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EURO at multi week low against the Pound

The Euro has continued to weaken against the pound this week, down towards the lowest levels seen for multiple weeks and expected to be the low price for the rest of the month. All rather surprising as the euro remains well supported against a basket of other currencies including the USD were they have reached multiyear highs.  The main reason for the fall in EURGBP was put down to economic data yesterday which continues to show a concerning situation in the Eurozone and a better picture in the UK.  Unemployment in the UK reached a fresh 5 year low and inflation in the single currency again fell fuelling the concerns about deflation.  It also increased the chances that the central bank in Europe could introduce new policies at their next meeting in an effort to tackle it.  This has been widely discussed in the currency market and has now reached the major press as the chances of the interest rate being cut further in the Eurozone increases.

In review if you are needing to complete a trade this month buying pounds I would wait, buying euros I would move. If you have more time until into next month I would wait if I was buying perhaps and if I was selling euros I would still aim to get it concluded in April.

If you are in the market for any currency please contact the trading floor here – Steve Eakins – hse@currencies.co.uk

Euro rates favourable for buyers, why take the risk?

The Euro is at a very good level now historically when comparing to previous available levels. If you were buying last year you would have been looking at 1.14 to 1.20. This year you are looking at 1.19-1.22, clearly much better levels.

It is easy to get sucked in with the forecast and headlines expecting the rate to just continue to remain favourable. It is however often the greedy who get their fingers burnt! If you look at the Euro against the dollar and pound however you will notice it is at a very strong level historically. The conclusion therefore is that the euro is currently very strong, it just appears against sterling to be a little weaker but in fact it is just the strong pound which is pushing it up.

Any falterings of UK data could easily see the rates fall back and anyone who didn’t manage to secure a 1.20 + buying euros will clearly be disappointed!

All in all current levels should not be dismissed in the hope of significantly better ones down the line.

For more information on what is driving your exchange rates please speak to jmw@currencies.co.uk

Sterling On The Up Against The Euro – Trading Over 1.21

Sterling is picking up nicely against the Euro as UK jobs figures showed the unemployment rate has dropped to the lowest in 5 years, and European inflation was once again disappointing.  Whilst it dint show a deviation from the 0.5% this figure in itself is too low to be sustainable long term and suggests that unless things change soon, the ECB will have their hand forced to stimulate inflation.  With the Easter break fast approaching I still think there may be more Euro weakness to come but if you need to buy Euro in the short term it is a good opportunity.  Euro sellers may wish to move away from the single currency sooner rather than later as it looks like there is a lot more downside than up given the current figures.

If you do have a currency requirement and would like to get the best exchange rate then feel free to contact Colm at cmg@currencies.co.uk and I would be happy to explain our services.  Do remember Friday and Monday are bank holidays so if you yhavent done something by Thursday you may be powerless until the markets reopen on Tuesday- a very long time in currency terms!

UK unemployment and Euro Zone Inflation figures likely to drive the market today (Mike Vaughan)

Sterling has had a good start to this week remaining consistently above 1.21 creating some good buying levels for the the Euro. This morning will see the release of the latest UK unemployment figures expected to fall from 7.2% to 7.1% and closer to the 7% target that Mark Carney has set before he and the Bank of England MPC (Monetary Policy Committee) may consider raising the UK interest rate. We have seen the unemployment level fall to this figure in the past something that gave the pound a strong boost and we could see this scenario again this morning. Figures are scheduled for release at 09:30.

Also this morning will see the Euro Zone release its latest inflation figures at 10:00. Currently the Euro Zone is experiencing deflationary pressures hampering growth and with forecast for levels to fall year on year from 0.7% to 0.5% this could put more pressure on the Euro as a method of counteracting deflation could be for Draghi to cut interest rates, something that would de-value the Euro. Anyone buying Euros this morning could see some better value after 10:00.

To discuss the current market trends and the currency service we provide please contact the office on 01494 725353 or email me with an overview of your currency requirement and I will happily provide you with my insight on the current trends and the contract types we can offer to help you with your currency transfer. Email Mike at mgv@currencies.co.uk

 

Sterling Euro trading above 1.21 (Tom Holian)

Sterling Euro exchange rates have traded above 1.21 today following the UK inflation data out this morning which showed inflation fell from 1.7% to 1.6%. You may think that this would be detrimental to the Pound but the reverse is true owing to an increase in wage inflation.

The Bank of England’s target rate is 2% and the figure was the lowest level since October 2009. The problem on the continent is that inflation is too low only at 0.5% and the ECB have recently suggested that they will potentially use QE it order to stimulate the Eurozone instead of cutting interest rates. This is another reason why we have seen the Pound gain against the Euro since the comments mad by ECB president Mario Draghi towards the end of last week.

Tomorrow morning the UK publishes unemployment figures in the form of the UK Claimant Count. Expectatations are for a fall of 30,000 so anything better could lead to Sterling gaining against the Euro.

Tomorrow also sees the release of Eurozone inflation figures at 10am. With inflation at just 0.5% this will put more pressure on the ECB to either cut interest rates or go ahead with QE and rumours are that it could occur by June.

If you have a currency requirement coming up and want to save money when transferring Euros then contact me directly Tom Holian teh@currencies.co.uk 

 

Sterling Euro exchange rates creep up following lower inflation levels (Daniel Wright)

The Pound has made minor gains against the Euro in morning trading following inflation figures coming out a little lower for the U.K.

This means that wage growth is creeping in line with inflation which should lead to the economy picking up at an even faster pace as in essence people in the U.K should have more money to spend.

One of the key factors for an interest rate hike consideration by the Bank of England is this very measure as to hike rates when we are only seeing what is essentially the economy growing from people spending their savings would be a dangerous game to play.

An interest rate hike is generally seen as positive for the currency concerned hence the reason that even a higher possibility of a rate hike happening earlier can lead to a spike in the vale of then Pound.

Should you be looking to buy or indeed sell Euros with Sterling in the near future then it may be prudent to get in contact with me directly as I can help you both in terms of getting a great rate of exchange and assistance with the timing – Feel free to contact me (Daniel Wright) directly by email on djw@currencies.co.uk and I will be more than happy to contact you personally.

Eurozone Industrial Ouput Grows by 0.2% (Matthew Vassallo)

GBP/EUR rates have risen again during Monday’s trading, moving the currency pair back through 1.21 on the exchange at today’s high. The EUR had made early gains against GBP and this came in line with this morning’s economic data release, which showed that Industrial Output in the Eurozone had grown by 0.2% in February. Despite this positive news the EUR failed to hold its position after gains late last week and it seems the on-going concerns over the French economy and potential future deflation, are hampering any further EUR gains.

Key data this week includes tomorrow’s Eurozone trade balance figures and Wednesday’s CPI numbers. If we see positive figures the EUR may find enough market support to move back towards 1.2050 on the exchange.

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 exchange rates with your current provider, then please feel free to contact me directly at mtv@currnecies.co.uk.

Next week is very important for the Euro

Greece was positively in the headlines yesterday as Greek bonds were 8 times oversubscribed by investors. Greek debt was one of the causes of Euro weakness which two years ago saw the Euro plummet. Yesterday’s news marks a turning point and could underline a renewed round of Euro strength depending on some other issues.

This morning’s German CPI Inflation data has shown no changes which has given the Euro a small lift. Spanish CPI just released has fallen slightly. With Inflation fast becoming a major headache for the ECB, this is the key topic. There have been numerous discussions of late about extra measures the ECB will take if the overall figures fall.

Next week on Wednesday we have the all-important CPI Inflation data for the Eurozone. This is a very important release and anyone with a Euro requirement ahead of this may wish to assess their position.

The ECB has forecast improvements in the Inflation outlook but if prices keep falling there is scope for some kind of monetary easing which would likely weaken the Euro. GBPEUR and EURUSD have been fairly flat and range bound in the last few months, this could be a trigger to higher or lower prices depending on the outcome.

To keep an eye on rates movements yourself, you can email me Jonathan on jmw@currencies.co.uk

Are you getting the most from your foreign exchange? Contact the experts to benefit from our currency service and let us save you money! (Mike Vaughan)

Whether you are buying that dream property overseas, emigrating to pastures new or a large corporate trading regular positions across multiple currencies it is important to get as much information as possible to help with the timing of your transaction, it also puts you in the best position to try and maximise your exchange. To highlight how much the market can move anyone buying Euros in the past month has experienced a high low range of 1.1905-1.2146 (a 2% shift) and a difference of €4,800 on a £200k position.

As you can see by timing your exchange significant savings can be made. The purpose of this website is to provide relevant information to help private and corporate clients with upcoming money transfers to arrange. As one of the authors on the site, my colleagues and I have personally helped thousands of clients with their foreign exchange and would be happy to see what we can do for you. I work for one of the UK’s largest independent currency brokers and am confident I can undercut any price you have been offered by your bank or current provider.

Why not test the service?

Send me an email with a brief overview of your current requirements and what you have been offered. I will then email you within a matter of minutes with a live quote. If there is a saving to be made it takes two minutes to register a live trading account and your currency can be secured. Our trading lines open at 08:30 BST Monday – Friday closing at 18:00 Email Mike at mgv@currencies.co.uk to get the ball rolling!!

Euro Rate Forecast (Tom Holian)

UK Construction data showed that the industry fell by 2.8% in February as the bad weather stopped work on building sites. To me this was not really a surprise as the weather was so poor. Construction output still grew over the quarter but although the signs are positive this is still well below the pre-recession peak for the UK.

This week one of the key pieces of information which is likely to keep Sterling relatively strong is that house prices are predicted to rise by RICS because of the lack of stock available in the UK. To me I think the housing market will remain strong owing to the large increase of foreign buyers purchasing properties in London. This is having a knock on effect on the home counties which is causing national house prices also to go up.

The survey this week suggested that UK house prices will go up by 6% every year for the next few years. I think this growth is unsustainable but I do think we’ve got further rises to go.

The Pound can be affected in a positive way by British house prices so if this continues we could see further Sterling strength on the horizon against the Euro.

If you have a currency transfer to make soon and want to save money when doing so then contact me directly Tom Holian teh@currencies.co.uk

 

Sterling Euro rates – The Euro starts a fightback (Daniel Wright)

The Euro has gained back a little ground against Sterling over the course of this week but in truth the currency pairing has been fairly range bound between the 1.20 – 1.2150 area.

With very little economic data due out during trading tomorrow I would not expect to see this change however always be aware that there could be surprises pop up at any time.

Early next week we have key inflation and unemployment data for the U.K so we could see a much more volatile week for Sterling. Inflation data is due out on Tuesday morning and unemployment figures are due on Wednesday morning so be sure to keep a keen eye on Sterling Euro exchange rates during these periods.

If you have a currency transfer to carry out and would like to be kept fully aware of any market movements either in your favour or against you then feel free to get in contact with me directly and i will be more than happy to help you.

You can email me directly on djw@currencies.co.uk with a brief description of what you are looking to do and I will be more than happy to contact you personally.

Euro/GBP at 0.8244 and could continue to get worse for Euro sellers. (Ben Amrany)

The Euro has continued to weaken on the day against the pound as Germany have released a fairly negative trade balance while the UK’s Trade balance was slightly better than expected. With GBP/EUR hovering around 1.2140 many analysts are now looking towards the European monthly report released by the ECB at 9am tomorrow morning. This will give an insight into economic activity within the single currency and could cause a fair bit of volatility in the morning. The ECB are fully aware that they have an issue with their inflation which is continuing to fall. Will the ECB give insights into how they will tackle this issue? Only time will tell but if nothing is done soon the pound could ris a little further against the Euro.

The next key release for EUR/GBP buyers or sellers will be focused in the UK with the interest rate decision being set for April. No change is expected and it will more than likely be a bit of a non event but if any information on forward guidance is released regarding future rate hikes the Euro could lose out on the day.

My personal thoughts are that the inflation issue in Europe will continue to hinder the single currency and the losses could continue for Euro sellers. If buying the Euro then I would see if you can ride this and see if you can achieve another small spike and then capitalise on the gain.

If you are looking at buying or selling the Euro against any of the major currencies please feel free to contact me with your requirement at bma@currencies.co.uk and I can explain the options available to you to help you achieve a better rate of exchange than your banks.

Ben Amrany

bma@currencies.co.uk