Tag Archives: gbp. eur

GBP EUR Slides from Recent Peak

The pound has slipped back to below 1.13 for GBP EUR after the incredible gains seen last week. Despite the slippage the pound continues to be supported on expectations that the Bank of England will look to raise interest rates in the near term. There is now a 50% chance that there will be a rate hike as soon as November and the markets are fully pricing in the prospect of a rate hike by February 2018.

This is good news for sterling exchange rates as the prospect of interest rate hikes in the UK means more funds move towards Britain as the return on the investment is higher which drives the price of the pound higher.

Bank of England Governor Mark Carney also spoke again yesterday and highlighted that there is likely to be a movement from historical interest rate lows. However he also cited some concerns over Brexit and this appears to be one of the reasons why the pound has just tailed off from its recent peak.
Clients looking to buy Euros would be wise to consider getting in touch to take advantage of the excellent rates which are available at the moment. A major intervention by UK Prime Minister Theresa may could see additional volatility for the pound this Friday. If the stalemate in the Brexit negotiations continues then there is a chance the pound could fall lower.

However I am of the opinion that an offer of goodwill from the UK is likely to be made and this could see the pound strengthen across the board. There could be a small window of opportunity to buy Euros this Friday.

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

GBP EUR Breaks over 1.10

The pound has found a small degree of support which may be set to continue now that the “great Repeal Bill” has passed through parliament and found its way through the first hurdle. GBP EUR rates have now broken over 1.10 which is welcome news for those clients looking to buy Euros who were recently caught out when levels recently fell below 1.08 in the last two weeks.

The Great Repeal Bill which brings European law into British law to avoid any legal cliff edge scenarios is a major factor for the Brexit process. It’s not over yet though and it is widely believed that the Labour party will try and vote down the bill at second reading.

As such sterling Euro exchange rates are likely to be particularly volatile for the next month with no guarantees the government will ultimately get the bill through. Clients looking to sell Euros continue to see excellent treading prices but the tide may have now turned with the recent rise in sterling.

The Bank of England meet this Thursday and any change in policy could see a big market reaction for the pound. Only two members on the Monetary Policy Committee voted for a rate hike at the last meeting but should anyone else join Ian MaCafferty and Dave Ramsden then the pound could see welcome strength.

Those clients looking for a real opportunity with the potential for a sizeable increase in rates should pay attention to the expected speech from Theresa Mya later this month. For more information on how this speech could impact the rates then please get in touch and I will be happy to give you my thoughts.

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

Euro Rates Before ECB Meeting

GBP EUR exchange rates look set for a roller coaster today tomorrow with two major events. The UK sees a debate in parliament over the Great Repeal Bill which will discuss the movement of EU law into British law to hopefully avoid any disaster scenarios. The issue for the British government is that there is only a very small working majority so any renegade conservatives who are not prepared to vote with the bill could create major problems for government.

Labour have already made clear that they will try and vote down the bill which in my view would create additional uncertainty although the general feeling is that the bill will go through.

The European Central Bank also meet tomorrow which could see major market volatility. The markets will be listening out for any words that suggest the central bank will look to taper its Quantitative Easing programme. The last few meetings have seen considerable market volatility to the extent that Mario Draghi has had to issue statements effectively saying the markets had misinterpreted what he had said. Any suggestion of tapering could see the Euro strengthen very quickly although the recent strength of the Euro could mean the ECB pauses until the next meeting.

Those clients with a Euro requirement either buying Euros or selling Euros would be wise to get in touch tomorrow morning to look at the options available to try and take advantage of any spikes which occur. The key here is to be proactive and have things set up ready if there is a big jump higher.

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

GBP EUR Falls to Near 8 Year Low

The pound continues to remain on the back foot as we end a week where Brexit uncertainties have largely hampered the pound. GBP EUR has fallen to a near 8 year low this week although the pound has found a degree of support as we approach the Bank Holiday weekend. Next week could bring new opportunities as politics start coming back in to full force and with the Brexit negotiations recommencing. Any positive dialogue between Britain and the EU could see an improvement in the pounds fortunes although I wouldn’t hold your breath just yet. To date EU negotiatior Michel Barnier has reinforced his view that the divorce bill must be established before any future trade deal can be discussed which isn’t boding well for the pound.

