Tag Archives: the best euro rates

Very important week for GBPEUR exchanges! Both Draghi and Carney to speak!

Clients looking to buy Euros with pounds have been treading on pretty precarious ground as the market continues to fret about the political make up of the UK in the coming months and years. Theresa May’s deal with the Democratic Unionist Party (DUP) did little to spark interest in the pound and with the all important commons vote on the Queen’s speech this week sterling should remain at the whim of political developments. I expect the pound could move in either direction with the Euro as much as 2  cents in the coming week depending on a series of important data and events that are taking place.

If you need to move any currency around then making plans in advance is sensible to avoid being caught out like many have in recent weeks as markets take an unexpected turn! We offer a proactive service to help monitor and track exchange rates with a view helping secure the very best levels. If you have a transfer to make and wish for us some assistance please do contact me to find out more.

There is a light belief the Bank of England are making plans to raise interest rates however with the Governor Mark Carney against the idea we could have quite a battle on for that to become reality. We will really need to see some big shifts in the economic data but should we start to see the economic data improving the case for a rate hike will increase. For the Euro the week is fairly light on data but we do have Mario Draghi speaking who with his comments could easily move the Euro rates.

A higher interest rate makes a currency stronger as it attracts investment into that currency. The mere mention of a hike or speculation of one can do lots to a currency and the back and forth nature of commentary over raising UK interest rates lately has seen sterling to Euro rates see-sawing with the sentiment. Both Carney and Draghi’s comments have the potential to move exchange rates and clients looking to buy or sell large volumes of pounds and euros for say an overseas property purchase or business should be prepared.

This week is another potential choppy one with a host of speakers who will be commenting on the potential for interest rates with Mark Carney due to speak today and tomorrow. Markets will be eagerly awaiting any news on how the Governor is viewing events with his Financial Stability report due today. If you have a transfer buying or selling pounds for Euros I would not be surprised to see movements of 1 – 2 cents as we learn principally of developments in UK politics and economics.

If you have a transaction to consider and wish to get any information on the market or trends then please do speak to me Jonathan Watson by emailing jmw@currencies.co.uk to get the latest insight and assistance with the timing and planning of your exchanges.

 

How far could the pound fall against the euro (Dayle Littlejohn)

Over the last 8 weeks GBPEUR exchange rates have dropped 6 1/4 cents (5.5%) making a €200,000 purchase £9,250 more expensive.  

The pound has been declining due to Theresa May not winning the UK General election by a majority which has weakened her position as Prime Minister and also her power when negotiating Brexit. This week Brexit negotiations have begun and the PM has already backed tracked and gave the upper hand to the EU by confirming the divorce settlement will have to be decided before trade negotiations begin.

The Bank of England have also been making headline news. Three members of the monetary policy committee surprised the market by voting in favour of hiking interest rates but less than a week later Governor of the Bank of England Mark Carney talked down the MPCs decision confirming the Bank of England are not in the position to raise rates.

Looking further ahead I believe the pound could fall further against the euro due to Theresa May remaining under pressure as Prime Minister and Brexit negotiations. It was only 8 months ago when GBPEUR dropped below 1.10 so the scope is there. For euro buyers purchasing sooner rather than later is the safe option. The currency company I work for has the power to undercut any bank or brokerage therefore I would recommend emailing me for a quote drl@currencies.co.uk.

For euro sellers timing is everything. On a daily basis I help clients that have sold property in Europe and are repatriating their euros. With regular market information my clients make informed decisions of when to trade. If you are selling or have sold a property abroad and would like to make the most amount of sterling possible feel free to email me with a brief description and I will respond with the process of using our brokerage drl@currencies.co.uk.

 

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.

Will the pound to Euro rate continue to rise?

The pound to Euro rate will continue its volatility in the coming weeks as we get closer to understanding just what type of Government the UK will have in the future. Overall expectations for the future remain unclear as we try to understand what Brexit means and what type of  government the UK will have in the future. It appears a ‘hard Brexit’ is now less likely but with 80% of voters having voted for parties who remain committed to Brexit just what will the future entail? With such uncertainty hanging over the market and the pound the GBPEUR rate does seem very much poised to languish at these lower levels, a move further down cannot be ruled out.

Today is the UK Bank of England decision which could well see some volatility on exchange rates, the general belief we would see UK interest rates rising has been fading and concerns are now rising about the problems in the UK economy form Brexit, the outcome from all of this for the pound is no longer a question. The reality is that the economic conditions in the UK are not meeting expectation and we could be well in line for further falls in the value of the pound.

If you have a transfer to make in the future the outlook on the exchange rate is not looking great for Euro buyers. Euro sellers are now looking at much improved conditions and the market could easily favour further improvements. If you have a transfer to make selling Euros for pounds then the current market should not be taken too much for granted.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. I can  provide some insight and information regarding your situation and am very confident I can offer a rate which will save you money.

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

Sterling hits an 8-day high against the Euro as French Presidency fears hit the single currency (Joseph Wright)

The Pound to Euro rate exceeded 1.1750 yesterday afternoon and the pair have held strong above this level so far, as at the time of writing the pair are still trading above this level at the mid-market level.

What’s also interesting to see is that today’s low so far is 1.1756 which indicates to me that there could be support for the pair at this level.

With Sterling gaining slowly since the official start to the Brexit process it appears that the currency has hit its lowest level and it’s now on the recovery, which many within financial markets suggesting that the Brexit has been priced into the Pounds value.

What may help the Pound make additional gains against the Euro later this month is the French Presidential election. There have been fears and hedged bets against the Euro as there’s a chance far-right candidate Marine Le Pen could perform better than many are expecting. This would likely result in Euro weakness due to her plans for a Frexit, but over the past week the increasing popularity of far-left candidate Jean-Luc Melenchon has also weighed on the Euros value due to his views on tax tariffs.

Now that Brexit is underway economic data is playing a more prominent role in the currency fluctuations involving the Pound, so if you’re planning on making a currency exchange involving the pound and another currency do feel free to get in touch regarding these events.

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.

 

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.

 

Pound to Euro rate drops in wake in Dutch election results, where to next for GBP/EUR? (Joseph Wright)

The Pound has continued to lose value against the Euro throughout the month, and despite making a few fight-backs the currency is now lodged below the 1.15 mark at the mid-market level.

Late last night it was announced that Dutch Prime Minister Mark Rutte won the most seats in the parliamentary election, and defeated far-right hopeful Gert Wilders who was predicted to put in a strong performance. Had Wilders of won more seats or put in a stronger performance I would have expected to see the Euro lose value on fears of his plans to remove the Netherlands from the EU, but the win for the current Prime Minister has eased these fears which has strengthened the Euro further.

The Euro had been boosted recently after the European Central Bank recently confirmed that they will be tapering the current quantitative easing programme due to signs of the economy improving.

Moving forward I think we could see the Euro gain even further as the Brexit begins, particularly if it becomes public that trade negotiations are going badly.

Later today there will be an interest rate decision from the Bank of England, and although no changes are expected it will be interesting to see what governor Mark Carney has to say regarding the UK economy.

If you are planning to make a currency exchange involving the Pound and the Euro, 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.

Will GBPEUR rise or fall in March?

I expect the pound to Euro rate will both rise and fall in March as we face some interesting developments in the latest political and economic situations in the UK and also Europe. The triggering of Article 50 and the French and Dutch elections will all have a significant bearing on the market where we could see the rates rising and falling according to the prevailing sentiments in the market. If you have a question or query over the markets then making sense of the next few weeks is sensible in my opinion as we seek to establish some base for the future.

The pound could well come under pressure once Article 50 has been triggered which would see the rates falling to potentially 1.2-1.13 at the extreme. The converse argument is that actually, the market is more than likely to rise once Article 50 is triggered since this will give us some certainty over the Brexit and will give us some clarity over just what is around the corner for the UK. If you have a transfer involving the pound or Euro being prepared for this big event is vital to understanding the market and being able to take advantage of any improvements.

The Euro is likely to come under real pressure from the uncertainty relating to the French and Dutch elections which take place on the 15th March (Dutch) and French elections on the 23rd April and 7th May. Most commentators expect the Euro to experience further weakness from these events even if ultimately the likelihood is that neither of the danger candidates actually win.

If you would like more information at no cost or obligation please don’t hesitate to contact me Jonathan by emailing jmw@currencies.co.uk.

Will the Pound to Euro exchange rate struggle to break through 1.18? (Joseph Wright)

It’s been an interesting 24 hours for the GBP/EUR exchange rate after some key economic data releases out of both the UK and the Eurozone.

