Tag Archives: Sterling exchange rates

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.

GBP/EUR spikes upward on hopes of a Soft Brexit, will the pair breach 1.20? (Joseph Wright)

The Sterling to Euro exchange rate spiked to a new 3 month high yesterday afternoon off the back of comments from David Davis, the Brexit Secretary.

Those that have been following the Pounds performance this year will be aware that any talk of or indications of a ‘Hard Brexit’ has resulted in Sterling weakness, and the opposite can be said regarding allusions towards a ‘Soft Brexit’.

When answering a question in the House of Commons yesterday Mr Davis suggested that the UK government may be willing to pay for access to the single market and this comment was met with positivity, as the Pound reached 1.1956 at it’s highest point.

The Pound entered December in bullish fashion and this was a continuation of how it performed in November after the currency gained around 7-8 cents through the month.

Those waiting for the right time to convert Pounds into Euros have been presented with a substantially better trading level than they would have been if they made the deal a month before.

At our brokerage we’re able to offer commercial exchange rates meaning that the rates we offer are closer to the inter-bank level than those offered by typical high street banks/providers.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be 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.

Sterling Exchange Rates Before US Presidential Election (James Lovick)

Sterling exchange rates have seen very mixed movements across all of the major currencies today although it has been limited for GBP EUR. In my view the US Presidential election tomorrow is having major impact on all of the exchange rates as there is so much uncertainty as to which candidates Trump or Clinton will take office in the White House.

The pound saw a good boost against the Euro at the end of last week following the high court ruling which went against UK Prime Minister Theresa May. This spike proved very short lived though with rates down about 1 cent from the recent high of last week. The government are now taking the case to the Supreme Court and is scheduled to be heard in early December.

Considering the market volatility seen last week then this case will have major implications for the pound. Should the government win the case this time round then the pound in my view would most likely fall. Any clients who are still yet to sell Euros should be aware of this case and its implications. It is my understanding that the case could go either way which presents a real exposure for clients buying or selling pounds with big movements in either direction expected.

UK manufacturing production numbers are released tomorrow morning ahead of UK trade balance data on Wednesday. However with the US election tomorrow I would expect to see a more subdued day ahead of what could be a very volatile period on Wednesday.

Clients who are holding sterling are seeing a very volatile period at the moment which is unlikely to change any time soon. The Brexit jitters are keeping the pressure on the pound. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Sterling Exchange Rates Fall Lower on Parity Predictions (James Lovick)

After a small pickup in sterling exchange rates yesterday the pound has continued its run of losses again today. The predictions from UBS that the pound will fall to levels below parity is of immediate concern and this seems to already be starting to reflect in the price of the pound. Economic data is light as we end the week although UK manufacturing production figures released tomorrow could have a positive impact on the price of sterling.

We know that the manufacturing sector has been performing very well as a result of the recent weakness in the pound and so these figure are likely to be strong once again. A good number tomorrow could see the pound rally after what has been a very torrid weak with sharp falls in the price of sterling following Theresa May’s steer towards a hard Brexit. There is every chance of a small bounce back to salvage the week for those clients needing to buy Euros.

The main driver for the weakness in the price of the pound this week has been due to strong speeches from Prime Minister Theresa May and other senior cabinet members including Chancellor of the Exchequer Phillip Hammond at the Conservative Party conference in Birmingham.

Interestingly Mr Hammond is in the US today speaking to American banks to reassure them that Britain is open for business and to keep their business operations in Britain. This story should have more mileage as it is the banking industry which appears to have the most to lose post Brexit.

Clients who are buying or selling pounds or Euros are continuing to see a very volatile period at the moment which is unlikely to change any time soon. The Brexit jitters are certainly keeping the pressure on the pound. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Sterling Rates Ahead of Bank of England Meeting this Week (James Lovick)

The pound is in for a roller coaster of a week with the Bank of England meeting this Thursday where there is a great deal of interest as to what action may be taken. At the July meeting almost one month ago there was a high expectation the Bank of England would look to cut interest rates. However no action was taken. Under the previous guidance that Mark Carney that some monetary easing would be required it now seems very likely that there will be an interest rate cut this Thursday.

This would be negative for sterling exchange rates although the extent of which may be limited considering some of this news is likely to already be priced into the market. The pound fell sharply at the end of last week after a series of weaker surveys highlighted issues in the car manufacturing sector as well construction as the markets began to price in the likelihood of a rate cut.

The pound could fall lower if any additional measures such as Quantitative Easing are utilised. The Bank of England governor Mark Carney has referred to a “package of measures” which if he delivers could see sterling tumble lower.

Anyone buying Euros may wish to look for an opportunity earlier in the week to avoid disappointment.

The European banking stress tests released on Friday evening highlighted some banks as having some issues. Italian, Irish and Spanish banks in particular were shown to be the worst performers. Two UK banks – Royal Bank of Scotland and Barclays were also shown in a negative light although it hasn’t had any real impact on the pound.

If you have an upcoming GBP or EUR currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me 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 dropped 1% vs the Euro during today’s trading session, downtrend likely to continue (Joseph Wright)

It’s hard to remain optimistic regarding Sterling’s value moving forward at the moment, as despite a couple of days with positive economic news releases for the UK economy, the Pound is still on the decline.

Yesterday GDP figures were released for the second quarter of this year, and the figure actually came out above analysts expectations at 0.6% growth, although currency markets remained relatively unchanged.

Then earlier today Nationwide released UK House Price figures which demonstrated growth in the UK property market. According to their figures house prices grew 0.5% month-on-month in July and this figure topped analysts expectations.

With both figures coming out better than expected yet the Pound remaining in negative territory, I see this as a sign that the Pound will be under pressure as time progresses, particularly when figures are released highlighting a drop in economic activity since the ‘Brexit’.

The average inter-bank rate between GBP/EUR is around the 1.25 mark so at current levels we’re not miles from that benchmark, but many analysts prior to the ‘Brexit’ were predicting potential parity between Sterling and the Euro so it could be that we have further to drop over time, and I wouldn’t rule that trading level out entirely particularly if economic data out of the UK begins to show a steep decline in economic output since the ‘Brexit’.

If you are planning a currency conversion involving GBP and the EUR, it’s 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.