Tag Archives: Mark Carney

Sterling Falters Ahead of BoE Interest Rate Decision (Matthew Vassallo)

GBP/EUR rates dropped during Tuesday’s trading following poor Manufacturing figures, which caused the Pound’s value to plummet. Sterling dropped by over a cent against its EUR counterpart, with the official reading of 54.3 coming in under the markets expected result.

Sterling continues to find life tough going and every time it takes a step forward it seems to take two back and with investor confidence in the UK remaining low, this trend is likely to continue in the short-term.

We have further PMI data out today in the form of Construction figures and with a drop expected from previous, the Pound may once again struggle to make any significant impact against the Euro.

However, the key day for investors and clients is likely to be Thursday with a host of key economic data releases, likely to shift GBP/EUR exchange rates. We start the day with Services PMI figures, which are expected to fall slightly from. This could put a negative tone on things before they’ve even begun, with the latest Bank of England (BoE) interest rate decision likely to be driving the markets, as it is arguably the month’s most important economic data release, alongside an economies GDP figures.

Whilst we are unlikely to see a rate cut it is certainly not an impossibility, especially when you consider the poor run of data we’ve seen here in the UK. In my opinion it will be the subsequent press conference by BoE governor Mark Carney and the BoE minutes, which will give us the greatest insight and as such expect increased volatility on GBP/EUR exchange rates during these releases.

Based on the current downward trend I would be looking to protect any Sterling transfers ahead of these releases, as otherwise you are gambling on the market data coming out above expectation, in order to give Sterling a much needed boost.

If you have an upcoming GBP or EUR currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

Economic information that will impact GBPEUR exchange rates this week (Dayle Littlejohn)

When purchasing euros with the pound or the pound with euros it’s important to understand the factors that will influence exchange rate fluctuations. Below are the key factors that will impact exchange rates this week:

Firstly and the most influential factor is the UK’s interest rate decision Thursday afternoon. Governor Mark Carney has already stated the central bank will cut rates further if the Monetary Policy Committee believe this will help the UK economy to perform. This decision is a 50-50 nevertheless I expect sterling weakness.

The US Presidential Election is 9 days away and there is a good chance investors will sell off their US dollars and buy euros to manage their exposure. If the demand for the euro rises GBPEUR should continue to fall.

Lastly the economic data releases to look out for this week are Eurozone GDP numbers Monday at 10am and the US interest rate decision Wednesday evening.

If you are buying or selling euros this year, today is the day to get in touch. Many people still believe the only way to transfer large amounts of money is through the bank and this is not the case. The company I work for enables me to give better exchange rates than high street banks which consequently means the individual saves money.

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! **

Tomorrow’s UK GDP Figures Key for Sterling Exchange Rates! (Matthew Vassallo)

Tomorrow’s UK Gross Domestic (GDP) figures are likely to be key for any clients holding Sterling or Euro. With the expectation for 0.3% growth I expect additional volatility on GBP/EUR exchange rates if the figure comes outside of this remit.

Sterling had started to regain some ground against it’s EUR counterpart but fell away during yesterday’s trading. Rumours surfaced ahead of Bank of England (BoE) governor Mark Carney speech that he was going to take a dovish tone, which the markets immediately took as a negative and this ended the Pound’s mini recovery.

Whilst his comments were not overly positive he did mention a prospective interest rate hike due to UK Prime Minister’s prospective policy changes and this helped boost Sterling’s value and eliminate some of the afternoon’s losses.

GBP/EUR rates dipped to a low of 1.1132 but recovered back towards 1.12 following Carney’s speech. We’ve seen Sterling threaten a mini recovery on more than one occasion and European Central Bank (ECB) president Mario Draghi’s speech also curbed any further Sterling advances, as he commented on the current Quantitative Easing (QE) programme and how he felt it was having a positive effect.

I just feel that under the current market conditions the Pound will struggle to make any sustainable impact until at least next year, when key political elections and other factors in the Eurozone may start to drag the EUR value back down. If I was holding EUR I would still look to protect the gains I’d made and with a key data release tomorrow for the UK (UK Gross Domestic Product figures released at 09.30), I expect to see further market movement during Wednesday’s trading.

If you have an upcoming Sterling or Euro currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

 

Sterling continues to fall against the Euro owing to Bank of England comments (Tom Holian)

Bank of England governor Mark Carney has spoken out this morning claiming that inflation is likely to rise owing to the fall in the value of the Pound.

We have already experienced ‘Marmite-Gate’ with Unilever and Tesco unable to agree who would front the cost of the rise in ingredients but this has now been resolved.

However, this issue could occur across the entire retail and food industry if Sterling vs the US Dollar remains as low as current levels. The rate to buy US Dollars with Sterling is now at the lowest level in 3 decades and until the Pound gains strength we could see the UK economy struggle.

Mark Carney has also suggested that it wasn’t the Bank of England’s job to concentrate on the value of Sterling but that ‘we are not indifferent to it, it matters to the conduct of monetary policy.’

Therefore, clearly the central bank is not too fussed by the drop in the value of Sterling and are targeting the ongoing problem of inflation. With the Bank of England due to meet next month we could even see an interest rate cut and this could cause Sterling to fall even further against the Euro.

Indeed, since the rumours started as to when Article 50 will be triggered we have seen Sterling drop by over 9 cents against the Euro which is the difference of £6,750 on a currency transfer of €100,000.

If you’re in the process of buying a property in Europe before the end of the year it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.

Having worked in the foreign exchange industry since 2003 I am confident of not only offering you a better exchange rate when it comes to buying or selling Euros compared to using your own bank but to also help with the timing of your transfer.

If you have a currency transfer to make and want to save money on exchange rates then contact me for further information or for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Alternatively fill in the form below

 

How will the Bank of England’s interest rate decision impact GBPEUR exchange rates (Dayle Littlejohn)

This Thursday the Monetary Policy Committee from the Bank of England are set to release their latest interest rate decision. The 9 voting members all voted in favour of cutting interest rates to record lows of 0.25%. Further to this a substantial quantitative easing program was announced which should help to keep the economy stimulated.

The decision itself I believe will be a non event as interest rates will be kept on hold, its Governor Mark Carney’s press conference shortly after which should cause the volatility. Its difficult to predict how the market will react to his comments. However if he states further cuts could be on the horizon expect the pound to lose further value.

Within the next 20 minutes Consumer and Producer Price index numbers are set to be released for the UK. The numbers are expected to give support for the Pound so we could see an improvement with GBPEUR exchange rates this morning.

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! **

Will GBPEUR rates fall further this week? (Dayle Littlejohn)

Since the EU referendum vote the pound has fallen 15 cents against the euro therefore a €200,000 purchase has become £20,000 more expensive. Many clients are asking me ‘will this get worse’ and I believe so due to the UK interest rate decision and UK politics.

Looking ahead the Monetary Policy Committee from the Bank of England will meet this Thursday to discuss and vote on interest rates. Currently interest rates are at record lows of 0.5% however Governor of the Bank of England Mark Carney has eluded to a cut of 0.25% which means the pound would lose value and therefore GBPEUR would fall.

Personally I believe its too early for the MPC to cut interest rates therefore they will stay at 0.5% for at least another month. However the Governor holds a press conference shortly after the actual event and this is when I believe he could once again state a cut could occur in the very near future. If this does occur expect further sterling weakness.

As for the politicians they are not helping the pounds performance. At the moment we are not certain who the next UK Prime Minister will be, the Labour party are split in half and UKIP have no leader. All of this uncertainty puts pressure on the pound and thats why there’s an argument the problems are not going away therefore the pounds value could fall further.

Quite simply if I were buying the euro I would look to cut my losses and trade sooner rather than later. Where as if I had to buy pounds I would get myself in a position ready to trade and watch the markets for a period to see the next move for GBPEUR rates.

The currency company I work for enables me to achieve better rates than other brokerages and high street banks. If you are trading GBPEUR this year feel free to send me a brief description of why you need to trade and I will email you with the process to using our company and how we can save you money 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

Sterling struggles to make gains against the Euro (Tom Holian)

Sterling has fallen by over 12% since the Brexit vote against the Euro as the Pound has struggled    against all major currencies.

Currently both economically and politically the UK is in a state of flux and until some normality is resumed then Sterling could really struggle to make any gains.

Prime Minister David Cameron has announced his resignation which is due to take place in October and in the meantime we are yet to find out who will take his place.

Teresa May and Andrea Leadsom are the two final names in the race as many others have already stood down.

Indeed, Brexiteers Boris Johnson and Nigel Farage have both stepped down which almost make a mockery of what they were voting for in the first place.

Turning the focus back to the economic side of things Bank of England governor Mark Carney has suggested recently that the UK could look at cutting interest rates in light of the Brexit vote in order to help the economy but the impact this has on the Pound is generally taken as negative.

Indeed, following his comments recently this caused Sterling to fall against the Euro.

On Thursday the Bank of England meet to announce their latest interest rate decision and the odds are that an interest rate cut could occur and if this happens we could see further losses for Sterling against the Euro.

However, if the central bank does not change policy then we could see the Pound make some small gains.

If you have purchased a property in Europe recently and are worried about what may happen to exchange rates over the next few weeks you may wish to consider buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

I look forward to hearing from you.

 

 

Why rates to buy Euros have fallen (Tom Holian)

The rate to buy Euros has fallen owing to the recent Brexit vote where 51.9% of the vote came out in favour of leaving the European Union.

Even on the night before the result the bookies had odds of 10-1 on that the UK would vote to remain so on Friday morning of last week this caused Sterling Euro exchange rates to plummet by 10 cents.

The markets appeared to settle down during the middle of this week but towards the end of the week Bank of England governor Mark Carney warned of further problems facing the British economy. Indeed, he was a keen advocate of remaining in the European Union and he did warn of problems for the UK’s economy if we voted to leave.

Carney said that we could see a future interest rate cut or potentially further monetary easing in order to settle the economy.

This week we have also seen the UK’s credit rating having been downgraded by both Standard and Poor’s as well as Moody’s. Both have suggested that the UK may experience a recession during the course of this year owing to the uncertainty surrounding the British economy.

The political state of the UK is also looking in a very bad state at the moment as we are currently trying to find a new leader to take David Cameron’s place as well as a lack of confidence in the opposition leader Jeremy Corbyn.

UK data has been relatively good even in light of the problems of the Brexit but this is being overlooked and until any sense of certainty returns we could see Sterling struggle against the Euro.

If you need to buy or sell Euros and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

I look forward to hearing from you.

 

 

 

Major Figures Give Their Opinion on Brexit

Sterling finished the day with a rise as the rate improved to well over 1.27, considering there was no new data released for the UK this has mainly been attributed to the negative EU GDP data. The Eurozone GDP missed expectation by 0.1% for both Month on Month and Year on Year forecasts.

The current boost for Sterling seems to disregard the sentiment that the GBP/EUR should really be falling as the uncertainty regarding the referendum creeps ever nearer. Mark Carney yesterday did not hold back when discussing the potential dangers of the Brexit. He made it clear that he believed the UK could enter into a recession if the Leave campaign proved winner. Today Christine Lagarde, Head of the International Monetary Fund, suggested that should the UK leave the consequences will be “pretty bad, to very, very bad”. Without holding back Lagarde went on to say she had “not seen anything that’s positive” about a Brexit.

Next week there is a large amount of data being released for the UK that could have a major impact on the currency markets. It almost seems that the Brexit has initially been priced in and investors are content with the current rate. The GBP/EUR rate has stayed between the 1.25-1.27 range in the last 10 days and this could continue moving forward.

If you would like to discuss anything mentioned in the blog above please feel free to reach out to me at brf@currencies.co.uk.

Mark Carney warns the UK could enter recession (Dayle Littlejohn)

Today Governor of the Bank of England Mark Carney has announced if the UK were to leave the European Union he believes the UK would enter recession. Mr Carney has made it clear in recent weeks the UK should remain part of the European Union therefore i’m not sure if his comments are just a tactic to win votes.

Nevertheless these comments just show its only a matter of time until both campaigning parties start to state their case to why the UK should stay or leave the European Union and the volatility will therefore weigh down on the Pound and GBPEUR rates will fall.

Two weeks ago David Cameron played his trump card in Barack Obama and rates spiked to 1.29 however they have been falling ever since and I expect this trend to continue. If you have euros to buy trading sooner rather than later may be wise, where as if you are selling Euros to buy Pounds holding on for an extra 4-6 weeks would be my strategy.

If you are looking to buy or sell Euros this year (especially before June 23rd), the currency company I work for enables me to achieve clients up to 5% better exchange rates than the high street banks and other brokerages. I specialise in property purchases and sales. Therefore if you are buying or selling a property this year and want to save money by achieving the best possible exchange rates but also want help in timing your transfer, get in touch by emailing me on drl@currencies.co.uk.

The more information you provide me, the more information I can provide you. Below is a list of what I require: your name, currency pair, brief description of requirement, amount, budget, timescales, telephone number and convenient time to call.

Alternatively if you would like to discuss your requirements over the phone call me Monday morning on 01494-787478 and ask to be put through to Dayle Littlejohn.

 

How far could GBPEUR rates fall? (Dayle Littlejohn)

Since UK Prime Minister David Cameron announced the UK would hold a referendum in regards to EU membership on June 23rd, GBPEUR rates have fallen 5 cents making a €200,000 purchase £6,500 more expensive. 

The Pound is set to continue to devalue up until June 23rd and come judgment day I expect rates will fluctuate between 1.17 and 1.19. Therefore if you have Euros to buy before June 23rd trading sooner rather than later is wise.

The Pound is set to have a boost on Tuesday morning with Consumer Price Index numbers. The figure is expected to rise to 0.4% from o.3%. Consequently I expect GBPEUR will rise throughout Tuesday.

However Eurozone inflation numbers are also set to show an improvement Thursday and Governor Mark Carney is also set to devalue the Pound on Thursday after the Bank of England Interest Rate decision. I expect GBPEUR exchange rates will therefore fall throughout Thursday trading day.

If you are buying or selling Euros this year, I can give you further economic information to help you time your transfer and can also offer you a better exchange rate than what you would receive with your bank and other brokerages. This can be anywhere between 1-5%. My direct email is drl@currencies.co.uk Dayle Littlejohn. Alternatively call me Monday morning on 0044 1494 787 478 and ask to be put through to Dayle Littlejohn.

If you are already using a brokerage I recommend emailing me with the exact figures and I will give you our live price so you can make a comparison. This will take you 2 minutes but could save you a considerable amount of money.

Sterling Euro to hit 12 month low? (Tom Holian)

Sterling Euro rates have once again fallen to below 1.30 during the course of the week as the Bank of England have announced a 9-0 vote in favour of keeping interest rates on hold.

The UK Quarterly Inflation Report has also caused concern for Sterling exchange rates as low inflation means an interest rate hike is well and truly off the cards for the time being.

According to the BoE governor  Mark Carney inflation is now not set to hit its target of 2% until 2018 and I think this could also mean no interest rate change until then as well.

This has really dented the confidence in the Pound and I think next week we could see further falls against the Euro leading to fresh 12 month lows to buy Euros with Sterling.

Industrial and manufacturing data came out recently at a 6 year low and with the same release due on Wednesday I think we could be in for more of the same bad data causing Sterling to fall against the single currency.

The fears of the Brexit are also still looming and until this is resolved I expect Sterling to remain under pressure.

My prediction for next week is for Sterling to fall against the Euro creating some excellent opportunities to sell Euros into Sterling.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Sterling Euro Rates Stuck in Limbo (Tom Holian)

As covered in some of my previous articles I think it will be Thursday when we start to see potentially big swings for Sterling Euro exchange rates when the Bank of England meets to announce their latest interest rate decision.

Due at the same time will be the UK’s Quarterly Inflation Report and with inflation running at just 0.2% this is clearly weighing heavily on the BoE minds.

Recently the split has been 8-1 in favour of keeping rates on hold with Ian McCafferty the one in favour of a rate hike.

However, I think it will be a matter of time before he changes his mind as continued low inflation means an interest rate hike could be devastating to the economy.

BoE governor Mark Carney has stated recently that interest rates will stay on hold until 2017 and there is even a potential chance of a rate cut whilst UK inflation remains well below the target level of 2%.

Eurozone unemployment came out better than expected today at 10.4% down from 10.5% the month before showing signs of improvement for the Eurozone which provided the single currency with some strength vs Sterling throughout today’s trading session.

Retail Sales for the Eurozone are due at 10am tomorrow and I think this could be a bit of a blip as retail sales have been rather mixed recently owing to the weather.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

Alternatively call me on 01494-787478 and ask for Tom Holian when calling.

 

 

Sterling Euro Exchange Rates Continue to Fall (Tom Holian)

Sterling Euro exchange rates have once again continued to fall as the expectations are that we’re in for another difficult week ahead for the Pound.

Bank of England governor Mark Carney is due to speak publicly tomorrow morning and when he spoke last week this saw Sterling Euro exchange rates hit their lowest level in 12 months.

He suggested last week that UK interest rates are unlikely to go up until 2017 which has caused a big fall in confidence for Sterling.

When you look at the other data that has come out over the last few weeks it should come as little surprise to see Sterling trading so low vs the Euro.

The fears are mounting of a Brexit and currency does not react well to uncertainty.

Indeed, when looking at both the Scottish referendum and the General Election in the UK this caused GBPEUR rates to fall by as much as 5 cents in the run up to both events.

Industrial and manufacturing have come out at their lowest levels in 4 years and with Retail Sales last Friday showing their biggest fall in 6 years things are not looking good for the British economy at the moment.

On Thursday the UK releases Quarter 4 GDP figures and with GDP having been downgraded last month I expect more of the same which is likely to push GBPEUR rates lower.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

Alternatively ring me directly on 01494-787478 and ask for Tom Holian when calling.

 

 

Sterling Euro drops below 1.30 as predicted (Tom Holian)

Sterling has dropped vs the Euro below 1.30 during today’s trading session as predicted in many of my recent articles across the various websites that I write on.

Although UK inflation rose this morning and came out better than expected this saw a brief recovery for Sterling but as soon as Bank of England Mark Carney began to speak at lunchtime we saw Sterling plummet vs the Euro.

The main reason is that he has again said the UK is not ready to raise interest rates which has caused confidence to drop for Sterling exchange rates not only vs the Euro but also vs the US Dollar.

Volatility in China which published the worst GDP for 25 years this morning and with oil prices continuing to drop now is not the right time to look at raising interest rates.

This has created the best opportunity to sell Euros for over a year and the lowest level to buy US Dollars with Sterling for 6 years!

Carney went on to say that the UK faces risks ahead and that inflation is under more pressure here than in the US and that the British economy is more exposed to problems with global growth.

With Sterling Euro rates expected to keep falling during the week then if you need to buy Euros soon it may be worth looking at buying a forward contract which allows you to fix an exchange rates for the future for a small deposit.

To find out more or if you have a currency transfer to make and want to save money on exchange rates compared to using your now bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

Bank of England Interest Rate Decision and Sterling Euro Rates Today (Tom Holian)

The Bank of England are due to meet later on today to announce this month’s interest rate decision.

The expectation is for no change as BoE governor Mark Carney has stated only a few weeks ago that UK interest rates will not be raised during 2016.

My predictions are for 8-1 vote which was the same as last month but the minutes released today as well as the accompanying statement could see Carney talk down the strength of the Pound.

Indeed, with UK manufacturing data already coming out negatively this week I think Carney could highlight the problems currently being experienced by the British economy and therefore wee could see a fall in the value of Sterling exchange rates providing some better opportunities to sell Euros into Sterling later on this afternoon.

