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GBP/EUR rates climbing higher into 1.41’s (Joshua Privett)

The markets have only just opened and rates have already moved up half a cent against the Euro and we are back above 1.41 once more!

A referendum has been called in Greece to decide whether to accept the recent plan proposed by their creditors which would extend the bailout if reforms (cuts) are accepted in their economy.

This will be an ongoing saga over the next few weeks and one you should keep up to date with. The situation is incredibly volatile, with back room diplomacy and new offers dominating the headlines. There will be no time for anyone to ‘take a breath’ over the next few weeks. Email me on jjp@currencies.co.uk so that we can stay in contact over this period. Whether you are buying or selling Euros, if pertinent news is released in the public space, or through our own sources in the industry, you can be contacted immediately and make an informed decision on your currency transfer.

In the short term UK Purchasing Managers Index data for the manufacturing sector will be released this morning. Having seen such a strong Pound against most currencies in June, then these figures are unlikely to impress today as a strong currency hurts exports. It could wobble a the Pound this morning. So those who cannot wait to buy their Euros moving ahead of time would be advisable. 01494 787 478.

Why a deal MUST be struck!

There are now so many different things going on with Greece it is difficult to keep track. I am amazed it has gone this far but we are constantly being surprised when it comes to Greece! I am of the opinion that two things will happen now.  The first is Greece will stay in the Euro and that following the agreement of a new bailout the Euro will strengthen. As disturbing as the amounts of money involved are to the process here, I just cannot see how the Eurozone will let Greece leave the Euro. To do so would be a gross turn in the history and spirit of the European project and the Eurozone.

Such a move would lead to further troubles with other Eurozone members as stagnant economies are allowed to disintegrate and effectively wither and die. This is not what the Eurozone was setup to do and is not what the Eurozone members will stand by and allow to happen. More likely I feel is that a deal will be struck to keep the Greeks in the Euro and provide further extensions on the previously agreed bailout terms. Just what is around the corner is very difficult to ascertain with the Euro but on balance I think even at this late stage it is not too late to have hope.

Allowing Greece to leave is a direct contradiction of the fundamental principles of the European Union and the Eurozone and should not be allowed to happen at whatever cost. Greece needs to be nurtured and put under strict conditions to allow an economic recovery to develop and the lives of the Greek people to improve.

For more information on this situaiton please email jmw@currencies.co.uk, I look forward to your thoughts, opinions and offering solutions.

Sterling Euro hits 8 year high (Tom Holian)

The Greek crisis is now getting bigger which has seen Sterling Euro exchange rates now hit an 8 year high for buying Euros.

The discussions over this weekend have not ended well and we are now very likely to see a Greek default on their payment due to the IMF tomorrow for EUR1.6bn.

Greece’s PM Alex Tsipras has now scheduled a referendum to take place on July 5th for the Greek people to decide what to do next.

The general rhetoric of the speech was rather Eurozone-negative with the use of the term ‘blackmail’ being used as he does not want to agree to the proposed terms on offer by Europe at the moment.

With such a small amount of time left before the deadline the story will keep changing.

Capital controls have been put in place in Greece with customers only being allowed to withdraw €60 per day with tourists remaining unaffected.

However, the same thing happened in Cyprus in 2013 and it took until April for the issue to be resolved.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank as well as taking advantage of this 8 year high then contact me directly for a free quote. Tom Holian teh@currencies.co.uk 

When emailing me if you would like a quicker response please also provide a contact number.

GBPEUR rises to 1.43! Will Greece be in the Euro by Wednesday?

The Euro is clearly in for a tough couple of days as we try to work out just what is around the corner for Greece. The Greeks have clearly decided to play hard ball and negotiations are going to go right down to the wire. I am still hopeful of a deal because I think the alternatives are too problematic. This viewpoint previously shared by many now appears to be losing favour and the next two days will see some major movements on exchange rates including the Euro.

If no deal is reached and Greece leaves the Euro I think the rate could hit 1.45 or 1.50. If a deal is hit GBPEUR should cool back to say 1.36. Such exceptional potential volatility should worry anyone with a large currency transfer to consider as it could cost you greatly.

