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Nervous end to the month for Sterling vs Euro exchange rates (Tom Holian)

Sterling Euro exchange rates have remained relatively stable this morning following the Bank holiday weekend in the UK.

Confidence figures published in the Eurozone have come in close to the expectation and this has helped to keep Sterling vs Euro above 1.17 on the Interbank level.

What could affect the Pound vs the single currency later today is the release of German inflation data due out at 1pm UK time later today.

As the Eurozone’s largest economy this will provide evidence as to whether or not the addition of Quantitative Easing has had a positive or negative effect.

Germany will also announce both Retail Sales and Unemployment data tomorrow morning and this could set the tone for the rest of the week for buying or selling Euros.

With all the uncertainty still around following the vote to leave the European Union and the lack of a timescale as to when the UK may trigger Article 50 this is clearly weighing heavily on Sterling exchange rates which is one of the main reasons why Sterling is still struggling to make gains vs the Euro.

Therefore, if you’re concerned about what may happen to currency over the next few weeks and need to make a payment during this time it may be worth looking at buying a forward contract which allows you to fix your exchange rate for a future date for a small deposit.

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

How will the bank holiday affect buying Euro rates? (Joshua Privett)

We are now currently in the middle of the long-weekend in the UK with a Bank holiday just around the corner and the normally irregular effects this has on buying Euro rates expected once more.

The bank holiday is allocated purely to the UK, so whilst our financial institutions will be inactive, as they say – the world will go on.

With the city of London providing a strong presence on global currency markets, it is always interesting to see what will happen to GBP/EUR when such a major player governing rates is sidelined.

In this instance, based on the current situation in the UK, it will likely lead to a loss in value for the Pound in the short term.

With the post-Brexit landscape being the dominant feature, the Pound is struggling to find support and demand from traders – who are still cautious that its value could continue to fall.

However, the Pound is enjoying demand at the moment due to the health of the UK stock market. This is the result of the Bank of England embarking on stronger programme of Quantitative Easing to help stimulate the economy from the recent shocks. This funnels enormous sums of capital into the UK’s financial markets – making them an attractive investment to outside buyers. With demand for UK stocks there comes a natural demand for the Pound.

However, with UK stock markets closed tomorrow for the Bank holiday, one of the few pillars holding up the Pound will be stored away for the day.

Luckily for Euro buyers there is not much other information coming out either on UK or Eurozone performance to change the value of each currency further. So only a gradual decline in GBP/EUR is all that is expected tomorrow.

When markets open once more on Tuesday we can likely see this reversed, with further mortgage and consumer credit figures out for the UK which should compliment the initial figures last Tuesday. These saw a full cent rally for the Pound against the Euro.

If you have a Euro buying requirement in the short-term and you wish to maximise the value of your Sterling holdings within that period, you can contact me over the holiday weekend on jjp@currencies.co.uk to discuss a strategy for your transfer in order to maximise your currency return.

With September just around the corner and the fresh flood of August performance data which markets are anticipating, a premium will simply be put on being able to move quite quickly should any tempting opportunities emerge.

Euro sellers can also get in contact to understand the options open to you to take advantage of the expected gains as we enter the first few weeks of October.

I have never had an issue beating the rates of exchange offered elsewhere, so a brief conversation could save you thousands on your transfer.

You can also contact me directly through the form below, and I will respond as soon as I can.

Will the Pound strengthen against the Euro? (Tom Holian)

The rate to buy Euros with Pounds has already started to increase from its lowest point in three years during August.

We are already 3% better than the lowest point and could this be the start of Sterling’s recovery against the Euro?

UK GDP data published yesterday came in a 0.6% which was as expected and this shows that the Brexit may not have been as bad as expected.

Clearly the Brexit vote and the uncertainty caused by the result has seen Sterling Euro exchange rates plummet but it appears as though the economic data has been surprisingly positive for the UK.

Retail sales last week were strong and consumer confidence levels are now at their best for 3 years.

