an excellent opportunity for buying pounds. If you would like to discuss your requirement and the impact that these economic and political events are having then please get in touch with me and I will be happy to give you my thoughts. My email address is jll@currencies.co.uk

GBP EUR Rates Fall Below 1.13 Amidst Political and Brexit Uncertainty (James Lovick)

The pound is struggling to push beyond the recent highs against the Euro with levels for GBP EUR sitting just below 1.13.
The pound is being hampered by constant political uncertainty with new stories coming out almost by the day all adding a little bit of risk for the pound. The latest resignation of a senior cabinet minister could see a cabinet reshuffle in the coming weeks.

The resignation yesterday from Priti Patel and Sir Michael Fallon in the week before all weigh heavy on a government that recently lost its majority in the House of Commons. Politics continues to be a major driving force for sterling exchange rates and this is unlikely to change anytime soon. With the position of International Development Secretary now filled by Penny Mordaunt expect the markets to guess who will be next to go.

UK economic data is heavy on Friday with manufacturing and industrial production figures as well as trade balance data. The GDP estimate from the National Institute for Economic and Social Research could also create some major volatility for the pound vs the Euro. The strength of the British economy is a big driver for the price of sterling and any projection of a fall could see the pound come under added pressure. The NIESR estimate is an excellent pre cursor to the official economic data and the markets can move quickly on the bag of a strong or weak number.

Selling Euros?

The Brexit negotiations have resumed today and any comments from Brexit secretary David Davis or his counterpart Michel Barnier are likely to cause volatility for sterling Euro rates. The stalemate over the amount Britain is prepared to pay is preventing the pound from making gains although it may only be a matter of time before sufficient progress is made.

Clients looking to buy or sell Euros would be wise to make contact and look at the options available. There are reports that pressure is mounting on Britain to move forward within the next two weeks. As such at the end of the period there could be some considerable volatility for GBP EUR. Please feel free to make contact with me at jll@currencies.co.uk to take a look at your requirement and how we can help achieve the best rates of exchange as they become available.

Selling Euros – GBP EUR Drops Below 1.12

The pound remains on the back foot after yesterday’s market crash for sterling which saw rates for GBP EUR drop by almost 2%. GBP EUR is now trading at levels below 1.12 for this pair which has presented those clients looking to sell Euros with a surprise opportunity to convert. Normally an interest rate increase from the Bank of England would generally have the effect of helping strengthen the pound.

In this rare case however the pound dropped like a stone as a result of the bank suggesting that interest rates would only be raised another two times over the next three years. This was a major disappointment to the markets which resulted in the substantial drop for GBP EUR.

Buying or selling Euros?

Both British and Spanish politics will also have a major impact on the price of sterling in the coming weeks. The Catalonian situation is likely to continue to be a hot potato for the Spanish government with mass protests expected in the streets of Catalonia. Eight regional ministers who were sacked when Madrid imposed direct rule appeared in court yesterday accused of rebellion, sedition and misuse of public funds and so protesters are expected to take to the streets. Meanwhile the ousted leader Carles Puidgemont did not appear before the Spanish courts and a European arrest warrant is expected to be issued. It could be the start of a long process when lawyers are involved and could see added pressure on the Euro.

The ongoing Brexit negotiations will of course continue to be a major driving force for the pound and any signs of further tension between Britain and the EU in these negotiations will only add to the uncertainty for the pound. Anyone with a requirement to either buy or sell Euros would be wise to make contact sooner rather than later and look at the options available to take the risk out of it.

If you would like further information on sterling or Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact myself James on 0044 1494 787 478. Alternatively, I can be emailed directly on jll@currencies.co.uk

Selling Euros? GBP EUR Falls after Weaker Retail Sales

GBP EUR exchange rates have continued to fall this week after yesterday’s UK retail sales data fell by 0.8% in September. The weaker numbers follow on from the other important economic data also released this week. Although inflation touched 3% on Tuesday which would normally suggest an imminent interest rate hike from the Bank of England, the weak wage growth numbers have created uncertainty over whether or not the central bank will raise interest rates on November 2nd. Inflation climbed to its highest level in five years this week but it may not be enough to persuade for a rate hike. As such the pound has actually weakened this week.

There are two doves on the Bank of England’s Monetary Policy Committee who are almost certain to keep rates on hold but whilst the vote could be close on the day I am still of the opinion that the Bank will hike at the next meeting. Clients looking to buy Euros could see a spike if action is taken considering the recent slide in sterling so there could be a small window of opportunity.

Clients looking to sell Euros would be wise to consider moving sooner rather than later and take advantage of what are still incredibly attractive trading prices. Rates for selling Euros are still some 20% better than two years ago which means on a €200,000 transfer the extra sterling generated is about £35,000 more with today’s exchange rates.

Expect volatility for the Euro over the weekend as developments unfold in Catalonia. If Madrid seeks to trigger Article 155 and impose direct rule on Catalonia then there could be civil unrest a huge escalation in political tensions. The Euro is likely to react to nay news on this.

If you would like further information on Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

GBP EUR Gains after EU Response to a Future Trade Deal

Sterling Euro exchange rates have seen a very eventful week with the fifth round of Brexit negotiations coming to an end yesterday. The pound had fallen sharply against the Euro immediately after the press conference given by Brexit secretary David Davis and his counterpart Michel Barnier highlighted that progress was still slow and there was a deadlock in the negotiations. Sterling fell by over 0.5% after it was clear that there was still insufficient progress before seeing a substantial rally in afternoon trade reversing all losses.

GBP EUR Outlook Improves Overnight!

It has been reported that the EU will begin preparing for post Brexit trade negotiations with the possibility of trade talks to commence in December and refers to the next phase to start as soon as possible. This has led to a major jump higher for the pound across all of the major currencies including the Euro. GBP EUR is climbing this morning and any developments from the EU are likely to create additional volatility for GBP EUR. The response today from EU leaders will be crucial to where rates go from here.

My view has been for some time that when that door for a future trade deal has been opened there could be some excellent gains for GBP EUR. Those clients looking to buy Euros could finally start seeing some better opportunities to purchase just around the corner.
Clients looking to buy Euros would be wise to get in touch to look at the options available to you and how to maximise on the rates of exchange as they become available. Clients looking to sell Euros should consider moving sooner rather than later as this has been a fairly major development.

If you would like further information on sterling exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

GBP EUR Falls to below 1.12 after German Intervention

The pound has fallen against the Euro from its recent peak with levels having fallen below 1.12 for this pair and sliding. Clients who need to buy Euros may wish to consider securing sooner rather than later to take the risk of rates falling further out of the equation. The news yesterday from German industry that German firms that are based in the UK should start preparing for a very hard Brexit has had an instant negative effect on GBP EUR.

The BDI, federation of German industry has made clear that the priority must be to defend the single market and its four freedoms. This rhetoric combined with the political uncertainty in the UK and the fact that Britain is drafting contingency plans for a no deal situation is keeping the pressure on sterling exchange rates.

If the Brexit negotiations continue to go badly then the pound could see a material fall and there is a good chance there will be more headwinds to come for the UK.

This lunchtime sees a speech from Bank of England member Andy Haldane and any clues as to when that first interest rate hike will take place that are offered may have a sizeable impact for those clients looking to buy or sell Euros. Any suggestion from Andy Haldane that he supports a rate hike in November could see the pound rally on the news and this in my view is likely considering his recent stance on monetary policy. He has previously said that a rate hike would be good for the economy.

If you would like further information on sterling or Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk