Tag Archives: GBP/EUR forecast

Pound weakens after hopes of a rate hike in May are dampened, where to next for the GBP/EUR rate? (Joseph Wright)

Financial markets had been pricing in an interest rate hike from the Bank of England since some bullish comments from the Bank of England last month.

The hopes of a rate hike have since dampened after some important comments from the governor of the Bank of England. Yesterday evening whilst speaking to the BBC, Mark Carney cooled expectations of a rate hike next month after not confirming that it would actually happen. There have been a few members of the BoE that have already voted in favour of hiking interest rates, and with the rate of wage growth in the UK now picking up and similar to inflation levels, many were expecting the base rate in the UK to rise to its highest level since the UK exited the recession.

Carney commented that he didn’t want to become too focused on the precise timing of the next rate hike, and although he didn’t rule out the hike he didn’t confirm it which has caused the Pound to weaken in value.

Sterling had been strengthening recently after the Brexit transitional deal has been agreed and hopes of the rate hike next month, so seeing the GBP/EUR rate drop from its highs isn’t a surprise.

There is still a rate hike likely this year although when it will happen remains to be seen. Next week UK GDP is due out on Friday, so if you’re planning on making a transfer involving the Pound and the Euro do feel free to get in touch as there is plenty of time to plan around next Friday’s release.

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.

Will the pound to Euro rate rise above 1.15?

The pound to Euro rate had been expected to keep rising in the face of the expected improvements from the market in terms of higher interest rates and also possibly the improved outlook on Brexit but mostly we would be expecting the pound to struggle to rise again to hit the 1.15 mark. The most important factor driving the pound has of course been the Brexit and also the prospect of higher interest rates.

Much of this news does appear to be largely priced into current levels already, however. This is evidenced by the spike that we saw once the Bank of England met at their last meeting and the fact that we have not retouched that level. The general progression on the pound against the Euro is expected longer term but in order to see this occur, we will need to really see some fresh good news.

Markets will need new information to go off to be able to make an informed decision about what really lies ahead. For now, there is likely to be increased uncertainty surrounding Brexit in the coming weeks as we await further news on a trade deal and also the Irish border. In the absence of any new news, the pound will more than likely struggle to maintain higher levels.

The same is true of interest rates which are likely to rise in the future but much of the good news is priced in, further GBP strength will rely on there being new news, which helps the market to pencil in the possibility of further hikes after May. With the poor weather in March weighing on market sentiments I think the Bank of England will be cautious about further hikes which could see the pound remain flat or struggle to rise much further.

If you are buying or selling Euros then making plans in advance around the transfer is the best way to maximise the possibility of getting the best rates. We can help with your plans and look to offer practical assistance with the timing and execution of any transactions. For more information free of charge and at completely no obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

For more information on the future currency forecast please download our monthly guide here.

 

GBP/EUR Forecast – Sterling Recovery Softens (Matthew Vassallo)

UK manufacturing data came in slightly better than expected yesterday but GBP/EUR rates have remained fairly flat this week.

The Pound reached a high of 1.1473 today before retracting slightly but has struggled to make any impact above 1.15 against its EUR counterpart.

The catalyst for Sterling’s recent improvement was confirmation that UK & EU have all but agreed on the terms for a Brexit transitional deal. This positive spike has softened over the past week, with the long-term uncertainty around the UK economy still handicapping any major sustainable advances for Sterling.

Whilst the recent news has helped to alleviate many of the concerns that the UK was going to be left in a state of economic limbo following our separation, investors remain wary about the UK’s position post Brexit. A strong Eurozone economy is also helping to support the single currency and as such the EUR has found plenty of support around the current levels.

Despite a positive run of UK economic data the Pound cannot seem to break free from its shackles and with trade talks underway between the UK & EU, could we see further pressure on the Pound over the coming weeks?

With the Bank of England (BoE) giving indications that they may raise interest rates over the coming months, there is certainly a reason for those clients holding Sterling positions to feel more optimistic than in recent times.

However, with many unanswered questions and only fragile confidence in the UK economy, it may be prudent to protect any short-term GBP/EUR currency positions. This is not the first time the pound has threatened to make significant inroads against the other major currencies. Despite the fact there may be more substance to the recent increase in value, there are still many unanswered question, in terms of how the UK economy will be shaped and perform when it goes it alone.

If you have an upcoming GBP or EUR currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Which data releases could influence the GBP/EUR rate this week? (Joseph Wright)

The Pound to Euro exchange rate has so far managed to hold onto its recent gains and remain trading above the 1.14 mark. This suggests to me that market sentiment surrounding the Pound has improved as previously this was the top end of the current trend and GBP/EUR would usually struggle to hold its ground at these levels.

The pair did reach 1.15 at one stage recently after news broke that the Brexit transitional deal had been arranged, much to the joys of the financial markets. This matter had been a concern previously and limited the upside for the Pound, so understandably Sterling spiked upward in the wake of the news.

Sterling has also been boosted after the Bank of England has hinted at raising interest rates in May of this year, meaning that the monetary policy of the BoE is likely to be more aggressive than many had initially expected. The pick up in wage growth has also increased these chances as wage growth begins to align with the increasing inflation levels.

Later this week there will be PMI releases covering a number of sectors within the UK, all of which are expected to show slowdowns. If you have an upcoming currency requirement involving the GBP/EUR pair, it may be wise looking into the current trade levels in case the PMI releases are worse than expected. They offer us forward looking insight into market sentiments so a gloomy outlook could result in a weaker Pound.

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.

Will GBPEUR rise further this week?

It is very tempting to track the GBPEUR rate now hoping for further improvements, the rates have risen to some of the best to buy Euros with pounds since May 2017. To understand whether this pair will rise further it is useful to track what has happened so far and understand why. We can then also look at events ahead to make a decision on what is likely to happen.

Overall I don’t expect the pound to Euro rate to rise significantly higher, I think actually there could be a danger the levels will fall back as the enthusiasm for the pound begins to wear off. Whilst there has been progress made with Brexit and the Bank of England should raise interest rates in May, this news is largely priced in now.

This means that any signs events are not going to progress as smoothly as previously believed could disrupt the currency and cause the pound to fall. There is still a huge amount to accomplish for the UK on Brexit plans and there is also many economic conditions for the UK to meet to warrant future hikes, which would cause the pound to rise.

I do now expect rates for Euro buyers to remain favourable but any further good news will probably be met with limited confidence on the rates since the good news is already out there. If you need to buy Euros with pounds then making some plans around the current favourable levels seems very sensible to me.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you anytime and assisting in the future.

If you need to transfer above £10,000 or Euros internationally and wish for some information on the best rates and assistance with the timing and planning of any transaction, please speak to me as above to achieve a preferential rate.

GBP/EUR Forecast – Brexit Transition Deal Close to Being Agreed (Matthew Vassallo)

The Pound has surged in value today, making impressive gains against the majority of major currencies.

GBP/EUR rates hit a high of 1.1434 earlier this afternoon, which is some of the best levels we’ve seen over the past six months.

The catalyst behind today’s positive spike is most likely the reports, which confirmed that a Brexit transition deal has all but been reached.

The UK’s chief Brexit negotiator David Davis and his EU counterpart Michel Barnier, confirmed that a “decisive step” had been made and investor confidence in the UK economy immediately surged. This in turn boosted Sterling’s value, although the EUR did find plenty of support towards the close of European trading, moving back below 1.14.

Despite the initial positive reaction it seems as though investor confidence cooled, with some key issues still to be resolved. These include the Northern Irish border, which has proved a red herring up until now. Unless an agreement is reached over this, it is likely that we will see further negative reports surface, which in turn could put pressure back on the Pound.

It’s an extremely busy week, with a host of data releases that will be of interest to any clients with a GBP/EUR currency change to make. Tomorrow we have a host of inflation data for the UK, alongside Consumer Confidence for the Eurozone. Considering rising inflation has been a cause of concern for the Bank of England (BoE), tomorrow’s figures are likely to hold a lot of weight with investors.

Wednesday is another busy day with the official UK Unemployment rate, followed by UK Retail Sales figures and the latest BoE interest rate decision and monetary policy statement on Thursday. We also have Eurozone Manufacturing data released that day but it likely that the markets focus will be on the EU summit, which will dominate the majority of headlines. With the next phase of Brexit talks underway on Friday, during the second day of the summit, it is likely that there will be a lot volatility on GBP/EUR rates over the coming days.

As such, it may be worth taking advantage of the current improvement for Sterling, with no guarantees that the current trend will continue as we move through the week.

If you have an upcoming Sterling or Euro currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

EU summit to have major influence on GBPEUR exchange rates

Yesterday GBPEUR exchange rates spiked close to 1.13 off the back of the Spring budget update. Chancellor of the Exchequer Philip Hammond, as expected, announced that the Office for Budget Responsibility (OBR) have increased growth forecasts for the next 12 months up to 1.5%. Interestingly the OBR actually only cut the growth forecast from 1.5% to 1.4% at the Autumn budget, which shows the UK economy has performed well over the last 6 months.

For people that are converting pounds into euros or euros into pounds, over the last 3 months exchange rates have been range bound by roughly 3 cents. On a daily basis we are receiving positive and negative news from the UK and EU. For example, Brexit updates are varied, European growth is fantastic however there is a concern due to the Italian election result, so it just shows why GBPEUR exchange rates are up and down like a yoyo.

As a currency trader, it is my responsibility to keep my clients informed about market movement. For most people that are converting GBPEUR, they will be working throughout the day and do not have the time to watch exchange rates and that’s where I come in. If you want help in regards to timings and also to receive fantastic exchange rates feel free to email me directly drl@currencies.co.uk.

Looking ahead the EU summit next week has the potential to have a major influence on GBPEUR exchange rate. The UK had planned to have had the transitional deal sorted before the summit therefore we should expect a few announcements surrounding the transition over the next 7 days. Furthermore, exchange rates will fluctuate next week and it all depends on what is actually said. I’m optimistic that the EU will allow the UK to start discussing trade early next month and therefore I wouldn’t be surprised to see GBPEUR reach the higher end of the 3 cent range we have been experiencing over the last 3 months.

Will the Spring statement cause market volatility? (Daniel Johnson)

Will there be any surprises from Hammond?

Philip Hammond, UK Chancellor of the Exchequer is due to deliver the spring statement today. It is expected to be a no frills affair with no big surprises that could rock the markets. I tend to agree with this and I do not expected any breaking changes.

It will commence around 12.30pm and is due to last around 20 minutes. Hammond has stated  that no other major economy has two major fiscal set-piece events a year and “neither should we”.

He also added “If unexpected changes in the economy require it, then I will, of course, announce actions at the Spring Statement. But I won’t make significant changes twice a year just for the sake of it.”

I doubt this will have a significant impact on Sterling.

Single Market access for UK financial sector could be a point of contention

The key market mover will still be Brexit talks. The uncertainty surrounding single market access for the UK financial sector is probably one of the most significant point of the whole negotiation process. French Politician, Bruno Le Maire has stated that the UK will be forced to utilise a political mechanism know as equivalence. Equivalence gives countries outside the EU access to the single market for limited periods, when and whether they will have access is dictated by Brussels. Access can be revoked at any time.

May’s proposal for a mutual recognition situation with free single market access has been flatly denied. This does not bode well for the Pound.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor.

You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.

If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson

The French cause unrest in Brexit Talks (Daniel Johnson)

Concerns over UK Financial Sector could weigh on Sterling

The French are making things difficult for the UK in Brexit talks. French Economy Minister, Bruno Le Maire has stated there is very little chance of Britain securing a free trade deal for the financial services that would provide the level of access the UK seeks. Le Maire said the UK would have to use a legal mechanism known as equivalence. Equivalence allows countries outside the EU limited access to the single market, controlled by Brussels, access can be revoked at any time which would certainly not sit well with large financial firms. Indeed Goldman Sachs has already started moving UK employees to Frankfurt due to the uncertainty surrounding Brexit.

May’s call for a mutual recognition system which would still give UK financial services access to the single market has already been rejected. Single Market access for financial services is one of the most important points of negotiation in the Brexit process and this could be a major stumbling block. The financial services sector is the UK’s biggest form of tax income.

France’s thinly veiled ploy to turn Paris into the new focal point of financial services is causing real trouble for the UK economy and the Pound as a result.

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.

Investors hang on Theresa May’s speech at 13.30 (Daniel Johnson)

May’s speech expected to cause volatility

GBP/EUR rates will be mainly dictated by the progress in Brexit negotiations. The Irish border situation has again come into the spot light. UK PM, Theresa May has turned down proposals from Brussels that could potentially annex Northern Ireland by keeping them in the single market.
The PM is due to speak later today and investors wait with baited breath to see if May gives some form of clarity on the Brexit situation. She is widely expected to rule out Britain being part of the customs union with the EU.
There has been recent talks at Chequers with members of her cabinet and it appears there is now some unity between the remainers and the leavers in the cabinet. This is neded considering many have been at loggerheads for some time. I feel many MPs have put their own personal agenda in front of focusing on getting a Brexit deal in place. I would expect May to state there is now a framework in place for negotiations and that she has the backing of her cabinet.

I think May will try and avoid any mention of a hard line stance which has the potential to hurt the Pound. Sterling does have the potential to strengthen, but nothing substantial. It is a question of whether investors believe her comments and credibility.

GBP/EUR has been sat between 1.12 – 1.15 for some time. 1.15 being a resistance point with the GBP/EUR quickly retracting when 1.15 is hit. If you have to move short term buying Euros aim to move around 1.1430 as having too high expectations could prove costly.

If you have a currency requirement I will be happy to assist. If you let me know the details of your trade I will endeavor to produce a free trading strategy. During a period of such uncertainty it is important to be in touch with an experienced broker if you wish to maximize your return. We have tools at our disposal to make sure you do not miss out if there is a spike in your favour.
If you already have a currency provider in place. Drop me an email with what you are being offered and I am very confident I will be able to demonstrate a significant saving. It will only take you two minutes and I am sure it will be worth your while. You can trade in safety knowing you are with a Foreign Currency Direct PLC, a firm trading for over 16yrs and FCA registered.
If you would like my help feel free to email me at dcj@currencies.co.uk.
Thank you for reading.

Will the Pound to Euro rate manage to break out of its current trend? (Joseph Wright)

The Pound to Euro exchange rate has been trading within quite a thin range for some time now, as the pair have failed to break out of the 1.12 to 1.1450 trading range significantly for some time now.

Sterling has struggled to rise above the 1.15 mark since June of last year, so those of our readers following the rates hoping for good times to make their transfer should consider that GBP/EUR is still towards the top end of its trend.

In order for our readers to base their trades off of levels in the 1.15’s, they will need to see Sterling improve to levels not seen for some time.

Friday could be the busiest day for GBP/EUR exchange rates this week due to the high volume of data set for release as well as a number of key persons set to speak. It’s day’s such as this that can result in a break out of a long term trend so those planning on making a transfer should consider planning around busy days of economic data. This is something we can help with so do feel free to get in touch if you wish to discuss this further.

There will be construction data released at 9.30am on Friday, and both Theresa May and (UK PM) along with the governor of the Bank of England (Mark Carney) will be speaking so expect any new Brexit breakthroughs to result in movement for the GBP/EUR exchange rate.

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.

Will today’s speech give GBP/EUR direction? (Joseph Wright)

The Pound to Euro exchange rate has been hovering around the 1.13 mark over the past 24 hours, but a key speech in Austria this morning could offer the pair some direction moving forward.

At 9.30am this morning David Davis, the Brexit Secretary will give a speech on Brexit where he is expected to say ‘Britain won’t turn into a Mad Max-style dystopia’. He’s also expected to say that Britain won’t abandon workers’ rights and environmental concerns after Brexit.

In the build up to this the Pound has softened against some major currency pairs but it’s holding its ground against the Euro so far, leading me to believe that some bullish comments from David Davis are likely to result in GBP/EUR breaching 1.13.

Aside from this morning I think the next month could be busy for GBP exchange rates as within the next month we’re likely to know the UK’s stance on the Brexit transitional deal. Also the Chancellor of the Exchequer, Philip Hammond will announce the latest Spring statement so there are plenty of events that could potentially move the markets.

If you would like to be kept updated in the event of a major market move for GBP/EUR, 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.

What to expect for GBPEUR exchange rates moving forward?

In recent weeks GBPEUR exchange rates have come under pressure once more due to the developments surrounding Brexit. Head EU negotiator Michel Barnier told the press last week that the transitional talks have broken down and if the UK and EU cannot come to an agreement then the likelihood is there wont be a transition.

No suprises the uncertainty sent the pound tumbling from the 1.14 highs and GBPEUR exchange rates are now floating in the 1.12s. Good news for any client selling euros to buy pounds.

Looking further ahead UK Prime Minister Thersa May is set to address the public on Saturday. This speech will be watched closely by any person involved with the pound and Conservative MPs. It was only last weekend Pro European Conservative MP Anna Soubry warned that MPs could rebel against the PM if she decides to take a hard Brexit approach.

Personally I expect the transitional talks to continue to put pressure on the pound and exchange rates could fall back towards 1.10 in the upcoming 4 weeks. However, I expect the deal will be reached between the UK and EU which will pave the way for trades talks and therefore GBPEUR will improve back to the highs we experience earlier this month. If my predictions materialise then there may be opportunity for both euro buyers and sellers.

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

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

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

 

GBP to EUR rate begins the week flat, will this week bring direction for the pair? (Joseph Wright)

After a very busy week for Sterling exchange rates last week, the Pound has begun the week in a quiet fashion with GBP/EUR trading exactly flat on the day at the time of writing.

Those watching the GBP/EUR rate should be aware that the pair reached the top end of their medium term trend last week after hitting 1.1450, and that it’s not unusual to see the pair dip shortly after hitting the 1.14/1.15’s as many within the markets don’t think the pair can breach this mark and push on into the later teens.

The lower end of the trend since the summer of last year is well below 1.10 at the 1.07/1.08 mark, so the pair are still trading towards the top end of the medium term trend.

It’s Brexit related news that’s continuing to be the main driver of GBP exchange rate movements at the moment. Last week’s spike up to 1.1450 was a result of bullish comments from the Bank of England so those hoping for another opportunity to trade around those levels should pay attention to comments from the BoE. Do feel free to register your interest with me if you wish to be notified in the wake of a big move for GBP exchange rates.

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.

Major swings for GBPEUR exchanges rates

Today GBPEUR exchange rates have been up and down like a roller-coaster. At midday the Bank of England released their last interest rate decision which provided a fantastic window for clients that were purchasing euros. GBPEUR central levels of exchagne reached 1.1450 as the Bank of England hinted an interest rate hike is on the horizon.

The reason for the change in stance comes down to the quarterly inflation report suggesting wage growth numbers which improved last month, will continue to improve throughout 2018. Furthermore the Bank of England announced a recent survey showed private sector companies believe they will be paying their staff an additional 3.1% by this time next year.

Also in the inflation report, the Bank of England are suggesting that the worrying inflation levels will continue to decline back towards the 2% target. Their reasoning is that they believe the pound will receive a boost throughout the year, making goods and services cheaper followed by at least 1 interest rate hike within the year. Mark Carney the Governor of the Bank of England also helped the value of the pound by suggesting the jobs market will remain strong with unemployment remaining at a four decade low.

However investors have sold off the pound this afternoon looking for higher returns, which has meant the pound has fallen back below 1.14.

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

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

A good week for GBPEUR exchange rates

This week the pound has gained momentum against all of the major currencies and in particular the euro. GBPEUR exchange rates have been trading close to a 6 month high and many of my clients have taken advantage.

Early in the week average earning numbers exceeded expectation which was a big surprise as the Bank of England have been predicting that average earnings would continue to fall in the months to come. The problem the Bank of England have been facing is that inflation numbers have been outpacing average earnings.

Earlier today UK GDP numbers have also impressed. The consensus for the quarterly figures were 0.4% and the numbers were released at 0.5%. Furthermore the yearly numbers were set to be released at 1.4% and the number was released at 1.5%.