Therefore, if the data from the UK continues to remain strong then we could see Sterling start to regain some of its losses post Brexit.

Next week the focus will return to what is happening with Europe with the release of Eurozone confidence data on Tuesday followed by German inflation data.

Arguably the biggest potential cause for movement for Sterling vs the Euro could come on Wednesday when Eurozone inflation data is published as this will determine whether or not the recent addition of Quantitative Easing has been a success on the continent.

Over the last fortnight the Pound has seen some gains and I think we could see the short term rally continue vs the Euro so if you’re considering selling Euros to buy Sterling then it may be worth looking at taking advantage of these rates before they start to move in the wrong direction.

If you’re selling a property overseas and don’t yet have the full availability of funds but want to secure an exchange rate then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

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

 

Sterling Euro Rates ahead of UK GDP Numbers (James Lovick)

The pound is maintaining its gains seen over the last week after the run of positive UK data which have helped drive the pound higher. This morning sees UK Gross Domestic Product (GDP) numbers at 09:30 and could make for a very interesting morning.

The GDP numbers are for the second quarter of 2016 and represents the period from April to June in the run up to the referendum for Britain to withdraw from the European Union. Expectation is for GDP to hold steady at 0.6% which would be helpful for the pound. My view is that there may be a very small deterioration in the numbers pre-Brexit as a result of some uncertainty ahead of the vote.

Any weakness would be seen as sterling negative as it would signal further weakening in the months ahead in a post-Brexit period. The question this morning is whether any decline in the UK has actually started or not and as such for me this is a very sensitive release and should make for a very interesting end to the week for sterling exchange rates.

After the Bank Holiday weekend focus moves to mortgage approvals and house price data and the ever important Purchasing Managers Index for the manufacturing, construction and services sectors. The PMI numbers which were gloomy last month could give new direction for the pound. Any improvement here could see the pound rally although I expect the mood to remain slightly glum from businesses in the current climate.

If you have an upcoming GBP or EUR 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 on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

GBPEUR loses ground ahead of GDP estimates

  • Pound loses its rally against the Euro despite positive business survey
  • Tragic events in Italy impacting the Euro
  • UK GDP estimates for Q3 tomorrow could strengthen rates

GBPEUR rates struggle at 1.17 levels

Our thoughts are with Italy at this difficult time, whilst search and rescue operations continue their search for survivors the cost of the damage is yet to be uncovered. Natural disasters have a tendency to impact the currency in question which explains why we saw a sharp rise in GBPEUR during yesterday’s trading day.

This morning we saw a seesaw affect for the currency pair, eradicating most of Sterling’s movements since the tragic event yesterday. Pound to Euro rates are now trading at 1.16934 at the time of writing.

Will the Pound get stronger?

There is an important release tomorrow, one which investors will be watching with scrutiny as they continue to understand the ramifications of the Brexit vote. Whilst we have not seen the “global shock” as many predicted, the UK economy remains vulnerable during this incredibly uncertain period.

That being said, tomorrow’s GDP estimates for Q3 could provide further strength for Sterling. The recent run of positive data, including the huge retail sale figures released this month could boost the predictions tomorrow. The cheaper Pound means businesses have had to pass on the cost to consumers which will likely impact the UK’s GDP.

I see GBPEUR rates closing the trading week around the 1.169-1.173 range depending on tomorrow’s figures.

Next week’s data could provide further strength for Sterling

The GFK consumer confidence next week could be where we see further movements in rates, the mood amongst retailers has been largely positive and the British summer and Olympics has meant consumers have shrugged off the Brexit vote.

Further ahead we have the Markit PMI on Thursday which again, could offer fresh hopes for UK exports, especially given the cheaper Pound. The only concern in my eyes next week sits on Mondays mortgage approvals. There remains a large concern for the housing market post-Brexit and this could be where we see signs of stagnation.

That being said, I do see GBPEUR exchange rates making further movements in the right direction, these movements could be short lived however. Email me at rdl@currencies.co.uk and I’ll be able to assist you with a timed currency transfer, helping you to get the best exchange rates possible.

Sterling reaches 16 day high after Italian Earthquake (Ben Fletcher)

The tragic fatal earthquake in Italy which has so far claimed the lives of over 75 people is responsible for the 1 cent jump for Sterling today. The GBP/EUR rate moved to the high 1.17’s as it became clear the 6.2 magnitude disaster has caused almost total destruction of small towns in the heart of Italy.

Natural disasters are one of the main movers of currency markets as they cause disruption and damage. People lose the ability to go about their daily lives which impacts the spending levels for the month. Furthermore there is a huge cost to the government to rebuild the destroyed homes and infrastructure. It is no secret that Italy is already in an incredibly stretched financial position and the earthquake could cost billions to repair.

In the coming days it will become clear how Italy plans to rebuild after this disaster and its likely there will have to be investment from other countries. What this may lead to is the Italian debt becoming significantly larger through no fault of their own. The GBP/EUR has dropped down from the high as the day’s come to a close which may mean the initial shock is over. However as more information becomes available and the scale of damage is revealed there could be more strength for Sterling.

I believe that the GBP/EUR rate could move towards and potentially above the 1.18 level for the first time in 20 days. The end of the week will bring a tranche of data for Sterling and this could come in better than expected especially as expectations have been set so low of later

Working for an established brokerage allows me to achieve the best rates of exchange for my clients. I am also able to assist with the timing of a transaction to make sure you get the most for your money. If you would like some information with regards to a currency requirement please email me at brf@currencies.co.uk

 

Buying Euro rates continue to improve (Joshua Privett)

Buying Euro rates of exchange have been given further life this morning, surpassing past 1.17 for the first time in over two weeks on the inter-bank level.

Two key pieces of data came out this morning which allowed this o.4-5 cent increase on GBP/EUR exchange rates this morning which paint a rosier picture the Pound in the near future.

Firstly, German growth data didn’t impress markets this morning, showing no improvement from the previous estimations despite the massive influx of foreign investment which has been drawn away from the UK in the run up to, and in the wake of, the Brexit vote.

The more impressive figure was the release of the number of new mortgage approvals in the UK. Markets were worried that quite a severe dampening effect would occur following the leave vote, as the confidence of prospective buyers was shaken. Instead we have seen mortgage approvals remain relatively steady, with only a drop of 5% compared to the previous month – and this is relatively in line with normal expectations as buying activity decreases during the school holidays.

Markets had likely already priced in a severe drop which is why we are seeing this rise on Sterling’s value as the reality did not match up with the previously morbid forecasts. It seemed the banks decision to slash interest rates had many clambering for the cheapest mortgages available in some time.

Moving forward on Friday we have further data releases for the UK, that being growth figures and total business investment during July. These have similarly low expectations but frankly there is less room for markets to be surprised by the results. Business investment is expected to be low and is unavoidable as business confidence figures already came out earlier in the month and showed the lowest results since the financial crisis, and these normally line up with total investment.

As such today and tomorrow should be seen as a window of opportunity for Euro buyers before Friday, when it is set to put the spotlight back on some of the heavily negative consequences of the Brexit vote.

I strongly recommend that anyone with a short to medium term Euro requirement should contact me on 01494 787 478 and ask the reception team to be put through to Joshua Privett to discuss the options open to you in order to formulate a plan of action aimed at maximising your Euro return.

Next week will also be the final week before September releases UK performance figures for August, and if this yields similar results to the first two weeks of August, I would not be surprised if 1.14 was tested once more.

Euro sellers can contact me on jjp@currencies.co.uk to discuss how to take advantage of these potential opportunities.

Buyers or sellers can also fill out the form below and I can contact you as soon as I am available.

When will the Euro weaken!?

This is a question I am being constantly asked and with good reason. Euro buyers have seen their rate slip from over 1.40 last year to now 1.16, last week it 1.14! When will the Euro weaken again and what is the best way to maximise my transfers for Euros and pounds?

