Tag Archives: selling Euros

The impact of exchange rates when selling a property in Europe (Tom Holian)

If you’re in the process of selling a property abroad the chances are that you’re doing research about how to save money when selling Euros to buy Pounds.

We have seen the Pound come under a lot of pressure since June 2016 when the UK voted with a majority to leave the European Union and although the Pound has been improving recently the gains could be very short lived.

The next EU summit is due to take place next Thursday and Friday and up for discussion will be the Irish border issue as well as trying to kick start the trade negotiations.

At the moment the Irish border issue is clearly far from being sorted and I think unless this gets resolved by next week the Pound could face some real problems next week as the trade talks could stall making the whole meeting almost rather pointless.

The UK announces both Industrial and Manufacturing data in the morning so this could cause some short term movements tomorrow and as we go into the afternoon the latest NIESR GDP data is announced for the last three months.

Although these are not the official figures they are usually very accurate and therefore could be an indicator as to which way GBPEUR exchange rates will move towards the end of the week.

Many of my clients who are buying or selling a house in Europe have been buying forward contracts recently in order to avoid the uncertainty as to where exchange rates could be by the time completion comes around.

This involves paying a small deposit with the balance to be paid at a later stage to guarantee an exchange rate.

If you need to make a currency transfer over the next few days or weeks and would like further information or a free quote when buying or selling currency then feel free to get in touch.

Having worked in the foreign exchange industry since 2003 I am confident of not only being able to offer you bank beating exchange rates but also help you with the timing of your currency transfer.

To find out more contact me directly Tom Holian teh@currencies.co.uk

Budget does little to move Sterling Value (Daniel Johnson)

Budget benefits first time buyers

Hammonds’s budget did little to alter the value of Sterling today, historically this is usually the case when the budget is delivered as the expected changes are usually filtered out through the media before hand. The market moves on rumor as well as fact.

Key Changes

  • To benefit London and other expensive areas, the first £300,000 of the cost of a £500,000 purchase by all first-time buyers will be exempt from stamp duty, with the remaining £200,000 incurring 5%.
  • 95% of all first-time buyers will benefit. 80% not paying stamp duty
  • £44bn in overall government support for housing to meet target of building 300,000 new homes a year in the next five years.
  • Councils given power to charge 100% council tax premium on empty properties
  • Compulsory purchase of land banked by developers for financial purposes
  • £400m to regenerate estates with £1.1bn to unlock new sites for development
  • Stamp duty is to be abolished immediately for first time buyers purchasing properties worth up to £300k

Factors that will effect GBP/EUR – Keep an eye on these situations as they develop

Sterling sellers would be wise to keep an eye on the current political situation with Theresa May. It is rumored there are as many as forty MPs willing to put forward a vote of no confidence. If there are forty-eight members and the vote is put forward, May will lose her position. Political uncertainty historically weakens the currency in question and I would expect GBP/EUR to drop below 1.10.

If an exit bill is agreed there is the potential for Sterling strength as this will pave way for trade negotiations to begin. €20bn is currently on the table , but it is rumored May will up this to €38bn.

Potential Euro weakness could be caused by Merkel’s failure to form a government in Germany, there is the possibility of a new election which will no doubt cause the euro to lose value. Catalonian independence should also be kept a close eye on.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at dcj@currencies.co.uk.

 

Pound to Euro rate improves after German PM Merkel’s future looks uncertain! (Joseph Wright)

The Euro dropped in value today after Germany, the engine room of the EU is currently facing a political crises with many political commentators calling it the biggest crises of current Angela Merkel’s tenure.

Late on Sunday exploratory talks broke down between her Christian Democrats, Bavaria’s Christian Social Union and the Liberal Free Democrats broke down, ruling out an obvious path for Merkel to form a coalition government.

With German coalition talks collapsing it’s not surprising to see the Euro fall, as political uncertainty tends to weigh on the underlying currency.

An issue for the UK moving forward may be a pause to Brexit negotiations due to Merkel’s issue, but as it stands the GBP/EUR rate has benefited from the headline grabbing story.

At the same time the Pound opened the week strongly against all major currency pairs after speculation regarding the UK’s Brexit Bill continues. The current rumours suggest that the bill will increase to £38bn and the Pound has been boosted off the back of this news as if it’s true, it may clear the path for Brexit negotiations to progress.

