Tag Archives: sell Euros

Sterling Exchange Rates before UK Retail Sales Data (James Lovick)

The pound remains under pressure despite the British government winning a series of votes in the House of Commons this week after a series of amendments had been put forward in the House of Lords. Things could be become interesting for the pound next week though as the Prime Minister had to make a last minute concession to some of her rebel conservatives who seek to keep Britain with as close ties as possible to the European Union. It would appear that what was offered on Tuesday is not quite what the government is prepared to offer and concerns the issue of having a meaningful vote which would prevent the government from walking away from the negotiations without a deal.

The European Central Bank (ECB) meet later today for the next interest rate decision. Although no change is expected the important detail will be in the Quantitative Easing schedule. Clients looking to sell Euros will be interested to hear when the ECB is likely to conclude its vast Quantitative Easing scheme. ECB President Mario Draghi will be providing the markets with a running commentary this afternoon and may offer some clues as to the central bank’s thinking

UK retail sales numbers are released this morning and are likely to see a reaction. The UK economy has struggled to get back up to speed following that cold weather front dubbed the Beast from the East although a pick up this morning is probably overdue. A big number could see the pound rally and would restore some confidence in the British growth outlook.

The Bank of England meet next week for the next interest rate decision although no change is expected this time round. There is more likely to be a focus on when the next rate hike will take place which is earmarked for either August or November.

For more information on the pound or Euro exchange rates and for assistance in making any transfers then please feel free to contact me at jll@currencies.co.uk

GBP Exchange Rates in Politically Driven Week

The pound is set for a hugely volatile week as the House of Commons Brexit withdrawal vote approaches next Tuesday. The pressure is now very much on Prime Minister Theresa May who will be meeting Brexit ministers today to discuss the final arrangements for a backstop plan. This proposal has been very controversial within cabinet with a public clash between Brexit secretary David Davis and Theresa May. If no agreement can be reached today then this could prove problematic for sterling exchange rates with the pound likely to come under further pressure.This of course is all ahead of the voter next week which will see 15 amendments from the House of Lords voted on. If the government is defeated on a number of these votes then this could freeze the Brexit process and delay things which in my view would be negative for the pound due to more uncertainty both politically and economically.

Clients looking to buy or sell Euros are likely to see a very volatile period on the back of any developments and should consider their options at this stage. Rates for buying Euros are very close to the recent 1 year highs seen a couple of months ago.

European Central Bank members Praet, Hansson and Knot will be meeting this week and are likely to offer forward guidance. Any clues here as to when the ECB will conclude its asset purchasing scheme are likely to see the Euro react. If the Quantitative Easing programme is stopped in its entirety then the Euro is likely to strengthen on renewed confidence. However any suggestion that the tapering of the scheme could be extended is likely to result in Euro weakness.

EU GDP data is released this morning and could be one to watch. Any pick up in the numbers today could also prove Euro positive.

Fore assistance in making transfers and how to maximise on the rates of exchange when they happen then please get in touch with me at jll@currencies.co.uk

Will GBPEUR exchange rates rise or fall by the end of the week?

With GBPEUR exchange reaches back above 1.14, it seems like a good time for euro buyer to take advantage as I expect the pound could come under pressure on Thursday when the Bank of England announce their latest interest rate decision.

The chances of a rate hike have dropped to 20% from 80% according to Lloyds and the reason for the fall is that UK economic data released last month disappointed. Retail sales, inflation and GDP all dropped significantly and recent Brexit developments are also putting pressure on the Bank of England’s decision.

Governor of the Bank of England Mark Carney has stated over the last 18 months that Brexit developments will influence monetary policy, and with the House of Lords on a weekly basis heavily criticizing the Government, UK Prime Minister Theresa May appears to be stuck between a rock and a hard place. It was only this afternoon the House of Lords stated the UK should remain part of the single market.

My personal opinion is that the Bank of England will keep interest rates on hold and the Governor Mark Carney will continue with his stance that a hike is likely to occur this year, however he will not confirm when and this will cause the pound to lose further value.

To finish the week all eyes will turn to the ECB and President Mario Draghi’s speech. Every time the President speaks, investors are watching closely for guidance in regards to the QE program. Time is running out for the President as he will want to give the markets as much time to adjust and the plan was to cut the QE program by the end of the year. This story has the potential to have a major influence of GBPEUR exchange rates moving forward.

For further information in regards to GBPEUR currency transfers 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! **

 

 

 

How will the ECB and the BoE move rates?

The BoE (Bank of England) and the ECB (European Central Bank) are going to be the main talking points that come up in the weeks ahead as we get further clarification on the final outcomes of economic policy for both central banks. The decisions by both teams will more than likely lead to movement on GBPEUR rates and these two events are well worth monitoring closely.

Tomorrow is the ECB interest rate decision which could easily trigger some volatility in Euro rates since there is a lack of uncertainty over what kind of commentary we will see from the ECB team. President of the ECB Mario Draghi will be leading the helm and give us the latest views on monetary policy moving forward.

Recent ECB Meeting Minutes highlighted a concern about a strong Euro and this is what saw the Euro much weaker a couple of weeks ago. This is really at odds with the behaviour of the Euro at the last ECB meeting where the Euro rose to its strongest point of 2018 against the pound.

The 10th May sees the Bank of England meeting which is likely to be a very strong trigger on the pound as investors are expecting an interest rate hike but it is by no means set in stone. The uncertainty about whether or not the UK will hike plus the lack of clarity about future hikes will all act as trigger points for future volatility on GBPEUR.

If you have any currency transfers buying or selling the pound against the Euro these pieces of news are likely to be a major market mover and it is well worth highlighting any potential transfer to us well in advance. For more information at no cost or obligation over what to expect and what to be prepared for, please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you.

GBP EUR Moves Higher after Weaker EU Manufacturing Data (James Lovick)

The pound remains close to some of the highest levels we have seen against the Euro in the last months creating a good opportunity for those clients looking to buy Euros. UK politics is still going to the big driver for sterling exchange rates in these coming weeks and months with the main topic of Brexit dictating the direction of travel. The pound has been boosted considerably against the Euro now that the second round of the Brexit negotiations have been concluded which covers the transitional arrangements for after when Britain leaves the EU in March 2019.

However the issue of a customs union is still to be decided and there have been reports that the UK Prime Minister Theresa May could be considering remaining in the Customs Union. However there are members of the House of Lords that would like to see the UK remain in the EU’s Customs Union and there was a majority that voted in favour last week. The government’s response is that Britain will not be staying in the Customs Union but there is still likely to be considerable volatility for the pound as Theresa May does not command a large enough majority to safely push her vision of Brexit through. There are a number of politicians within the conservative government that will vote against Theresa May which could result in a high degree of political uncertainty if tensions rise considerably.

The Euro has is also starting to come under a bit of pressure after it was reported yesterday that manufacturing in the EU has fallen to its lowest level in 14 months. Manufacturing data released yesterday as per the Purchasing Managers Index fell to the lowest levels in 14 months. Any further deterioration in EU economic data could help see the pound push higher against the Euro with a move towards 1.18 a real possibility despite the usual Brexit concerns.

For more information on Euro exchange rates and how to maximise on these developments which create better opportunities then please get in touch with me James at jll@currencies.co.uk

GBPEUR plummets due to Mark Carney

Late last night Governor of the Bank of England Mark Carney told the BBC that an interest rate hike would occur this year but failed to announce that it would happen at the May meeting. He did state Brexit negotiations and the performance of the UK economy will dictate when the hike occurs. This was seen as extremely dovish by investors and the pound was sold off.

The Governor also spoke about inflation and said as always inflation needs to be monitored closely. With inflation falling quicker than expected this month to 2.5%, if this trends continues I expect to only see one hike this year, which arguably is a bad situation for clients buying euros.

The pound had been making considerable gains against the euro over the last 6 weeks due to the hype of an interest rate hike and the shift in Brexit sentiment. However not that a hike may not occur, this could be the start of the slide for sterling against the pound. Furthermore with trade negotiations set to start in the upcoming months now is the time to buy pounds in my opinion.

For further information in regards to GBPEUR currency transfers 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! **

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 Rates ahead of Philip Hammond Speech Today (James Lovick)

The pound has struggled to perform this week trading in a very tight range against the single currency. Rates for GBP EUR have fallen to 1.1180 this morning as the markets focus on a speech today from Chancellor of the Exchequer Philp Hammond. The speech is likely to be a very important speech ahead of key trade negotiations which are expected to start later this month. The French economy minister Bruno Le Maire has made clear his views that Britain is not to have a free trade deal for financial services and there is little chance of doing so. Due to the size of the financial services sector and its huge contribution to Gross Domestic Product means this is a very serious issue the British government faces.

The chancellor is expected to make the case that it is very much in both the the British and EU’s interests whilst highlighting that the EU has in fact looked at including financial services in a trade arrangement with the US.
For the time being Brexit continues to hold back the price of sterling ahead of key negotiations which will tackle the future trading relationship between Britain and the EU later this month. This lack of certainty has presented clients looking to sell Euros with an excellent opportunity to convert Euros into pounds.

UK manufacturing and industrial production numbers are released on Friday and could make an interesting end to the week. Clients with a US dollar requirement could also see a volatile day on Friday with the release of US non-farm pay roll numbers. A strong number in the US could see the dollar strengthen and a jump higher for USD EUR.

For more information on Euro exchange rates and how we can assist with your currency transfer then please get in touch with me at jll@currencies.co.uk

Factors impacting GBPEUR exchange rates

As always Brexit negotiations continue to drive GBPEUR exchange rates and at present GBPEUR has reached a key support level. Over the last 8 weeks every time GBPEUR has reached 1.12 we have seen the pound strengthen against the euro? The question is will this trend continue this month?

Negotiations are on going and UK Prime Minister Theresa May is asking for a bespoke trade deal with the EU, however Michel Barnier keeps reiterating that a bespoke trade deal is another phrase for cherry picking. If the transitional deal is reached this month and trade talks start early next, I expect the pound will make gains against the euro and reach the highs we were experiencing earlier in the year.

Politics in Europe are also having an impact on GPBEUR exchange rates. The good news for the Euros is that Angela Merkal has secured her position as Chancellor of Germany. However with a hung parliament in Italy at the moment and far right party 5-Star receiving the most amount of votes, people in Italy are questioning whether they should have a referendum like the UK. This story has the potential to have a considerable impact on euro exchange rates, nevertheless with 5 Star stating they will not work with any other party, it looks like a coalition could be formed by Northern League and Forza Italia.

This week the key data releases to look out for is the ECB’s interest rate decision Thursday afternoon. Interest rates are set to remain on hold, however any hint to the tapering of the quantitative easing program could strengthen the euro. The ECB have showed concern recently that the euro is overvalued due to the devaluation of the US dollar. Therefore I expect the statement by President Mario Draghi to not give to much away and therefore the euro to remain buoyant and against the pound.

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! **

GBP EUR Rates before Theresa May Speech (James Lovick)

The pound continues to see a volatile period this week ahead of a key speech from UK Prime Minister Theresa May this Friday. GBP EUR is currently sitting just below the 1.14 level and not far off that recent 9 month high seen for the pair presenting some of the best levels seen for buying Euros. Politics in the UK will have a huge bearing on the direction of the pound from here on and Theresa May’s speech is likely to be the trigger for this. After the cabinet meeting at Chequers last week it has been reported that there is some unity between members and may help pave the way forward with Brexit.