It is now 2 months to the day of the EU Referendum and the pound had already started to slide well before on the uncertainty. So whilst the pound has been suffering the Euro has been benefiting as Inflation one of the key problems for Eurozone policy makers starts to rise. The Euro has also benefited as the worst problems on Greece are put to bed and markets worry much more about the Brexit and its impact on the UK.

Unfortunately life does not look like getting significantly better for Euro buyers with pounds although there are a couple of potential events up ahead that might help. This is the prospect of the €360bn debt issue in Italy failing to be resolved and Greece coming to the forefront of investor concerns. Both of these scenarios cannot be ruled out but appear unlikely. The market is aware of the issues and unless the problems spiral again seem unlikely to cause big Euro weakness. For now there are plans to contain Italian debt and the Greek situation is also apparently being contained.

A further chance for Euro weakness would be the next ECB (European Central Bank) meeting as in their latest meeting minutes we were told they might be ready to extend their QE (Quantitative Easing) program. This is essentially a program to inject money into the financial system and weaken the Euro. The chances are not too high but if you are buying Euros with pound and have no immediate urgency to move, and are essentially sitting back waiting for the right time, this could be the event that will help you.

Amidst these grains of opportunity is a beach of uncertainty for the pound which for now seems likely to keep GBPEUR languishing at these lower levels. Most commentators do not expect the pound to rise significantly at this time and anyone buying or selling the Euro with sterling should be making plans on the future.

For assistance and assistance with any bank to bank currency transfers you are considering please contact me Jonathan using the form below or if you wish to explain a bit more why not send me an email to jmw@currencies.co.uk. I am here to help you with any currency transfers you will need to consider in the future and in my nearly ten years experience handling thousands of clients foreign exchange requirements am confident I can offer something a little extra both in terms of my exchange rates and service.

Will the EUR Continue to Strengthen Against Sterling? (Matthew Vassallo)

The EUR has been riding the crest of a wave against Sterling for some time now and even before the now infamous Brexit result, the single currency had made significant gains against it’s GBP counterpart, with GBP/EUR rates dropping from north of 1.40 down towards 1.28. It made further inroads before the markets started to factor in a Remain vote in June’s EU referendum but when this result did come to fruition, we saw aggressive Sterling sell-offs and this caused the Pound to nosedive, hitting a low of 1.1456.

Sterling did finds some support around this level and following some better than expected unemployment data & Retail Sales figures last week, GBP/EUR moved back above 1.16 at this week’s high. Despite all the uncertainty surrounding the UK economy at present, EUR sellers need to be aware that we are unlikely to see one way traffic on the pair. The economic problems that many of the key Eurozone economies faced have not disappeared and with the recent focus on the 360bn debt held by Italian banks and the well documented problems facing Greece and its debt repayment structure, I would personally not be prepared to gamble on another major jump in the Euro value.

EUR sellers currently sit close to a three year high and this a position I would be keen to protect, ahead of what is likely to be a turbulent and unstable time for the currency markets.

If you have an upcoming EUR or other currency requirement and would like to discuss the current market conditions & forecasts ahead of your exchange, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, you can register your contact details through this blog or email me directly on mtv@currencies.co.uk

Pound benefits from speculative trading (Dayle Littlejohn)

As I stated in my article this weekend, the pound plummeted Friday afternoon as speculative traders moved their assets out of the pound and into safe haven currencies such as the US dollar. At the moment the pound is under severe pressure due to the ‘Brexit’ and leaving their profits in the pound over the weekend would be a risk.

There has been no data releases today that would have a positive impact on the pound however the pound has made gains against all of the major currencies. I put this down to speculators reversing their trades which occurred late Friday and this is why we have seen sterling strength.

Looking ahead this week any negative ‘Brexit’ news could continue to devalue the pound which means GBPEUR exchange rates would continue to fall. Two data releases to look out for this week are German GDP numbers Wednesday morning and UK GDP numbers Friday morning. Both data releases are not expected to cause major volatility as both releases should be the same as previous, however any alterations will cause GBPEUR to fall or spike.

The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade GBPEUR / EURGBP at rates better than other brokerages and high street banks. I would recommend filling out the form below or 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! **

Buying Euro rates expected to recovery on Monday – will this be short-lived? (Joshua Privett)

Friday afternoon once more has seen the floor pulled out from underneath the feet of Euro buyers, as speculative trading sees GBP/EUR tumble by almost a cent in the dying hours of the afternoon.

High street traders, who move the sums large enough to actually change the average buy and sell price on GBP/EUR, have to choose a dominant and stable currency with which to store their profits in for the weekend.

Due to the sheer volatility of the Pound and the obvious downward pressure still prevalent on its value, it is very low on the list of desired currencies during this period of accounting on Friday afternoon. When demand for Sterling tumbles dramatically during this period, so does its buying power, resulting in greater expense for anyone requiring Euros, yet further opportunities for those buying Sterling.

Some small comfort for Euro buyers is that when normal activity returns on Monday demand for the Pound will likely increase due to the sudden cheapness forced upon it on Friday. With little information of note to be released on Monday, most will be expecting the momentum for the Pound to be established throughout the morning.

Following this however, data from the Eurozone will take over the governance of Euro buying rates.

On Tuesday busIness confidence surveys for the financial service and manufacturing industries in the Eurozone, and should be treated as a red flag for anyone with an upcoming Euro requirement.

The Eurozone has attracted a huge proportion of the foreign investment which the UK has lost in this 2016 of uncertainty in the lead up to, and following, the Brexit vote. Investment in the Eurozone is up more than 320% than at the same time last year, so this figures are expected to reflect this continued positivity.

With the confidence in the positive nature of these figures, buying rates for Euros may begin to price in the news as early as Monday afternoon, so anyone with a Euro requirement should be looking at their options by the beginning of the week, which I am happy to discuss with you.

If you have a buying or selling Euro requirement, whether this is in the short or long-term, I recommend contacting me over the weekend whilst markets are closed either on jjp@currencies.co.uk or in the form below to discuss a strategy for your transfer aimed at maximising your currency return.

A short conversation could save you thousands on your transfer, and with other events this week to navigate, such as German growth data on Wednesday, will help you to plan effectively for any upcoming purchases or sales.

GBPEUR weekly round up and the week ahead (Dayle Littlejohn)

Early in the week GBPEUR continued to fall and central levels of exchange plummeted to 1.1470. At this point I was worried for Euro buyers as UK economic was also set to show a decline which would have pushed exchange rates lower. However the data surprised all and retail sales numbers and unemployment numbers exceeded expectation. The reason why economists believed the economic data would be poor is because the general consensus is that the ‘Brexit’ is now going to show a major contraction in the UK economy.

Late in Friday afternoons trading period GBPEUR exchange rates plummeted and I am putting this down to speculators do not want to leave their assets in the pound over the weekend when they are not in the office. Events that continue to impact exchange rates occur over the weekend therefore a speculator would prefer to leave their asset in a safe haven currency such as the US dollar.

This week Governor of the Bank of England Mark Carney is set to give his latest inflation hearings. I believe he will state the Bank of England believe inflation will begin to rise now the BoE have cut interest rates and are pumping a substantial amount of quantitative easing into the economy. Even though I believe Mr Carney will state inflation is going to rise I wouldn’t be surprised to see him take a dovish tone as he believed it was in the best interest for the UK to remain part of the EU and he believes the pound has a tough period ahead.

As for the Euro, Germany (the powerhouse of the Eurozone) release their latest GDP numbers Tuesday morning. This should be a non event as the figures are expected to be released matching the previous numbers. However any deviation will cause volatility with GBPEUR exchange rates.

As for the exchange rate I still believe their are further falls ahead and I wouldn’t be surprised to see GBPEUR fluctuating between 1.06-1.10 by Christmas.

The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade GBPEUR / EURGBP at rates better than other brokerages and high street banks. I would recommend filling out the form below or 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! **