Tag Archives: the best exchange rates

EU summit to take centre stage

Tomorrow and Friday EU officials will meet at the EU summit in Brussels to discuss everything that is impacting the Eurozone at present but the main focus will be the Brexit negotiations.

In recent weeks the UK and EU have come to a gentleman’s agreement in regards to the divorce bill, EU citizens rights and the Irish border. Nothing has been finalised however Michel Barnier has announced that stage 2 negotiations can now begin.

At the EU summit all of the EU leaders should confirm Mr Barnier’s thoughts which could give the pound a further boost against the euro. However as news broke last week that a deal has been reached i’m not expecting to see major fluctuations. In fact I would expect that GBPEUR breaks through and sits above 1.14 by the end of the week.

It’s quite clear to see that the UK and EU officials are trying to come to an agreement in regards to Brexit, and therefore I am optimistic the pound could continue its recovery against the euro in the early months of 2018.

For clients that are converting euros into pounds a €200,000 transfer generates you an additional £25,000 now compared to Pre Brexit levels. Personally I wouldn’t take the gamble any longer and would look to sell my euros and buy sterling as soon as possible.

The other key economic event that will impact GBPEUR exchange rates this week is the Bank of England’s interest rates. The Bank of England will keep interest rates on hold at 0.5%, however as inflation has risen to a 6 year high, the minutes should outline how the central bank plan to tackle the worrying high levels.

If you are buying or selling euros this year, today is the day to get in touch. Many people still believe the only way to transfer large amounts of money is through the bank and this is not the case. The company I work for enables me to give better exchange rates than high street banks which consequently means the individual saves money.

I would recommend emailing me with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company 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! **

Will GBPEUR rise or fall over December?

The pound is very volatile against the Euro on the shifts in the Brexit negotiations! GBPEUR rose by almost 1.5 cents against the Euro hitting some of the best rates in 3 months but the good news did not last with the DUP (Democratic Unionist Party) failing to back up Theresa May’s new position. This has seen sterling slide back below 1.13 this morning which is presenting a good opportunity for Euro sellers to buy pounds which might not last!

The overall impression is that the pound will rise further once any kind of deal is struck so if you need to buy pounds with Euros moving on this opportunity is wise. The flipside is that should the negotiations surprisingly break down and the DUP withdraw support for the Conservative Party, sterling could fall much further.

For the pound, there is more important news on the economy this morning with the latest Services PMI (Purchasing Managers Index) data released at 09.30 am. If you have a transfer to make soon then today’s data could be key to short-term movements. Whilst the headline Brexit news will be key to influencing the overall position I would not be surprised to see the pound strengthen on the back of this news as Services are a key component of the UK economy.

GBPEUR is extremely volatile at present as the markets tried to second guess the outcome of the Brexit negotiations and also the Spanish Catalonian election. If you have a transfer to make in the future this will be key too to movements on the Euro.

For more information on the GBPEUR forecast please email me Jonathan Watson on jmw@currencies.co.uk

GBPEUR spikes above 1.13

Overnight key Brexit developments have been made and euro buyers have reaped the rewards with exchange rates spiking from the lower 1.11s to the lower 1.13s. Reports are suggesting that the UK has offered €50bn as a divorce settlement which equates approximately to £44bn. No agreement has been made however it appears that the EU have welcomed the figure which in my eyes is a break through in the Brexit negotiations.

In recent weeks the amount of euros the UK would pay the EU as a divorce settlement has been the sticking point. Early this year the UK were suggesting they wouldn’t pay a penny to leave the EU and the EU wanted €100bn. It just shows developments have been made.

The next question is what next? This development shows quite clearly that the UK and EU want to eventually come to an agreement and I am optimistic that this will eventually happen. However the Irish border could be the next sticking point as Northern Ireland have stated they do not want a hard border.

On the 14th and 15 of December the EU will decide whether trade negotiations can begin. If enough progression has been made I expect the pound could continue to rise against the euro.

For further information in regards to GBPEUR exchange rates 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 the options available to you and the process of using the company I work for 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! **

Will rates on GBPEUR can we expect in December?

The pound has risen higher against the Euro nudging back over 1.12 this morning as the Euro softens slightly, partly on the back of concerns over the Irish political situation. Sterling is bouncing back against most currencies too on the back of the news that all banks had passed the stress tests as well. What events are upcoming in December and how will they influence the GBPEUR?