If you’re following the GBP/EUR pair because you have an upcoming currency requirement involving the pair, feel free to get in touch and register your interest.

This week the Autumn Budget will take place so there could be movement, so this event is certainty worth watching.

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.

GBP EUR Rallies On Expectation of Increased EU Divorce Offer

The pound has found some support at the end of this week after a poor performance across nearly all of the major currencies. GBP EUR has pushed back over 1.12 this morning after rumours have circulated that UK Prime Minister Theresa May will possibly look to increase her offer of a financial settlement to the EU from €20 billion to €40 billion. Theresa May is in Sweden so any commentary here is likely to have an impact on the price of sterling.

If an offer is made later today the pound could react depending on how well that offer is received. The key to the direction will be the response from EU leaders but if received badly then the pound could fall against the Euro. The response today could also tie in to next week’s budget which will be delivered by Chancellor Philip Hammond and this is likely to be a big market mover next week.

UK data softened this week after retail sales numbers fell to their lowest level since 2013. Although the figure was higher than expected the fact that it is materially lower than four years ago is a concern for the British economy and hence the pound. With no UK economic data releases today the focus will be on a speech from European Central Bank President Mario Draghi and construction numbers this morning.

UK Gross Domestic product figures are released next week and any improvement here could help lend support to the pound. Considering the NIESR estimate pointed to stronger GDP going forward then there is the potential to see some upside for sterling exchange rates.

It is clear there are so many factors revolving around politics and Brexit which are having a direct impact on the price of sterling and the next week will be crucial in where rates will be heading next. Clients selling Euros continue to see an excellent opportunity for buying pounds. If you would like to discuss your requirement and the impact that these economic and political events are having then please get in touch with me and I will be happy to give you my thoughts. My email address is jll@currencies.co.uk

Will Wednesday’s UK GDP Figures impact the GBP/EUR rate? (Joseph Wright)

The Pound to Euro exchange rate has been relatively flat so far this week, although tomorrow there could be a spike in the rate as UK GDP figures are scheduled for release around 9.30am.

These figures could be significant as talk of an interest rate hike from the Bank of England next month is heating up, and for that to take place I expect the BoE to be hopeful of impressive figures as raising interest rates whilst economic output is struggling doesn’t really make sense.

With inflation levels in the UK hitting a 5-year high recently there is some pressure of the BoE to manage this, as we’re also seeing a reduction in consumer spending which has been one of the main drivers of the UK economy that’s performed well in the wake of the Brexit vote.

If tomorrow morning doesn’t being any currency movement, then Thursday may as the European Central Bank will update us on their most recent Asset Purchasing Program changes, which many analysts expecting to see a reduction in the current program. Depending on the amount we could see the Euro strengthen as reducing QE suggests the EU economy is normalising.

If you would like to be kept updated regarding any short term price movements between the pair discussed in this blog, do feel free to register your interest with me.

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

Brexit Talks, Inflation and European Union Summit – Impact on GBPEUR exchange rates (Tom Holian)

Pound vs Euro exchange rates have remained range bound during today’s trading session in anticipation of what could be a huge day on the currency markets tomorrow.

Both UK inflation and Eurozone inflation is due to be released tomorrow morning and this could cause big movements for GBPEUR exchange rates.

The reason for Sterling’s gains back in September was the rumours that the Bank of England may be considering hiking interest rates and so if inflation comes out high this could cause Sterling strength vs the Euro but if we see inflation falling I expect to see the Pound drop against the single currency as it means the BoE will be less likely to consider raising rates on November 2nd.

UK unemployment figures are due on Wednesday and like with the inflation data this could cause volatility on the markets.

To end the week the European Union will be holding a summit which will include the topic of Brexit and any trade deals that could be proposed between the continent and the UK so overall a busy end to the week for Sterling vs Euro exchange rates.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as I can.

Quiet end to the week for UK data releases, what could cause the GBP/EUR rate to move this week? (Joseph Wright)

Those hoping for better Pound to Euro exchange rates have taken a knock this morning after the much publicised Catalonian independence situation has cooled for the meantime.

