Tag Archives: sterling strength

Will the GBP/EUR rate breach 1.16 this month, and what’s causing the Pound to gain in value?

Sterling has performed well once again today, gaining by almost half a percent against the Euro and almost hitting 1.16 at its highest point.

Sentiment surrounding the UK economy and the Pound’s value moving forward has been improving recently, as the economy and a number of important stumbling blocks have been passed. Hopes of an interest rate hike from the Bank of England next month have jumped to the extent that the hike is almost set in stone. The BoE has hinted on numerous occasions that the rate hike is on the cards so I actually think that the interest rate hike has already been priced in so I’m not expecting to see a jump in the rate if it actually takes place. The risk is perhaps more to the downside as if there is no hike I think the Pound will fall.

The Brexit transitional agreement has already been agreed which is another reason for the stronger Pound. Moving forward there is the issue surrounding the Northern Irish border and I think this may pose a threat to a stronger Pound as the year goes on.

This week there will be the release of wage growth for the UK. This is a key area as wage growth had lagged inflation but now it’s expected to overtake the inflation level and therefore firm up the BoE’s interest rate plans. If you would like to discuss this economic data release in more detail 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.

 

Pound to Euro rate hits a 7-week high before BoE meeting (Joseph Wright)

Sterling has been strengthening throughout the week after news of the Brexit transitional deal being agreed has been met well by the markets.

It will be interesting to see whether the GBP/EUR pair can break above 1.15, because at the moment they are trading comfortably in the 1.14’s and these are around the highest levels for the pair going back as far as June. The 1.15 mark appears to be a ceiling for the pair so far, but there are a number of potential market movers that could push the pair higher.

Later today the start of the EU Summit in Brussels will begin, and the Brexit is expected to be a key talking point for those attending. As previously mentioned the most recent Brexit news boosted markets but it will be interesting to see whether any further commentary this week will affect the GBP/EUR rate. I would imagine that suit sentiments change the Pound will fall as it’s trading at the top end of its current range.

The increase in wage growth has also increased the chances of a rate hike from the Bank of England later this year, with many economists pencilling in May as the next time the Bank of England will opt to make the adjustment.

Some economists even believe that there could be two rate hikes which would most likely result in a stronger Pound as well.

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 drops as Brexit talks take centre stage, will GBP/EUR drop below 1.12? (Joseph Wright)

The Pound to Euro exchange rate has dropped this afternoon, as its emerged that draft guidelines on a trade agreement between Britain and the EU are published on Wednesday.

Donald Tusk, the chairman of EU leaders was in London to discuss the Brexit negotiations with UK Prime Minister, Theresa May recently. It will be him that presents the draft guidelines tomorrow so those interested in how the GBP/EUR rate is performing should be aware of this.

In the morning there will be GDP figures released out of the EU which also hold the potential to move markets. 0.6% is expected on a quarterly basis and 2.7% annually so expect any deviations from these figures to result in movement for the pair.

Then on Thursday at 12.45pm the ECB (European Central Bank) interest rate decision will be announced. No change is expected but those monitoring the rates should follow the statement at 1.30pm as any reference to future monetary policy may result in movement for the GBP/EUR pair.

It’s data this that can move the markets and a bout of poor data for the Pound is likely to see the Pound dip into the 1.11’s and consolidate there. The rate has dipped into the 1.11’s at times today so those with plans involving the pair should be aware of this.

If you would like to register your interest with me due to planning an upcoming currency transfer, 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.

Where next for GBPEUR exchange rates?

The market is looking more favourable for the pound lately but unfortunately for Euro buyers with sterling, this is not being reflected on the rates with better higher levels. This is because the Euro is stronger too, today we reconfirmed that Eurozone growth numbers have hit the best in a decade.

General expectations are for the pound to continue to perform better, particularly on the likelihood of an interest rate hike in May for the UK. The real question is will it be enough to outperform the expectations on the Euro. Improving economic conditions are linked to the global economy recovering which will see potentially both the UK and Eurozone enjoying better numbers.

Big news left this week is the UK’s Retail Sales figures on Friday which will highlight the performance of consumer behaviour in the UK, this is a key driver on the UK economy and could see some movement on GBPEUR exchange rates. If you are considering a transfer buying or selling the pound against the Euro then the Euro will continue to be an expensive currency to be betting against!

