The EUR made sharp gains against GBP towards the end of last week and the good feeling surrounding the single currency seems to be continuing, with GBP/EUR rates falling below 1.20 on the exchange at today’s low. European Central Bank (ECB) president Mario Draghi was very bullish regarding the Eurozone’s recovery and growth forecasts for the rest of 2014 during his monthly press conference last Thursday and this seems to have propelled market confidence in the EUR. We also had some mixed Manufacturing and Production data for the UK this morning, which won’t have assisted any potential realignment for Sterling.
The question investors are asking now is whether the EUR can continue to find support beyond the current levels. Personally I think it will be difficult for the EUR to move much further based on the current market conditions, especially when you consider that forecasts for the UK economy have indicated that by the summer our economic health will actually surpass the levels seen prior to the 2008 crash.
EUR/USD levels continue to provide excellent buying opportunities but with the USD making a comeback during the early part of this week’s trading it may be prudent to consider your position for anyone holding EUR. Personally I think it is only a matter of time until we see a major realignment for the USD and once this happens it is likely exchanger rates will head back towards 1.30 and this move is likely to be quick and aggressive.
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 email@example.com.
Sterling Euro exchange rates have fallen below 1.20 during today’s trading session for the first time in a few weeks as the Eurozone Consumer Price Index showed an improvement compared to the estimate. The rate was -1.1% for year on year is still negative but at the same time if the data is better than expectation it often strengthens the currency involved.
Also out this morning the Industrial Output survey showed an improvement from 0.4% to 1% for January which is one of the most positive moves for the Euro in recent weeks. The has seen the Euro strengthen against Sterling falling below 1.20 on the mid-market level which is great news for anyone looking to exchange Euros into Sterling.
Tomorrow there ire a few data announcements to watch out for if you have a GBPEUR currency requirement. The UK releases it own industrial production data at 930am and also manufacturing data for both month on month and year on year.
Arguably the biggest data release for the day will be the NIESR GDP estimate for the last 3 months. Often used as the benchmark for the official announcement which will come in April from the ONS the estimate for the last 3 months is often very accurate. Any negative move could see further falls for GBPEUR exchange rates.
With the Eurozone growth forecast having been raised recently this could see the Euro remain strong for the next few days so if you have a currency requirement and want to save money compared to using a bank to transfer Euros then contact me directly for a free quote Tom Holian firstname.lastname@example.org
GBPEUR exchange rates took a big fall during yesterday’s trading session following the ECB interest rate decision. Interest rates were kept on hold and there were some minor expectations that there could have been a rate cut owing to low inflation announced recently at just 0.8%. Typically in order to combat low inflation interest rates are cut. However, yesterday’s announcement of a no change helped to strengthen the single currency both against Sterling and US Dollar with EURUSD exchange rates hitting a fresh 3 month high.
More importantly Mario Draghi’s press conference was seen as very positive for the Euro. Draghi’s bullish comments included an upgrade in growth forecast for 2014, 2015 and 2016 and this was seen as a very positive move for Europe which has recently experienced a slowdown particularly in France and Italy who for the moment are very close to hitting negative growth.
Later today sees the release of US Non-farm Payroll data at 13opm. This is expected to be lower which could see Dollar weakness and investors choosing to place money into the Euro which in turn could see GBPEUR rates fall.
Early next week Eurozone Industrial Output is due to be released. Expectations are for a growth month on month of 0.4% so anything better could again see short term strength for the Euro.
If you have a currency transfer to make and want to save money when buying or selling Euros compared to using a bank then contact me directly for a free quote Tom Holian email@example.com
The Euro gained quite a lot of strength during trading yesterday afternoon following yet another extremely positive press conference from head of the European Central bank Mario Draghi.
Draghi upgraded growth forecasts and virtually painted a golden picture regarding the Eurozone and once again took the ‘everything is ok’ approach which immediately led to Euro strength across the board.
The Euro hit a one month high against the Dollar and made great inroads against the Pound and the question now is whether this will continue to drive Euro exchange rates towards the end of the week or if we will see a bout of profit taking towards the end of today weakening it off a little.
Personally I feel there are still plenty of troubles within the Eurozone and there is more to come from this whole situation in the future however for the time being the European Central bank appear to be painting over the cracks well.
If you have a pending currency transaction to carry out involving buying or selling the Euro then it may be prudent to contact me personally and I will be more than happy to assist you both in terms of getting a great rate of exchange and excellent customer service.
Feel free to email me on firstname.lastname@example.org and I will be more than happy to contact you personally.