With the next big decision this month due to be made by the US Federal Reserve on December 16th we could see a huge amount of volatility during the next week for Pound Euro and Dollar.

With the festive bread only a fortnight away we have already noticed thinner trading volumes which can also cause erratic movement for exchange rates.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Sterling Euro gains off the back of US Jobs Report (Tom Holian)

Sterling Euro exchange rates have once again tipped past 1.40 after dipping into the 1.38 levels during Thursday afternoon’s trading session.

Thursday’s losses were caused by Bank of England governor Mark Carney’s comments that UK interest rates will stay on hold until at least Spring 2017.

This caused a huge sell off for the Pound vs the single currency but the losses were short lived following the massively better than expected US jobs report published on Friday afternoon.

There were a total of 271,000 new jobs created in the US which led to the GBPUSD rate hitting 1.50 and with Dollar strength this often results in Euro weakness which led to Sterling breaking through the 1.40 levels again.

Clearly UK inflation is causing a problem for the British economy and this is why Carney has said these comments.

However, with the Eurozone only recently hinting at further Quantitative Easing in December this is the real reason behind the recent period of Euro weakness.

Next week on Wednesday sees the release of UK unemployment data and if better than expected we could see the gains for Sterling vs Euro continue.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

UK Quarterly Inflation Report & Impact upon Sterling (Tom Holian)

The UK Quarterly Inflation Report is due in the morning and with inflation currently at -0.1% the report will make interesting reading for anyone with a Sterling Euro requirement.

My suspicion is that the report will put pressure on the Bank of England press conference due tomorrow lunchtime and my estimate would be for Sterling to fall as the press will clearly ask Mark Carney for his answer to combat falling inflation.

The Pound has been gaining against the Euro on the fears that the Eurozone will launch more QE in December but I think these recent gains will be short lived and I expect to see Euro strength during tomorrow afternoon’s trading session.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

What will happen to Sterling Euro next week? (Tom Holian)

Sterling Euro exchange rates ended the week trading at above 1.41 as the Greek talks have been delayed owing to logistical problems.

It appears as though the Greek issue is never-ending and this has weighed heavily on the value of the single currency vs the Pound as investors are cautious about holding Euros until this is all cleared up.

During this month Sterling has hit its highest level vs the Euro in 8 years as Bank of England governor Mark Carney has also suggested that the UK could potentially increase interest rates before the end of the year.

I personally think this is dangerous as the UK economy is not robust enough yet and until the European problems are sorted any change in our own monetary policy could cause problems for the UK.

On Tuesday we see the release of UK GDP figures and with the first quarter showing growth of 2.9% I think it will be difficult to maintain this figure so I think we could see Sterling fall vs the Euro.

If you have currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

GBP/EUR Spikes During Wednesday Trading (Matthew Vassallo)

GBP/EUR rates have spiked back up during Wednesday’s trading, following a loss on the exchange yesterday. The Pound dipped by almost 2 cents yesterday and once again the markets indicated we may finally be seeing some respite for the EUR, following a very testing few months. However, it now seems no more than another false dawn with GBP/EUR rates moving back through 1.43.

This is not the first time the EUR has threatened a realignment over recent weeks and although the single currency is showing no immediate signs of a major turnaround, it doesn’t mean EUR sellers cannot find short-term opportunities to sell at better prices, yesterday’s movement being a prime example.

With Bank of England (BoE) Mark Carney being particularly bullish about the UK recovery at present, even alluding to the fact that UK interest rates may rise sooner than most expect, Sterling is finding plenty of support in the market. Add to this the on-going debacle in Greece and it is not hard to see why we are at some of the best levels seen on GBP/EUR over the past 8 years.

A cautionary word would be that this is not the first time Carney has talked up a rate rise, only to dash the markets hopes the following month. It may well be that he follows suit again, as I personally cannot see the BoE raising rates sunlit at least the second quarter of 2016 at the earliest. With a new deal now in place between Greece and its creditors we may find these eases pressure on the EUR and I do feel the EUR is likely to find some support sooner rather than later.

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