The Jackson Hole Symposium will be concluded today and speeches from European Central Bank President Mario Draghi and US Federal Reserve Chair Janet Yellen are widely tipped to create market volatility for the Euro, pound and US dollar in particular. Any mention of Mario Draghi tapering the asset purchasing scheme could see additional strength for the Euro although much of this should be priced into the market by now.

Another volatile period also awaits any clients with a requirement to buy Euros or sell Euro. The German election in September could see a period of volatility with some weakness for the Euro be expected as the election looms. However it is highly likely that that German Chancellor Angela Merkel will end up serving a fourth term which could bring about additional gains for the single currency.

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

GBP EUR Rates Remain Near 7 Year Low

The pound remains close to a seven year low against the Euro this morning as uncertainties over both Brexit and the recent change of stance from the Bank of England keep the pressure on the pound. Although position papers from the government are being put forward with a total of twelve expected to be released in the coming weeks, the pound has struggled to climb higher over a lack of clarity of where Brexit will ultimately end up and whether a trade deal will or not be in place when Britain leaves the EU.

The Bank of England have also reduced the growth outlook for the UK economy and have signalled that there is unlikely to be a rate rise this year. The markets only a couple of months ago were beginning to price in the possibility of a rate hike in the Autumn of this year but this seems highly unlikely now. For any clients who are looking to sell Euros there is a great opportunity to be taken advantage of as things stand.

It’s not just the pound that is performing badly though which has helped see GBP EUR exchange rates fall to a seven year low. The recent improvement in the outlook for the Eurozone has helped strengthen the Euro. Stronger economic growth and also higher inflation have helped see the Euro make considerable gains against most of the major currencies including the pound.

The German election in September will certainly be one to watch as it could create added volatility for Euro exchange rates. German Chancellor Angela Merkel has a strong lead in the polls and is highly likely to win a fourth term which would be good news for Euro exchange rates.

Economic data is light as we end the week so focus will move to UK GDP data and inflation report hearings next week which could see the pound rally on stronger data.

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 Crashes after Bank of England Meeting (James Lovick)

Sterling exchange rates have fallen sharply against the Euro after the Bank of England Meeting earlier today. With rates having plunged by almost 1% levels for the GBP EUR pair are now sitting at 1.1065. Those clients looking to sell Euros have been presented with an excellent opportunity for converting Euros into pounds.

The Bank of England held interest rates at 0.25% as widely expected but there was a change in voting patterns. Only two members voted for an interest rate hike today which is one less than at the last meeting. Today saw a 6-2 split on the committee in favour of maintaining rates compared to a 5-3 split at the last meeting. Particular attention to Brexit was also given and the Bank stated that the uncertainty of both Brexit and Britain’s future trade relationship with the European Union is now starting to have a negative impact on the UK economy.

This all would suggest that the Bank of England are unlikely to be raising interest rates in the near future which should keep downward pressure on the price of sterling. Those clients looking t buy Euros may wish to consider moving sooner rather than later as the weaker outlook may result in further fall for the pound against the Euro.

Tomorrow sees little economic data from the EU and UK so focus moves to next weeks UK housing data. The UK hosing markets has become very topical of late with some commentators pointing to a cooling in prices which could signal problems in the future.

If you would like further information on sterling and 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 Falls After Mario Draghi Statement (James Lovick)

The pound has fallen sharply against the Euro today with rates falling to a low of 1.1281. Bank of England governor Mark Carney spoke earlier today although it was European Central Bank President Mario Draghi’s comments which stole the headlines. We will hear more from Mark Carney tomorrow which could result in some market reaction for the pound.

An upbeat speech from Mario Draghi however helped strengthen the Euro and his comments were very EU friendly. This is a taste of what he said “Political winds are becoming tailwinds. There is newfound confidence in the reform process and newfound support for European cohesion, which could help unleash pent-up demand and investment. The positive rhetoric helped see the Euro rally in afternoon trading and could see further gains going forward.

Thursday sees consumer and industrial confidence in the EU which could help drive the Euro higher on a positive outlook. However it is Thursday that sees the vote in the House of Commons which could see major volatility for sterling Euro exchange rates. Clients looking to buy Euros would be wise to get in touch to consider your options as there could be some welcome opportunities made available.

News that Scottish Nationalist Party leader Nicola Sturgeon has shelved another independence referendum has helped support the pound but this was not seen against the Euro.