The main event for sterling I believe is the EU summit on the 14th – 15th December where the EU will decide whether or not the UK can now progress to the next stages for the trade talks to begin. Whilst the expectation is that this will all pass off relatively easily as the UK is now pledging more money to the situation, the potential for this to upset sterling remains high. Historically ‘deadlines’ with the UK and the EU see eleventh hour talks and excessive volatility.

The 21st December sees a big development on GBPEUR with the Catalonian election taking place which is effectively a referendum on independence or self rule. The possibility of this setting off fresh Euro fears is now increased, particularly when you consider there is also increased worry over Ireland, Germany and also Italy for next year.

GBPEUR has occupied a range of 1.08-1.14 in the last 3 months, with the worst fears over Brexit removed for now (eg a ‘no deal’ scenario), the potential for GBPEUR to now occupy a range between 1.10-1.15 seems more likely.

If you have a transfer to make buying or selling Euros and pounds and wish for the best rates and some of the latest news and market insight, please don’t hesitate to speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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

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 Wednesday’s UK GDP Figures impact the GBP/EUR rate? (Joseph Wright)

The Pound to Euro exchange rate has been relatively flat so far this week, although tomorrow there could be a spike in the rate as UK GDP figures are scheduled for release around 9.30am.

These figures could be significant as talk of an interest rate hike from the Bank of England next month is heating up, and for that to take place I expect the BoE to be hopeful of impressive figures as raising interest rates whilst economic output is struggling doesn’t really make sense.

With inflation levels in the UK hitting a 5-year high recently there is some pressure of the BoE to manage this, as we’re also seeing a reduction in consumer spending which has been one of the main drivers of the UK economy that’s performed well in the wake of the Brexit vote.

If tomorrow morning doesn’t being any currency movement, then Thursday may as the European Central Bank will update us on their most recent Asset Purchasing Program changes, which many analysts expecting to see a reduction in the current program. Depending on the amount we could see the Euro strengthen as reducing QE suggests the EU economy is normalising.

If you would like to be kept updated regarding any short term price movements between the pair discussed in this blog, 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 rise on the German election?

Many clients are looking to the German election as a possible event to which could create some fresh opportunities on the GBPEUR exchange rate. Many clients are predicting the pound will lose value against the Euro expecting the Euro will strengthen on the back of renewed political certainty in the region. Angela Merkel is widely predicted to win the Chancellorship, the market moving element will be the extent to which any anti-EU or immigration party performs in the share of the votes.

Overall the Euro is significantly stronger against the pound compared to the last few months and years but in the last few weeks the pound has fought back, mainly on the back expectations the UK will raise interest rates. Markets are predicting the UK will raise interest rates in the future but personally I would be skeptical about this happening. Nevertheless the market has to price this potential outcome into the rates and this is the reason for the strength of the pound lately.

If you have a transfer buying Euros with pound you are almost 5% higher than the lower points only two weeks ago. It is unlikely this will just keep rising particularly with the Euro performing so well on the back of improved political certainty in the region. Therefore clients buying Euros with pound should be very conscious of the potential for further setbacks or surprises working against them in the same fashion as events have helped them.

If you have a transfer to make in the future buying or selling Euros then why not speak to me by emailing jmw@currencies.co.uk, we can then help guide you through the processes and expectations on the rates plus ensure you get the best rates in the market.

UK Services data released this morning likely to drive GBP/EUR today, what other data should be watched closely? (Joseph Wright)

This morning the most important sector for the UK economy will be under the spotlight as Services PMI data is scheduled for release.

The figure will be released at 9.30am and it will cover business sentiment in the sector, which is particularly important for the UK economy as the services sector covers around 80% of the UK economy. Whether this figure impresses or not is likely to move the Pound to Euro exchange rate due to its importance, and those following the GBP to EUR exchange rate should kind in mind that the manufacturing and construction figures released over the past couple of days have been mixed which has resulted in a mixed performance for the Pound.

The services sector figure has higher potential to result in price movement and the figure expected for releases is 53.5 so this is the figure to look out for.