We are in business to provide a better exchange rate for your international money transfers plus offer key information as to events that might impact your rate. If you are reading this and need to buy or sell Euros soon I would be be most interested to hear from you and offer my thoughts and opinions on the transactions your situation.

My name is Jonathan Watson and in my work as a specialist currency broker I have written numerous articles on the Euro. To learn more please contact me Jonny on jmw@currencies.co.uk

Sterling Euro how long will it stay above 1.40? (Tom Holian)

Sterling Euro exchange rates have been trading above 1.40 on the mid-market this week meaning the best exchange rates in almost 8 years.

The only time we saw GBPEUR rates higher was during the second week of March as the Eurozone QE was officially launched.

Sterling has also been riding the crest of a wave following the election which gave the markets confidence owing to the certainty and stability of another Conservative government.

The recent headlines during June have all been dominated by the problems surrounding Greece and times is running out for them to meet their next repayment due on June 30th to the IMF.

The debt is EUR 1.6bn and at the moment no resolution has yet been agreed.

Pressure is mounting from Europe for the Greeks to change their spending cuts and pensions but as yet nothing has been agreed.

A meeting with Eurozone finance ministers is taking place today but with all the previous meetings ending with no resolution it will be difficult to see a positive conclusion.

This ongoing uncertainty is creating excellent opportunities to buy Euros so even if you don’t have full funds available then you can fix an exchange rate by using a forward contract. For details just ask.

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

 

 

 

Is Greece too big to fail?

WE will know the answer to this question very soon, the Greek strategy appears to be to let the Eurozone save them or leave…. A risky strategy and one which the ECB, IMF and other creditors will do well to be careful of. I would not underestimate the power of the Greeks in negotiating however and we will know very soon just what to happen.

If you need to buy or sell euros I would be very cautious but be careful of what might happen. All in all we are in some of the most uncertain Euro times in history, the future of the Eurozone is at stake! If you need to buy or sell Euros please speak to us about getting the best deals for your currency. We are in business to look after anyone buying or selling Euros and help with better rates and service! If you wish to learn more I would be very interested to hear from you on jmw@Currencies.co.uk

What Next for Greece and the EUR? (Matthew Vassallo)

With Greece’s next repayment deadline fast approaching, investors across the globe will be focused on a couple of key issues. Can the Greek government provide enough evidence to its creditors that it is implementing the necessary reforms to receive further bailout funds from the IMF? The second key point will be if the answer to the first question is no, will they be granted an extension beyond next Tuesday?

With talks on-going it seems as though progress is being made, although they are yet to reach an agreement. The key points for debate include the IMF’s insistence that Greece cut its state pensions, something the Greek Prime Minister promised he would not allow when he was voted into power. Personally I feel there will be an 11th hour agreement, whether this be in the form of an extension on the repayment, or an agreement over further austerity measures to be implemented by the Greek government. Either way I feel Greece will get another stay of execution and the problems are likely to be swept under the carpet for a few more months, until the situation resurfaces again.

Personally I feel that the EUR will continue to find support around the current levels, as it has done for much of the year. I would be tempted to purchase EUR around the current levels and not gamble on the situation in Greece. The economic data coming out of the Eurozone has shown a marked improvement of late and if the situation in Greece is resolved, even in the short-term, then I feel the EUR will gain value from its current position.

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 poised for Greek Deal (Tom Holian)

Sterling Euro exchange rates have remained very stable trading just above 1.40 today as the markets eagerly await any update on the Greek situation.

As I write this article there has been no resolution and it appears as though this may not be sorted until after the repayment date of June 30th which is when they need to next pay the IMF.

The news has dominated the markets recently and if we get a resolution we could see Sterling Euro rates fall dramatically.

However, whilst the uncertainty continues this means that the level for buying Euros is still staying very high.

Bank of England governor Mark Carney is to address the markets tomorrow so any mention of a change in monetary policy could see Sterling rise against the Euro during tomorrow afternoon.

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

 

 

GBP-EUR Rates fall after highs of 1.41 (Joshua Privett)

GBP-EUR rates have fallen today and it seems we are on the brink again of falling below 1.40 as it is steadily falling as I type this.

The reason for the fall isn’t because a Greek deal has been reached. Rather there has been a huge influx of capital into the Euro, boosting its value, after poor GDP data released concerning the US economy this afternoon (which actually contracted -0.2% for the first quarter of this year).

It is surprising that talks with Greece actually deteriorated today, but it was not enough to stop this significant wave of Euro buyers looking for greater profits outside of the United States.

Greek Prime Minister Alexis Tsipras has criticised Greece’s creditors for failing to agree to the reforms proposed by the Greek delegation. He refused more pension and spending cuts and criticised his country’s international creditors for not accepting a deal, suggesting they may not want one.

But markets are used to this. It is the same song being played on the radio over and over and sooner or later you stop singing along to it. A deal is a necessity and the only rational course for the Greek economy, and it will likely be reached at the 11th hour. This was just more fanfare before Tsipras entered fresh talks this afternoon to secure a debt deal. He has until the end of the month, and he will use every delay tactic in the book to try and secure the best deal for his country. But a deal will be reached nonetheless.

Once a deal is closer to being reached, the rates which have been steadily creeping up will instead drop off as a lot of the uncertainty which surrounds the Euro will be removed. Those looking to buy a large sum of Euros within the next 6 months, either for a property or your business, these rates are likely the best that will be available in that period. The Eurozone as a whole is recovering well, they are out of deflation and growth is once again being recorded. Once the Greek issue is dealt with or ‘swept under the rug’ it will be hard for the Pound to gain against the Euro back up to the current levels.

You can effectively peg these rates as they are very easily, so that you do not have to leave yourself exposed to market movements before you need to do your transfer, and budget more effectively. Email me overnight on jjp@currencies.co.uk to for more details on how to take advantage of these historic highs and work out a tailored roadmap to maximise the exchange rate on your transfer.

When will a Greek deal be signed?

GBPEUR has been very volatile this week spiking between 1.38 and 1.41! The current forecast is that the Euro will rise once we get some news, a restoration of confidence in the single currency seems reasonable once a deal is signed. However there is still a very long way to go for this to happen, swings of up to 3 cents in either direction seem feasible I expect the trading range to be 1.35-1.43, as you can see much of the uncertainty is price in. A signing of the deal should cause the Euro to strengthen, if you need to buy Euros I think you should be very careful you don’t miss out on what are currently some of the best rates in many years.

For more information on what you can expect in the future on the Euro plus trading strategies to help you approach your currency purchase in the future please contact me Jonny on jmw@currencies.co.uk. Please note our services are for private individuals and businesses looking to make foreign exchange payments to pay Invoices, buy properties and repatriate investments. We do not offer information for currency speculators. If you are unsure if we can help please email me!

How long will GBP/ EUR stay in the 1.40s? (Dayle Littlejohn)

As stated in previous posts Greece are heavily weighing down the euro because of constant talks of a possible ‘Grexit’. Greece must repay €1.6bn to the IMF by the end of this month, or run the risk of defaulting from the Eurozone.  I believe a deal will be struck towards the end of the week and GBP/ EUR will fall back towards the mid 1.35s.

What does this actually mean for euro buyers?

Simply it means if you are looking to purchase euros in the upcoming weeks/ months a window of opportunity has presented itself. If we look back only 2 weeks ago (9th June) the mid market level was 1.3550, now its 1.4050. For clients looking to purchase €200K this trade will now be over £5,000 cheaper than 2 weeks ago.

Its important when buying currency to have an understanding of what effects exchange rates. For more information and a further forecast feel free to email me directly drl@currencies.co.uk.

Massive uncertainty for the single currency (Tom Holian)

Sterling vs Euro exchange rates hit 1.40 again during Friday afternoon’s trading session as fears increase that the Greeks will default on their next repayment to the IMF due by June 30th.

On Monday a meeting will take place with various European leaders in Brussels to try and hammer out a deal in order for the Greeks to be able to make their next repayment to the IMF due on June 30th.

Things have not gone well at previous meetings however with one meeting ending after just 45 minutes.

Therefore, the question is what will make next week’s meeting any different?

German Chancellor Angela Merkel has urged that a deal takes place before Monday’s summit but I am doubtful.

The Greeks have been asked to cut pensions and to increase VAT on medicines and electricity bills but so far they have resisted.

Sterling Euro hit 1.40 during Friday’s trading session and there is a strong chance that exchange rates will improve during early next week if the talks do not end positively.

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