Friday however sees key UK Gross Domestic Product figures which have the potential to cause a stir at the end of the week. Any weakening could see GBP EUR fall further.

If you would like further information on Canadian dollar 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 Before Queens Speech on Wednesday (James Lovick)

Sterling Euro exchange rates have come under renewed pressure today after comments this morning from the Bank of England governor Mark Carney. He suggested that he was not overly concerned by the rising level of inflation and that interest rates would remain low for some time. This resulted in an immediate fall in the price of sterling as those expectations of when the first interest rate hike for year are put back once again.

The pound has fallen by 0.75% against the Euro today with rates for GBP EUR having reached a low of 1.1345 this afternoon which has created an excellent opportunity for those clients looking to sell Euros. For anyone selling Euros the combination of all the recent political uncertainty and the start of the Brexit negotiations has resulted in a weaker pound.

Another speech tomorrow morning from another Monetary Policy Committee member Andy Haldane could see additional volatility for the pound. EU Purchasing Managers Index data for the manufacturing and services sectors could help boost the Euro further.

Queens Speech – Impact on Sterling

The Queens speech on Wednesday has the potential to see some political fireworks with the pound reacting according. Any attempt by Jeremy Corbyn to vote down the Queens speech could see the pound react badly with sterling weakness to be expected. However my view is that once an agreement has been made between the Democratic Unionist Party (DUP) and the Conservative party then this should be seen as welcome news for the British economy and the pound should rally on the back of the news.

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 Climbing as Government Deal is Expected Imminently (James Lovick)

GBP EUR has seen a small recovery as the expectation of a deal between the Conservative Party and Democratic Unionist Party (DUP) is expected imminently. This move should bring some confidence to the markets and already some of this positive news is beginning to be priced into the exchange rate.

The Queens speech could create a huge amount of additional volatility as Jeremy Corbyn is expected to make an amendment to it and may try to vote it down which could see additional volatility for the pound. However it is most likely that a deal will be done keeping Theresa May in place as Prime Minister.

UK inflation data yesterday which arrived at 2.9% also helped lift the pound as the prospect of an interest rate increase in the not too distant future is becoming a reality. The Bank of England meet tomorrow and there could be a swing in the votes with another member calling for a hike at this meeting. Whilst no change is expected the minutes of the meeting are likely to give clues as to where future policy is heading and there could be a big market reaction to it.

The Spanish banking sector has come back under the spotlight after Banco Popular had a run on it by its savers which forced a rescue by Santander. Clients looking to sell Euros and bring them back to Blighty away from Spain would be wise to consider taking advantage of the excellent trading levels which are currently available. The pound could see healthy gains after a new government is formally announced and may present win opportunity for those clients that need to buy Euros.

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 Falls after Weaker Manufacturing (James Lovick)

The pound has taken a tumble against the Euro after weaker than expected manufacturing numbers released yesterday from the Purchasing Managers Index. The numbers represent the third month running where the figures were not up to scratch which has helped see the pound fall lower. The numbers came out at 54.2 against expectation of 55.1 and whilst still in expansionary territory the weaker numbers do highlight concerns of a slowing down in the British economy. Clients selling Euros may see a small window of opportunity in these coming days.

This morning sees UK construction data from the Purchasing Managers Index and any weakness here could wee further weakness. The construction sector is usually one of the first sectors to show problems at the start of a downturn although it is unlikely there will be a material drop off.

EU retail sales numbers are released this morning and should give some clues as to the strength of the consumer across the European Union. ECB president Mario Draghi will be making a speech later today and any comments are likely to have an impact on the price of the Euro. It has been reported that the ECB have been concerned over what has been described as a market over reaction to his comments from the last policy meeting. His words will be carefully chosen today so expect volatility.

Politics surrounding Brexit will continue to be the main driving force and any statements from British and EU leaders are likely to have a direct impact on the pound. My view remains that any gains are likely to be very limited in the short term.

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

GBP EUR Reaction to Article 50 (James Lovick)

Despite a muted reaction for GBP EUR exchange rates yesterday after the Article 50 letter was given to Brussels, the pound has made considerable gains against the Euro this afternoon. GBP EUR has broken through 1.16 and has 1.17 firmly in its sights. The mood has been generally positive after Article 50 has been invoked but there does now appear to be a considerable amount of support for GBP EUR. Those clients looking to buy Euros may see some further gains as the markets appear to be at ease with Brexit. Clients selling Euros may be wise to consider moving sooner rather than later and take the excellent selling prices which have been available for these last nine months.

Will the Pound Strengthen?

Politics is likely to be the main driving force in these coming days and weeks and the first decision to be made will be whether or not the EU are prepared to discuss the negotiations of an exit bill and future trade deal in tandem. This is the first key decision that will set the scene of the next two years and any clues as to the process could see considerable volatility.

The Brexit negotiation has in effect already begun with both German Chancellor Angela Merkel and French President Francois Hollande already insisting that the exit bill must be discussed first. This may of course change and no official line from EU27 has been offered yet.

UK GDP numbers are released tomorrow and a positive number could help see the pound strengthen. EU inflation numbers are also released tomorrow and could create some market reaction. The European Central Bank managed to give the wrong signals at the last interest rate meeting so anything out of the ordinary could muddle things further in these uncertain times.

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 Crashes After Scottish Nationalist Party Seeks Another Referendum on Independence (James Lovick)

After an excellent day for the pound yesterday following events in the House of Commons sterling has fallen sharply this morning. The pound had been supported in anticipation that the Brexit bill would go through without amendment which would allow UK Prime Minister Theresa May to stick with her Brexit timetable and invoke Article 50 by the end of March.

However the announcement yesterday from Scottish Nationalist Party Nicola Sturgeon that she will now formally request a second referendum on independence for Scotland at this crucial time with regards Brexit has taken the shine off sterling. This week really couldn’t see more happening in terms of both the political and economic developments.
Those clients either buying or selling Euros would be wise to get in touch as the news is changing by the hour which is also having a direct bearing on the rates of exchange. There are currently some excellent trading prices becoming available for those clients needing to sell Euros.

GBP EUR has fallen below 1.14 this morning with rates down over 0.5%. Tomorrow sees the Dutch elections and depending on how well Geert Wilders far right party performs will determine the direction of the Euro going forward into these coming months. There is likely to be intense volatility following the release and if he does well or even manage to form a government then my view is that the Euro would likely weaken. The real focus from all of this is what happens in the French elections and how much support is out there for Marine Le Pen.

Thursday is also of paramount importance with the Bank of England meeting where interest rates will be discussed. With inflation rising the pound if anything is likely to see a small boost from any comments from Mark Carney although gains are likely to be limited considering interest rates are unlikely to be going up any time soon!

If you would like further information on sterling 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 Crashes – IMF & Greece (James Lovick)

GBP EUR exchange rates have crashed in afternoon trade with rates falling below 1.14. GBP EUR has now seen a low today of 1.1385 almost 1% lower than the high. The weakness in the pound is largely due to the looming Brexit with Article 50 possibly being invoked as soon as next week. The House of Commons will be debating the recent amendments put forward by the House of Lords and there is likely to be considerable volatility around these discussion. Those clients selling Euros are seeing an excellent opportunity to sell and there may even be a little more room left in this rally. For more information on these essential developments please get in touch and I will be happy to try and assist with the timing of any exchange.

The Euro also appears to be finding support from comments this afternoon from the International Monetary Fund who are seeking to find an agreement for the next Greek bailout to go ahead. This appears to have been the trigger for rapid Euro strength this afternoon and there is likleyt oeb considerably more from this story.

The Euro has seen some support offered following the European Central Bank meeting yesterday. In the subsequent press conference ECB President Mario Draghi was more optimistic with the European outlook and this appears to be helping the Euro. Whilst he was not hawkish the recent rise in inflation has given the central bank some comfort and there is no urgent need to take policy action. For me this looks like we are coming to the end of the road of its asset purchasing scheme.

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 Slides Below 1.16 – Euro Gains on French Polls (James Lovick)

The pound has fallen lower against the Euro today with rates breaking into the 1.15’s for this pair. The pound has been hampered with a potential slowdown in the Brexit process with the House of Lords seeking to make an amendment to protect the rights of European nationals living in Britain before exit negotiations actually commence. If the House of Lords do not back down on this issue there is chance that UK Prime Minister Theresa May could find herself in a position where Brexit could be delayed.

The prospect is an immediate concern for the pound as considering it has been almost 9 months since the Brexit vote to leave the EU and still nothing has happened. The general feeling is that individuals and businesses now require clarity which will follow once Article 50 has been invoked. Any delays in the process could create additional uncertainty and the pound may have further to fall in this instance.
However the general feeling is that the Lords will be forced to back down in which case the pound could see a brief rally shortly after.

In the Eurozone a poll today has put French Presidential candidate Emmanuel Macron ahead in the polls which has proven to be a boost for the Euro. There has been a huge amount of volatility for the Euro as the prospect of a Marine Le Pen win is a damaging prospect for the European Union and also the Euro. There is going to be considerable volatility over these next couple of months as the Dutch and French elections rapidly approach.

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

GBP EUR Slides from Highest Point this Year (James Lovick)

The pound continues to try and push higher against the Euro although there is clearly some resistance at these higher levels with sudden drops lower becoming the norm. Rates for GBP EUR broke through 1.19 earlier in the week although now levels are sitting just below 1.1850.

The UK received a welcome boost after UK mortgage data from the British Bankers Association (BBA) arrived stronger than expected. Mortgage approvals hit a one year highlighting that there is still activity in the sector. Across the country this is clearly the case and good news for the economy although my personal view would suggest we have now seen the top of the London market. There may be changes to be seen in the coming months and this may start to reflect in a weaker pound.

Next week should be particularly interesting as the Brexit bill will be discussed in the House of Lords again, but this time in considerably more detail. In my view things are unlikely to be held up but any sign that Brexit will be delayed could see some short term weakness in sterling exchange rates.

Meanwhile any political developments in France over the weekend are likely to have a direct impact on the price of the Euro. National Front presidential candidate Marine Le Pen has been shown to be performing better in the polls although her campaign has also been marred with scandal.

There is a chance that marine Le pen could become the next President of France and this would generally be negative for Euro exchange rates. The fact that she has outlined in her polices a return to the French Franc whilst also offering the people of France a referendum on EU membership could help see some good opportunities for those clients looking to sell Euros.

If you would like further information on sterling or Euro exchange rates 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

Sterling Uncertainty on Second Day in the House of Lords (James Lovick)

The pound is likely to see additional volatility this morning after the bank of England Governor Mark Carney makes a speech. His comments can drive sterling exchange rates considerably and any mention of future interest rate policy is likely to impact on the price of sterling accordingly.

Sterling has come under some pressure after disappointing retail sales released last week although there is still a fair amount of support for the pound. UK GDP numbers are released tomorrow and this has the p[potential to be a big market mover. A stable or even positive figure should only help support the pound tomorrow.

Meanwhile the House of Lords will be scrutinising the Brexit Bill for the second day running where it is expected that some members will look to make adjustments to the bill. UK Prime Minister Theresa May sat in the House or Lords yesterday to monitor the debates in a sign that there is plenty riding on this outcome – It is very rare indeed that a Prime Minister will sit and observe the Lords. Any hold up of Brexit in the Lords could see the pound come under renewed pressure as the path for Britain would become considerably less clear and may potentially limit what UK Prime Minister is looking to achieve.

Meanwhile the outlook is looking more optimistic that Greece will be able to make its next debt repayment in July although a meeting between German Chancellor Angela Merkel and IMF Managing Director Christine Lagarde could create uncertainty for the single currency. Any agreement between these parties to include Greece is likely to see the Euro strengthen.

If you would like further information on sterling or Euro exchange rates 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

Sterling Recovers after Weaker Retails Sales Data (James Lovick)

The pound has seen mixed signals against the Euro this week having seen some good gains before slipping towards the end of the week. The pound fell this morning following weak UK retail sales numbers which fell in January. The report suggested that higher fuel and food prices were reducing demand and that the numbers are the weakest performance since November 2013. Although the pound fell following the release sterling did recover in afternoon trade breaking over 1.17 again.

With the Brexit bill expected to pass through the House of Lords next week after the half term parliamentary recess there is likely to be considerable volatility as the markets react to any news

In a precursor to the politics next week Ex-Prime Minister Tony Blair has stated that he would like a second referendum on Brexit. This is likely to be hotly debated over the weekend and it could signal that there could be more to come next week when this Brexit bill passes through the Lords.

In my view then any amendments to include a second referendum on the final deal could be damaging for the pound. There is a general view that a second referendum would not allow Britain to gain a good and fair trade deal with the European Union. The timing of this statement from Tony Blair is unlikely to be coincidental ahead of next week’s political drama.
Those clients looking to buy to sell Euros are likely to see considerable volatility in these coming weeks and there are likely to be some good opportunities for buyers and sellers alike.

If you would like further information on sterling or Euro exchange rates 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 Supported after Upbeat UK GDP (James Lovick)

Sterling exchange rates continue to hold at these recent higher levels after a solid week of good gains. Rates for GBP EUR are now sitting at 1.1750 which is presenting anyone that needs to buy Euros with some better buying opportunities. It is only 1 month to go now before Article 50 will be invoked under UK Prime Minister Theresa May’s diary for Brexit.

The Gross Domestic Product figure from the national Institute for Economic and Social Research (NIESR) arrived steady at 0.7% showing no sign of any slowdown in economic growth. There has been little market reaction to the news and it is most likely that it is the overall uncertainty of Brexit which is preventing the pound from pushing higher. The NIESR is an excellent precursor to the official GDP numbers and it is encouraging that there has not been a slide lower which should help keep the pound supported.

In the Eurozone Greece has once again started to dominate the headlines and its inability to reform and difficulty in making its debt repayments could become another problem for the Euro. The Euro really suffered in the Summer of 2015 and it was only when Greece accepted another bailout the Euro started to gain.

On the one hand Brexit is keeping the pressure on the pound but it is my view that once the negotiations get underway the pound could actually perform well against the Euro when considering both the issues of Greece and the EU elections which are just around the corner.

Clients needing to buy or sell Euros would be wise to keep a very close eye on these political developments as the exchange rates will be directly impacted. This is where we can assist in helping you time your foreign exchange transfer.

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

GBP Exchange Rates Slide after High Court Blocks New Case (James Lovick)

The pound has fallen again today against most currencies after a substantial fall across the board yesterday. The Eurozone received unwelcome news in the form of weak retails sales numbers for December although it did little to impact on sterling Euro rates of exchange.

GBP EUR is now sitting just below 1.16 and the drop today is most likely as a result of a court case that was blocked in the high court earlier.
A new court case was put forward to the high court this morning which was being used to try to establish whether Parliament must be consulted on Article 127 of the European Economic Area Treaty.

This tackles the issue of remaining in the single market and whether or not UK Prime Minister Theresa May must go through parliament to give notice of the UK’s departure. However in a twist today the High Court have blocked the legal challenge and have stated that the case is premature. This is a win for the British government today but it also means for the time being that the harder type of Brexit is still the more likely outcome from all of this. To date a so called hard Brexit has proved negative for sterling exchange rates.

With Brexit literally around the corner the pound could come under renewed selling pressure as there is a degree of uncertainty that goes with invoking Article 50. GBP EUR may have considerably further to fall in the short term. Those clients looking to buy Euros would be wise to get in touch as the next 6 weeks are likely to see further pressures on the pound.

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

GBP EUR before Bank of England Meeting (James Lovick)

The pound is hitting resistance at these higher levels with GBP EUR sitting just below 1.17. This week and next could see substantial volatility for sterling exchange rates as the Brexit bill to invoke Article 50 is about to be scrutinised in Parliament.

There are a fairly large number of MP’s who are highly likely to vote against the bill so there is still a chance that Brexit could be delayed if things are held up in the House of Commons and House of Lords.

Any politically sensitive issues that come out of this could see heightened volatility for the pound as the final destination of Brexit could become less clear. Politics continues to be the single largest driver for sterling exchange rates and will continue to do so for some time.

The Bank of England will meet this Thursday to discuss interest rate policy and although no rate change is expected the markets are likely to pick up on any comments from Bank of England governor Mark Carney.

The quarterly inflation report is also released on Thursday and this is likely to be particularly interesting for the Bank of England as to the future path of interest rates. Any suggestion of rising inflation is likely to create a degree of sterling strength as despite an amount of uncertainty that comes with Brexit there is still a real chance that interest rates may start to climb either this year or next. There are likely to be some buying opportunities after the meeting.

European data is relatively light this week although EU Gross Domestic Product figures later today could crate some volatility for Euro exchange rates.

If you would like further information on sterling exchange rates 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