Tag Archives: Sterling exchange rates

The number of GBP to EUR parity forecasts increases, will GBP/EUR hit 1.1 by the end of the year? (Joseph Wright)

The talk of Brexit negotiations beginning badly is having an impact on the Pounds value against all major currency pairs, but it appears that the GBP/EUR rate has been the biggest loser in all of this so far.

Recent comments from David Davis, the Brexit secretary have added fuel to the fire after he revealed that Michel Barnier ‘is getting quite cross with us’. Michel Barnier is the EU’s chief negotiator which just goes to show that the UK going to need to get a move on regarding its Brexit negotiation plans.

With there being less likelihood of an interest rate hike this year from the Bank of England now that inflation pressures have subsided there have been a number of major financial institutions forecasting parity between the Pound and the Euro in 2018.

In just the last week, Morgan Stanley, HSBC and now City Index have all made this prediction which gives those planning on making a large GBP to EUR transfer a decision to make as the rate is currently just below 1.10.

If you would like to be kept updated regarding the Pound to Euros price movements do feel free to register your interest with me.

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

What can we expect now for GBPEUR?

The pound to Euro rate has slipped from 1.1040 at the highest this morning to now 1.0948 at the lows. This is not good news for any clients buying Euros and the pain could be compounded even further tomorrow with the latest UK Unemployment information plus also the latest Wage Growth information. Markets will be looking closely to the latest news on the UK’s Unemployment situation to try and determine just what is around the corner in the coming weeks and months. Overall further sterling weakness cannot be ruled out!

If you are buying Euros with pounds some form of protection seems sensible as we prepare ourselves for further losses in the future. The pound looks like it could well improve on the back of any good news but so far there does not seem to be much of it around. If you are looking at the market from the current perspective it is all very sterling negative, in such a market all it can take is one piece of good news to suddenly change the picture.

I doubt tomorrow’s news will be this trigger but it is certainly something to be most aware of and for clients looking to buy or sell Euros with pounds to be conscious of. GBPEUR has been trading at the best rates for clients looking to sell Euros for pounds since 2011. This is an excellent reason for clients looking to sell Euros to by pounds to capitalise, whilst it might get better can you really afford to take the risk of missing out?

For more information on the best exchange rates and when to look at making your currency exchange please contact me Jonathan Watson by emailing jmw@currencies.co.uk. The pound is at a very important juncture against the Euro so making plans sooner than later is sensible in my opinion.

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

GBP EUR Exchange Rates Find Support over 1.10

The pound has slipped in afternoon trade despite making some attempts at a rally earlier in the day. Sterling exchange rates have found support against the Euro at around 1.10 for GBP EUR.

A gloomy post Brexit outlook which is being portrayed by much of the media is not helping reassure the markets and ultimately British consumers. There are also concerns of a consumer slowdown as a result of higher inflation and there are some concerns in the construction and housing sectors which are helping push the pound lower although so far these are not that significant. The Bank of England reduced the growth outlook for the UK last week which has also taken the shine off sterling.

As a result those clients looking to sell Euros are seeing excellent trading prices which are still available. When parliament returns from the summer recess in September there is likely to be considerable market volatility for the pound. Discussions surrounding Brexit which have been held in private are expected to come into the public domain very shortly and this could have the effect of strengthening the price of the pound.

One of the reasons the pound is so weak against the Euro is because of the lack of detail as to what the future relationship between Britain and the UK will ultimately look like. In my view any detail offered here should only be seen as positive for the pound. Depending on what comes out there could be some better buying opportunities in the coming months. For those clients who need to buy Euros rates are struggling at present but the targets of 1.15 – 1.18 for GBP EUR should become available again. Anyone with a pending requirement would be wise to make contact to discuss your options and how to make the most of the weaker exchange rates which we are starting to become used to.

If you would like further information on GBP EUR 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

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.

Will GBPEUR rise or fall in July? Important news for GBPEUR clients….

Since the UK election GBPEUR has only moved 2 cents between the high and the low which some would read as boring, I read as opportunity! Clients looking to buy or sell the pound or Euros following say an overseas property purchase or sale, should be preparing for further volatility on the foreign exchange market that could well present some fresh opportunities to maximise their exchange rate. On a €100,000 sale into sterling a cent at current levels is £750 more in the sellers pocket. We work to highlight improvements on the market to clients in such positions to help them make an informed choice about when to execute their exchange.

If you have a transfer to consider buying or selling Euros for pounds getting the timing on your exchange correct is critical to getting the most for your money. With GBPEUR having been trapped in a range between 1.1270 and 1.1468 there has not been much opportunity for either Euro buyers or sellers to capitalise. I have many of my clients who need to buy Euros for an overseas property purchase or to pay business Invoices holding off expecting the rate to recover. And too, many of my Euro sellers are also holding off expecting the pound to crash!