Clients looking to buy or sell Euros should keep a close eye on the speech as there is likely to be high volatility on the back of it. If more details emerge as to the future path of Brexit and the approach is viable from all sides then the pound could see a sizeable jump higher. Much will of course depend on how well the EU side in this negotiation receive the speech and if it is immediately discredited then the pound could fall in this scenario. There could be an excellent opportunity to secure funds after the speech so do get in touch to position yourself ready.

European Central Bank President Mario Draghi has been speaking this week and remains of the view that the outlook for the EU is positive. However on the political front there is likely to be a volatile weekend ahead. The Italian election taking place on Sunday is potentially going to see a rise of more right wing parties including the 5-Star Movement. The anti-establishment party is leading in the polls and could create some issues for the European Union. More details about the proposed grand coalition in Germany are also expected to be announced on Sunday.

To discuss the pound and the Euro and how to achieve the most of market movements then please get in touch with me James at jll@currencies.co.uk

GBP EUR Falls on Weaker Unemployment Data

The pound has slipped from the spike seen yesterday after UK unemployment surprised the markets with a weaker headline figure. Rates for GBP EUR are currently sitting at 1.1330 for the pair having fallen lower after the headline UK unemployment figure rose to 4.4% from 4.3%. Unemployment unexpectedly rose from in the last quarter and represents the sharpest increase in the headline figure for almost five years. Although unemployment is still extremely healthy it is still a sign that there the economy is seeing some small cracks emerging and the fear is that economic growth may start to falter. It also lends support to the view that the Bank of England may not be so keen to raise interest rates which it signalled last week.

The pound had see a good jump higher on the back of Brexit comments suggesting the EU would be prepared to look at an exclusive arrangement for single market access although any gains gave proven limited.

UK Gross Domestic product figures are released tomorrow morning and could create even more volatility for sterling exchange rates. Any drop in the numbers is likely to be seen as negative for the British economy and hence the price of sterling. The important numbers are released at 09:30 and any clients looking to buy Euros or sell Euros would be wise to be in touch around the event to avoid potential disappointment.

The Euro is also likely to see major volatility on the back of the ongoing German political situation. A vote by members of the Social Democratic party will be eagerly awaited and could see the Euro react if there is no agreement on the formation of the grand coalition.

To discuss how the pound is likely to be impacted by these events and how to try and maximise on the rates of exchange as they happen then please get in touch with me at jll@currencies.co.uk

GBP EUR Falls Lower as Brexit Discussions Resume

The pound has fallen further today against the Euro with rates falling to a low of 1.1219 before picking up some lost ground in afternoon trade.
The driver for the weakness in the pound is largely as a result of Brexit uncertainty and this week holds a number of important government cabinet meetings which could provide more clues as to where Brexit is heading.

The Brexit negotiations which have resumed this week haven’t started on a particularly optimistic outlook with question marks surrounding the single market and whether or not Britain will have access to it. The other sizeable issue of course is whether UK financial services will be included in any deal and considering services represents 80% of the British economy.

We are likely to see a lot of volatility for GBP EUR as developments unfold surround the terms of any deal. The prospect of a no deal scenario is also a worry for those clients holding sterling who are looking at buying Euros. Those clients who need to sell Euros would be wise to get in touch and consider taking advantage of the recent fall in the price of sterling against the Euro.

Focus now moves to the Bank of England interest rate decision on Thursday which could result in an even more volatile end to the week. Any positive noises from Mark Carney or any suggestion that interest rates will in fact rise later this year could help see the pound rally although my view is that Mark Carney will be relatively tight lipped at this meeting. Any discussion on Brexit however could see market volatility and this is a subject the Governor has been known to wade into.

To discuss how these key events this week are likely to impact on your own individual currency requirements then please feel free to get in touch with me at jll@currencies.co.uk

Will GBP EUR Break Through 1.15? (James Lovick)

The pound has seen an excellent rally against the Euro today taking rates for GBP EUR to a high of 1.1493. The general economic outlook for the UK appears to have improved following the upward revision on global growth for 2018. The UK is expected to benefit from increased trade and may help offset any of the negative consequences which stem from Brexit.

French President Emmanuel Macron also suggested earlier in the week that Britain would be offered a bespoke trade deal which is also helping to lift the price of sterling although he did also highlight that UK financial services will not be permitted under the same terms as now.

Clients looking to buy Euros would be wise to consider taking advantage of the higher levels which have suddenly become available. The pound has seen a rocky start to the New Year and any good gains have generally proven to be very short lived. With Brexit negotiations recommencing next week which will tackle the transitional arrangements the pound could come under pressure once again on any negative rhetoric coming from either the UK or EU side.

Any suggestions that there will be no cherry picking or no access to the single market for financial services could see considerable weakness for the pound. Of course the real trade negotiations are not expected to commence until sometime in March and clients looking to either buy Euros or sell Euros should pay particularly close attention to political developments over Brexit.

UK Gross Domestic Product figures are released on Friday and could make for an interesting end to the week. I am optimistic that there could be a higher figure and that possible a jump higher to 1.8% could be seen. This would present a good spike for GBP EUR on such a release.

To discuss how the Brexit is likely to have a direct impact on your own currency requirement in these coming months then please feel free to get in touch with me James at jll@currencies.co.uk and I will be happy to give you my thoughts on the markets.

GBP EUR Rates Rally Back Over 1.13

The pound has made good gains against the Euro today with levels breaking back over 1.13 in afternoon trade. GBP EUR has rallied by almost a cent from the lowest point today despite stronger EU inflation data. EU inflation numbers rose to 0.5% in December which was higher than the expected 0.4%. It bodes well for the Eurozone after the European Central Bank has battled with weak wage growth and low inflation for almost a decade.

UK retail sales released on Friday could make for an interesting end to the week and the expectation is for a big jump higher for December which covers the Christmas period. A big number would be welcome news for the British economy and hence the pound and could see some material gains. The December retail sales can be a big market mover so those clients with pending requirements either looking to buy Euros or sell Euros would be wise to get in touch to consider your options. UK unemployment data is released next week and this too has the potential to cause some volatility next week.

Rates for selling Euros remain incredibly attractive with all the ongoing uncertainty with Brexit although any further developments in the second round of negotiations could see things change very quickly. Any positive noises being made from either side would likely see the pound rally although it may take a little more time to get to that point.

My view is that the Brexit outlook is starting to look that much more optimistic now that the first phase has been completed which highlighted a will from all sides to put something together.

Those looking to make currency transfer are impacted by these daily events. To discuss your requirement and how to try and maximise on the rates of exchange as they become available then please feel free to get in touch with me James at jll@currencies.co.uk

GBP EUR Rates Fall on Political Uncertainty

The pound has dropped sharply in afternoon trade with rates for GBP EUR falling to a low of 1.1136. The edited documents in British politics which highlight the impact on Brexit on 58 different sectors appear to have been watered down for other politicians to view in an attempt to try and keep certain elements which are commercially sensitive out of the public domain.

There have now been suggestions from the Labour party that the government could be in contempt of parliament if it refuses to release all details in the reports. This news is yet another issue for this government which is having to tread very carefully with everything going on in this Brexit negotiation and is weighing on sterling exchange rates.

With a stalemate in negotiations between Britain and the EU the markets now look forward to the EU summit in December which could see a hugely volatile period for GBP EUR rates. If the deadlock is broken then there could be a great opportunity to buy Euros. The risk remains however that there could be a no deal and this would likely see the pound tumble sharply which could help anyone looking to sell Euros.