Central levels of exchange have finished in the 1.14s and for any client buying euros this is a window of opportunity that you may want to take advantage of. In the last 3 weeks, exchange rates have improved by 3 cents and I cant see how we are going to see any further improvements short term.

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

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

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

 

GBP/EUR hits nine month high (Daniel Johnson)

Sterling hits nine month high against the Euro

Sterling hit a nine month high today against the Euro. The spike was caused by several contributing factors. Lord Jim O’Neill gave a very positive forecast on a recovery for the UK economy post Brexit early in the week. This was coupled with news that Dutch and Spanish finance ministers would like a close relationship in regards to trade with Britain. Angela Merkel, the German Chancellor also announced her intention to have a close bond with the UK post-Brexit. This was key, as Germany is the engine room of the Eurozone, but this is not necessarily a surprise due to the large volume of German exports to the UK, particularly cars of which the UK is a large consumer.

There is however concerns for Sterling. The biggest of which is Phase two of Brexit talks. Chief negotiator for the EU, Michel Barnier and UK Chief negotiator David Davis are at loggerheads. Barnier would like the financial sector included in any deal and Davis has stated Brussels will not be able to cherry pick aspects of the deal. Davis is clearly not happy, EU services have apparently been approaching UK companies and advising them to leave the UK or risk losing their contracts. The deal is set to be initially agreed in October, but I feel this target is unrealistic as is a full exit by 2019. I think talks could well prove problematic and I think Sterling could suffer as a result.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.
If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson

Will the Euro continue to strengthen and will Carillion drag the Pound down? (Joseph Wright)

The headlines surrounding the Euro at the moment are that the currency is currently trading at an all time high against the US Dollar. The gains are generally being put down to the strong economic outlook for the Euro and also expectations that the European Central Bank will begin to cut back on the current stimulus package as the economy justifies it.

Many economists expect to see the Euro hold its ground at the current levels, and when compared with the Pound I think we may even see the Euro to Pound rate improve further especially if Brexit related issues continue to negatively impact sentiment surrounding the UK economy both during and after the Brexit process.

The case for a stronger Pound hasn’t been helped in the past week as it’s emerged that the UK’s second largest construction company, Carillion is likely to go into liquidation shortly. There is up to 20,000 jobs that could be lost as a result and a number of industries and sub-contractors could also run into issues as a result of this. The company has close links with the UK government and it’s emerged that up to 8 contracts were taken out with the company by the government since profit warnings were announced.  This is likely to be looked into further and I certainly don’t think we’ve heard the end of it.

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

What can we expect in 2018 on GBPEUR exchange rates?

2018 is looking like another volatile year with plenty of fresh news and developments in a number of areas which could see changes and shifts in the GBPEUR exchange rate. Notably, Brexit will continue to be a key driver for the pound which will see the rates inextricably linked to shifts in sentiment over the Brexit. The Euro has a number of key hurdles to overcome, mainly political like the UK.

If you are considering buying Euros you would be forgiven for checking the headlines over Angela Merkel and the Spanish situation and expecting the Euro to be much weaker. The outlook for the Euro is however still very positive despite the fear and uncertainty surrounding the political situation. Yes, the outlook for the Euro has deteriorated slightly but the prospects for the Euro still remain rather positive.

All in all, the uncertainty surrounding Brexit will I feel be more of a drag on GBPEUR than the political uncertainty in the Eurozone. We should see the market shift according to the run of events which could see the Euro weaker in March when we have the Italian election. Further negative developments on the Spanish or German situation could weigh on the Euro but as mentioned I do feel the weakness of the pound will remain more in focus once again in 2018.

If you are buying or selling Euros for pounds the exchange rate is at an important junction as we have more reasons to be positive over Brexit which has helped the pound, but a number of challenges remain ahead. If you wish to get an overview of the position or discuss further a forecast relating specifically to your position, please feel free to contact me Jonny to discuss further your currency situation.

To learn more about the year ahead on GBPEUR exchange rates and discuss options and strategy please contact me on jmw@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.