With so many different potential outcomes from the rates being prepared is vital to capitalise on spikes or to limit any losses. A very popular contract type at present is a limit order whereby we look to automatically purchase a currency for you if we do get to a certain level. Popular Limits buying Euros are at 1.15 currently.

If you have a transaction to consider in the future then making some plans in advance is crucial to getting the best deals. We can very easily set up one of these orders to help limit your exposure and maximise the return.

For more information on the GBPEUR forecast and the best way to maximise your rate please speak to me Jonathan Watson to get a full overview and discuss strategy. Please email jmw@currencies.co.uk with an overview of your position to get the latest news and updates.

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.

Sterling rises after Bank of England hints at a rate hike (Joseph Wright)

The Pound appears to have consolidated above 1.14 against the Euro, making the buying Euro rate cheaper for those holding Sterling.

There are current 8 voting members of the BoE and yesterday almost half of them voted in favour of hiking rates, which caused the Pound to jump by over half a cent as soon as the news broke around lunchtime.

The reason behind the Bank of England’s voting members that would like to see a hike is most likely the rising rate of inflation in the UK, which is eating into consumers spending power as wage growth is beginning to stall within the UK.

Raising the interest rate would act to lessen the blow and it’s also a positive for the Pound so I do think we can expect to see the Pound climb if rates are going to rise for the first time in a decade.

Later this morning the Bank of England’s Quarterly Bulletin will be released which could send the markets either way depending on what’s said. If you would like to be kept updated with data releases that can impact your upcoming currency exchange plans do feel free to get in touch.

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 to Euro rate continues to trade towards the lower end of its current range, will this trend continue? (Joseph Wright)

The Pound is continuing to come under pressure as we get closer to the election, especially as a number of prominent opinion polls this week have shown that the lead the Conservatives had is diminishing with some suggesting that they may not win a majority of seats required.

If the option polls are correct we could be looking at another Hung Parliament in the UK which I believe would push the Pound lower and probably back towards the 1.10 mark.

The current trend for the GBPEUR pair is between 1.1350 up to 1.1950 although a couple of times towards the back end of last year the rate did touch 1.10 twice before seeing support.

A steep drop for Sterling is in my opinion likely if a Hung Parliament is announced, and I don’t think that the current UK Prime Minister has done herself many favours this week by not attending the debates between the political rivals in the race for number 10.

If you would like to be kept up to date with the latest market updates do feel free to register your interest with me and I’ll be happy to keep you updated.

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 hits one-week low as Bank of England lowers growth forecast (Joseph Wright)

The Pound to Euro exchange rate has dropped to its lowest level in a week yesterday as data from the disappointed.

The Bank of England (BoE) slashed its growth forecast as yesterday’s quarterly inflation report confirmed that inflation levels within the UK will soon outstrip earnings growth. Sterling has dropped below 1.1850 this morning as the softening of the Pound continues although the currency is still towards the top of the current trading range.

Those considering a Sterling transfer should bear in mind that earlier this week analysts at Lloyds bank downgraded their GBP/EUR price target from 1.18 to 1.16 at the end of 2017. This level is below the Pounds current mid-market value, so it seems that some professionals expect the pound to fall as the year goes on.

I also think that if it surfaces that Brexit negotiations have begun badly, we could see a sell-off for the Pound as the setting up of new trade agreements is likely to be the governments priority as the UK enters a time of uncertainty. Now that economic data is playing a more prominent role in the value of the Pound it’s certainly worth paying a close eye on data releases as they’re impacting Sterling rates to a greater extent than last year when politics played a greater role.

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 breaks 1.17 as services sector remains strong, will the pair hit 1.20? (Joseph Wright)

The UK economy was given a boost yesterday as data showed that its most important sector is performing well.

Economists had anticipated growth in the UK’s services sector but the figure came out higher than they had expected, and the reason Sterling saw a boost of the back of this data release is because the services sector accounts for around 75% of the UK’s economy.

For this reason data releases reflecting the health of this area of the economy can result is swings within GBP exchange rates. Due to the UK entering what could be considered a sensitive time as Brexit is now underway I expect to see these figures followed closely and I think we may see dips within the Pounds value should these figures disappoint.

Another news release which could be watched closely is Gross Domestic Product figures as these will also reflect the health of the UK economy. The next release comes out tomorrow at 1pm and the expectation is for a figure of 0.6% so expect any major deviations from this figure to result in swings within GBP/EUR exchange rates.

