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Is Greece still causing problems for the Euro? (Tom Holian)

If you’ve been been watching Sterling Euro exchange rates for the last few months you will have noticed that not only have they hit their highest level to buy Euros in 8 years but they have also been heavily impacted by the ongoing Greek crisis.

With Greece still making headlines although things have got better recently and with a new debt package in place things are still not quite right between them and the IMF.

The IMF wants more changes to the current package and whilst the problems persist this is one of the main reasons why the Euro remains weak against both Pound Sterling and the US Dollar.

Indeed, Eurozone inflation data published on Friday showed an improvement to 0.9% which proves that QE introduced back in March 20215 is beginning to work.

This gave the Euro a brief amount of strength vs Sterling but this was short-lived.

Without the Greek crisis you would typically expect the single currency to have continued to strengthen during Friday’s trading session but it is clear that this is still dominating the currency markets.

Sterling ended the week trading at 1.42 on Interbank levels.

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

 

 

 

GBPEUR Rates Improve!

The Euro rates have weakened as expectations the US Federal Reserve will raise interest rates persist and this has seen funds being moved from the Euro and other currencies to the USD. Such sentiments are likely to continue to weigh on the market, GBPEUR shot up again yesterday as sterling is also doing well. For anyone buying or selling Euros it is really the same themes of the last few weeks but with a little more certainty as we expect Greece to remain in the Euro.

Attention is firmly on the UK and US as to who will raise interest rates first. It is predicted to be the US in September but the recent good UK economic data might see some members of the Bank of England voting for an interest rate hike as well next month. On balance anyone who needs to sell Euros for the pound or USD should be worried about the current Euro rate forecast.

Today at 10.00 am is the latest Inflation and Unemployment figures for the Eurozone, it will be interesting to see if the recent Euro weakness and settling of the Greek situation has yet had a positive impact. Unfortunately on balance it appears that the damage done to confidence and sentiment earlier this year is likely to continue to hold back significant Euro gains. If you need to sell the Euro I suggest selling on any dips in your favour, please speak to me about all of your options and securing an excellent exchange rate on jmw@currencies.co.uk

Sterling Euro rate hits 1.43 (Tom Holian)

Sterling Euro rates have continued to climb and are now getting close to the best level to buy Euros in 8 years.

Problems still persist with Greece and with the UK GDP figures showing growth of 2.6% yesterday this has given Sterling a huge confidence boost.

The Federal Reserve met yesterday evening to discuss interest rates and although there was no change I think the Fed will be the first large central bank to raise rates which has helped to strengthen the Dollar and weaken the Euro creating excellent buying opportunities.

Annualized growth figures for the US that came out this afternoon have also showed an improvement for the world’s leading economy.

This is likely to put more pressure on the Fed to raise rates in September and with US unemployment now at 5.3% this is keeping the Dollar very strong.

Tomorrow morning we see the release of both Eurozone inflation and unemployment data and this could cause further volatility if the news comes out different to expectation.

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

 

 

 

 

Could a ‘Grexit’ still occur?

Over the last week it appeared that Greece has nailed on a deal with the IMF and ECB regarding their 3rd bailout. However fears have reignited after Alexis Tsipras (Greek PM) comments late yesterday on a Greek radio. Further to this Christine Lagarde, head of the IMF also stated that Greece needed ‘significant debt restructuring’ before the IMF would contribute to a 3rd bailout.

This uncertainty has weakened the euro and GBP/ EUR has spiked into the high 1.42s. For euro buyers this has given another window and I would recommend trading as soon as possible. Feel free to email me directly for a free quote drl@currencies.co.uk.

GDP Figures Causes Sterling Strength (Daniel Johnson)

Sterling gained strength over most major currencies following a rise in GDP in the second quarter. GDP came in at 0.7% compared to Q1 at 0.4%. Out put is very close to the the levels seen just prior to credit crisis of 2008. The BOE meeting next week could show some change in voting patterns for a rate hike. However, it is not all good new as the strength of Sterling is hitting our Exports. The confederation of British Industry (CBI) has signaled the weakest outlook for exporters in four years. due to this it wouldn’t be wise to rise interest rates for at least six months.

I doubt we will we see any major volatility in GBP/EUR while the Greek debacle continues. If you have a currency requirement in short to medium term it would be advisable to move on a spike in your favor. I currently offer a free of charge rate alert service, don’t hesitate to drop me an e-mail or give me a call to let me know if you would like to notify you of market movements.

We do have some very large GBP/EUR trades going through this week which potentially we can tag new clients on to and achieve a very competitive rate.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

Sterling makes gains against the Euro – What will the Euro exchange rate do next? (Daniel Wright)

Sterling exchange rates made gains against most major currencies during trading yesterday following news that the U.K economy had grown by 0.7% in the second quarter of 2015. This is in fact the 10th consecutive quarter of positive growth for the U.K and really does go to show that the economy chugging along nicely on the road to recovery.

Sterling has slipped a little from the 8 year high that we witnessed just over a week ago now that the issue with Greece has been put to bed. Personally I feel although this has been put to bed for the time being there is an exceedingly high chance that it will come back with a vengeance. The problem is that this may be week, months or even years so do not hold out on the hope that the Euro will weaken dramatically based on this quite yet.

The economy is ‘motoring along’ according to chancellor George Osbourne and Governor of the Bank of England Mark Carney has recently commented on the potential for an interest rate hike towards the latter part of this year/start of next so this may well give Sterling a boost should this start to gather pace.

My personal opinion on the Euro is that we may see a little Euro strength in the short term, making it more expensive to buy as Greece is no longer front page news but then a lot further down the line Sterling may launch a fight back as the Bank of England and interest rate changes become the main focus.

If you are in the process of buying a property overseas then a forward contract may be a sensible option for all or even half of the amount you may need to buy. This is where you can secure a rate for anything up to a year in advance for just a small deposit, therefore eliminating any risk of your overseas property costing more than you bargained for.

If you have Euros to buy or sell either now or in the near future then feel free to email me (Daniel Wright) directly with a brief description of what you are looking to do and I will be more than happy to assist you personally. You can contact me on djw@currencies.co.uk and I look forward to speaking with you.

GBP/ EUR progressively drops due to Greece striking a deal with creditors and poor UK economic data.

Over the last three months Greece had stolen the headlines with speculation of a possible ‘Grexit’. Greek Prime Minister Alexis Tsipras had been constantly negotiating with Eurozone leaders to secure a third bailout and stop Greece from going bankrupt.  The talks caused serious volatility within the currency markets and GBP/ EUR exchange rates spiked into the 1.44s. Finally, over a week ago, Greece won a conditional agreement to receive a third bailout, set to run for the next 3 years.

Last week we saw a contraction in the UK retail sector, normally a fantastic performer compared to global competitors and also poor industrial confidence figures yesterday morning. Poor economic data and a deal with Greece has pushed exchange rates back towards the 1.40 level. For clients who held on hoping Greece would leave the euro I am now of the opinion the window of opportunity for buying euros at the high has gone.

Over the last 7 days GBP/ EUR rates have dropped 3 cents. I think this trend could continue over the next month and GBP/ EUR exchange rates could drop back into the 1.30s. To put it simply if you bought €100,000 7 days ago it would have been £1,500 cheaper. For clients needing to buy euros within the next 30 days I would recommend getting in touch as soon as possible to book a rate. Feel free to drop me an email with your requirements and I will reply accordingly drl@currencies.co.uk (Dayle Littlejohn).

Will the EUR’s Value Increase? (Matthew Vassallo)

The EUR has lost some ground during Tuesday’s trading, following a strong run yesterday against both GBP and the USD. The EUR made significant gains against GBP during Monday’s trading, with the pair moving below 1.40 at the high. This move meant the EUR had improved by over 4 cents from the low of last week, providing EUR sellers with a much needed window of opportunity following weeks of watching the single currency lose value.