We’re able to provide our clients with guidance regarding the news releases and expected figures that could potentially impact their currency transaction requirement. If you would like to be kep updated regarding the markets do feel free to register your interest with me and I’ll be happy to discuss it with you.

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.

Pound to Euro rate in focus as it’s trading at an 8-year low, will the sell-off continue? (Joseph Wright)

Sterling is continuing to come under pressure this morning after breaching the 1.09 mark during yesterday’s trading session.

The breach of 1.09 has continued this morning as the pair are now trading at their lowest levels since 2009, with 1.0868 the lowest level the pair have hit so far.

This comes at a time where risk appetite worldwide is on the decline after US President Donald Trump’s threat to end the NAFTA agreement and shut down the US government if he doesn’t receive funding for the wall he plans on building along the boarder of Mexico.

There have also been a number of forecasts from major financial institutions recently suggesting the Pound could fall as low as 1 for 1 with the Euro, with HSBC, Morgan Stanley and Citi all making this same prediction for the pair in 2018.

Should these predictions comes true then it may be worth looking into the current exchange rates if you’re planning a large GBP to EUR transfer as there is still some distance to go should they be correct.

Tomorrow at 9.30am there will be the release of UK GDP data for the month of July, and there could be movement between GBP/EUR if this figure is released some distance from its expectation.

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 next week?

The beginning of a new month always sees a new set of economic data and next Tuesday we will have the latest UK data for the month of July. The data so for for Construction, Manufacturing and Services for the UK have all been showing weakness since the Brexit and this could be reflected int he data next week which would see the pound lower. Overall expectations for the UK remain subdued, meanwhile the Eurozone is going from strength to strength! If you have a transfer buying or selling the pound and Euro the current rates are at a very interesting point. Euro sellers for pounds have close to a 9 month high, Euro buyers with pounds could easily see levels slip. Both for buyers and sellers there are strong arguments in either direction!

I am expecting GBPEUR could easily trade in the higher levels in the coming weeks but much will depend on just how the trade negotiations are received. The pound has been largely unaffected by the latest developments in the trade talks, I think this is because nothing will be decided for at least a year possibly 18 months. That means sterling is likely to remain languishing as investors await for further news of the talks. Ultimately with no real good news seen in the short term Euro buyers with pounds should be treading very carefully!

If you have any transactions to make in the future then making some plans in advance is very much worthwhile. We cannot just sit back and hope for the best in this market. If you need some information and assistance to help make an informed choice and decision about your FX transaction please contact me Jonathan Watson directly by emailing jmw@currencies.co.uk.

If you need to transfer amounts above £10,000 bank to bank across borders or within the UK I am very confident I can help you with your situation. Thank you for reading and I look forward to hearing from you.

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.

 

How do I get the best GBPEUR rates for my international transfer?

The pound to Euro rate will this week generally remain at the mercy of the latest news on Brexit negotiations. So far we have heard that the Brexit Bill and the discussion of rights of EU nationals were top of the list to settle. Talks have opened amicably so far and there has been no major movement on the rates just yet. These pieces of news will be come out from time to time and should be carefully monitored for clients looking to transfer large volumes of pounds or Euros internationally looking for the best rates of exchange or optimum times to trade. For example clients looking to buy or sell overseas property or businesses making payments to foreign suppliers.

With these talks scheduled to carry on over various sessions there is plenty of potential for something unexpected to come out of the talks which could catch the headlines and trigger some volatility on GBPEUR exchange rates. The pound is looking like it could easily rise higher if there is a belief a softer Brexit will be achieved, if it looks like talks a running into difficulty we could easily see the pound drop lower.

If you have a currency exchange to make then making plans in advance is always a smart way to try and avoid the volatility on the markets. We can help with the timing, planning and execution of any currency deals you will need in the future. The general impression for the pound is that we will see some unexpected swings as we learn of firmer details of the Brexit talks but these could be sudden and unexpected.

We offer a proactive service to keep our clients up to date with the market and to help try and target a better deal. Exchange rates change very quickly creating spikes which for a a few minutes may present savings of hundreds or thousands of pounds depending on how you need to do or how big the movement is.

If you wish to learn more about the market and all of your options then please do not hesitate to contact me Jonathan directly to discuss how we can offer the kind of support that really does help lead you to a position to get the best rates. Please email me Jonathan Watson on jmw@currencies.co.uk to learn more.

Critical 36 hours for GBPEUR exchange rates!

GBPEUR has opened this morning flirting around the 1.15 mark as markets digest events for a crucial couple of days for this pairing. The headline event is of course the UK election which takes place today, results due early tomorrow morning. Today however we have the latest ECB (European Central Bank) meeting which will be closely followed for information relating to any changes in monetary policy from the ECB. All in all I expect the predictions will be correct and GBPEUR will rise as Theresa May secures a much larger majority although I don’t see a landslide.

GBPEUR has slipped down to almost 1.13 in the last week as markets begin to price in the possibility of a Labour win or indeed a hung parliament. With the election taking place at such a crucial time with Brexit running in the background markets are being careful to not be caught out. Markets were surprised by the Trump and Brexit votes of last year which saw big swings on exchange rates, this time investors are being very careful about placing too high an expectation on any particular outcome.

Overall nothing can be taken too much for granted as historically the Conservative vote has been largely underestimated in the polls, this was true following the 2010 and 2015 election so may well see Theresa May winning more the the polls indicate. I expect GBPEUR would fall down to say 1.12 on a hung parliament, 1.10 on a Corbyn victory and 1.16-1.17 on a majority of 50-80. Anything above 80 would probably lead to rates approaching the very high teens, should May match Thatcher’s landslide of 144 then I think 1.20 could be on the cards.

If you have a transfer to make making some plans around these important events is I believe crucial to getting the best deal and not missing out. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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

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

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

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

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

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

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

Euro on the charge, where next for GBPEUR exchange rates?

The pound to Euro rate dropped yesterday as UK Inflation data was shown to be rising at a faster pace than thought and this piles pressure on UK consumers. With consumers in the UK making up a large degree of the financial activity since Brexit, consumer behaviour is crucial to where the UK economy and sterling exchange rates ultimately heads.

The biggest factor for the Euro is at present is improved political news and also economic news. Eurozone GDP was confirmed at 0.5% yesterday and Emmanuel Macron made headway in forming a cabinet which has dispelled some of the fears relating to the Euro over the last few weeks. The economic outlook in the Eurozone is looking much more positive and with Angela Merkel’s party also faring well in the recent elections, much of the political fear and worry over the Eurozone is being neutralised.

This represents a shift as Donald Trump begins to encounter problems with not just the US economy but also politics coming under fire for leaking information to the Russians and also for firing the head of the FBI. The UK too is struggling politically, whilst Theresa May should win the election in June there is uncertainty there over just how it will effect the Brexit.

So all in all the Euro is benefiting from uncertainty elsewhere. I expect this trend to remain as we get closer to the UK election and Donald Trump continues to dance to his own tune with no tangible benefit to the US economy. GBPEUR could easily drift lower now down to 1.14 or 1.15 as we approach the UK election.

Today we have key data with the latest Unemployment figures for the UK so if you have a transfer to make please keep your eyes peeled for this morning’s data at 09.30 am. All in all if you have any currency transfers to make understanding the market and all of your options is key. For a detailed analysis of your position and how we might be able to help please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

Is the Pound to Euro rate trading at the top of its current trend? (Joseph Wright)

Many of our clients planning a GBP to EUR currency exchange have been waiting for some time for the GBP/EUR rate to exceed 1.20.

The pair have been locked between a wide trading range of 1.10 to 1.20 pretty much since the initial shock of the Brexit vote last June, and on a number of occasions the pair have bounced off of 1.20 as the level appears to be acting as a psychological barrier.

Whilst many are playing the waiting game some have based their trades off of mid-market levels in the high teens such as 1.19 – 1.1950 and so far this appears to be the smartest move.

Interestingly analysts at Lloyds bank have recently stated that they believe the Pound is trading at fair value against the Euro at its current levels, and that they aren’t expecting to see the Pound climb much higher.

Personally I think we will see the Pound to Euro rate test 1.20 once again but I think there will need to be a large weakening of the Euro specifically if we are to see the GBP/EUR pair exceed 1.20.

Later today UK GDP data will be released with 0.4% on a quarterly basis the expectation, so expect any deviations from this level to result in GBP/EUR volatility, and feel free to get in touch if you wish to be kept updated regarding this figure.

 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.

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.