If you would like to be kept updated regarding major movements between the Pound and the Euro do feel free to register your details with me.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Pound drops as UK government plans to trigger Article 50 this afternoon (Joseph Wright)

Late last night Prime Minister Theresa May signed the letter triggering Article 50, and this letter will be delivered to the President of the European Council, Donald Tusk later this afternoon at 12.30pm.

This will officially start the Brexit process in which the UK has 2 years to leave the European Union, and in this time the UK will be doing its best to set up trade negotiations both in Europe and outside of it.

In the early hours of this morning the Pound dropped, which is a change to the currency’s general direction over the past week or so as we’ve seen the currency gain. Yesterday the pair hit 1.16 which was GBP/EUR’s highest level since the beginning of the month, and since this mornings drop the Pound has recovered some ground as it appears the currency is struggling for direction.

I think there could be some further swings during today’s trading session, especially this afternoon once Article 50 has been triggered and May offers a speech. Should she give anything away regarding the UK’s plans moving forward I think there could be movement in either direction for the Pound’s value.

If you would like to be kept updated regarding major news and movements within GBP exchange rates do feel free to get in touch.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

 

What will happen to GBPEUR after Article 50 is triggered?

Once Article 50 is triggered I expect the pound to enter a new phase against the Euro although at the moment I cannot see it breaking it out of the recent ranges of 1.13-1.18 we have been trapped in. The pound and the Euro have both found support in recent weeks as solid economic data and improved political certainty aid both currencies. The US dollar has also weakened lately, the main beneficiaries being the pound and the Euro. Both GBPUSD and EURUSD have both risen 3-4 cent in the last couple of weeks ever since the US failed to increase their interest rate hike expectations.

There is a distinct lack of volatility in the market on GBPEUR at present with only 60 pips (0.6 of 1 cent) movement between the high and the low yesterday. Eager Euro buyers may well see some improvements once Article 50 is triggered but I cannot see it lasting long as there are some big questions on the horizon which I foresee as likely to contribute to a decline in the value of the pound. I cannot see how the UK can come out of these negotiations with a better deal than it has already with the EU.

Clients reading GBPEUR for spikes to buy Euros could find some relief around the time of the French elections although Marine Le Pen is not expected to win so any spikes could prove short-lived. I also feel it would be a risky strategy holding on since who knows how weak the pound will be at that time?

The UK’s relationship with the EU has been the downfall of many a Prime Minister and a politician, David Cameron the most recent example. Can Theresa May navigate this rocky road with her reputation and the Conservative party intact? History tells us that the odds are stacked against any success here.

If you have any requirements to buy or sell pounds and Euros in the coming weeks and months then tomorrow’s news and the political fallout on both sides of the Channel will be key to determining the direction on GBPEUR in the future. If you would like some proactive assistance with the timings of any transfer then please feel free to get in touch as I would be interested in speaking to you and offering some information on when may be the best time to buy your currency.

Please email jmw@currencies.co.uk to learn more.

Jonathan Watson

 

Will GBPEUR continue to fall? (Dayle Littlejohn)

It’s been a terrible month for Euro buyers and I am far from surprised. GBPEUR exchange rates have dropped over 4% since the start of the month and therefore central levels have breached 1.14s. To put this into monetary terms a €200,000 purchase is now £7,500 more expensive.

If you are a regular reader for weeks I have been stating that March would be a tough month for the pound as UK Prime Minister is set to trigger Article50 at some point. It was reported towards the end of last week that MPs within the House of Commons will debate the House of Lords amendments and Theresa May could trigger Article50 as early as next Tuesday.

For euro buyers I expect rates of exchange to continue to slide this week therefore if you are needing to purchase I would recommend sending my your requirements today and I will give you a call first thing Monday morning to disucss your transfer drl@currencies.co.uk.

In other news the Bank of England are set to release their latest interest rate decision Thursday afternoon. No surprises are expected therefore rates should remain unchanged. However as always when Governor Mark Carney addresses the public expect volatility as he will discuss how Brexit is impacting the Bank of England’s monetary policy.

For euro seller we are closing in to the fantastic rates of exchange that we saw last October and when Theresa May triggers Article50 it is very difficult to predict how the pound will perform in the upcoming months therefore I would take advantage of the gains you would have made this month.

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

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

Will GBPEUR hit 1.20 this week?

The pound to Euro rate is looking very attractive at the moment from a Euro buyers perspective as we get closer to understanding further just what Brexit negotiations the UK are aiming for. The Euro is weaker as investors are concerned over just what lies around the corner politically and fresh Greek debt concerns raise their head. Today is some very important UK economic data which could well help trigger some further improvements for the pound against the Euro.

