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GBP/EUR Rates Rise Again (Matthew Vassallo)

GBP/EUR rates have spiked again during Tuesday’s trading, with the recent gains for the single currency fast disappearing. The EUR had made gains across the board last week, in particular against the Pound and it did seem as if a move back below 1,35 was on the cards. However, as often happen the currency markets have proven unpredictable and Sterling has now regained much the lost ground following a run of positive economic data releases.

The EUR initially lost some ground following the release of this morning UK Gross Domestic Product (GDP) figures. The official figure of 0.5% growth was revised up to 0.6% and this was the catalyst for the day’s move. GBP/EUR rates spiked by almost 2 cents from high to low and this has one again moved the pair back close to a 6 year high.

Looking ahead and with a shorter trading week due to the Easter bank holiday, it is likely we will we will see additional volatility in the markets. I anticipate that it will need be Thursday’s UK Construction data and the European Central Bank’s (ECB) latest monetary policy meeting accounts, both of which are likely to drive market movement on the currency pair.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provide, then please feel free to contact me directly on mtv@currencies.co.uk

UK GDP to impact Sterling Euro exchange rates (Tom Holian)

Sterling Euro exchange rates finally picked up on Friday after a difficult week for the Pound.

The Bank of England governor Mark Carney suggested that the next movement for UK interest rates could be up in spite of falling inflation recently.

Earlier in the week Bank of England chief economist Andy Haldane suggested the UK’s next move could be to cut interest rates but clearly Carney’s comments arguably have a lot more weight to them.

Next week the UK publishes GDP data due out on Tuesday.

The expectation is for 2.7% and with Retail Sales recently showing much better than expected figures I think the news could be positive for the Pound meaning a very good opportunity to buy Euros on Tuesday afternoon.

Another reason why Tuesday could be the day to buy Euros is that the Eurozone publishes inflation data in the form of the Consumer Price Index.

With inflation a real concern for the Eurozone this is what led the ECB to introduce such a large amount of QE in the first place so if the data is still low expect Sterling to rise against the single currency.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Volatile day on the markets as Mark Carney battles markets (Joshua Privett)

The difference between the high and the low today was more than a 1.5 cents. Mark Carney’s speech today was fantastic example of how much a single speech can affect market activity.

I predicted he would come out with calming tones about inflation to try and install more confidence in the UK recovery. The fact that interest rates were even mentioned was a surprise. The fact that he said the timeline had moved forward to raise them was a complete shock. In a matter of minutes Sterling moved up by more than a cent against the Euro.

This is a lesson in global economic climate. With interest rates being kept low for so long, investors are desperate for potential profit. Even emerging markets with traditionally higher returns are slowing down. Hints of rate rises are enough to flood demand for any currency, and hence bolster their value, visible on your screens at home.

However, the effects of a looming election brought rates back to the low 1.36′s. This has certainly been the trend over the past few weeks, though recent movements have shown the momentum is slowing.

The first bit of data that brought rates back up was UK retail sales. It’s possible that GDP figures for the UK on Tuesday next week shall present similar buying opportunities for those looking to purchase Euros.

Email me for some more tailored advice about your situation over the weekend on jjp@currencies.co.uk 

Euro Exchange Rate News – When to BUY Euros? ( Andrew Bromley )

Exchange rates have stayed stable today, despite much better than expected UK Retail Sales figures. We’ve also seen good figures forecasted for the use of the Bank of England, also expected to provide Sterling with a boost. As neither have assisted the Pound in breaking the 1.36s and above, I’d now be inclined to say that this will be the top of the trading range. Tomorrow morning Bank of England Governor Mark Carney speaks in Germany, potentially hinting at using the tools available to him that could de-value Sterling. Carneys reasons for doing so are to stimulate further UK export growth, as Monday UK Factory output was reported at a 2 year low. A stagnant UK export industry would be poor for overall UK economic growth, so should be seen as worrying for EUR buyers.

I personally think that the falling GBP is a sign of the future trend, as from next week UK Election build up properly starts. Parliament is dissolved from 1st April, so with politicians back on the war path to win their seats, expect the Pound to be on the receiving end. In every former period of political instability, the Pound has crashed, so there’s no reason for a change in trend now! Euro sellers should prepare themselves to take advantage…

Euro Buyers (as noted above) would be wise to consider buying now. If you do have a transaction requirement but don’t have the full funds available – I can help! Feel free to contact me directly on the direct line to the trading floor – 01494 787 478 – ask for Andrew Bromley! Alternatively, drop me an email AJB@currencies.co.uk

If you are selling Euros and would like assistance, please also feel free to drop me a line!

Andrew Bromley

GBP-EUR Rates – Firmly Established in mid 1.30′s

Euro leaders have only recently shown solidarity in times of tragedy. Yesterday’s devastating crash in the Alps being an example. But hopefully steps are being made in the right direction.

Angela Merkel, Germany’s Chancellor, and her meeting with Alexis Tsipras, Greece’s Prime Minister, was subsumed by diverted media attention and necessary changes to Merkel’s schedule. Both leaders had agreed that Greece needed structural reforms – although whether they meant the same ones remains unclear. To unlock further bail-out money from its European creditors, led by Germany, Greece must convince them that it is serious about reform. In February, Greece were using war reparations as a bargaining chip with Germany, pictures of the two leaders now shaking hands reversed some of the negative effects the prolonged stand-off had on the value of the Euro.

There was little data released today to cause substantial swings in the currency markets. However, tomorrow retail sales figures for the UK will be telling. Previously this data has produced significant Sterling strength. Those looking to buy Euros may have opportunities tomorrow after a torturous few weeks hoping for the rates to go back up towards 1.40.

The Euro today gained a lot of value against the US Dollar. US Durable Goods figures (massive market orders, for example planes and large volumes of cars which take a long time to produce), came in lower than expected. Signalling a lack of confidence concerning the durability of the US recovery. This sent the Dollar down against all currency pairings, giving the Euro a little boost.

If you have a Euro requirement and wish to plan or be offered an extremely competitive quote against your bank, then call into the trading floor on 01494 787478 and ask for Joshua. jjp@currencies.co.uk

Will GBPEUR hit 1.40 again?

The foreign exchange market is a very fickle beast, sometimes markets can fluctuate quickly and unexpectedly. The current market is one such market with exchange rates very difficult to predict and very likely to fluctuate. Therefore if you need to buy or sell Euros for sterling being prepared is the only way to benefit, simply ‘hoping’ rates will go the way you have planned is not good enough and will often lead to disappointment!

The next few weeks will see economic data released and political uncertainty from the UK’s General Election and also the Greek situation as well. Keeping up to speed with all the latest news is the only way to really make the most from your currency exchange. If you need to buy or sell the Euro please contact me Jonny on jmw@currencies.co.uk for all the latest events and news that will affect your rate!

Are we Seeing the Start of a EUR Fightback? (Matthew Vassallo)

The EUR has improved since that start of the trading week, particularly against Sterling. GBP/EUR rates have dropped by almost 4 cents from the high on Monday morning, to the low of today. Due to the consistent momentum seen in Sterling exchange rates over the past couple of months, the Pound has almost become a victim of its own success.

UK factory orders released yesterday showed a drop to their lowest figure in 2 years and this has reinforced fears that UK exports have been suffering due to the rising value of the Pound.  Our Eurozone trade partners are being priced out of the market, a scenario which was always likely given the movement on the exchange rates.

I believe we are now seeing the start of a realignment for the EUR but of course much will depend on economic developments inside key Eurozone economies, including a longer-term solution to the on-going issues surrounding Greece’s debt crisis. Personally I feel the Pound will struggle to break back through 1.40, certainly in the short-term and it is more likely the EUR will start to put pressure on 1.35 before long, if the current trend continues.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Sterling Euro will it break 1.40? (Tom Holian)

During this month we have already seen the best exchange rates for buying Euros in 8 years as the QE finally began in the Eurozone.

We saw Sterling vs Euro tip past 1.42 over a week ago as confidence in the Euro dropped very quickly.

However, last Friday Bank of England governor Mark Carny put paid to Sterling’s advance as he suggested that the Pound is too strong at the moment which could be detrimental to British exports.

If exports start to fall this results in a slowdown for the British economy which ends up being reflected in GDP which ultimately could lead to Sterling falling against the single currency in the longer term.

In the short term though we could see Sterling volatility against the Euro with the announcement of UK inflation data due out on Tuesday. The expectation is for 1.3% so anything different could see big movements for Sterling Euro rates.

On Thursday the UK announces retail sales which have generally had a good run over the last few months. It could be Thursday that provides the opportunity for Sterling recovering against the Euro so if you need to buy Euros it may be worth looking at doing something later in the week.

If you need to sell Euros then it could be worth getting something organised prior to Thursday as I expect the retail sales to be positive for the UK and therefore Sterling.

If you have a currency transfer to make and want to save monye on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Volatile Times for Sterling / Euro. (Dayle Littlejohn)

Andy Haldane one of the 9 members that votes on the interest rate decision every month, weakened Sterling today by stating to combat inflation its a possibility that the UK could introduce Quantitative Easing or even cut interest rates. Therefore in today’s trading GBP/EUR reached 1.3977 and when they announcement came out to the public rates fell to 1.3742. This is a difference of over 2 cents. For anyone looking to buy Euros timing a trade is crucial as a £100,000 trade would achieve you an extra 2000 Euros if you had traded at the high compared to the low. In order to take advantage of swings within the market I would recommend placing a limit order.

Placing a Limit Order means that when the market moves to your specified rate, our system automatically purchases your currency, letting us work as your eyes and ears in the market. For more information feel free to email me on drl@currencies.co.uk or alternatively feel free to call 01494 787 478 and quote Dayle Littlejohn.

 

Sterling Euro Rallies this morning following FED meeting (Tom Holian)

Sterling Euro exchange rates have shot up by 1% already this morning following last night’s Fed meeting.

Fed Chairlady Janet Yellen last night confirmed that the Fed will stop using the term ‘patient’ which caused the Dollar to weaken as Yellen went on to say that that the statement does not necessarily mean that interest rates will go up soon.

This saw the Dollar weaken which gave Sterling some strength seeing the price for GBPUSD break past 1.50 and Sterling rise by 1% today.

The markets are now waiting for the next round of LTRO’s due to take place later this morning.

The LTRO stands for Long Term Refinancing Option and this could have a big effect on the value of the Euro this morning.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

GBP-EUR Rates – Further Gains for the Euro today sees 1.37 reached (Joshua Privett)

About a week ago Sterling gained an additional boost against the Euro, as one of the members of the Bank of England Board indicated he was changing his mind about potentially raising the interest rate. Today’s minutes and the unanimous vote to keep interest rates as they are saw the market rapidly remove those gains previously priced into the value of the pound.

This is part of a trend we have become used to since the start of the week. Already moving 5 cents away from the absolute highs we saw less than 10 trading days ago, the question is no longer when will the Euro stop weakening? Rather the question is now a complex one. When will the Euro stop strengthening? Also, will there be a period of balance before we see the election beginning to weaken the value of Sterling.

Those with a requirement to purchase Euros still have an hour before the trading floor closes to call me on 01494 787 478 to discuss how to capture the still favourable rates. Alternatively, those with Euros to sell, please do not hesitate to email me, we can discuss how to take advantage of the current moves in you favour, tailored to your particular needs and timeline – jjp@currencies.co.uk

To what extent can the Euro recover?

The Euro seems to be making a small recovery following some slight improvements in the Eurozone’s economic outlook. Will this continue though? I would have thought that the Euro will remain on the weaker side for now but slowly retrace some of the more recent losses. Tonight’s US Federal Reserve Interest Decision is key! If the US outline further cuts to their base interest rate we should see the Euro weaken as the USD strengthens and further funds from the Euro move to the USD.

This weakness on EURUSD will be reflected on GBPEUR and will represent a very good opportunity for anyone buying Euros. For more information on getting the forecast for the Euro and receiving the best exchange rates please speak to me Jonny on jmw@currencies.co.uk