Tag Archives: GBP/EUR

GBPEUR to fluctuate 5% in the upcoming months (Dayle Littlejohn)

Brexit negotiations seem to be heating up as both parties have promised to accelerate negotiations therefore I am expecting major volatility with GBPEUR exchange rates. 

Rewind the clock to the end of July, many of the leading banks were predicting by the end of the year parity for GBPEUR exchange rates, however UK interest rates gave the pound a boost which has led to Banks re thinking their forecasts.

At the moment GBPEUR exchange rates appears to be fluctuating in the lower teens and I expect by Christmas or potentially in the early new year for GBPEUR exchange rates to be either in the 1.06-1.07 or 1.17-1.8 range and the factor that is going to drive the pound higher or lower will be the Brexit negotiations.

A no deal puts the UK under more uncertainty and therefore I expect the pound to plummet, where as an agreement in regards to EU citizen rights and the divorce settlement bill will lead to trade negotiations and therefore a stronger pound.

The problem we have is we are unaware how the upcoming negotiations will go. For clients that are selling pounds to buy euros or euros to buy pounds, the question you have to ask yourself is what do you think will happen between the UK and EU. If you are unsure and not prepared to take the gamble, as some people are saying it’s like playing roulette, feel free to get in touch to discuss how we can save you money on your transfer.

For further information in regards to currency 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 know if you are receiving the best rates possible 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! **

 

All eyes on Inflation figures this morning (Joseph Wright)

This morning could be important for Sterling exchange rates, not just this morning but moving forward as analysts are expecting to see UK inflation levels hit a 5-year high.

The weakening of the Pound since the Brexit vote has pushed up the rate of inflation in the UK, and for a while now the inflation level has been well above the Bank of England’s 2% target. Many analysts in the city are expecting to see the rate hit 3% for September, and if this happens there is a high chance that the Bank of England may look to hike interest rates for the first time in over 10 years.

A 3% inflation level would be a 5-year high and the governor of the Bank of England has hinted at hiking rates as soon as next month.

A high reading this morning would likely result in Sterling strength as the markets would expect to see a rate hike from the BoE, and at the same time if the inflation level is lower than expectations, I think there’s a chance the Pound would fall.

Mark Carney will also be speaking later this morning as he testifies to MP’s on the Treasury this morning. It will be interesting to see whether he discusses inflation and potential rate hikes and if he does it will be interesting to see how the Pound reacts.

Aside from today’s busy morning this Thursday could also be busy as Retail Sales data will be released which could impact Sterling depending on how the figures perform.

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.

Events that could impact GBPEUR exchange rates (Dayle Littlejohn)

The main economic talking points at present which have the potential to have a major impact on GBPEUR exchange rates are if the European Central Bank  makes adjustments to the quantitative easing program on October 26th and whether the Bank of England will raise interest rates on November 2nd.

Members of the European Central Bank including the President Mario Draghi, have hinted that decisions could be made in October. However inflation numbers fell last month therefore I don’t expect the ECB to make cuts this month. Nevertheless the chances that they will hint towards making cuts in the near future are high, therefore this event could lead to euro strength.

Even though GBPEUR exchange rates have been on the decline in recent weeks, the market has priced in that there is a strong chance the Bank of England will raise interest rates on the 2nd November.  Due to the pounds surge throughout September I expect some of the inflationary pressures to have been curbed. Couple this with a poor run of economic data throughout October the likelihood of an interest rate hike I believe have diminished.

If my predictions above materialise I expect GBPEUR will fall below 1.10 throughout November. Good news for any clients selling euros to buy pounds. 

Short term many of the ECB members are speaking today. Know doubt one of the members will be quizzed about quantitative easing and interest rates. Speculators will be watching closely to see whether any hints are made to tapering. If you are converting GBPEUR short term, today’s event could have a major impact on the exchange price you receive.

If you are converting GBPEUR in the upcoming months and are looking to achieve competitive rates of exchange whilst receiving regular economic information feel free to email me the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with the options available to you along with the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

Will the pound continue to slide against the Euro?

Overall the pound looks like it could easily slip in the coming weeks as the uncertainty over Brexit looks like it could build further and this will undoubtedly present some opportunities for those clients looking to buy or sell. Exactly what happens in the future is very difficult to predict but hopefully this will create some movements for awaiting a firm reason to make their deal.

Expectations for the pound to slide are therefore very strong and we could easily see some big changes in the future, principally as a result of the key economic decisions by the Bank of England and also the European Central Bank decision. Overall markets are generally fearful over what lies ahead in the decisions by these two central bank beasts, big questions over to what extent the ECB will taper and to what extent the Bank of England will raise interest rates loom.

It would not be surprising to see the pound slip further against the Euro as political uncertainty for the UK outweighs the Eurozone. Yes, the problems in Spain and even Germany are reasons to fearful, over the future direction on the Euro. However the UK is as a result of the Brexit in a worse position. This is the current situation, it could of course change very quickly!

If you have a transfer to make buying or selling Euros for pounds this next couple of weeks will be vital to determining which way exchange rates could go in the future. Overall I would not be surprised to see the pound losing value as investors concerns resurface, a more positive ECB would also see the Euro stronger.

If you have a transfer to make in the future then keeping in touch with us and the latest trends and news is key. 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.

GBPEUR plummets due to Theresa May

UK Prime Minister Theresa May delivered a Brexit speech yesterday which was interrupted by a prankster who gave Theresa May a fake p45 and claimed it was from Boris Johnson. The prime minister tried to stay composed however she failed to keep it together and the speech has left investors questioning will the Prime Minister last much longer.

Some Conservative MPs have rallied behind Mrs May however it’s being reported that dozens of Conservative MPs are asking the Prime Minister to step aside.  Bookmakers Betway have now cut odds to 5/6 that Mrs May will resign before the next election.

In other news Germany’s BDI industry associate has warned UK companies to make provisions of a very hard Brexit as the UK government is lacking a clear concept on Brexit. This has caused the pound to plummet in value against the Euro and GBPEUR exchange rates have now lost over 2 cents in the matter of a few trading days.

This afternoon Bank of England member Andy Haldane is set to address the public if he continues with the Bank of England stance of raising interest rates  short term sterling could potentially recover some of the losses.

For further information in regards to GBPEUR exchange rates 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 the options available to you and the process of using the company I work for 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 know if you are receiving the best rates possible 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! **

Will GBPEUR keep rising?

The pound has risen to fresh 3 month highs against the Euro as we get closer to understanding when the Bank of England might raise interest rates. Overall there is a much stronger belief that the Euro will rise after the German election but of course there are no guarantees as to what will ultimately happen down the line. It would not be surprising to see this rally for the pound carry on but of course the German election will be a thorn in the side of Euro buyers next week.

The actual election is on the 24th September but that is a Sunday so Friday next week and Monday will be the main days we will see movement on the currency markets. Therefore if you have a transfer to buy or sell Euros for pounds making some plans around the upcoming events is sensible, I am sure if you need to buy Euros and you see the rate go back down to 1.10 you would be most disappointed!

The pending German election could be a good opportunity for any Euro sellers who failed to capitalise on the improvements we saw two weeks ago to recoup some losses. However overall I would not be surprised to see the pound much stronger overall owing to the outcome from yesterday’s Bank of England meeting.

If you have a transfer to make soon or even in the coming weeks then making some plans around this latest twist on the market is I believe very sensible. 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 in the future.

GBPEUR holds steady above 1.10

Yesterday the Office for National Statistics released the latest Consumer Price Index numbers for the UK and inflation had risen 0.3% compared to last months figure of 2.6%. With inflation now sitting at 2.9% it appears that speculators have purchased the pound in anticipation that the Bank of England could give some indication about a future interest rate hike on Thursday.

However I actually believe the complete opposite and wouldn’t be surprised to see the Governor of the Bank of England Mark Carney to talk down sterling. In recent weeks the Governor has made it clear that the weaker pound is the reason for the shift in inflation and the Bank of England will act off the back of Brexit developments.

With this in mind I believe the spike above 1.10 is a spike and in the upcoming weeks GBPEUR exchange rates will fall back towards the 8 year lows we were experiencing only 2-3 weeks ago. Therefore anyone looking to purchase euros short term should consider buying there euros upfront. For euro sellers rates are still fantastic however if you can hold your nerve rates could improve towards the end of the month.

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!

 

 

GBPEUR 3 month forecast

Yesterday President of the European Central Bank Mario Draghi hinted that future key monetary policy decisions will be made in October. The President was eluding to the quantitative easing program that has run for the last few years in a bid to stimulate and kick start the economy. With many economists stating growth has improved throughout Europe their is hype that the quantitative easing program will be cut in the upcoming months.

It is important to note if the quantitative easing program is cut (tapered) I expect major euro strength. 

Brexit negotiations are continuing to weigh down on the pound as UK and EU negotiations cannot come to an agreement about EU citizens rights. UK Prime Minister Theresa May has made it clear that the UK and European Court of Justice will part ways after Brexit which in my opinion means EU citizens wont be protected and this is another stumbling block negotiations needs to overcome.

Over the next 3 months I expect exchange rates to fluctuate between 1.05-1.10, as I wouldn’t be surprised to see further sterling weakness. However with European exports becoming to expensive, spikes in the market could occur throughout the month when Draghi tries to talk down the currency.

For further information in regards to currency 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 know if you are receiving the best rates possible 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! **

 

Brexit talks continue to harm the pound

Since the UK public decided to vote out of the EU, GBPEUR exchange rates have dropped 18%. To put this into monetary value a €200,000 purchase is now £33,000 More expensive. Many of my clients that are purchasing euros are asking if rates will continue to get worse or recover towards the end of the year.

Brexit negotiations are one of the reasons that GBPEUR exchange rate now sit at an 8 year low. The third round of negotiations took place earlier in the week and by accounts did not go particularly well. EU officials have made it clear that the divorce settlement and EU citizens’ rights need to be sorted before any trade negotiations will begin. However UK official’s believe the numbers do not add up and therefore they want to discuss a trade deal alongside the divorce settlement.

With months ticking on by, and the UK and EU no closer to agreeing a new trade deal that will benefit both parties, it looks like further falls will occur in the upcoming months. Media stations have been reporting investment giants, JP Morgan and CITI Bank believe exchange rates will reach parity throughout 2018 and if negotiations continue to follow the same path I believe this could occur.

For further information in regards to GBPEUR exchange rates 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 the options available to you and the process of using the company I work for 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 know if you are receiving the best rates possible 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! **

Buying Euro rates dip following Draghi speech (Joshua Privett)

The Pound has suffered further this week and buying euro rates have now hit some of their lowest levels since the beginning of the year.

Tuesday’s inflation figures once again (seemingly the third time in as many weeks) changed the narrative on whether the UK would be raising interest rates anytime soon.

Some were stating this could occur as early as this November – however, this drop in interest rates has at least put the currency back by 3 months.

Today, the poor news for buying Euro exchange rates doubled down on itself, with news coming out of the Eurozone.

Another rollercoaster has been on the future of the Eurozone’s financial policy coming from the ECB. Similarly there have been murmurs about whether they will be moving away from their now two year long bout of emergency financial stimulus package.

This was largely introduced from a slowing Eurozone and one dealing with the Greek Debt crisis back in 2015. But now optimism in the Eurozone is relatively high and growth data is rivalling that of the UK.

Today Mario Draghi, the Head of the Eurozone Central Bank, came out fairly positive towards the potential to wind down this emergency financial help – contradicting some sentiments from one of his sub-ordinates last week who indicated that such a move was very unlikely.

These rollercoasters are set to continue, which is why it is so important to be kept abreast of current events and developments to ensure you maximise your currency transfer.

I strongly recommend that anyone with a Euro based currency requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your currency return.

You can contact me directly by calling +44 1494 787 478 and asking the reception team to speak to Joshua.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you significant sums of money on a prospective transfer.

Pound drops lower once again as interest rate hikes suffer setback and Euro gains on the Dollar (Daniel Wright)

GBP/EUR exchange rates have dropped to the lowest point we have seen since since the U.S elections back in November, which is due to two reasons we saw yesterday.

Firstly, we had two members of the Bank of England speaking during the course of yesterday afternoon and both of those members dampened expectations of a U.K interest rate hike happening  in the near term, which led to the Pound losing further ground against the Euro and most major currencies too.

An interest rate hike is generally seen as a positive for the currency concerned as it makes it more attractive to investors, and the markets can more on speculation as well as action, so even the mere hint of a hike moving closer can lead to the Pound gaining strength, we saw this shortly after the last Bank of England interest rate decision where they confirmed 3 out of 8 members had voted in favour of interest rates going up in the U.K and this gave Sterling a boost.

The chances of a hike appear to have decreased again after yesterday which is why the Pound has lost a little value.

Secondly, due to more issues over in the States surrounding Trump and Trump JR the Dollar has lost plenty of ground against the Euro. With EUR/USD being the most traded currency pairing in the world when you see a large amount of money coming out of the Dollar and going into the Euro, the Euro can gain strength against most major currencies too, making it more expensive to buy.

Unfortunately economic data is still not dragging the Pound back up and we have unemployment figures and average earnings due out at 09:30am today. Average earnings are of great importance at present as inflation is increasing and making goods and services more expensive where as peoples earnings are actually increasing at a slower pace which is not a good sign for the economy. Should this trend continue people will have less and less money to spend and this may cause further problems for the economy as the year moves on.

We really do need to see a catalyst for the Pound to start moving in the right direction again but at present that has not materialised. The worry now is that we are starting to see the true impact of the referendum vote start to shine through now and that Sterling may be in for a tough month ahead.

If you have Euros to buy or indeed sell then it is more important than ever to make sure you maximise your exchange rate. Feel free to contact me (Daniel Wright) to discuss the various options available to you. Yo ucan email me on djw@currencies.co.uk and I will get back to you personally.

 

 

Buying Euro rates see slight improvement to begin the week (Joshua Privett)

We have begun this month with some welcome and similar gradual improvements to buying Euro rates as seen in the back end of June. But Euro buyers are still not getting a wow factor when looking at exchange movements.

To put this in perspective, even since the election GBP/EUR exchange rates have only seen a difference between the high and the low on exchange rates of 1.6 cents. Given that we are funnelling through an incredibly tumultous period in the history of the United Kingdom, such movement defies belief from my years in the industry.

So why the inactivity?

Two fronts. Given the high levels of political uncertainty trading is notably thinner on currency markets from Foreign Currency Direct’s perspective. Without heavy trading you cannot have the same changes to buy and sell rates for Euros which many were used to seeing before politics had such a large sway on exchange rates – masking the same dominance economic data used to bring to day to day trading activities.

Secondly, we are still waiting for answers. Despite the strong rhetoric on the importance of the election and the results on the Brexit negotiations and what can be achieved, we have heard little in terms of definitive sign-posting.

Markets are still very much in the dark on this, explaining the limbo on exchange rates that Euro buyers and sellers alike have been forced to suffer through.

However, a quote that is ringing truer and truer is that uncertainty is the new norm.

Economics is beginning to shine through once more, with day to day economic data having a larger sway than it once did.

These have generally been Sterling positive and should continue to be so in the short-term.

I strongly recommend that anyone with a buying Euro or Sterling selling requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your currency return.

I have never had an issue beating the rates of exchange on offer elsewhere.

 

 

 

How far could the pound fall against the euro (Dayle Littlejohn)

Over the last 8 weeks GBPEUR exchange rates have dropped 6 1/4 cents (5.5%) making a €200,000 purchase £9,250 more expensive.  

The pound has been declining due to Theresa May not winning the UK General election by a majority which has weakened her position as Prime Minister and also her power when negotiating Brexit. This week Brexit negotiations have begun and the PM has already backed tracked and gave the upper hand to the EU by confirming the divorce settlement will have to be decided before trade negotiations begin.

The Bank of England have also been making headline news. Three members of the monetary policy committee surprised the market by voting in favour of hiking interest rates but less than a week later Governor of the Bank of England Mark Carney talked down the MPCs decision confirming the Bank of England are not in the position to raise rates.

Looking further ahead I believe the pound could fall further against the euro due to Theresa May remaining under pressure as Prime Minister and Brexit negotiations. It was only 8 months ago when GBPEUR dropped below 1.10 so the scope is there. For euro buyers purchasing sooner rather than later is the safe option. The currency company I work for has the power to undercut any bank or brokerage therefore I would recommend emailing me for a quote drl@currencies.co.uk.

For euro sellers timing is everything. On a daily basis I help clients that have sold property in Europe and are repatriating their euros. With regular market information my clients make informed decisions of when to trade. If you are selling or have sold a property abroad and would like to make the most amount of sterling possible feel free to email me with a brief description and I will respond with the process of using our brokerage drl@currencies.co.uk.

 

Pound to Euro exchange rates set for marginal fall and strong rise next week (Joshua Privett)

When entering the latter part of the month, economics takes a back seat, and as such the rollercoaster of politics will be at the forefront in governing Pound to Euro rates this week.

We begin with the French local elections, the final part of the French election cycle. This will decide whether the new President, Emmanuel Macron, has the majority he needs to govern effectively.

He is proposing a sweeping change to French labour laws and a host of new pro-business policies. This is why his initial election victory saw the Euro gain almost two cents against Sterling. Should a Parliamentary majority form, then it’s likely we will see further Euro strength given his ability to govern effectively will be cemented. Well, as much as French unions will permit.

In any case, polling is today and the result itself should see further Euro strength when markets re-open tomorrow.

However, the UK is also trying to consolidate political stability. There was a delayed announcement for the Conservative-DUP partnership last week, but the initial hints were enough to see the Pound flirst upwards agains the Euro. Confirmation should realise those hinted gains for Euro buyers.

Then their plans for a Government manifesto will have to be voted on in Parliament given that the Conservatives do not have the majority they need to rule as a single party. Furthermore markets are waiting to hear further news on whether a softer Brexit approach will be taken.

Euro sellers may be wise to seize any opportunities created by the French election result tomorrow. Conversely anyone with a GBP/EUR requirement should be monitoring political developments next week in order to give yourself the best opportunity to puchase at any peaks which emerge rather than a trough.

I strongly recommend that anyone with a Euro buying or selling requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer. I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

GBPEUR rises due to Bank of England (Dayle Littlejohn)

Earlier in the week UK inflation numbers rose to 2.9%, 0.9% above the Bank of England’s target which gave support for the pound and all eyes turned to today’s Bank of England’s interest rate decision.

Each month members of the Bank of England (8 to be precise), vote to decide whether to hike, keep on hold or cut. This afternoon 3 members voted in favour of raising interest rates which surprised the market and GBPEUR exchange rates increased over a cent and therefore made back some of the losses from the shock UK general election decision. Looking further ahead if inflation levels continue to rise over the next 2 quarters I wouldn’t be surprised to see the Bank of England act.

Its a quiet day for economic data that will have a major impact on GBPEUR exchange rates tomorrow. It has been reported that Brexit negotiations will begin Monday morning which surprises me as Theresa May has not formed a government as of yet. Could this happen tomorrow? Once the government is formed I believe this will provide further strength for the pound and GBPEUR exchange rates will start to rise towards 1.15.

The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade GBPEUR / EURGBP at rates better than other UK brokerages and high street banks.

I would recommend emailing me with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company 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 know if you are receiving the best rates possible 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! **

Political Uncertainty weakens the Pound (Daniel Johnson)

Conservative failure to win a majority weakens Sterling

The PM  faces more negotiations with the Democratic Unionist Party (DUP) to keep her position as prime minister after losing parliament majority just days before EU exit  negotiations are set to take place. It may have been the case that Theresa May would have been better off keeping her mouth shut rather than try and improve her popularity. It was not a clever move attacking her key voters. She said she would make the elderly pay for their own care homes or home care if they have assets to the value of £100k or above.  This no doubt caused a significant swing in votes.

May’s Downing street office announced  she had spoken  with the DUP to discuss completeing a deal this week. Political uncertainty causes the currency in question to weaken and this is definitely the case in this scenario.

May stated “ We will welcome any such deal being agreed , as it will provide the stability and certainty the whole country requires as we embark on Brexit and beyond. As and when details are finalised both parties will put them forward.”

This could prove to be an opportunity for euro buyers. The UK needs to escape of this political limbo in order for the pound to strengthen. It would be wise to keep your eyes glued to developments in order to maximise your return.

Brussels seems to be prepared to make it tough at the beginning of exit talks. They have requested an exit payment before negotiations can commence. The fee named is on excess of €60bn. This does not bode well for Sterling.

If you have a currency transfer to perform  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 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 to get back to you as quickly as possible. Thank you for reading.

 

Buying Euro rates soften as markets digest news of Manchester attack (Joshua Privett)

Pound to Euro exchange rates had undergone a further softening into the lower 1.15’s amid an anxious climate in the UK following the Manchester Arena bombing last night.

Rates had previously been falling in response to underwhelming data emerging from the UK economy concerning the diminishing potential for a UK interest rate rise.

This was further compounded by comments made by Angela Merkel, the German Chancellor, yesterday who stated that the Euro was ‘too weak’ and she would like to see it gain value. These are the kind of comments which cause the short-term rally for the Euro.

However, since then, likely due to the likelihood that the situation in Manchester is contained for now, the pressure on the Pound brought out by apprehension forced by the attack abated, and, as such, GBP/EUR exchange rates were getting very close to 1.1 at the time of writing this article.

However, I would not expect this to continue. As the above suggests the underlying trend before the completely horrific attack yesterday was GBP/EUR negative. Without these being addressed it is likely the Pound will continue to remain pressured in the short-term, so Euro buyers should seriously consider their situation and the sensibility in securing an exchange rate sooner rather than later.

As such anyone with a very short-term requirement to buy Euros may be wise to contact me on 01494 787 478 and ask to be put through to Joshua to discuss a live price for your transfer and avoid being ‘last to the party’.

I have never had an issue beating the rates of exchange on offer elsewhere, so a short conversation could save you a healthy sum on your next transfer.

Anyone with a slightly longer term transfer can also contact me on jjp@currencies.co.uk to discuss a strategy for your transfer in the run up to the election aimed at maximising your currency return.

Pound to Euro exchange rates take another dip following poor inflation figures (Joshua Privett)

Pound to Euro exchange rates have unfortunately taken a further tumble this morning as fears about inflation appear to be manifesting.

There is a very intimate relationship between interest rates and inflation which is why Pound to Euro exchange rates did not fare too well today when it was revealed inflation growth appeared to be ‘petering out’.

Growing inflation is a concern for Central Banks, as this suggests that prices are ‘running away’ from the ability for consumers to buy. A common tool to combat this is to conduct interest rate rises to curb spending by increase the incentive to save – in turn keeping prices lower.

The secondary effect of this is that the Pound tends to get a bit of a boost. If interest rates rise then holding Pound’s produces a higher yield, and this means you should normally see its value rise due to increased demand.

However, inflation is not rising fast enough to justify this, and it has lend credence today with the confirmation of the inflation rate that it is unlikely the UK will be seeing an interest rate hike.

This negative outlook for the Pound fed into markets immediately today, which is why GBP/EUR tumbled to begin today’s trading session when the news came out at 9:30am.

This will likely be the dominant narrative moving forward this week, so Pound to Euro buyers may be wise to move sooner rather than later to avoid a difficult day when buying an upcoming currency requirement.

This will likely dictate Sterling rates for the rest of the week, so anyone planning a transfer can contact me on jjp@currencies.co.uk to discuss a strategy for your transfer based on the outcome aimed at maximising your currency return, whether this be buying or selling Euros.

I have never had an issue beating the rate of exchange offered elsewhere, so a brief conversation could save you thousands on a prospective transfer.

GBP/EUR sees further losses today, this time from events in the US (Joshua Privett)

Pound to Euro exchange rates have come under further pressure in the afternoon trading session today, with rates coming back down to the early 1.17’s on GBP/EUR, after a brief recovery in the morning was quashed.

Monday was where the most extreme losses on GBP/EUR could be found, with the result of the first round of the French election driving exchange rates down into the high 1.17’s after rates had touched on 6 month highs in the 1.19’s earlier last week.

The reason for the euphoria and confidence in the Euro? It seems extremely unlikely that Marine Le Pen will be the next French President. As with the Brexit when it seemed unlikely the UK would be leaving the EU the Pound was gaining in value with greater market confidence. Now that Marine Le Pen, the anti-EU candidate seems further and further away from the seat of power, we have seen similar Euro strength in this fashion.

The movement today however further in the favour of Euro sellers is largely artificial. Very poor consumer confidence figures in the US meant that due to the special relationship between the US Dollar and the Euro, the Euro gained value. Effectively investors flocked away from the US Dollar, and the Euro is the largest net to catch them in.

However, precisely because the movement is artificial, and given that GBP/EUR had been moving in a positive direction earlier that day, it’s more likely than not that a currency improvement will be seen tomorrow. Euro sellers should be considering moving sooner rather than later given the recent improvements in your favour.

If you are planning to make a currency exchange involving the Pound and the Euro, it’s well worth your time getting in contact with me on  jjp@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.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

Will GBPEUR rise or fall on the French elections?

The general impression is that  GBPEUR will rise since the French election offers lots of potential for Euro weakness in the coming months. The overall impression on financial markets is that a Le Pen or Melenchon victory would severely weaken the Euro, with a real chance at least one of these candidates will make it through to the second round after Sunday’s first round vote the single currency could be in for a tough couple of weeks. What happens is very much open to interpretation, nothing should be taken for granted in such uncertain times, however.

The overriding expectation is that the French election will ultimately be won by the more centrist ‘reformer’ Macron. Performing well in the polls the market is expecting he will beat Le Pen in the run-off on the 7th May. If you have a Euro buying requirement the rates on Monday morning could be much improved as the market debates the likelihood of a Le Pen victory.

The pound has been much stronger on the back of the General Election announcement earlier this week for the UK. Most reports have the pound much stronger in the next few weeks as Theresa May cements her position and is able to drive through more reform. A flipside view is that with her relying less on the elements in the Tory party who seek a harder Brexit, she will be forced to create more of a softer Brexit. This is one of the reasons for the pound rising but such elements and expectations can quickly change.

If you are buying or selling the pound and euro in the coming days and weeks the importance of the French election and the continued Brexit fallout shouldn’t be underestimated. With only a few days between the two rounds of the French election Euro buyers might find they are presented with a fresh unique opportunity to buy Euros, the best in 2017 so far.

If you would like some assistance with the timing and planning of any currency transfers please contact the author Jonathan Watson directly by emailing jmw@currencies.co.uk