If you are looking at the market this week there is lots of UK economic data which could move the market including the release of the latest UK Inflation data. The rate of Inflation is rising which is weighing on the Bank of England to perhaps consider raising interest rates in the future. As Inflation rises the common tool to combat higher Inflation is raising interest rates. Will the rising Inflation lead to fears over a decline in UK living standards or will a rise lead to investors placing bets the UK could raise interest rates sooner than previously hoped?

After this data at 09.30 we then have Eurozone data on GDP at 10.00am. All in all I think the Euro is going to err on the weaker side which will continue to present better opportunities for Euro buyers but of course there is the danger of the pound slipping with so much uncertainty over the Brexit looming. If you have a transfer to consider buying pounds or euros in the coming weeks then I would be looking very closely at what is happening politically in both the UK and Eurozone.

I am very confident I can help you with any currency transfers you will need to make by saving you money over other companies plus providing some useful information as to what might happen. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk

GBP EUR Supported after Upbeat UK GDP (James Lovick)

Sterling exchange rates continue to hold at these recent higher levels after a solid week of good gains. Rates for GBP EUR are now sitting at 1.1750 which is presenting anyone that needs to buy Euros with some better buying opportunities. It is only 1 month to go now before Article 50 will be invoked under UK Prime Minister Theresa May’s diary for Brexit.

The Gross Domestic Product figure from the national Institute for Economic and Social Research (NIESR) arrived steady at 0.7% showing no sign of any slowdown in economic growth. There has been little market reaction to the news and it is most likely that it is the overall uncertainty of Brexit which is preventing the pound from pushing higher. The NIESR is an excellent precursor to the official GDP numbers and it is encouraging that there has not been a slide lower which should help keep the pound supported.

In the Eurozone Greece has once again started to dominate the headlines and its inability to reform and difficulty in making its debt repayments could become another problem for the Euro. The Euro really suffered in the Summer of 2015 and it was only when Greece accepted another bailout the Euro started to gain.

On the one hand Brexit is keeping the pressure on the pound but it is my view that once the negotiations get underway the pound could actually perform well against the Euro when considering both the issues of Greece and the EU elections which are just around the corner.

Clients needing to buy or sell Euros would be wise to keep a very close eye on these political developments as the exchange rates will be directly impacted. This is where we can assist in helping you time your foreign exchange transfer.

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

GBP Exchange Rates Slide after High Court Blocks New Case (James Lovick)

The pound has fallen again today against most currencies after a substantial fall across the board yesterday. The Eurozone received unwelcome news in the form of weak retails sales numbers for December although it did little to impact on sterling Euro rates of exchange.

GBP EUR is now sitting just below 1.16 and the drop today is most likely as a result of a court case that was blocked in the high court earlier.
A new court case was put forward to the high court this morning which was being used to try to establish whether Parliament must be consulted on Article 127 of the European Economic Area Treaty.

This tackles the issue of remaining in the single market and whether or not UK Prime Minister Theresa May must go through parliament to give notice of the UK’s departure. However in a twist today the High Court have blocked the legal challenge and have stated that the case is premature. This is a win for the British government today but it also means for the time being that the harder type of Brexit is still the more likely outcome from all of this. To date a so called hard Brexit has proved negative for sterling exchange rates.

With Brexit literally around the corner the pound could come under renewed selling pressure as there is a degree of uncertainty that goes with invoking Article 50. GBP EUR may have considerably further to fall in the short term. Those clients looking to buy Euros would be wise to get in touch as the next 6 weeks are likely to see further pressures on the pound.

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

GBP EUR before Bank of England Meeting (James Lovick)

The pound is hitting resistance at these higher levels with GBP EUR sitting just below 1.17. This week and next could see substantial volatility for sterling exchange rates as the Brexit bill to invoke Article 50 is about to be scrutinised in Parliament.

There are a fairly large number of MP’s who are highly likely to vote against the bill so there is still a chance that Brexit could be delayed if things are held up in the House of Commons and House of Lords.

Any politically sensitive issues that come out of this could see heightened volatility for the pound as the final destination of Brexit could become less clear. Politics continues to be the single largest driver for sterling exchange rates and will continue to do so for some time.

The Bank of England will meet this Thursday to discuss interest rate policy and although no rate change is expected the markets are likely to pick up on any comments from Bank of England governor Mark Carney.

The quarterly inflation report is also released on Thursday and this is likely to be particularly interesting for the Bank of England as to the future path of interest rates. Any suggestion of rising inflation is likely to create a degree of sterling strength as despite an amount of uncertainty that comes with Brexit there is still a real chance that interest rates may start to climb either this year or next. There are likely to be some buying opportunities after the meeting.

European data is relatively light this week although EU Gross Domestic Product figures later today could crate some volatility for Euro exchange rates.

If you would like further information on sterling exchange rates 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

GBP EUR ahead of Trump / May Meeting (James Lovick)

The pound has taken losses today against most major currencies including the Euro and US dollar. GBPEUR has fallen to 1.1720. UK Prime Minister Theresa May will meet US President Donald Trump today and there is an expected press statement from the Prime Minister this evening. There is a huge amount of interest in this symbolic meeting where a trade deal will be discussed and other UK US policy. This could lend support for the pound and there could be some short term gains for sterling exchange rates on the back of it. GBP EUR may have 1.18 in sight on a positive outcome.

The pound is especially volatile to political shocks at the moment with the biggest political upset of Brexit in decades. Sterling remains at these weaker levels and is likely to remain so although there has been some recent support of late. The pound turned around after Theresa May gave her Brexit blueprint last week which saw the pound move by over 2% against the single currency.

EU GDP numbers for the fourth quarter are released next week on Tuesday and could provide for an interesting market reaction especially if there is some weakness in the official numbers. The Eurozone has been battling with chronic low inflation and weak growth for years although inflation is just starting to inch higher as it is in the UK as a result of the recent climb in the price of oil. Whilst inflation is shooting higher, GDP is less likely to be on the rise so the Euro is unlikely to see real benefit.

 If you would like further information on sterling or Euro exchange rates 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

GBPEUR rises to fresh highs, what next?

GBPEUR rates have risen to fresh highs presenting some new opportunities for Euro buyers to buy Euros at much better exchange rates than previously thought. The pound to Euro rate rose to almost 1.16 which is a big improvement from the 1.12 that was on offer only a few days ago. Most analysts are worried about the pound in the coming months but Theresa May’s speech has given us fresh direction which could be well worth taking advantage of.

The pound has risen as Theresa May looks to set out a clear vision on her plans for Brexit. This will be in contrast to some of the EU leaders who will give a speech today and may well be looking to dampen May’s position. Expectations are for the UK to now approach the negotiations with some more vigour but it will interesting to see just the pound to euro rate reacts as we learn of updates from the EU as to how they have viewed the recent comments by May.

There is still plenty happening this week which could move the GBPEUR rate including the release of the latest UK Unemployment data today and then the European Central Bank interest rate decision and meeting tomorrow. Markets are very much focused on what is happening for the pound over Brexit but these events  could present some short term opportunities.

Friday is also Donald Trump’s inauguration which could really move the market as investors second guess the market and how Donald Trump’s policies will move global indices on currency and commodities. Most investors are now awaiting with baited breath the next twists and turns on GBPEUR, personally if I was buying Euros I would be cautious about holding on for too long.

For further information on the getting the best exchange rates please speak to me Jonathan by emailing jmw@currencies.co.uk. I am very confident I can help with some useful information and an exchange rate that will save you money over other sources, please feel free to contact me.

Thank you for reading.

Jonathan Watson

GBPEUR may rise towards the end of this week!

The pound to euro exchange rate could experience volatility towards the end of this week following a key piece of economic news from the United States. The US will vote on whether or not to raise their interest rate this week Wednesday and it is widely expected they will vote to hike rates by 0.25%. If you are looking to make GBPEUR exchange this news will have an impact on your exchange rate and the currency markets.

The US dollar is the worlds most traded currency and as such has very strong relationships with each currency. Simply put movements on the US dollar have bearing on all currencies. Therefore with the big decision on Wednesday night we could see the pound and the Euro reacting individually to the US dollar which will influence their own relationship.

The outcome of tomorrow’s decision will in my opinion weaken the Euro since the pound has generally been holding up against the US dollar. Therefore as the US dollar strengthens (assuming the Fed do raise rates) then the Euro should weaken which will present some better opportunities to buy the Euro with the pound.

This morning at 09.30 am is the latest UK Inflation data which will of course effect the pound, then tomorrow is the latest UK Unemployment data. Retail Sales for the UK is released Thursday when of course we will also have the latest news from the US Interest rate decision. Another factor in all of this will be the Inflation Eurozone data released Thursday, all in all this is a busy week for the GBPEUR rate.

I expect the GBPEUR rate to be higher towards the end of the week, if you have any transfers to consider please speak to me about how to go about forming a strategy to help you capitalise on any improvements. Please either email jmw@currencies.co.uk or call 01494 787 478. I would be very interested to speak with you and offer assistance with your plans.