EU data sees consumer confidence numbers tomorrow ahead of the eagerly awaited inflation and unemployment data on Thursday. The EU has suffered with low inflation for almost a decade but this year has managed to see a pick up in the numbers which is helping the Euro make a recovery. A strong number here will only help cement the view that the European Central Bank is coming to an end of its loose monetary policy which should help support the Euro further.

For more information on GBP EUR exchange rates and how these key upcoming events have a direct impact on the rates of exchange and how to maximise on the opportunities as they happen then feel free to get in touch with me James at jll@currencies.co.uk

Sterling Rates Steady after UK Budget

After a very safe budget from Chancellor of the Exchequer Philip Hammond yesterday the pound has seen little in the way of volatility on the back of it. The ongoing uncertainty of Brexit remains the main sticking point however and continues to weigh heavily on sterling exchange rates.

GBP EUR is currently sitting at 1.1255 and the markets now wait for the end of next week for the end of a two week ultimatum set by Michel Barnier for Britain to offer more in the divorce bill to try and break the deadlock and move discussions on to future trade. Rumours are circulating that UK Prime Minster Theresa May will offer €38 billion in the first week of December although where rates for GBP EUR move to will very much depend on how well such an offer is received by the EU.

Will the pound strengthen?

Should trade discussions open then this in my view would be very good for sterling exchange rates and there could be a good shift higher for GBP EUR. The risk for those clients waiting for rates to improve is that is the conversation does not move on to trade then this could see the pound weaken materially across all of the major currencies including the Euro. The prospect of a no deal scenario continues to keep the pound at bay. The problems for the pound is that the negotiations will continue right through up until 2019 which leaves a very long period of uncertainty.

Clients looking to buy or sell Euros should pay close attention to developments surrounding the EU ultimatum for more money and would be wise to get in touch to look at the options available and how to take advantage of the better rates when they become available. Feel free to contact me James at jll@currencies.co.uk

GBP EUR Rates Fall Below 1.13 Amidst Political and Brexit Uncertainty (James Lovick)

The pound is struggling to push beyond the recent highs against the Euro with levels for GBP EUR sitting just below 1.13.
The pound is being hampered by constant political uncertainty with new stories coming out almost by the day all adding a little bit of risk for the pound. The latest resignation of a senior cabinet minister could see a cabinet reshuffle in the coming weeks.

The resignation yesterday from Priti Patel and Sir Michael Fallon in the week before all weigh heavy on a government that recently lost its majority in the House of Commons. Politics continues to be a major driving force for sterling exchange rates and this is unlikely to change anytime soon. With the position of International Development Secretary now filled by Penny Mordaunt expect the markets to guess who will be next to go.

UK economic data is heavy on Friday with manufacturing and industrial production figures as well as trade balance data. The GDP estimate from the National Institute for Economic and Social Research could also create some major volatility for the pound vs the Euro. The strength of the British economy is a big driver for the price of sterling and any projection of a fall could see the pound come under added pressure. The NIESR estimate is an excellent pre cursor to the official economic data and the markets can move quickly on the bag of a strong or weak number.

Selling Euros?

The Brexit negotiations have resumed today and any comments from Brexit secretary David Davis or his counterpart Michel Barnier are likely to cause volatility for sterling Euro rates. The stalemate over the amount Britain is prepared to pay is preventing the pound from making gains although it may only be a matter of time before sufficient progress is made.

Clients looking to buy or sell Euros would be wise to make contact and look at the options available. There are reports that pressure is mounting on Britain to move forward within the next two weeks. As such at the end of the period there could be some considerable volatility for GBP EUR. Please feel free to make contact with me at jll@currencies.co.uk to take a look at your requirement and how we can help achieve the best rates of exchange as they become available.

Selling Euros – GBP EUR Drops Below 1.12

The pound remains on the back foot after yesterday’s market crash for sterling which saw rates for GBP EUR drop by almost 2%. GBP EUR is now trading at levels below 1.12 for this pair which has presented those clients looking to sell Euros with a surprise opportunity to convert. Normally an interest rate increase from the Bank of England would generally have the effect of helping strengthen the pound.