Poor UK Retail Sales figures knocked the Pound towards the end of last week and this momentum carried into Monday but better than expected UK Gross Domestic Product (GDP) figures this morning have helped the Pound recover some ground, with GBP/EUR moving back above 1.41. This is another example of how fragile the EUR is and despite the improvements mentioned I cannot foresee a major improvement under current market conditions. Whilst I do feel Sterling will struggle to break through the highs of last week I would be tempted to take advantage of this short-term spike and not gamble on the EUR gaining any sustainable value.

Looking ahead and we have Consumer confidence figures for Eurozone released on Thursday and the latest inflation data and unemployment rate of Friday, so bothy of these are likely to cause additional volatility on EUR exchange rates.

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 Exchange Rates Set for a Volatile Week (Tom Holian)

Sterling Euro rates have seen the best levels to buy Euros this month since 2007 following on from the Greek crisis and Mark Carney suggesting that the UK could raise interest rates before the end of the year.

This has helped to support the Pound vs the single currency but I think this recent positive movement could indeed be short lived.

Next week sees the release of UK GDP data on Tuesday and with the previous quarter showing growth os 2.9% I think owing to the strength of the Pound this is likely to have impacted the demand for British exports which could result in lower GDP for the second quarter.

If my predictions are correct we could see Sterling fall in value against the Euro so if you need to buy Euros it may be worth looking at getting something organised early next week.

On Friday the Eurozone announces both inflation data and unemployment figures. If inflation shows a rise it could be argued that the ongoing QE project for the Eurozone is working and could strengthen the Euro against the Pound even further.

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

 

 

 

What next for the Euro?

Just when events seem to be moving in favour of the Euro the rate remains at a stubbornly low level against its counterparts. Just what can we expect for the Euro in the future? With all of the Greek news effectively ‘dealt’ with it would have been reasonable to expect the Euro to make further gain. Yet instead it has got worse! Just what can we expect in the future for this now notoriously volatile currency?

The initial euphoria of a deal being reached has quickly passed with the last few months passage of events opening up much wider speculation about just how the Eurozone will deal with their problems. If you need to run through the process with any transfer it might be really worth your while to speak with me about all of your options.

Please email me Jonathan on jmw@currencies.co.uk for information about the what to expect next for the euro and your options in this market.

Sterling falls after poor Retail Sales data (Tom Holian)

Sterling Euro exchange rates have fallen this morning as predicted in one of my previous articles as the Greeks are now close to a resolution and UK Retail Sales falling by more than expected.

The estimate wad for 4.9% but with the release only showing 4% this has seen Sterling falling against the single currency and all other major currencies this morning following the announcement.

There is little economic data coming out this week to have too much of an impact but the ongoing Greek issue is causing the volatility for Sterling vs Euro exchange rates.

Next Tuesday UK GDP figures are due out and any revision could cause further movement on exchange rates.

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

 

 

Greeks finalise bailout and GBP/EUR rates fall to 1.42

Yesterday Greece passed the crucial reform bills necessary for talks on the €86bn Euro bailout to begin. The protests outside the Greek Parliament turned ugly once more, with further petrol bombs and other potentially lethal devices being deployed.

Today a significant amount of data will be released on the UK economy, but these will likely have little bearing on exchange rates at the moment. As such it is likely that we will see a gradual decline in rates today now that the bailout will be moving forward without any more objection from Greece.

Further down the line, I’m sure negotiations over the specifics of the bailout will become very contentious as they have in the past. But this will be weeks, or even months away. Those who have a Euro requirement in the next month may be looking at the best rates available as I type this article.

Call me on 01494 787 478 and ask for Joshua to discuss how to secure the most favourable rates of exchange while they are still available. Even if your requirements are not until later in the month, it is a simple task to peg the rates as they are to avoid missing out. jjp@currencies.co.uk