Yesterday evening the Catalan President, Carles Puigdemont and other regional leaders signed a declaration of independence, but interestingly chose to suspend the move allowing some time to negotiate with Spain.

The situation had been under the microscope in recent weeks and was seen as a potential downside to the Euros value as political instability is often a reason for currency weakness, and I expect the cooling of this situation for now at least to take some pressure off of the Euro.

The Euro is up this morning against all major currency pairs, and at the time of writing the Euro to Pound rate is trading at its day highs.

There is little economic data out for the rest of this week that involves the UK economy directly, so I expect to see the GBP/EUR driven by sentiment or Eurozone specific data releases. The ECB president, Mario Draghi will be speaking tomorrow at 3.30pm so I expect markets to be glued to his comments as is normally the case when he speaks.

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.

GBP/EUR hits a 10-week high, but will the Pound manage to hold on to its recent gains? (Joseph Wright)

The Pound has risen quite dramatically against the Euro in recent weeks, with the pair hitting 1.14 both yesterday as well as this morning which is a 10-week high point for the pair.

Brexit uncertainty appears to have taken a back seat for now, which has seen GBP/EUR rise over 6 cents in recent weeks making the exchanging of Pounds into Euros a more attractive proposition.

The Pounds gains have been aided by a weakening Euro which has mostly been caused by the German election which took place over the past weekend. Although Angela Merkel’s Christian Democratic Union (CDU) party won for a forth consecutive term as expected, the talking point of the election is the rise of the far-right Alternative for Germany (AfD) party as they were the third best performing party.

This has softened the Euro and with the unofficial Catalan election in Spain also just around the corner and threatening to cause tensions in the region I think there’s a chance we could see the Pound continue to climb.

On Friday there will be the release of UK GDP data which could provide the Pound with a boost if the figure released is better than expected. The release comes out at 9.30am and the expectation is for 1.7% year on year and 0.3% for the 2nd quarter of this year.

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.

Euro Rates Before ECB Meeting

GBP EUR exchange rates look set for a roller coaster today tomorrow with two major events. The UK sees a debate in parliament over the Great Repeal Bill which will discuss the movement of EU law into British law to hopefully avoid any disaster scenarios. The issue for the British government is that there is only a very small working majority so any renegade conservatives who are not prepared to vote with the bill could create major problems for government.

Labour have already made clear that they will try and vote down the bill which in my view would create additional uncertainty although the general feeling is that the bill will go through.

The European Central Bank also meet tomorrow which could see major market volatility. The markets will be listening out for any words that suggest the central bank will look to taper its Quantitative Easing programme. The last few meetings have seen considerable market volatility to the extent that Mario Draghi has had to issue statements effectively saying the markets had misinterpreted what he had said. Any suggestion of tapering could see the Euro strengthen very quickly although the recent strength of the Euro could mean the ECB pauses until the next meeting.

Those clients with a Euro requirement either buying Euros or selling Euros would be wise to get in touch tomorrow morning to look at the options available to try and take advantage of any spikes which occur. The key here is to be proactive and have things set up ready if there is a big jump higher.

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 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

UK Services data released this morning likely to drive GBP/EUR today, what other data should be watched closely? (Joseph Wright)

This morning the most important sector for the UK economy will be under the spotlight as Services PMI data is scheduled for release.

The figure will be released at 9.30am and it will cover business sentiment in the sector, which is particularly important for the UK economy as the services sector covers around 80% of the UK economy. Whether this figure impresses or not is likely to move the Pound to Euro exchange rate due to its importance, and those following the GBP to EUR exchange rate should kind in mind that the manufacturing and construction figures released over the past couple of days have been mixed which has resulted in a mixed performance for the Pound.

The services sector figure has higher potential to result in price movement and the figure expected for releases is 53.5 so this is the figure to look out for.

We’re able to provide our clients with guidance regarding the news releases and expected figures that could potentially impact their currency transaction requirement. If you would like to be kep updated regarding the markets do feel free to register your interest with me and I’ll be happy to discuss it with you.

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.

Sterling flat despite positive words from a key Bank of England figure (Joseph Wright)

Sterling has failed to see a boost to it’s value this morning despite a member of the Bank of England suggesting that its time for an interest rate hike in the UK.

The member is Michael Saunders and his comments won’t of come as a surprise to many after his votes to raise the rate in the last two voting meetings. The current Pound to Euro exchange rate is sitting at 1.0850 after hitting a new 8-year low earlier this week due to Brexit uncertainties.

There have been a number of predictions for the Pound to Euro rate to hit parity within the next year and at the moment we’re not far from this level as Brexit fears continue to weigh on sentiment surrounding the UK economy. The fears mostly surround how the UK is yet to agree on the final Brexit bill and also the European Commission becoming frustrated with a lack of clarity from the UK regarding it’s plans.

A little later this morning there will be the release of Eurozone Inflation levels for August which could potential move the markets, those following the GBP/EUR rate should keep an eye on releases like this and we can help keep our clients updated if they wish.

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.

Pound to Euro rate in focus as it’s trading at an 8-year low, will the sell-off continue? (Joseph Wright)

Sterling is continuing to come under pressure this morning after breaching the 1.09 mark during yesterday’s trading session.

The breach of 1.09 has continued this morning as the pair are now trading at their lowest levels since 2009, with 1.0868 the lowest level the pair have hit so far.

This comes at a time where risk appetite worldwide is on the decline after US President Donald Trump’s threat to end the NAFTA agreement and shut down the US government if he doesn’t receive funding for the wall he plans on building along the boarder of Mexico.

There have also been a number of forecasts from major financial institutions recently suggesting the Pound could fall as low as 1 for 1 with the Euro, with HSBC, Morgan Stanley and Citi all making this same prediction for the pair in 2018.

Should these predictions comes true then it may be worth looking into the current exchange rates if you’re planning a large GBP to EUR transfer as there is still some distance to go should they be correct.

Tomorrow at 9.30am there will be the release of UK GDP data for the month of July, and there could be movement between GBP/EUR if this figure is released some distance from its expectation.

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

Will GBPEUR rise or fall next week?

The beginning of a new month always sees a new set of economic data and next Tuesday we will have the latest UK data for the month of July. The data so for for Construction, Manufacturing and Services for the UK have all been showing weakness since the Brexit and this could be reflected int he data next week which would see the pound lower. Overall expectations for the UK remain subdued, meanwhile the Eurozone is going from strength to strength! If you have a transfer buying or selling the pound and Euro the current rates are at a very interesting point. Euro sellers for pounds have close to a 9 month high, Euro buyers with pounds could easily see levels slip. Both for buyers and sellers there are strong arguments in either direction!

I am expecting GBPEUR could easily trade in the higher levels in the coming weeks but much will depend on just how the trade negotiations are received. The pound has been largely unaffected by the latest developments in the trade talks, I think this is because nothing will be decided for at least a year possibly 18 months. That means sterling is likely to remain languishing as investors await for further news of the talks. Ultimately with no real good news seen in the short term Euro buyers with pounds should be treading very carefully!

If you have any transactions to make in the future then making some plans in advance is very much worthwhile. We cannot just sit back and hope for the best in this market. If you need some information and assistance to help make an informed choice and decision about your FX transaction please contact me Jonathan Watson directly by emailing jmw@currencies.co.uk.

If you need to transfer amounts above £10,000 bank to bank across borders or within the UK I am very confident I can help you with your situation. Thank you for reading and I look forward to hearing from you.

What next for GBPEUR rates?

Overall the belief on the GBPEUR rate is that it will now continue to ebb lower and lower as the uncertainty over the UK’s political and economic outlook is overshadowed by much improved economic data and also political certainty in the Eurozone. Those who predicted the demise of the Euro and the Eurozone a few years ago are now facing some serious questions as the outlook for the Eurozone continues to improve. If you are selling Euros the likelihood of further improvements cannot be ruled out. The extra 2 cents gained for Euro sellers this week is an extra £1500 in your pocket per €100,000 transferred. If you wish to learn more about rate movements and how much you could save please contact me jmw@currencies.co.uk.

If you have a transfer to make buying or selling the pound and Euro the current trend is looking likely to favour the Euro but there could be surprises on the way. For example Mario Draghi was actually quite ‘dovish’ or soft in his comments yesterday during the European Central Bank (ECB) Press Conference. Nevertheless the Euro rallied essentially as Mario revealed there are plans to taper their bond buying purchases in the future.