In this rare case however the pound dropped like a stone as a result of the bank suggesting that interest rates would only be raised another two times over the next three years. This was a major disappointment to the markets which resulted in the substantial drop for GBP EUR.

Buying or selling Euros?

Both British and Spanish politics will also have a major impact on the price of sterling in the coming weeks. The Catalonian situation is likely to continue to be a hot potato for the Spanish government with mass protests expected in the streets of Catalonia. Eight regional ministers who were sacked when Madrid imposed direct rule appeared in court yesterday accused of rebellion, sedition and misuse of public funds and so protesters are expected to take to the streets. Meanwhile the ousted leader Carles Puidgemont did not appear before the Spanish courts and a European arrest warrant is expected to be issued. It could be the start of a long process when lawyers are involved and could see added pressure on the Euro.

The ongoing Brexit negotiations will of course continue to be a major driving force for the pound and any signs of further tension between Britain and the EU in these negotiations will only add to the uncertainty for the pound. Anyone with a requirement to either buy or sell Euros would be wise to make contact sooner rather than later and look at the options available to take the risk out of it.

If you would like further information on sterling or Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact myself James on 0044 1494 787 478. Alternatively, I can be emailed directly on jll@currencies.co.uk

Bank of England interest rate decision looming (Dayle Littlejohn)

The Bank of England meet today to announce the latest interest rate decision, and forecasters are suggesting that an interest rate hike will occur. If the Bank of England decide to raise interest rates this will be the first hike in 10 years and the likelihood is that GBPEUR exchange rates will receive a further boost. Personally I expect GBPEUR exchange rates to break through 1.1450 if the central bank raises by 0.25%.

However if the central bank disappoint and fail to live up to their own hype, I expect the pound could plummet like a stone and GBPEUR exchange rates  could drop 1-2%. To summarise I think buying euros will become a little cheaper or become a lot more expensive.

After the decision the Governor of the Bank of England will address the public in regards to the monetary policy committee decision. For new readers the Governors words have the potential to shift exchange rates by the matter of cents, therefore keeping a close eye on his wording is important. Unfortunately for many of my clients they haven’t got the time to watch Mr Carney’s speech this afternoon and that’s where I come in. If you are buying euros short term and would like to be kept up to date with today’s announcements feel free to get in touch.

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! **

Selling Euros? GBP EUR Falls after Weaker Retail Sales

GBP EUR exchange rates have continued to fall this week after yesterday’s UK retail sales data fell by 0.8% in September. The weaker numbers follow on from the other important economic data also released this week. Although inflation touched 3% on Tuesday which would normally suggest an imminent interest rate hike from the Bank of England, the weak wage growth numbers have created uncertainty over whether or not the central bank will raise interest rates on November 2nd. Inflation climbed to its highest level in five years this week but it may not be enough to persuade for a rate hike. As such the pound has actually weakened this week.

There are two doves on the Bank of England’s Monetary Policy Committee who are almost certain to keep rates on hold but whilst the vote could be close on the day I am still of the opinion that the Bank will hike at the next meeting. Clients looking to buy Euros could see a spike if action is taken considering the recent slide in sterling so there could be a small window of opportunity.

Clients looking to sell Euros would be wise to consider moving sooner rather than later and take advantage of what are still incredibly attractive trading prices. Rates for selling Euros are still some 20% better than two years ago which means on a €200,000 transfer the extra sterling generated is about £35,000 more with today’s exchange rates.

Expect volatility for the Euro over the weekend as developments unfold in Catalonia. If Madrid seeks to trigger Article 155 and impose direct rule on Catalonia then there could be civil unrest a huge escalation in political tensions. The Euro is likely to react to nay news on this.

If you would like further information on Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk