Tag Archives: GBP weakness

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

Bank of Engalnd Minutes Keep the Markets Guessing (Matthew Vassallo)

GBP had lost position this morning against most of the major currencies, with GBP/EUR moving back towards 1.26 on the exchange. This move came about following the release of the latest Bank of England (BoE) minutes yesterday morning, which indicated no further members had voted for a UK interest rate hike. The vote remained at 7-2 but with the recent deterioration of UK economic conditions, including inflation levels falling to a record 5 year low recently, the Pound took a hit in the markets.

Despite a recovery this afternoon this has added to a growing negative outlook on the UK economic recovery and with our growth forecasts now cut 2015, we may find that Sterling struggles to build much momentum in the short-term.

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

Sterling slightly up as the Scottish referendum gets ever so closer. (Ben Amrany)

We are hearing the No campaign is slightly ahead in the polls after last week the No’s were slightly ahead. This has given the pound a rise from, last weeks lows of 1.2394 and is pushing the 1.2550 level. Today CPI inflation for the UK came out pretty much as expected so eyes are now looking towards the bank of England minutes out tomorrow to see if any further members are voting for an interest rate hike. last month the split was 7-2 and if we see a 6-3 then the pound could well be in for further gains.

The main risk factor though for anyone with a requirement is the Scottish Referendum. The way that I see it is as follows.There is likely to be a major reaction, particularly for sterling, whichever way the vote goes. A vote for independence will highly likely result in a further appreciable sterling sell-off causing the pound to fall by as much as 10% over the coming weeks and months. A vote for Scotland to remain in the UK is likely to lead to a significant relief rally for the pound and we could see a slight gain from the current trading levels.

For those looking at selling the pound the risk to gain ratio is not worth taking the gamble on what may occur. With the polls so close at the moment the risks of losing thousands of the currency you need to buy by waiting until after the vote could be extremely costly and we have seen many clients capitalise on the current rates due to the uncertainty. It is not inconceivable that the YES campaign will be victorious and it could be the biggest surprise of our generation.

So if you need to buy or sell the pound against the Euro then please do feel free to contact myself Ben Amrany at bma@currencies.co.uk If you inform me of your requirement I will explain the options available to you in trying to minimise any risks to the market and help you achieve a better rate than the banks.

hank you for reading

Ben Amrany

bma@currencies.co.uk

 

How much higher will the GBP go against the Euro?

The pound looks like it will only continue to climb higher against the euro but this expectation could prove very dangerous if relied on too heavily. It would appear that the pound is likely to continue to strengthen but let us look at the facts and just what the prospects are for GBPEUR.

Possible problems for are that there will be a slowdown in economic activity in the Eurozone which will have a knock on effect for sterling as the UK does 40% of its trade with the Eurozone. Also there would appear to be a strong likelihood the pound is too strong which will harm UK exporters. These points are being raised time and time again and I am sure it soon be mentioned by say Mark Carney or someone else which will cause the pound to weaken.

All in all the current exchange rate is very favourable for Euro buyers so if you have a transaction to make please get in touch to learn more about the forecast for the rates. Please feel free to speak to me directly on jmw@currencies.co.uk

GBP/EUR Rates Drop Following Poor UK Services Data (Matthew Vassallo)

GBP/EUR rates have dropped slightly during Thursday morning’s trading, following worse than expected PMI Services data for the UK. This negative move is the first of the week for Sterling, after a positive run against the EUR. Better than expected Manufacturing and Construction data pushed GBP/EUR back up close to a 20 month high, although today’s release is likely to dampen market expectations slightly.

We may now find that Sterling struggles to break through 1.26 before the end of the trading week, although any negative market reaction to GBP, may be offset by the poor Eurozone Retail Sale figures, which were also released this morning.

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 exchange rates with your current provider, then please feel free to contact me directly at mtv@currnecies.co.uk

GBP/EUR Levels Drop Back Below 1.23 (Matthew Vassallo)

GBP/EUR levels have fallen back below 1.23 during Thursday morning’s trading, providing EUR sellers with some much needed respite after a tough week. The negative feelings surrounding the Eurozone have been resurfacing for some weeks and with growth forecast cut for 2015, along with on-going concerns over levels of inflation, I anticipate the single currency could come under further pressure over the coming weeks. Despite these issues not expect to see all one-way traffic, as today’s spike proves, but what has become clear is that anyone expecting GBP/EUR levels to move aggressively below 1.20 again in the short-term may be left disappointed.

I still feel that GBP has the momentum and if the European Central Bank (ECB) do cut interest rates next week then it is likely we will see further EUR losses.

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 at mtv@currencies.co.uk.