There are some key topics which are likely to move exchange rates in the coming few days and weeks. If you know what to look for you can plan your exchange around these important factors.
Inflation has been a key topic moving the markets lately, just lately however we have seen the inflation rate rising which for the time being removes any immediate need for the ECB to act. However it is perfectly reasonable to expect the inflation rate to fall again due to low growth and low demand in the Eurozone.
The risk to me would appear to be on the downside for the Euro as economic growth remains subdued and Unemployment high. Today’s Eurozone data just goes to show how nothing should be taken for granted. For more information on what to expect on the Euro and other currencies you can speak to us.
Tomorrow is a very big day with the latest ECB and BoE Bank decisions to be scheduled. I expect the Euro could fall slightly in the afternoon, if you have pounds to buy with euros I think moving sooner is the best course of action to avoid disappointment.
To learn more about the current forecast and everything going on that could affect your exchange rate, please contact us for the latest news and updates. You can call 01494 787 478 or email me email@example.com
Today is a relatively quiet day in terms of the Euro, however the ongoing developments in the Ukraine and the increasing tensions is certainly an aspect to keep an eye on should you have an interest in the market as whole. During times of uncertainty the market can become even more unpredictable and it is key to make sure you get as much information as possible and be in a position to act on a market shift.
Focusing on the Euro I feel the Euro Zone economy will continue to struggle. Inflationary pressures have been highlighted recently and will stunt the growth of the zone and put pressure on Draghi. An obvious solution is to cut interest rates but with levels already at 0.25% there is little room for movement, what else will he have up his sleeve? Will he have any other alternative? This will make Thursday’s interest rate decision from the ECB all that more interesting. With an outside chance of a rate cut Euro exchange rates could come under pressure as we head to the latter stages of this week.
To discuss the currency service we provide and the multiple contracts we can offer to help clients maximize their exchange contact the office on 01494 725353. Alternatively please email me with a brief overview of your currency needs and I will happily contact you to discuss my thoughts on this current market. Please email Mike at firstname.lastname@example.org
The Purchasing Manager’s Index out this morning showed that the UK manufacturing sector has risen up to 56.9 from 56.6 the month before. A figure above 50 represents growth so this morning’s data was good for the Pound. This is the eleventh month in a row that the sector has grown and has given Sterling some more support against the Euro.
Employment in the manufacturing industry has improved to its best level since 2011 and the rise in employment in this sector is likely to have a positive effect for the UK economy as a whole hence the reason for Sterling’s strong trading session this morning.
Eurozone GDP figures are due on Wednesday. These are the final revision for the fourth quarter for 2013 and this will give us a big indicator to short term exchange rates. Personally I think the figures could come out rather negative which is likely to weaken the Euro. Unemployment data is also due tomorrow and with rates recently measuring 12% anything lower could see Euro weakness.
The uncertainty surrounding the Ukraine could cause a lot of volatility over the next few days and global stock indices have all been negatively affected. More often that not in times of global uncertainty investors seek the safe haven of the US Dollar and typically this tends to strengthen the Dollar and weaken the Euro.
Therefore, if you’re worried about how the exchange rates could move over the next few days and want to ensure you save money when exchanging Euros then contact me directly Tom Holian email@example.com
The Euro has strengthened dramatically today as EU inflation figures came in much better than forecast, showing a reading of 0.8% against expectations of 0.7%. The big news was that there was a fear the data could actually come in even lower than expected and create a disinflation problem for the Eurozone. This had lead many, myself included, to think the ECB would have to do something fairly soon to actually kick start growth as the ECB’s mantra over the last few years has been “price stability”. With the ECB’s next meeting due next week the Euro had been struggling in advance of this data release. However with the figures coming out better the Euro strengthened as the odds of the ECB intervening were greatly reduced, and with the overall rate of unemployment staying flat rather than increasing, this may have stabilised the Euro in the short term.
Longer term though I still anticipate Euro weakness as they struggle to grasp the nettle and deal with the sluggish growth of the Eurozone, so I think current levels represent a great selling opportunity for anyone holding Euros. With UK services PMI data out next week I am anticipating some sluggishness due to the recent flooding, but I think this will be short lived. If you are looking at buying Dollars from Euros then now is a great time to move with the interbank rate hitting 1.38 again following a dovish assessment from Yellen yesterday, and the inflation news this morning.
If you need to buy or sell Euros then the team here are happy to help; feel free to call Colm on 01494 787 478 or email firstname.lastname@example.org for an overview of our service and how we can help you get the best exchange rate.