The Pound to Euro exchange rate did break through 1.18 yesterday morning as investors hoped for a high inflation reading out of the UK for the month of January, but as the figure released came out below analysts expectations the Pound was sold off and almost fell below 1.17 at the inter-bank level.

The reason for the fall is there is less likely to be an interest rate hike from the Bank of England whilst inflation readings aren’t surpassing market expectations.

Now that foreign exchange markets appear to have accepted that the UK will go ahead with a ‘Hard Brexit’ and that it’s likely to begin next month, economic data is beginning to have more of an impact on Sterling’s value whereas prior to the UK PM, Theresa May outlining the governments plans it was mostly sentiment that drove the Pounds value.

Interestingly the Pound has since recovered from yesterday’s fall and the GBP/EUR pair is currently trading around the 1.18 mark once again. It will be interesting to see whether this level will act as a resistance, and I think any readers with an upcoming currency requirement involving the converting of Pounds into Euros may wish to consider the current levels as we could see a fall in the Pounds value as the Brexit begins.

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.

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

GBPEUR rates could be in another volatile period!

GBPEUR rates have fallen since the beginning of October which begs us the questions what can we expect next? Since the 7th October and the settling following the ‘flash crash’ which saw the pound fall to below 1.10 GBPEUR rates have traded in a tight range of 3 cents between 1.096 and 1.125. with plenty of uncertainty coming up soon clients looking to buy or sell pounds and euros should be considering all of their options ahead of any changes or breaks from these recent ranges.

This week is the beginning of a new month so we have a whole host of new fresh data to pore over and give us clues as to how the relevant economies are performing. Yesterday Inflation data in the Eurozone was shown to be rising but there is still mounting speculation that a stubborn Unemployment rate and meagre growth will lead to further stimulus from the European Central Bank (ECB) in the future. This prospect is weighing on the Euro which is why this morning we sit around 1.1150.

The next event to keep an eye on is this morning’s UK Manufacturing data which I believe could help anyone selling the pound. Manufacturing is a big staple of the UK economy at around 12% of GDP and the weak pound has seen this area of the economy perform very well. Despite sterling not reacting too well to the recent good news of higher GDP ni Q3, I believe this release could help anyone buying Euros with pounds.

Wednesday, Thursday and Friday are all filled with more data from the UK most notably the UK Interest rate decision and Quarterly Inflation Report both on Thursday. Then we have the US Interest rate decision on Wednesday evening and Unemployment data and Non-Farm Payroll numbers Friday afternoon. These two releases will be very important for US Dollar rates which will undoubtedly feed into GBP and Euro rates too.

If you ask me the market has been too quiet in the last few weeks. This week’s data really has the scope to change the picture on GBPEUR rates so if you have a transfer in the coming weeks and wish to learn more please fill in the form or contact me Jonathan Watson directly on jmw@currencies.co.uk. I work as a Chief Analyst fort he UK’s largest independent currency brokerage and would be very interested to offer some support and information to help with your currency transfer.

What will happen to the GBPEUR rate next?

Today we learn of key information on the GBPEUR rate with two important speeches from Mario Draghi and Mark Carney. The outlook on GBPEUR remains fairly subdued for Euro buyers with I believe a strong prospect of further sterling weakness. The speeches today will help to provide some clarity on just what we can expect, personally I would not be expecting too much good news if I was buying Euros with pounds although there is some more data later this week which might help you if you are buying Euros with pounds.

The rate has fallen from its lofty heights of almost 1.20 6 weeks ago as investors learn of the UK’s apparent approach to the Brexit negotiations. Most commentators suggest Theresa May will be opting for more of a hard Brexit since trying to control the UK borders is incompatible with access to the single market. Just what kind of deal lies ahead we cannot tell for sure but it seems that it will not be one that is beneficial to sterling in the short term.

This Thursday is the latest UK GDP (Gross Domestic Product) data for the UK where we will earn of the latest news for the UK economy for Q3. This release is the latest release and the most up to date snapshot for the UK economy in this period. Expectations are for a slight decline in the rate of growth but hopefully no contraction. Whilst some areas of the economy struggled others performed well but overall it would appear activity will have been lower.

Despite the figures coming in lower the fact that they will still show the UK economy grew will I believe provide a temporary lift in the pound which could be supportive for anyone buying Euros with pounds. If you need to buy or sell the pound and the Euro I am your personal account manager here to help with any transfers you will need. For more information on the future direction of the rates and the planning and management of your deal please contact me Jonathan directly on jmw@currencies.co.uk

Will GBPEUR go higher?

GBPEUR rates could actually get a small lift this week as we learn of some important economic data and personally I think there is some potential we could see GBPEUR rates higher towards the end of the week. The are three main pieces are economic data which could lift the rates, either supporting the pound or weakening the Euro or perhaps both. Make no mistake the ball is firmly in the court of those looking to sell Euros for pounds but anyone looking to buy Euros with pounds needs all the help they can get right now.

UK economic data has actually been fairly robust since the Brexit vote with the economy growing and some areas such as Manufacturing benefiting from a weaker pound. The upshot for the economy overall has been better than expected but of course it is the political concerns and the prospect of what lies ahead which is the overriding factor. This was witnessed in the first week of October when a 2 year high on Manufacturing output was lost amidst the breaking news of Theresa May’s apparent decision to seek a ‘hard’ Brexit. Sterling crashed and very few took any notice of the good news on the Manufacturing data that same week.

Despite this some data will I believe have the potential to provide some small spikes in the value of sterling by reflecting that overall Brexit hasn’t so far been the disaster many had predicted. Today we have Inflation data and tomorrow Unemployment for the UK , both of which could help the pound slightly. These are post Brexit vote data releases and will reflect the period following the vote which should attract lots of attention. Thursday attention turns to the Eurozone with the latest ECB (European Central Bank) meeting which may see some discussions of QE (Quantitative Easing) which may unsettle the Euro.

GBPEUR rates may find some improvements if this data goes your way but waiting until these days could be too late. Even if you don’t need to transfer funds today making some plans in advance is usually the best way to reduce your risk and stress! As specialist foreign exchange brokerage we can provide all the information and tools you need to make an informed decision on the markets.

Life has been cruel for Euro buyers and this might finally be some good news which can help you to purchase Euros at a better rate than is currently available.

The author is Jonathan Watson, Chief Analyst and Associate Director at one of the UK’s largest private currency brokerages. You can contact Jonathan directly with your enquiries  by email on jmw@currencies.co.uk for more information at no cost or obligation.

Will GBPEUR easily hit 1.10 now?

The GBPEUR rate could now easily hit the 1.10 level if we see some of the key data for the pound slip as many are predicting. The pound has maintained a level of buoyancy against the euro with some much better than expected economic data. However many of the business surveys are pointing to big falls in consumer and business confidence. What is going on? The mixed picture is likely to continue but with the market looking ahead sterling has fallen.

Key data this month will be the latest GDP and Unemployment data which will be released next week and towards the end of the month. I am predicting the data might not be as bad predicted but unless it is really showing the UK economy is doing very well we might find the Bank of England looks to consider an interest rate cut. This is a big worry on financial markets since as we get closer and closer to the decision the outside chance of a rate cut will weigh on the pound even if we aren’t actually looking at one. The market will take into account all possible considerations! This is where we might see a move towards 1.10.

If you are looking to buy or sell the Euros in the coming months then making some plans in advance is key to fully understanding and managing your risk. Most analysts suggest the GBPEUR rate will slide further and clients buying and selling the pound need to prepare themselves for further volatility.

For more information on what lies ahead and how to best prepare yourself foe all eventualities please contact me Jonathan on jmw@currencies.co.uk

Finally some restbite for the Pound, and will it continue? (Joseph Wright)

Demand for the Pound has been in short supply recently as a number of brexit fears have resurfaced.

Since the disappointing inflation figure at the beginning of last week and then Boris Johnson subsequently suggesting that Article 50 may be invoked early next year, the Pound has been under pressure and we’ve seen it hitting levels levels very close to it’s 52 year low (1.1456) which is also it’s 3 year low.

Today has been the first day in a while where we’ve seen the Pound perform strongly, with the GBP/EUR exchange rate hitting a high of 1.1614. These gains are being put down to a number of positives for the Pound that that emerged over the past 24-48 hours.

One of the leading German banks, Deutsche Bank, is coming under increasing pressure at the moment as news of significant bad debt is surfacing. This coupled with the World Trade Organisation (WTO) announcing that they expect the UK to avoid a post-referendum recession has given the UK a real boost and today we’ve seen the Pound gain by almost a 1% vs the Euro.

Moving forward I’m expecting the Pound to come under pressure once again, and I think that those that took advantage of today’s spike have done well. Contacting our clients when there are positive spikes for the Pound is a service we provide so feel free to get in touch if you would like to take advantage of this free service.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk and I will be more than happy to contact you personally to discuss the various options we have available to you.

GBPEUR range bound at 1.17-1.18… so what next?

GBPEUR rates have been trading between 1.17 and 1.18 since the Bank of England decision last week as sterling slips under the uncertainty of just what is around the corner for the GBPEUR exchange rate. If you happen to be buying Euros at the moment the expectation is the pound will fall further ahead of the next Bank of England meeting where the Bank of England are predicted to cut interest rates even further. If you have a transfer to consider buying Euros it does appear that the pound will lose further value before recovering. Plus the Euro whilst not doing particularly well has seen a light recovery following the news from Eurostat the European Statistics Agency that the Inflation picture has improved in the last few weeks.

If you have a transfer involving the pound and Euro it seems the pound will lose further value but of course nothing should be taken too much for granted on the currency markets. If you have a transfer to consider trying to sell Euros for pounds you are not doing too badly! The rates on offer for euros to pounds are some of the best in three years. If there is no further interest rate cut from the Bank of England then the pound will rise. The Bank of England indicated a cut in July but failed to live up to expectations. Who is to say they won’t again? This should be a warning to anyone buying pounds with euros hoping for more but not a valid reason for Euro buyers to hold off. This is because even if the BoE don’t cut interest rates the economic data is likely to be poor which will only lend weight to further Euros weakness. In short I believe the GBPEUR rates will have further to fall… possibly to 1.15-1.16.

If you have any transfers to consider involving buying or selling the pound making some plans in advance is sensible to take advantage of any spikes. For more information at no cost or obligation please speak to me Jonathan by emailing jmw@currencies.co.uk or calling 01494 787 478 and asking to speak to Jonathan.

 

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.

Sterling Drops Again as Brexit Fears Resurface After Brussels Attacks

The Pound was the biggest loser within currency markets yesterday, with the terrorist attacks in Brussels and poor inflation data taking most of the blame for Sterling’s slide.

UK consumer prices advanced at 0.3% year on year for the month of February, this was the same figure for January but still 0.1% below analysts’ expectations which has undermined market sentiment towards Sterling’s value.

I think yesterday’s attacks in Brussels have also weighed on GBP as support for a ‘Brexit’ could well be boosted after an attack like this, with migration and free movement within the EU again dominating news headlines, and supporters of the ‘leave’ camp building a case for leaving the EU as attacks like this become a regular occurrence.

The Euro gained almost a percentage point against the Pound yesterday as ‘Brexit’ fears gained off the back the attacks, additionally the most recent ZEW Survey (a measure of institutional investor sentiment) figures came out better than expected which boosted sentiment towards the Eurozone economy.

Thursday sees a number of UK Retail Sales figures released along with the Targeted LTRO (Long Term Refinancing Operation) figure from the Eurozone. The Targeted LTRO figure is scheduled for release at 10.15 am and I’m expecting this to be the most important economic release for GBPEUR this week.

If you have an upcoming currency requirement involving both GBP and EUR it may well be worth your time getting in contact with me (Joseph Wright) 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.

GBPEUR Rates remain under pressure!

Pound to Euro rates are still really struggling at present with investors keenly awaiting decisions on Bank of England Interest Rates tomorrow and of course the Federal Reserve in the US tonight. Today’s budget has done little on the markets, this is often the case where the budget is concerned as many of the stories are leaked early. It is fair to say the rates have not risen which is perhaps attributable to the fact this news is essentially underscoring what we already know, ie the pound is not a currency investors really want to be holding at the moment!

This is of course explained by the EU referendum in 3 months time, investors do not want to be holding a currency which is highly likely to lose value in the future. I am personally predicting a’Remain’ vote but we will need to factor in the possibility of the ‘Lave’ vote succeeding, this is of course what the markets have been doing.

The outlook on the foreign exchange market is now leaning towards GBP weakness although of course there will be spikes to help out clients buying Euros. If you have a transfer to consider please contact me Jonathan by emailing jmw@currencies.co.uk