We offer a range of options to secure your currency that will ensure you limit your exposure to these volatile markets which can change suddenly and without warning. Keeping in touch with the latest news is the best way to mitigate the uncertainty, we offer a specialist system to update our clients on the news that will alter their rates.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk

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

Super Thursday results in a stronger Pound, where to now for the GBP/EUR rate? (Joseph Wright)

The Pound was boosted across the board of major currency pairs yesterday afternoon after the Bank of England delivered a far more bullish statement than many had expected.

Although interest rates were held at 0.5% there was talk of the stronger than expected global economy likely to result in a more aggressive approach from the BoE as soon as this year.

Financial markets are now pricing an interest rate hike into the Pounds value and it’s predicted that this could happen as soon as May.

There have also been forecasts of a higher GBP/EUR rate this year with TD Securities predicting that the rate will hit 1.1627 in the first quarter of this year. The rate went over 1.14 yesterday afternoon although there has been a bout of profit taking since as the pair have since dropped below this mark.

In such a sensitive political environment the rates can move quite dramatically so if you’re planning on making a currency exchange involving the pair, it’s worth making me aware of your plans so that if the rate spikes, I can keep you updated.

Those hoping for a stronger Pound should be aware that if there has less bullish comments from the BoE regarding monetary policy, the Pound is likely to lose a lot of the gains from yesterday very quickly.

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 key to GBP/EUR Levels (Daniel Johnson)

GBP/EUR- 1.15 seems to be a Resistance Point

GBP/EUR has been fluctuating between 1.12-1.15 for some time. The absolute peak has been just above 1.15 and has only been available for small windows. It soon retracts which could be attributed to profit taking.

One of the key factors on GBP/EUR at present is Brexit Negotiations. The uncertainty surrounding talks is keeping Sterling anchored below 1.15. If we have further clarity on how talks are progressing expect the pound to strengthen. There has been good news of late with both Dutch and Spanish finance miniters saying they would like a close relationship with the UK after Brexit and are forthcoming in regards to getting a deal in place. Angela Merkel, the German Chancellor made similar comments and as Germany is the engine room of the EU this caused substantial Euro strength.

Freedom of movement of people seems to be the sticking point in current talks, which is obviously a problem with the UK as one of the main reasons for leaving the EU was to have immigration control. I feel this decision will be key to Brexit talks. If freedom of movement of people is agreed by the UK I would expect GBP/EUR to breach 1.15 as trade talks can then progress.

QE could continue past September Target

Mario Draghi, the President of the European Central Bank has declared that the current Quantitative Easing (QE) program could continue past it’s September completion date. Despite record growth in the bloc in 2017 inflation is struggling and Draghi is reluctant to change monetary policy due to this. He has stated that inflation will move natural towards the 2% target, but I am not so convinced.

The need to continue QE shows a lack of confidence in the economy, although we are seeing record highs against the USD, this is more due to Dollar weakness than Euro strength. I do not think the Euro will make significant gains in Sterling unless there is a major hindrance in Brexit talks.

If you have a currency requirement I will be happy to assist. If you let me know the details of your trade I will endeavor to produce a free trading strategy. During a period of such uncertainty it is important to be in touch with an experienced broker if you wish to maximize your return. We have tools at our disposal to make sure you do not miss out if there is a spike in your favour.

If you already have a currency provider in place. Drop me an email with what you are being offered and  I am very confident I will be able to demonstrate a significant saving. It will only take you two minutes and I am  sure it will be worth your while. You can trade in safety knowing you are with a Foreign Currency Direct PLC, a firm trading for over 16yrs and FCA registered.

If you would like my help feel free to email me at dcj@currencies.co.uk.

Thank you for reading.

 

A good week for GBPEUR exchange rates

This week the pound has gained momentum against all of the major currencies and in particular the euro. GBPEUR exchange rates have been trading close to a 6 month high and many of my clients have taken advantage.

Early in the week average earning numbers exceeded expectation which was a big surprise as the Bank of England have been predicting that average earnings would continue to fall in the months to come. The problem the Bank of England have been facing is that inflation numbers have been outpacing average earnings.

Earlier today UK GDP numbers have also impressed. The consensus for the quarterly figures were 0.4% and the numbers were released at 0.5%. Furthermore the yearly numbers were set to be released at 1.4% and the number was released at 1.5%.

Central levels of exchange have finished in the 1.14s and for any client buying euros this is a window of opportunity that you may want to take advantage of. In the last 3 weeks, exchange rates have improved by 3 cents and I cant see how we are going to see any further improvements short term.

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 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.

Common clients I help on a daily basis are Sole traders, MD or FD of a company, property buyers and sellers. If you are one of the three and are currently using the bank to transfer your currency you need to be made aware that you could be saving money!

 

Will the pound continue to the rise against the Euro?

The pound had been struggling against the Euro for the last few months but finally, we have some reasons to be cheerful. The GBPEUR rate has hit a December high which was only previously reached back in May 2017. With the European Central Bank (ECB) meeting today to discuss their latest policy decision, further volatility could be ahead!

The general impression for sterling is that this run of form should continue as the outlook on Brexit improves. Some positive economic data for the Unemployment figures gave rise to more confidence in the UK economy, Angela Merkel was also reported saying she wished for close ties with the UK which was further evidence of the kind of support sterling is receiving.

Of course, the Brexit talks will begin soon enough and this will make it much more difficult for the positivity to continue indefinitely. Expectations for the pound remain for it to still struggle in the months and weeks ahead as new information on the Brexit is released.

If you have a transfer buying or selling the Euro against the pound then today’s news will be critical to the next direction the rates will take. Personally, I think the ECB will be positive about the future path on reducing their QE (Quantitative Easing) program which will give rise to Euro strength.

The market could, however, be guilty of pricing in the prospect of Euro strength so any deviation from this might actually see the Euro weaken. GBPEUR could easily be over 1.15 or up to 1.16. Equally, it could be back down to 1.12 or 1.13 by the end of the day.

If you have a transfer buying or selling the pound against the Euro we are here to help with the best rates of exchange and provide guided insight and information on the market for you, to help you make an informed decision about what might be the best way forward.

Please contact me Jonathan on jmw@currencies.co.uk to learn more.

What will happen on GBPEUR for the rest of January?

The pound to Euro rate has been trading in a very tight range for the last few weeks with a high to low variation of 1.12-1.1360. This is presenting a good time of consolidation for clients looking to buy and sell Euros to make plans surrounding better times to look at any currency exchanges. What is definite is that the rate will not stay like this forever and sooner or later we will see a change.

Key events will focus on the European Central Bank (ECB) meeting next Thursday 25th January. Investors will be closely monitoring any changes we might see in the economic policy of the ECB which might see a shift on the Euro. Overall expectations for the Euro centre around the reduction in their QE program and possibly the prospect of raising interest rates.

The Bank of England will meet in February, general impressions are that the pound will continue to rise if they do raise interest rates but this might not be until much later in the year. The UK has now falling inflation which would actually see the pound falling as it removes the pressure on interest rate hikes.

GBPEUR has been trading in a range of 1.10-1.145 since October so the prospect of any major deviation from this is limited. I would personally be expecting GBPEUR to remain this kind of range for the end of January. Most prospects for the future focus on the outlook on the pound to Euro rates remaining at these more favourable levels for Euros buyers.

If you have a transfer to consider in the future then making plans in advance is key to maximising the position. For more information at no cost or obligation on the best strategies to maximise your position please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

Sterling rebounds after last week’s sell-off, will GBP/EUR reach 1.14 again soon? (Joseph Wright)

The Pound to Euro exchange rate has been trading in quite a volatile fashion over the past week, after the pair breached 1.14 before trading in the 1.11’s in the immediate aftermath of the Bank of England’s rate hike yesterday.

The rate hike from the Bank of England (BoE) was the first in the last decade and widely expected to happen within financial markets even if not everyone agreed with the decision.

Personally I think the sell-off was simply profit taking from the likes of day traders, although I am surprised to see the Pound recover so quickly back to the levels seen just before the BoE decision.

Moving forward I think we may see a more resilient Pound and despite some negative economic data out of this UK recently, we’re still seeing the Pound slowly recover from the lows seen just a couple of months ago when I think the Pound was oversold.

Later today there will be the release of UK GDP data for the past 3 months, and this data will be released by a leading UK-based think tank. Data releases such as this one have the potential to move the markets, so if you would like to be kept updated regarding price movements as soon as possible, do feel free to register your interest with me.

For now at least it appears that the Catalonian independence issues have subsided somewhat, but should this matter surface once again I wouldn’t rule out a downward move for the Euro which would benefit the GBP/EUR rate.

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 on the Bank of England decision?

The Bank of England meet tomorrow to discuss their latest interest rate decision which is predicted to see the pound higher but there are no guarantees! The pound has already been rising against the Euro, the Euro itself weaker from the outstanding problems in the Catalonia region of Spain. GBPEUR will largely be driven by the Bank of England decision at 12 noon, plus the commentary after. GBPEUR could be in for a very busy day so if you need to buy or sell Euros getting in touch sooner than later could be best!

Overall the pound is stronger as markets are pricing in positive news but there could easily be surprises along the way. If you have a transfer to make then we could easily see some improvements for the pound but with much of the good news priced in for the pound we will need to see some very positive news to see a big change.

With much of the good news priced in, the scope for disappointment is high. Expectations are set for the Bank of England to raise rates but if they don’t then the GBPEUR level could easily slip and probably come down by as much as 2-3 cents. On good news however it may only climb a cent. Currently GBPEUR is at the best rates in 3 months so if you need to buy Euros gambling on further improvements carry risk!

If you are looking to buy or sell the pound against the Euro in the future then please make sure you are up to date with the latest trends and themes on the market. I am a specialist currency broker here to help with the planning and execution of any transfers that you will need to make in the future. Thank you for reading and I look forward to hearing from you!

Please email me Jonathan on jmw@currencies.co.uk to learn more.

Rate hike expectations pushing up the Pound, will this trend continue? (Joseph Wright)

The Pound has continued to climb against the Euro in the lead up to this Thursday’s interest rate decision by the Bank of England.

It will be at 12pm tomorrow when the decision will be announced and markets are expecting to see the base rate hiked by 25 basis points to 0.5%. This will be the first hike in 10 years if it goes ahead and likely to make financial headlines, although should it go ahead like many expect I think there will be quite a muted response by markets as the hike is already being priced in to the Pound’s value.

I think the risk lies in the not being a rate hike, as the Pound would be likely to fall quite dramatically due to there being many disappointed investors as well as speculators quick to try and take advantage of the fall.

For those of our readers planning an upcoming currency exchange involving the Pound, and hoping the expected rate hike will make the Pound gain more value I would be weary as due to the expectations of it happening I personally think it’s unlikely there will be much market reaction.

If you wish to be updated should there be any major movement do feel free to register your interest with me, as working on a trading floor allows us to react instantly to market movements.

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 continue to slide?

The pound to Euro rate has been slipping since Monday when we challenged the 1.13 but were ultimately unsuccessful as investors looked to the uncertainty surrounding a UK interest rate hike. The next direction on rates is all going to come down to, in the main, the prospect of a UK interest rate hike and then a Eurozone QE taper. I personally see GBPEUR losing more ground and retesting the 1.10 level in the coming weeks and months.

QE is Quantitative Easing and it is effectively pumping money into an economy through the purchase of assets and bonds by a central bank. The European Central Bank is currently engaging in €60 bn worth per month and investors believe they will scale this back. What this means is that the Euro will on such news, ore than likely strengthen.

Overall expectations are for the Euro to rise in value longer term but just lately the worries over Spanish independence and also the Austrian and German elections have seen the Euro weaker. Longer term I feel the strength in the Eurozone economy will see it through, I see more chance of the ECB acting to reduce their QE than the UK and the Bank of England raising interest rates.

If you are looking to buy or sell pounds against Euros the next two weeks are critical and will likely lead to swings and opportunities that might not be around for long. The best strategy I believe is to look at the market with our expert assistance to try and determine the most opportune moments to capitalise.

Sometimes exchange rates spike for just a few seconds and it is only through being prepared that we can help you. We are here to help you maximise any transfer, for more information on getting the best rates of exchange plus expert service and assistance, please email me Jonathan Watson on jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you and helping you maximise your exchange.

 

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.

GBPEUR bounces back but for how long?

The pound has bounced back against the Euro today largely because of the swing on EURUSD as investor concerns over the US dollar fade. EURUSD has risen to almost 1.21 yesterday but it is now back to 1.19 representing a series of profit taking and market fluctuation which has presented some improved levels for Euro buyers. Tomorrow is a very busy day for the Euro with all important Unemployment and Inflation data due out. The pound could find further form against the Euro in my opinion, not because of any fundamental reasons, eg news but more positioning as traders look to take profits on existing trades.

Much of the currency market’s movements are to do with speculators who essentially move money to make money. That doesn’t mean one man trading for personal gain at home, but hedge funds, banks, investment companies and pensions funds. Much of their work will be to manage FX positioning, essentially trying to make money from the market in a speculative manner. This will account for a large degree of the movement on the currency market so trying to understand this thinking helps explain the movements.

With GBPEUR having moved down below 1.10 it will find it increasingly difficult to rise above 1.10 and we could now struggle to see rates rise back above 1.10. What might be more likely is the market and speculators trying to push the level down to parity. If you need to buy Euros with pounds you could easily find this gets more expensive over the long run. However tomorrow or at present could offer a good short term opportunity.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you.

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.

Will GBPEUR slip below 1.10?

Dismissed as no longer a likely exchange rate the GBPEUR rate has been very close to the 1.10 level as investors take positions on the Euro which represents a much more secure currency versus the GBP and USD. The Euro has risen to a 2 1/2 year high against the US dollar and is currently enjoying close to a 9 month high against the pound. The outlook for the pound and Euro is such that it would not be at all surprising to see GBPEUR below 1.10 very soon. If you have a transfer buying or selling the pound and Euro making plans around this possible scenario is I believe very much recommended.

If you look at what is driving the pound it is obviously the uncertainty over the Brexit and the economic decline this has caused. More recently the pound had been higher on the prospects of the Bank of England raising interest rates but this is not materialising. Last week Inflation dropped leading to the pound dropping as this effectively rules out any UK interest rate hike in 2017 or maybe further.

There are no guarantees over an interest rate hike for the UK in the future and it is a dangerous gamble for clients buying Euros to be holding back from a purchase just hoping that rates will rise in their favour. Most clients looking to buy Euros should be preparing for further losses as this could easily fall lower.

The Euro is much stronger as politics and economic supports the Eurozone. Expectations on GBPEUR could easily the rate below 1.10, if you have a transfer to make buying or selling Euros for pounds making some plans in advance is wise. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk

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.

What can we expect next for GBPEUR exchange rates?

What is the likelihood of GBPEUR rate rising much higher is a very common question I am being lately. Trying to second guess the market and hoping for big improvements often leads only to disappointment when expecting a certain outcome. The pound against the Euro is in a very volatile situation at the moment which could easily see the rates quickly and unexpectedly changing, keeping up to date with the developments is a crucial factor to ensuring you maximise the transfer.

This week we have a number of important data releases which will be crucial to determining the next steps on the currency pairing. Overall I expect the market to favour sterling weakness but much of this has been built in to the current rates and therefore we will need some fresh new bad news so clients looking to buy sterling need to be careful holding back just waiting for rates to improve.

We aim to offer clients a clear forecast of current evens and work proactively to help determine the very best times to trade and buy currency. If you have a transfer to consider then understanding the coming news and information is critical to getting the best deals. For more information at no cost or obligation on what to look out for in the coming weeks to help you get the best deal please do feel free to contact me directly by emailing jmw@currencies.co.uk.

Tomorrow is UK Inflation and then Thursday is the latest European Central Bank Interest Rate decision, these are big events and trading them properly and understanding the outcomes could potentially save you hundred or thousands depending on the outcomes.

Thank you for reading and I look forward to hearing from you and working with you to achieve the maximum for your transfer.

 

Will GBPEUR rise or fall on the French elections?

The general impression is that  GBPEUR will rise since the French election offers lots of potential for Euro weakness in the coming months. The overall impression on financial markets is that a Le Pen or Melenchon victory would severely weaken the Euro, with a real chance at least one of these candidates will make it through to the second round after Sunday’s first round vote the single currency could be in for a tough couple of weeks. What happens is very much open to interpretation, nothing should be taken for granted in such uncertain times, however.

The overriding expectation is that the French election will ultimately be won by the more centrist ‘reformer’ Macron. Performing well in the polls the market is expecting he will beat Le Pen in the run-off on the 7th May. If you have a Euro buying requirement the rates on Monday morning could be much improved as the market debates the likelihood of a Le Pen victory.

The pound has been much stronger on the back of the General Election announcement earlier this week for the UK. Most reports have the pound much stronger in the next few weeks as Theresa May cements her position and is able to drive through more reform. A flipside view is that with her relying less on the elements in the Tory party who seek a harder Brexit, she will be forced to create more of a softer Brexit. This is one of the reasons for the pound rising but such elements and expectations can quickly change.

If you are buying or selling the pound and euro in the coming days and weeks the importance of the French election and the continued Brexit fallout shouldn’t be underestimated. With only a few days between the two rounds of the French election Euro buyers might find they are presented with a fresh unique opportunity to buy Euros, the best in 2017 so far.

If you would like some assistance with the timing and planning of any currency transfers please contact the author Jonathan Watson directly by emailing jmw@currencies.co.uk