This strengthened the Euro but Mario didn’t actually reveal too much on timings, that means that the market might actually have overreacted to his comments. This can often be the case on markets so Euro strength is neither guaranteed or assured. However looking at the overall picture and particularly against a weaker pound a further decline in the GBPEUR rate looks to me likely.

If you have a transfer buying or selling Euros we are here to help with the planning and execution of any transactions for the future. We can help with the forecasting and devising of strategies to help you maximise the transaction. Thank you for reading and please contact me if you would like to discuss anything further by emailing jmw@currencies.co.uk.

GBP/EUR, Calm Before the Storm? (Ben Fletcher)

Yesterday the GBP/EUR rate hardly moved half a cent across the whole of the day with very little changing in the market. Until the drop on Friday due to poor economic data for the UK, the rate had spent most of the week hovering around the 1.14 mark. This morning the rate is back above 1.13 and in my opinion there could be a opportunity for the rate to lift a little today.

MPC Members Speak Today

Two of the nine Monetary Policy Committee members will speak today Andy Haldane and Dr Ben Broadbent. The MPC are thought to be investigating whether a interest rate hike would be beneficial for the UK in the short term future. The two committee members who vote with the other 7 will provide their insights, if they’re hawkish and suggest a hike may happen that could provide market optimism boosting Sterling. Alternatively Andy Haldane is returning for his second stint on the MPC and was previously known for his Dovish attitude. There is of course every chance this is a non-event, but with little positivity around for Sterling any spikes in the market should be capitalised on.

In my opinion over the course of the next few weeks the GBP/EUR rate may move back towards the 1.14 but I find it hard to see anything much more substantial happening. The second round of Brexit talks will begin next week and we may get some further updates into how they’re progressing. However Theresa May is coming under so much pressure in the UK, even as much so that MP’s are calling for her resignation. If May was to resign then another general election would only add to further uncertainty and the GBP/EUR rate may drop below 1.10.

If you would like to ask me any further questions with regards to my forecast, please feel free to send me an email to brf@currencies.co.uk. If you send me a brief description of what you’re looking to achieve, I will respond within a few hours. Hopefully I can assist with devising a strategy to help you achieve your goal and potentially help execute the trade.

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.

 

 

 

Queens speech vote to influence GBPEUR exchange rates (Dayle Littlejohn)

As Theresa May failed to win the General Election by a majority the Conservative Prime Minister has been in negotiations with the Democratic  Unionist Party (DUP) and a minority Government has been formed. Members of Parliament will have the final vote on the minority Government later this afternoon.

For Jeremy Corbyn to win and effectively vote down the queens speech members of the conservative party will have to vote against Theresa May and I just cant see this happening. Therefore I expect the minority government to be officially formed by the end of the week which could lead to further sterling strength against the Euro and exchange rates to drift towards the mid teen territory.

Looking further ahead Theresa May’s position as Prime Minister will continue to be scrutinised and I wouldn’t be surprised to see the PM resign in the upcoming 6 months. This view is supported by American Financial Service City Group as they informed all of their clients that they expect Theresa May will resign in the upcoming months due to a Conservative rebellion. If she did resign the new Prime Minister could call another General Election which would weigh down on the pound further.

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! **

Sterling rises as negotiations begin, but will the Pound to Euro rate continue to climb as they continue? (Joseph Wright)

The Pound has edged up today against the Euro as well as against other major currency pairs, making the buying of oversea’s currencies a cheaper proposition than yesterday.

The reason behind the positive movements for the Pound can be put down to the latest updates regarding the Brexit process. It appears that the early stages of the Brexit negotiations are going quite well, which has boosted sentiment surrounding the UK economy moving forward and therefore the Pounds value.

I think that moving forward if the negotiations continue to go relatively smoothly, we can expect to see the Pound begin its recovery from its current levels, especially when when consider how the Pound is trading around historical lows against many currency pairs at the moment.

Against the Euro Sterling has lost around 5 cents over the past month or so, so there’s certainty scope for the currency to gain if things go to plan.

Next week Friday is likely to be once of the busiest days for GBPEUR as GDP data for the UK will be released around 9.30am. The expectations are for 2% annual growth so we’ll see how the currency performs in the wake of the news.

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.

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.