Tag Archives: GBP weakness

Will GBPEUR go even higher?

The pound to Euro exchange rate is now touching the best rates since May 2017 which easily begs the question can this continue? GBPEUR has touched 1.16 in what has been a very positive few weeks for the pound and some uncertainty for the Euro as investors look to the Bank of England poised to raise interest rates, whilst investors brace themselves for the ECB, European Central Bank to be less positive.

The next big piece of news tomorrow morning is Inflation data which is released at 09.30 am and this will provide further evidence on just how the UK economy is performing and whether we can expect the Bank of England to be looking to raise interest rates or not in May. To many, it seems foregone conclusion and this has helped the pound to rise to the levels that we have seen.

GBPEUR faces some more challenges next week with the latest UK economic growth data which will be the first estimate for Q1 for the UK, the snow is likely to have affected the UK economy and hence growth could be lower. Subdued growth for the UK is absolutely a concern which could derail further interest rate hikes, there is also an important ECB policy meeting next Thursday which could trigger some volatility in the markets.

If you have a transfer buying or selling the pound against the Euro then making plans in this turbulent time is very sensible to try and gauge the expected outcomes, if you wish to run through or discuss any transactions please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you and assisting with any transfers.

 

EU Parliament may provide the UK with privileged single market access following Brexit

Business Insider Report suggests there will be Single Market access for Britain

A recent report has stated that EU parliament is currently compiling a detailed resolution to call for more flexibility in relationship talks with the UK. The EU would like to put forward and negotiate an association agreement which would give Britain privileged market access and EU agency membership.

I am not a 100% on the legitimacy of this report as the market moves on rumour as well as fact and investors are yet to bite or possibly it is not common knowledge. If investors had bitten I would have expected substantial Sterling strength, possibly even breaking the current 1.15 mark on GBP/EUR. If the release does take place this weekend GBP/EUR could be in a very different position on Monday.

This would be a huge change in stance for Chief EU negotiator, Michel Barnier who has put forward a proposal similar to that of Canada’s free trade agreement.

It is uncertain how this would pan out however, considering that the Conservatives wish to be free of all European laws following Brexit.

Inflation and Average Wage Growth concerns

Average Wage Growth came in yesterday and it remained anchored at 1.5%. In order to have a healthy economy inflation and wage growth should be close to parity. This is far from the case at present. Despite this there is an 80% probability of a rate hike by the Bank of England (BOE) in May.

Personally I feel this would be the wrong move considering the fragility of the UK economy at present. Be aware, there is the strong possibility that a rate hike in May is already factored into current market levels. If this is the case do not expect significant Sterling strength should the hike take place. The danger is if it does not occur, I would expect heavy falls in Sterling value if this is the outcome.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs.

If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at dcj@currencies.co.uk.

Problematic German Colation could cause volatility on GBP/EUR (Daniel Johnson)

Merkel faces troubles forming coalition

There are rumours circulating that Angela Merkel could be replaced by Germany’s defence minister, Ursula Von Der Leyen. Germany is losing faith in Merkel’s ability to form a coalition. Merkel failed to build a coalition following her narrow victory in the election in September. She was attempting to unite her Christian Democratic Union (CDU) party, the Free Democratic Party (FDP) and the Greens, which was dubbed the “Jamaica alliance”.

Merkel is currently trying desperately to form a government with the Social Democratic Party (SDP). The electorate is losing faith, some of the latest polls have shown that 46% wish her to step down immediately. Political uncertainty historically weakens the currency in question, but with Ursula Von Der Leyen potentially gaining power this does not bode well for Sterling. Von Der Leyen is a firm believer in a in a federalised United States of Europe, she grew up in Brussels and is the daughter of Ernst Albrecht, former director general of the European Commission.
There is also the possibility she will attempt to strengthen the alliance with French President Emmanuel Macron as Von Der Leyen shares his views on reforms to integrate the Eurozone. This is definitely not good news for the Brexit process and could make matters even more problematic and has the potential to impact Sterling.Brexit negotiations will be a key factor in GBP/EUR exchange rates. Phase two negotiations are set to be problematic with David Davis and Michael Barnier already at loggerheads. The next phase will be in regards to trade deals and is probably the most important factor in the Brexit process. How talks progress will have major influence on Sterling value.
I think the pound is set to struggle for the foreseeable future. The pound has been range bound against the majority of major currencies and it is often difficult to take advantage of a spike when there may only be a small window of opportunity. If we look at GBP/EUR, the highest rate of exchange we have seen in the last six months was 1.15, following the announcement of an Irish border deal. There was only a very small time frame to take advantage of the situation, thankfully many of my clients managed to get their trade booked during this time frame. I had rate alerts in place to notify my clients of the spike and also called each one letting them know of the opportunity.

If you have a large currency transfer to perform in the coming days, weeks or months then I will be happy to speak to you directly as I will be willing to help you both with trying to time a transaction and getting you the best possible rate when you do come to trade. A small improvement in a rate of exchange can make a significant difference so for the sake of taking a few minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can contact me (Daniel Johnson) on dcj@currencies.co.uk and I will endeavor to get back to you as quickly as possible. Thank you for reading.

Will Wednesday’s UK GDP Figures impact the GBP/EUR rate? (Joseph Wright)

The Pound to Euro exchange rate has been relatively flat so far this week, although tomorrow there could be a spike in the rate as UK GDP figures are scheduled for release around 9.30am.

These figures could be significant as talk of an interest rate hike from the Bank of England next month is heating up, and for that to take place I expect the BoE to be hopeful of impressive figures as raising interest rates whilst economic output is struggling doesn’t really make sense.

With inflation levels in the UK hitting a 5-year high recently there is some pressure of the BoE to manage this, as we’re also seeing a reduction in consumer spending which has been one of the main drivers of the UK economy that’s performed well in the wake of the Brexit vote.

If tomorrow morning doesn’t being any currency movement, then Thursday may as the European Central Bank will update us on their most recent Asset Purchasing Program changes, which many analysts expecting to see a reduction in the current program. Depending on the amount we could see the Euro strengthen as reducing QE suggests the EU economy is normalising.

If you would like to be kept updated regarding any short term price movements between the pair discussed in this blog, do feel free to register your interest with me.

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

GBP/EUR hits a 10-week high, but will the Pound manage to hold on to its recent gains? (Joseph Wright)

The Pound has risen quite dramatically against the Euro in recent weeks, with the pair hitting 1.14 both yesterday as well as this morning which is a 10-week high point for the pair.

Brexit uncertainty appears to have taken a back seat for now, which has seen GBP/EUR rise over 6 cents in recent weeks making the exchanging of Pounds into Euros a more attractive proposition.

The Pounds gains have been aided by a weakening Euro which has mostly been caused by the German election which took place over the past weekend. Although Angela Merkel’s Christian Democratic Union (CDU) party won for a forth consecutive term as expected, the talking point of the election is the rise of the far-right Alternative for Germany (AfD) party as they were the third best performing party.

This has softened the Euro and with the unofficial Catalan election in Spain also just around the corner and threatening to cause tensions in the region I think there’s a chance we could see the Pound continue to climb.

On Friday there will be the release of UK GDP data which could provide the Pound with a boost if the figure released is better than expected. The release comes out at 9.30am and the expectation is for 1.7% year on year and 0.3% for the 2nd quarter of this year.

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

GBP/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.

Will the pound rise or fall tomorrow against the Euro? (Dayle Littlejohn)

Since the UK public voted out of the European Union the financial investors have been unsure whether UK would actually leave or if another referendum would take place. After a High Court ruling, a Supreme Court ruling and some other stumbling blocks UK Prime Minister Theresa May is set to trigger Article 50 tomorrow morning.

For euro sellers buying pounds this could be the spike in the market that you have waited for as I believe exchange rates will drop 1-2% in your favour. We are expecting a busy day on the market and I will have to use my time wisely however if you are looking to transfer your euros into sterling and want to achieve the best rates tomorrow feel free to email me directly with your contact details. I will give you a call first thing tomorrow morning to run through the process and a strategy to maximise your returns drl@currencies.co.uk.

For euro buyers, I hope you have purchased when the market increased to the higher teens, however if you haven’t again you can email me and I will call you first thing to secure your currency before the Prime Minister makes the announcement or another strategy would be to sit back and ride it out as the French election towards the end of April could provide opportunity. Anti EU Marine Le Pen has gained momentum in the last 3 months ans is neck and neck with pro EU Macron. If Le Pen managed to get into power we could see another country holding a referendum in regards to EU membership

With all of the articles I write, I normally state that I will respond via email however as inquiries are coming think and fast, I will only be replying to clients in the form of a call tomorrow. Therefore if you do not provide your telephone number do not expect an email until Thursday morning drl@currencies.co.uk.

Enjoy your evening and I look forward to speaking with you tomorrow morning.

 

GBPEUR rates in for a bumpy ride!

GBPEUR dear reader is causing all sorts of problems for Euro buyers, the question on most people’s lips is when will this all stop? Unfortunately it seems the pound is likely to come under further pressure which will only make transferring money abroad more costly in the short to medium term. Fears over the Bank of England cutting interest rates and looking at more Quantitative Easing have all contributed to further falls in the value of the pound which is increasing the fear amongst sterling holders. Personally I think the rates have further to fall and would not be surprised to see rates touching 1.15 by the close of next week.

If you need to buy or sell Euros for pounds making some plans in this market is sensible. There are still so many possible outcomes from the market, who will lead the Tories, who will invoke Article 50? Will Article 50 even be invoked? Will there be another Referendum or a General Election? We just cannot say with any certainty which of these possible scenarios will take shape. On balance it seems prolonged uncertainty will not only damage sterling from political uncertainty but also weigh on economic factors further increasing the pressure on the pound.

If you have a currency transfer to consider I would suggest making some plans in advance to try and mitigate the losses. For more information and some practical help in the planning and execution of any transfers please speak to me Jonathan Watson on jmw@currencies.co.uk

GBPEUR is just getting started!

GBPEUR has moved over 4.5% since 1 month ago when rates were at a similar level to now. Since then the interbank exchange rate has risen from 1.2650 to over 1.32 on the 25th May before performing the climbdown we have seen in the last ten days back to 1.27. So where do we go from here, wjat can we expect next on GBPEUR?

I predict that the sterling to Euro rate will move within a range of 1.20 to 1.35, if we Leave the rate may dip below this whilst a Remain vote might see a top of 1.40. Planning a currency transfer around this important time is of course fraught with difficulty and unfortunately there is no real ‘right’ answer as no one knows exactly what will happen. But let us look at the upcoming events and try to make some plans.

As we can see the pound is reacting mainly to the headlines surrounding the polls. As the Remain or Leave camps appear to be grabbing headlines the market is reacting accordingly. Just looking at the latest polls the Leave camp are performing much better than they had recently with poll after poll showing the Leave camp ahead. A Telegraph poll of 19,000 subscribers showed 69% back Brexit whilst a YouGov poll showed Leave ahead by 4-5 percentage points.

Looking at key dates ahead we have two television debates this week with ITV showing both tomorrow night and Thursday. Then on the 15th and 19th the BBC have two key Question Time debates which will have both Remain and Leave involved,

I expect sterling will come under pressure and weaken further ahead of the Referendum vote on the 23rd but expect a Remain vote. I think the economic arguments to Remain will gain the most attention and this will win the day.

If you have any transfers to consider then please do consider making some plans, with so much to factor in on the rates making plans is a very sensible move. For more information please email jmw@currencies.co.uk

New Buoyancy Levels for GBP/EUR. (Daniel Johnson)

Markit Purchasing Manager’s Index (PMI) were released yesterday. PMI is a measure of manufacturing activity in a country. We have seen a decline for the first time in April since 2013 which clearly shows the impact the uncertainty regarding the EU referendum. Figures came in at 49.2, down from 50.7. Anything above 50 is considered growth.

Construction PMI has just been released coming in at 52 so I would expect a decline in Sterling against the Euro this morning. If you are a Euro seller I would be looking to take advantage of current rates, this may be a small window of opportunity as although I think the EU referendum will be a tight call, I believe Britain will remain in the EU and as a result we may see GBP/EUR hit 1.35.

If you have a currency requirement I will be happy to help, I specialise in property and commercial trade and I am in a position to beat high street banks by as much as 5%. Please do not hesitate to get in touch for a free quote by e-mailing me at dcj@currencies.co.uk.

The Strong Week For GBP Continues, But For How Long?

Sterling bulls and those looking to convert their Sterling into Euro’s have had a great start to the week, with GBPEUR levels hitting as high as 1.2685, a major improvement for sterling sellers when we consider that GBPEUR was trading in the low 1.23’s just last week.

The Pound’s recent gains have been due to improved market sentiment as oil has recovered some of of its losses from earlier in the week, after the most recent OPEC meeting ended unsuccessfully. Additionally the most recent polls regarding the upcoming EU referendum are pointing to a ‘Remain’ lead, which has boosted sentiment towards Sterling and driven the price up these recent highs.

Importantly, the 1.26 level hasn’t acted as a resistance for GBPEUR, which is a positive sign for Sterling bulls as it was the previous support level for around 2 months.

From a personal perspective I’m dovish on the value of the Pound moving forward, i think the political uncertainty will continue to weigh on GBP’s value whenever the subject of a ‘Brexit’ is a headline, and I think current levels offer a great buying opportunity to those looking to convert GBP to EUR that may not be around for much longer in the medium term.

If you are planning to use GBP to buy a foreign currency it may well be worth your time getting 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.

GBPEUR Rates remain under pressure!

Pound to Euro rates are still really struggling at present with investors keenly awaiting decisions on Bank of England Interest Rates tomorrow and of course the Federal Reserve in the US tonight. Today’s budget has done little on the markets, this is often the case where the budget is concerned as many of the stories are leaked early. It is fair to say the rates have not risen which is perhaps attributable to the fact this news is essentially underscoring what we already know, ie the pound is not a currency investors really want to be holding at the moment!

This is of course explained by the EU referendum in 3 months time, investors do not want to be holding a currency which is highly likely to lose value in the future. I am personally predicting a’Remain’ vote but we will need to factor in the possibility of the ‘Lave’ vote succeeding, this is of course what the markets have been doing.

The outlook on the foreign exchange market is now leaning towards GBP weakness although of course there will be spikes to help out clients buying Euros. If you have a transfer to consider please contact me Jonathan by emailing jmw@currencies.co.uk

GBPEUR rates stagnant ahead of the ECB on Thursday!

We have been waiting all year for this key ECB meeting on Thursday as there comes with it a high chance of further QE or Quantitative Easing which could weaken the Euro and present fresh opportunities to buy. 2016 has been a very difficult year for anyone buying the Euro, understanding that this event could present better rates should be of real interest to Euro buyers.

The expectation is for the GBPEUR rates to continue to climb higher on this news if it meets expectation. The outlook for the market further ahead is not very favourable for the pound  so if you need to buy Euros longer term making some plans ahead of Thursdays news seems the most sensible option to me.

We offer a range of options to help you secure currency at considerably better exchange rates than the banks plus offer an option to fix an exchange rate in the future using a forward contract. Understanding your price and market well in advance of any payments is a very important method to help secure the best deals.

If you need to buy or sell Euros with Sterling this Thursday is a key date for the diary, please feel free to contact me Jonathan by emailing jmw@currencies.co.uk

GBPEUR consolidates, what can we expect next?

GBPEUR has been trading in a much tighter range this week hovering around 1.30. Last week’s low levels of 1.2890 have not been retested but the highs of close to 1.33 indicate the rate is not sufficiently strong enough to hold its own on the back of other data releases we are confined to. Expectations are for the rates to respond more to political uncertainty in the UK this year rather than economic data. The big worry is the UK Brexit which at present we know very little about. The two key issues at this time would be the worry over the timing or date of the Referendum which could be as early as June or 2017, the other is the governments position. Much will hinge the extent to which the government has renegotiated the UK’s relationship with the EU. Until we get clarification of these issues sterling is likely to be underfunded and susceptible to further weakness.

Big economic news next week will be the Bank of England quarterly Inflation Report due next week, the economic news from the Eurozone could be greater however as markets eye the possibility of the ECB revising their QE program. If you have a transfer to consider please let me know by emailing jmw@currencies.co.uk or calling 01494 787 478. I am very sure I can offer you some helpful useful information to aid you in any decision making for your money transfers.

Tomorrow’s Bank of England decision could upset your plans!

Tomorrow we have the Bank of England Interest rate decision which is expected to be a non-event but with the pound having taken such a battering lately is a little more interesting than usual. There could be the removal of an interest rate hike by the sole member voting for a rate hike, Ian McCafferty. Should this happen then the pound could easily come unstuck presenting further excellent opportunities for anyone who is looking to buy or sell the pound. On balance it does seem like further losses will happen at some point since there are so many unanswered questions for the UK and the pound this year.

For more information at no obligation or cost please feel free to contact me Jonathan by emailing jmw@currencies.co.uk or calling 01494 787 478 in normal UK business hours. There does now appear a very strong likelihood that we will see some further wild fluctuations on the foreign exchange market and this could easily cause your transfer to become much more expensive than perhaps you had bargained for.

We offer a number of options to protect you from market volatility including the forward contract and the market watch options. If you have a pending transfer buying or selling the pound for a foreign currency why not get in touch to see if we can help with some information and a better exchange rate than you are currently achieving? For more information please email me on jmw@currencies.co.uk

 

Could the UK Interest Rate Decision Cause Volatility for GBP/EUR?

Tomorrow at 1230 GMT we will see the UK Interest Rate Decision, I expect it to be a non-event as usual, there has not been any change in rates for years and Mark Carney the Head of the Bank of England has already indicated there will be no rate hike until at least 2017. What is of interest however is the Monetary Policy  Committee’s vote (MPC). The MPC consists of nine members who vote as to whether there should be any change in the  Interest Rate.  For months the vote has come in 8-1 against a rate hike. Ian McCafferty is usually the sole member in favour of a hike, there may however be a change in his stance due to the new global economic uncertainty in China. If the vote moves to 9-0 expect Sterling to lose value quickly.

Yesterday saw below par Manufacturing and Industrial Production figures for the UK and we saw GBP/EUR dip below 1.33. With inflation worryingly low at 0.1%, an EU referendum around the corner and the slow down in Chinese growth I can’t see Sterling gaing any significant strenght short to medium term. If you are a Euro buyer it may be wise to move before things get worse.

If you have a Currency requirement I would be happy to hekp, I will not only keep you up to dated with market volatility to help you maximise your trade but I can also guarantee to beat any competitors rate.I have consistent large trades going through today , potentially I can tag new clients on these trades and gain a very competitive rate.  If you have a currency requirement I would  recommend getting in touch by calling 01494 787 478 or e-mail me directly at dcj@currencies.co.uk .Thank you for reading my blog it is greatly appreciated I look forward to hearing from you.

 

 

 

GBP/EUR rates show small net loss today ahead of UK GDP figures tomorrow morning (Joshua Privett)

Rates of exchange for Euro buyers on GBP/EUR have shown a net loss before the last data release this month which is expected to have much impact on the currency pair. Ahead of the UK’s GDP figures to be released tomorrow GBP/EUR rates did dip back into the 1.41’s briefly.

While little change occurred by the end of trading today there was still a clear negative emphasis on GBP/EUR exchange rates.

This is understandable, as the last release of UK GDP figures caused a severe fall on GBP/EUR by more than a cent in a single morning of trading. Poor manufacturing growth was the reason for the previously underwhelming figures, and traditionally November sees a lag in the retail sector with consumers pulling on the reigns on their spending, so we should see more of the same weakness on the Sterling side of GBP/EUR tomorrow morning.

The fact that GBP/EUR rates are still above 1.42 after the initial slide this morning are a gift to Euro buyers ahead of the data release tomorrow. If I had a Euro requirement I would be looking to move ahead of the release tomorrow, particularly as the rate movements today have signaled that markets expect poor GDP data to be confirmed at 10am GMT tomorrow morning.

The end of the month also tends to see ‘profit-taking’ as traders wind down their positions from this month in preparation for any changes in strategy for the next calendar month – so expect some serious movement on Friday and Monday.

You can reach me overnight on jjp@currencies.co.uk to discuss a strategy for your transfer in order to maximise your Euro return. I can also supply a competitive quote for your transfer and I have have never had an issue beating the rates of exchange offered elsewhere.

Euro sellers can do the same, and we can discuss how to make the most of any opportunities that present themselves in the coming weeks in order to revers some of your recent losses.

 

 

Slight GBP/EUR correction today (Joshua Privett)

The slide in GBP/EUR since the start of this week on global markets halted this morning at lows of 1.353 and rose up again gradually to breach 1.36 as markets closed this afternoon.

We are essentially seeing similar market movements to what evolved last week following the events of Black Monday. China’s stock market slide reverberated on a global scale, causing investors to flee into safe haven currencies. As the Euro was cheapest and has proven to be more stable recently, this was preferable. Demand for the Euro suddenly sky-rocketed and as a result so did its value. As stock markets stabilised this Euro strength slowly began to leak back into Sterling, pushing up GBP/EUR rates.

At the start of this week a repeated slide in the stock-market due to poor Chinese manufacturing data saw the Euro gain strength once more, and this correction today is a repeat of the stock-markets beginning to stabilise again.

Firstly, this correction is more gradual and took longer to come about than last week following the initial slide. Investors are no longer optimistic that Black Monday was a ‘blip’ or ‘anomaly’ and as such are less willing to re-invest in securities immediately after the market halts its fall in value. So money is remaining in the Euro and keeping down GBP/EUR rates.

Secondly, tomorrow the Eurozone will be releasing key data on their economy and will also be announcing their interest rate decision. With the recently glowing German data, we’re expecting similar reflections for the Eurozone as a whole.

These rates are now unlikely to slide higher as artificial Euro strength will remain and even be supplemented by genuine confidence in their economic performance. Those with Euros to buy in the short term I would recommend moving sooner rather than later if you can due to this – even if you requirements are not until later in the month or even the next rates can be pegged and help for you are no additional cost should you need it. Euro sellers may find some even more attractive opportunities beginning to emerge tomorrow.

Email me overnight on jjp@currencies.co.uk to receive a free quote on your transfer and I’ll happily take the time to offer my opinion on your personal situation if you were seeking advice.

GBP/EUR rates crashing (Joshua Privett)

We started the day for GBP/EUR at 1.42, rates are now at 1.39.

Multiple factors have influenced the combination of Sterling weakness and Euro strength which have sent rates flying against the favour of Euro buyers.

Firstly Sterling weakness for poor retail sales figures for last month, which were almost at a standstill when summer months normally record massive growth, begin the poor run this morning.

This was alongside expectations that a rate hike for the UK will be delayed – a result of similar sentiments expressed by the Federal Reserve in America overnight, it seems banks are worried about raising rates when global growth is being revised down for next year. This weakened Sterling but also sent money flying into the Euro from those who had previously held USD. As the USD/EUR is the most commonly traded currency pair in the world, traditionally when the USD weakens a lot of the capital that investors are taking out of it tends to end up in the Euro, particularly now it is so cheap.

The Euro also strengthened today following the approval yesterday from German MPs for the Euro bailout.

Now that the GBP/EUR rates have broken through 1.40, a traditional resistance level, it is likely they will slide further with these current market forces in the background… to the delight of Euro sellers!

Those with Euros to buy should email me overnight on jjp@currencies.co.uk for a free quote on your transfer. Similarly Euro sellers should do the same, so we can discuss a roadmap to help you ride this move in your favour.

 

GBP/EUR Falls Below 1.26 (Matthew Vassallo)

GBP/EUR rates dipped back below 1.26 on the exchange during Friday’s trading. The EUR gained some momentum during Friday morning’s trading and it now seems as though the pair will trade below 1.26 as we head into the weekend. Sterling had recovered somewhat this week and it did seems if a move back towards 1.27 was on the cards. As often happens though the currency markets have proved unpredictable and the EUR has made unexpected gains, despite European Central Banks (ECB) president Mario Draghi’s comments that the central bank were ready to introduce ‘drastic measure’ to combat the on-going threat of deflation.

Looking ahead and key economic data for next week includes Monday’s UK Manufacturing and Tuesdays Construction data, followed by Eurozone Gross Domestic Product (GDP) figures and Retail Sales on Wednesday. These are likely to cause additional volatility on GBP/EUR rates and should be monitored closely. We also have the latest Bank of England (BoE) interest rate decision on Thursday, so expect a busy week on the markets.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk