Tag Archives: Sterling

Euro strengthens as ECB board member drops hint

We’ve seen the Euro strengthen during today’s trading session, as a member of the European Central Bank has dropped a hint regarding next week’s June ECB meeting.

The ECB’s Peter Praet has given us a strong hint during a speech in Berlin that next weeks meeting could see the ECB signal the end of their assett-purchasing programme. Some economists are expecting to see September as the cut off point which is actually an shorter time frame than initially expected. Personally, I’m expecting to see the Euro strengthen further if this announcement is made, especially after seeing the Euro react positively in the wake of Praet’s comments today in Berlin.

After some weak data releases recently and the Euro’s poor performance, the bullish comments today are a welcome change for Euro sellers as the Euro has been under pressure for a while now.

One downside for the Euro is the current political situation in Italy, and it could determine whether the ECB decides to amend their programme. The government that’s been formed through the coalition of Lega and 5 star movement is considered Eurosceptic and thrifty, and this has concerned the markets may cause the ECB to delay any key decisions.

If you would like to be updated in the event of a major move for the markets, do feel free to register your interest with me. Next week’s meeting will take place on Thursday at lunchtime, so our readers have plenty of time to get in touch and plan around this event.

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.

Mixed signals see GBPEUR remain range bound!

GBPEUR has been stuck in a tight range trading in a band of 3 cents in the last month. Over the last 3 months the range is 4 cents so there really has not been anything too dramatic occurring on the rate, compared to some of the more volatile sudden moves since the Brexit vote. Whilst we have begun to hit some fresh highs when it reached 1.16, I expect we will now remain in this more familiar ranges for much of June.

Despite the market being presented with Euro weakness lately over the Italian political uncertainty, the pound also performed badly as falling Inflation data removed the urgency for the Bank of England to be looking at any interest rate rise. We are seeing mixed signals and the market has not really been able to establish any fresh news to warrant any specific and significant jump outside of the ranges.

The possibility of the UK hiking rates was one such factor but this now appears highly unlikely in 2018. Sterling is better supported because of this longer-term potential and the progress being made on Brexit. However, with there being so much more to still finalise on Brexit, the pound is likely to remain on the weaker side.

Important news this morning is UK Retail Sales and then tomorrow’s GDP data as well. Overall, there appear to be more reasons to be hopeful of a longer-term rise in the value of the pound as we get final clarification on Brexit and European political fears increase. We might need to wait until the Autumn of end of 2018 for this to really manifest on exchange rates however.

June sees plenty to potentially move the market with the EU Summit and interest rate decisions from both the Bank of England and the European Central Bank. Despite this, I still feel we will remain within these 1.13-1.15 ranges which have now become so familiar.

Thank you for reading and please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

 

Is home-grown political uncertainty going to weigh on the Pounds value?

Political uncertainty has been behind the Pound’s losses for much of the past two years. Even when it looks like Sterling will stage a fightback it’s usually politics that drive the Pound lower.

At the moment the issues are surrounding the Brexit only from an internal perspective. Sterling exchange rates have come under pressure as rumors of internal issues within the Conservative party and the type of Brexit different factions want is causing disagreements. Jacob Rees-Mogg is the figurehead of a 60-strong pro-Brexit movement within the Conservative party, and there are talks of another snap election to try and pave the way for the type of Brexit they want.

Moving forward I expect Brexit to continue to influence the GBP to EUR exchange rates, although his week economic data is also likely to influence rates as both Inflation levels along with Retail Sales figures will be released over the next couple of days.

The chances are the Pound to Euro rate would be higher than its current position had the Bank of England decided to hike interest rates almost 2-weeks ago as some were expecting them to.

I think that markets will watch this week’s data closely as it could determine monetary policy later in the year. The markets are expecting a rate hike later in the year. If you would like to notified in the event of spike in the rate, 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.

GBP EUR Strength – Will Rates Hit 1.15?

The pound has rallied against the Euro taking rates for GBP EUR to a high of 1.1451 today. The pound has actually seen a poor day against all of the major currencies the exception being the Euro. The pound has been supported against the Euro after positive employment and average earnings data performed well. Unemployment remains at 4.2% which sits at a 42 year low whilst average earnings overtook inflation, something the Bank of England has been very keen to see happen.

After the bank of England held interest rates last Thursday the markets are beginning to question when the next interest rate increase will happen. The expectation is for a rate increase in August by 0.25% taking levels to 0.75%. If all goes well with a Brexit and a free trade deal is in place then this should allow the Bank of England to hike again by another 0.25%. A move towards 1.15 is not unrealistic although there are some Brexit headwinds approaching which could see the pound fall.

Clients look to buy Euros could see some better opportunities if the economic data in the UK improves and there is an increase in Quarter 2 GDP. Strong data in my view will settle those fears that the slowdown is more deep rooted than just the Beast from the East cold weather front and could help lift the pound considerably.

In the short term though the markets are more interested in the more pressing issues of the Brexit negotiations and the hugely important vote in the House of Commons in the next few weeks.

The House of Lords have made a series of amendments that will attempt to keep Britain in the EU single market and customs union. If the government were to lose the vote there could be a series of political events that follow including the prospect of a new prime Minister and / or a general election. In my view this poses the biggest risk for the pound in what is already a very uncertain period. A change of government could put the pound on very shaky ground and clients with pending requirements would be wise to consider planning ahead of the key vote. There is likely to be a lot of market volatility at that time.

For more information on sterling or Euro exchange rates and assistance in making transfers at the best rates of exchange then please get in touch with me at jll@currencies.co.uk

Pound weakens after hopes of a rate hike in May are dampened, where to next for the GBP/EUR rate? (Joseph Wright)

Financial markets had been pricing in an interest rate hike from the Bank of England since some bullish comments from the Bank of England last month.

The hopes of a rate hike have since dampened after some important comments from the governor of the Bank of England. Yesterday evening whilst speaking to the BBC, Mark Carney cooled expectations of a rate hike next month after not confirming that it would actually happen. There have been a few members of the BoE that have already voted in favour of hiking interest rates, and with the rate of wage growth in the UK now picking up and similar to inflation levels, many were expecting the base rate in the UK to rise to its highest level since the UK exited the recession.

Carney commented that he didn’t want to become too focused on the precise timing of the next rate hike, and although he didn’t rule out the hike he didn’t confirm it which has caused the Pound to weaken in value.

Sterling had been strengthening recently after the Brexit transitional deal has been agreed and hopes of the rate hike next month, so seeing the GBP/EUR rate drop from its highs isn’t a surprise.

There is still a rate hike likely this year although when it will happen remains to be seen. Next week UK GDP is due out on Friday, so if you’re planning on making a transfer involving the Pound and the Euro do feel free to get in touch as there is plenty of time to plan around next Friday’s release.

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 go even higher?

The pound to Euro exchange rate is now touching the best rates since May 2017 which easily begs the question can this continue? GBPEUR has touched 1.16 in what has been a very positive few weeks for the pound and some uncertainty for the Euro as investors look to the Bank of England poised to raise interest rates, whilst investors brace themselves for the ECB, European Central Bank to be less positive.

The next big piece of news tomorrow morning is Inflation data which is released at 09.30 am and this will provide further evidence on just how the UK economy is performing and whether we can expect the Bank of England to be looking to raise interest rates or not in May. To many, it seems foregone conclusion and this has helped the pound to rise to the levels that we have seen.

GBPEUR faces some more challenges next week with the latest UK economic growth data which will be the first estimate for Q1 for the UK, the snow is likely to have affected the UK economy and hence growth could be lower. Subdued growth for the UK is absolutely a concern which could derail further interest rate hikes, there is also an important ECB policy meeting next Thursday which could trigger some volatility in the markets.

If you have a transfer buying or selling the pound against the Euro then making plans in this turbulent time is very sensible to try and gauge the expected outcomes, if you wish to run through or discuss any transactions please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you and assisting with any transfers.

 

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.

 

GBPEUR breaches 1.15

Its been a fantastic day for the pound and GBPEUR exchange rates have breached 1.15 and remained above the key threshold that many of my clients have been looking to trade at over the last year.

With limited data releases today it is hard to state the exact reasons to why the pound has gained so much momentum, however I believe its because speculators have purchased the pound in anticipation that the Governor of the Bank of England Mark Carney will deliver a press conference this evening and be bullish about the interest rate decision in May.

With average earnings catching inflation many speculators believe the Bank of England will hike interest rates to 0.75% and this is one of the reasons that the pound is gaining momentum alongside the transitional deal being agreed last month. The question is what next?

Personally I am surprised the pound is as high as it is, and I would be extremely tempted to purchase now at a 10 month high. The trade negotiations are set to start in the upcoming months and I expect these negotiations will put severe pressure on the pound.

For further information in regards to GBPEUR currency transfers feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

GBP/EUR vulnerable to month and quarter end flows in next two days

Sterling has remained fairly range bound over the week so far, with very little in terms of economic data of note due out as we head towards the end of the calendar month and indeed the end of the quarter.

We do have some growth (GDP) figures for the U.K tomorrow which will show how the economy has performed recently but unless they are drastically different from analysts expectations then I personally do not expect to see this data causing too much in the way of market volatility.

What will be key and what may cause market volatility for this pairing is something known as month and quarter end flows. This is essentially where large institutions and funds net off their positions for the month, leading to large money movements and the market shifting without any prior warning.

There are also fairly substantial payments made from the EU to the U.K at this time of the month and quarter which can also lead to exactly the same scenario, giving anyone that needs to either buy Euros with Pounds or to sell Euros and buy Pounds a tricky situation where they need to have one eye on the market at all times, as it moves by the second.

If you are in the position that you have a transaction such as this to make and you would like our assistance, then we can watch the markets for you and make you aware of any spikes in your favour or adverse movements against you.

Should you wish to take advantage of our services, not only keeping you fully up to date but also ensuring you get the best rate when you convert your currency then it would be prudent to get in touch with me (Daniel Wright) directly and I will be more than happy to help you. You can email me on djw@currencies.co.uk and I will be more than happy to contact you personally.

Sterling Euro close to the best rate this year – What will tomorrow bring?

GBP/EUR exchange rates are now close to the best levels we have seen so far in 2017.

This is due to a number of positive economic and political data releases so far this week and we still have more to come too.

On Monday we had news that the EU and U.K had potentially come up with an agreement on a transition period which was seen as positive by the markets.

Yesterday we had inflation data out for the U.K and this morning we had news that unemployment figures had improved slightly, with most notably average earnings increasing to a level that is now back above inflation.

The reason this is key is that inflation has been above average earnings for a long time now, and that means that the price of goods and services is going up at a faster rate than peoples earnings, meaning the general consumer has less money in their pocket.

Tomorrow we see the start of the latest EU summit and brexit will no doubt be on the agenda so be wary of sharp Sterling movements at any point in the next 24 hours.

On top of this we have the latest Bank of England interest rate decision due out at midday. It would be a surprise to see a change in interest rates this time around, although after all of the positive news I wouldn’t totally rule it out, and the monetary policy statement shortly after should give us an indication on future plans, which would more than likely be confirming that they will be looking at a rate hike in May should nothing happen tomorrow.

If you have an exchange to carry out involving Pounds into Euros, or Euros into Pounds then I can help you achieve not only the best rates of exchange for this but I can help you with the timing of your transfer too.

Feel free  to contact me (Daniel Wright) by email for a free quote and discussion about your transaction on djw@currencies.co.uk and I will be happy to contact you personally.

 

 

Sterling makes minor gains against the Euro as the week nears an end

GBP/EUR exchange rates have slightly risen as the week nears an end, following on from one of the least volatile weeks for Sterling exchange rates that we have seen in over two years, with GBP/EUR in particular being range bound between 1.1150 and 1.1270.

The end of week spike appears to have been caused by news following the ECB (European Central Bank) interest rate decision which came out yesterday.

Markets had expected a decision on signalling the end of QE (Quantitative Easing) in the April meeting, but it appear that now will be pushed back to June or July according to reports on Reuters.

QE is generally seen as a negative for a currency, so any news that may signal the tapering or end of the QE program from the ECB would more than likely be seen as a positive for the currency, and any lengthening of the program or delays in the tapering of it can lead to Euro weakness, as we have seen this afternoon.

The start of next week is reasonably quiet in terms of economic data for both the U.K and the Eurozone but that does not mean that the rates will not move, with on-going Brexit talks absolutely anything can happen at any time with this particular currency pairing, and if you are in the position where you may need to carry out a large exchange between the two currencies then you need to be prepared to move should an opportunity arise.

If you are generally busy a lot of the time and you do not have time to watch the market then a proactive and reliable broker should be able to do this for you, if you would like me to do exactly that then you are more than welcome to get in touch with me directly. Having worked in currency exchange for over a decade not only do I understand the importance of keeping clients up to date with market movements, but also how much difference timing a transaction correctly can make.

If you would like my assistance, feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be happy to get in touch with you directly.

GBP/EUR has an up and down day – What does the week ahead hold?

Sterling started the day off on the front foot against most majors, getting up to almost 1.14 against the Euro only to drop away again over the course of the afternoon.

With a positive vibe around current Brexit talks and the chances of an interest rate hike in May for the U.K increasing, there are many reasons why investors would have an interest in Sterling once again.

Although Sterling has gained ground this year against most major currencies, it has struggled to make much ground up on the Euro, and comments from head of the European Central Bank earlier today suggested that Sterling will not make a huge impact on the Euro in the near term, not due to poor economic data from the Eurozone anyway.

Draghi mentioned that he felt growth in the area at present was stronger than he had anticipated, that he expects labour market conditions to continue to improve and that the relationship between inflation and growth had remained intact.

All in all this is fairly positive news for the Eurozone and this led to a little Euro strength, bringing GBP/EUR exchange rates back down below 1.1350 at the time of writing this post.

The most notable day of economic data this week will be on Friday, where we have Prime Minister Theresa May due to speak and address Britain on the current Brexit approach and situation. Investors and speculators will be hanging off of every work that is spoken throughout this for any hints on current plans or notable progression with talks.

This may lead to a volatile day for Sterling against the Euro so if you have an exchange to make in the near future be sure to keep a keen eye on the markets over the course of Friday.

If you are looking to buy any Euros with Sterling or should you need to bring a large sum of Euros back into Sterling then it is well worth getting in touch with me directly.

I can help you both in terms of timing your transfer, keeping you up to date with any spikes in the market and of course getting you the best rate when you come to book the deal out.

For a free, no obligation discussion on how I can help you with this important decision please feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be happy to get in touch with you personally to see how I can help.

GBP/EUR up as the week closes – Sterling gets a small lift

GBP/EUR exchange rates ended the week on a high as news throughout the week suggested that talks both within Britain and outside of it appear to be going well and progressing reasonably.

Any positive news on Brexit can give Sterling a lift, even if nothing has actually happened just yet the mere speculation of good news does appear to help the Pound.

Unemployment figures earlier in the week had led to a little Sterling weakness but the Pound fought back as the week  neared an end. Governor of the Bank of England Mark Carney remained fairly hawkish (or Positive) in his tone when discussing the U.K economy and the chance of interest rate hikes for the U.K in the coming months.

It is now expected that there may be an interest rate hike in the U.K as early as May, and should speculation of this continue then I would expect to see the Pound continue to rise in the coming weeks.

As mentioned above however Brexit news does still create the possibility of a slip should there be any negative release so this really is a market that you need to keep[ a very close eye on at all times.

If you are looking to buy any foreign currency with Sterling or should you need to bring a large sum of foreign currency back into Sterling then it is well worth getting in touch with me directly.

I can help you both in terms of timing your transfer, keeping you up to date with any spikes in the market and of course getting you the best rate when you come to book the deal out.

For a free, no obligation discussion on how I can help you with this important decision please feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be happy to get in touch with you personally to see how I can help.

Sterling Euro exchange rates get close to a 9 month high – Draghi knocks it back

Yesterday saw GBP/EUR exchange rates get close to the highest levels we have seen in almost 9 months, following a positive vibe around  U.K economic performance of late and comments from Angela Merkel that she would like to see a close relationship with the U.K post Brexit.

As the day progressed those highs quickly vanished, as we heard from head of the European Central Bank Mario Draghi during the ECB interest rate decision and press conference.

Draghi did not make any sweeping changes to fiscal policy but he did make a few comments including the fact that he felt that current economic data within the Eurozone points towards solid economic growth and that he also is not targeting the value of the Euro.

Comments earlier in the week from other members of the ECB had suggested that they feel that the Euro is too strong and that this is impacted European exports, which led to belief that Mario Draghi may seek to do something to tackle this, this speculation had weakened the Euro a little and the fact it didn’t happen then allowed it to fight back.

The Euro gained almost a cent against the Pound during the press conference and also managed to hit the best rate against the Dollar  in 17 months.

Personally I would not be surprised to see the Euro be fairly solid throughout the course of today following on from yesterday, however should this strength against the Dollar continue they will have to consider doing something, which is turn may weaken the Euro against the Pound.

If you have a Euro exchange to make in the coming days, weeks or months ahead then  it may be prudent to get in touch with me directly, Not only will you find that you save money on your rate of exchange but also you will find that our level of customer service if extremely high too.

You can email me (Daniel Wright) directly on djw@currencies.co.uk with an overview as to what you are looking to do and I will be more than happy to get in touch and discuss your situation personally.

Retail sales figures fail to impress this morning, positive brexit outlook still holding Sterling strong

We have just had the release of Retail Sales figures for the U.K a short while ago and unfortunately figures have failed to impress and fell short of analysts expectations.

Usually this would have hit the Pound fairly hard and we would have had Sterling weakness, however it does appear that we are currently witnessing a bout of positive vibes surrounding Brexit negotiations and progress and this is currently giving the Pound a bit of a boost.

My opinion at present is that I would not be surprised to see Sterling exchange rates have a good year, there is of course the potential banana skin that Brexit talks may suddenly take a turn for the worse and at that point the Pound may struggle, but in general things to appear to be ticking along fairly well, and due to this fact alone I think Sterling will reap the benefits of this.

The European Central Bank do have a part to play and should they move to completely cut back on their QE program and start to make more positive economic decisions then the Euro could still continue its fairly good start to the year.

One possible setback for the Euro is the Italian elections which are due on 4th March, these should bring uncertainty for the Euro as there is still quite a bit of uncertainty over the potential victor, so keep your eyes peeled for more news throughout February for this.

If you have a Sterling/Euro exchange to make (either buying or selling) in the coming days, weeks or months and you would like assistance not only on the timing of your transfer but also with achieving the very best rate of exchange too then I can help you personally.

Feel free to get in touch with me (Daniel Wright) by emailing me on djw@currencies.co.uk and I will be more than happy to get back to you. Having now worked at the same foreign exchange brokerage for over a decade I am well placed to assist you and will be more than happy to help

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

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

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

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

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

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

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

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

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

What can we expect next on GBPEUR?

GBPEUR has risen as the pound strengthens on the back of increased expectation that the Bank of England will soon raise interest rates in the UK Investors are betting that this will happen and this will see the pound stronger in the future. If you have a future requirement to buy or sell Euros against pounds the coming weeks will be crucial to how the future direction on rates shape up.

As mentioned the Bank of England is talking about raising interest rates which could happen as early as 2nd November. If this is the case then the pound should rise since there is growing speculation that this will be the case. Ultimately I feel the expectation is too high and the Bank of England will be very cautious, the propensity for a volatile pound is high.

The Euro is looking very strong but it is weaker from the recent highs owing to the news regarding the German election. Angela Merkel’s diminished position has seen the Euro weaker, there is also key economic news to be concerned with too. So for example the latest ECB decision where we might learn of any tapering of their QE program could see a volatile period on the Euro.

Ultimately I expect the Euro to remain stronger against the pound since it is highly likely the uncertainty over Brexit will continue to be a weight around the neck of the pound. Therefore if buying Euros with pound moving sooner on any uncertainty is the best way forward to avoid the risk of losses.

Thank you for reading and for any further information regarding the best rates of exchange buying and selling Euros please do contact me by emailing jmw@currencies.co.uk

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

Will GBPEUR keep rising?

The pound has risen to fresh 3 month highs against the Euro as we get closer to understanding when the Bank of England might raise interest rates. Overall there is a much stronger belief that the Euro will rise after the German election but of course there are no guarantees as to what will ultimately happen down the line. It would not be surprising to see this rally for the pound carry on but of course the German election will be a thorn in the side of Euro buyers next week.

The actual election is on the 24th September but that is a Sunday so Friday next week and Monday will be the main days we will see movement on the currency markets. Therefore if you have a transfer to buy or sell Euros for pounds making some plans around the upcoming events is sensible, I am sure if you need to buy Euros and you see the rate go back down to 1.10 you would be most disappointed!

The pending German election could be a good opportunity for any Euro sellers who failed to capitalise on the improvements we saw two weeks ago to recoup some losses. However overall I would not be surprised to see the pound much stronger overall owing to the outcome from yesterday’s Bank of England meeting.

If you have a transfer to make soon or even in the coming weeks then making some plans around this latest twist on the market is I believe very sensible. 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 in the future.

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

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

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

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

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

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

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.