Helping you build for the future

More »

Better exchange rates than the banks

More »

 

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! **

Sterling Supported after Strong UK Retail Sales Data (James Lovick)

The pound continues to remain under pressure against the Euro despite some positive UK releases this week which helped see a small but short lived boost higher for sterling exchange rates. GBP EUR strengthened yesterday following much better that expected retail sales date for the month of July and which gives us some clues as to the economic landscape post Brexit.

Retail sales were up 1.4% on the month of June which was considerably stronger than expected and resulted in the pound gaining a cent against the Euro immediately after. It was a hot month in July so sale were likely to be strong so I wouldn’t read too much into it at this stage.

There is still a real chance that Britain may have a technical recession which could see trouble for the pound in the coming weeks and months although there is a growing consensus that Britain may in fact narrowly avoid a recession. This would be very good news for the pound although we still have some way to go.

There was other positive news earlier in the week with unemployment remaining at 4.9% covering April to June and which highlighted that unemployment did not worsen in the run up to the referendum. In fact the claimant count measure of unemployment actually improved for the month of July (post Brexit).

Data is light for the UK as we end the week but next week sees very important UK Consumer Price Index inflation numbers which could result in high volatility for the pound. Inflation is likely to start ticking higher in the next couple of months as a result of the weaker pound as a result of Brexit. As such there is likely to be considerable market reaction when it does and any high numbers are likely to see the pound move higher.

Client looking to sell Euros may wish to consider taking advantage of the current excellent trading prices which are still hovering around a three year high for EUR GBP.

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 find support following positive retail figures

  • Strong Retail and unemployment data surprise the markets
  • CPI data on Tuesday hints at moderate gains in inflation
  • Moody’s improve economic climate for UK following Brexit

Post-Brexit data shows positive economic climate

Following the Consumer price release on Tuesday which showed moderate gains in inflation, markets have been waiting with anticipate for the important retail sales this morning. Whilst Brexit remains a key concern for global markets, retail sales for the UK came in far stronger than anticipated, with stronger growth MOM and YOY.

Whilst it may be too early to draw conclusions about the impact of Brexit, markets reacted providing Sterling with further support against the Euro, pushing rates back to mid 1.16 ranges.

Economic releases for the UK will be relatively quiet for the remainder of August, with much of the movements now focused around mortgage approvals and Q2 GDP estimates.

Moody’s improve growth forecasts for Brexit Britian

Whilst today’s retail figures are encouraging at best, markets remain concerned about Brexit and its implications on the British economy. It may take time for the impact of Brexit to impact the UK with small movements likely off the back of further positive data. However a continuous stream of positive data running through into the new year could ease market anxiety.

Moody’s have posted their latest GDP estimates and have downplayed the Brexit impact for next year, raising further optimism amongst investors. If the UK’s outlook remains positive we could see exchange rates move closer to pre-Brexit levels before Article 50.

Further Pound Sterling strength could be on the horizon

With the above in mind, I personally believe a cheaper Sterling is helping the British economy, encouraging foreign investment and improving exports. If data continues to steer positive we could see GBPEUR exchange rates creep closer to the 1.20 mark. I do however remain concerned about Article 50 and the official withdrawal from the EU. This period of uncertainty could last for an extended period of time and may present complications further down the road.

If you are looking to buy Euro’s in the near future, email me at rdl@currencies.co.uk. There are opportunities that could present themselves for short periods.

Sterling Strength to Continue (Ben Fletcher)

The GBP/EUR rate today finished in the mid 1.15’s, having dropped down to 1.142 at the start of the week this should certainly be considered good news. A better than expected inflation report yesterday has carried on into today with an improvement in the unemployment figures.

Tomorrow is the turn of the Retail Sales which should provide an indication of any Brexit fallout from consumers in July. There is a general consensus that there could be an improvement from the previous year and from June which could certainly move the GBP/EUR rate further up. If these figures are released I would not be surprised to see the rate move into the 1.16’s which would be for the first time in nearly a week.

Inflation Data for the Eurozone

The Consumer Price Index provides an indication into the movement of the price of goods, anything negative is considered as showing a weakening economy. Tomorrow there could be poor CPI date which could work against the Euro. Should this be the case it could further add to potential Sterling strength essentially creating a second day of spikes for the GBP/EUR rate.

Personally it seems perfectly plausible that the rate could move well into the 1.16’s by the end of the week, on the back of the data releases tomorrow.

Political Trouble Brewing in Italy

In autumn this year there are plans to hold a referendum in Italy which will see the Prime Minister Matteo Renzi attempt to simplify the constitutional process. However Renzi much like Cameron for the Brexit has implied he will resign if he doesn’t win. Whilst he has tried to back away from this position, the last thing Italy needs is a banking crisis followed by a political crisis with little chance of a resolve.

The Eurozone currently dealing with the British Referendum fallout could fall victim to a second referendum in 2016. In the next quarter I am of the opinion that the GBP/EUR rate has the capacity to move above 1.25. I see the Euro as overvalued and believe the issues they face with German and French elections next year along with Italy this year will cause major uncertainty.

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 my forecast please email me at brf@currencies.co.uk.

Buying Euro rates rising in anticipation of tomorrow’s inflation figures (Joshua Privett)

After what has been a concerning week for Euro buyers the Pound seems to have found some support, with buying Euro rates rising a full cent by mid-morning in the UK.

Sudden and unanticipated drops in GBP/EUR have characterized recent movements, as profit taking in a volatile market has left anyone with a Euro buying requirement watching markets in a hawkish manner, until yesterday morning and today which has brought some respite.

Inflation is the key word at the moment and the current and expected disparity between that of the UK and the Eurozone seems to be driving the one cent gain in the last 24 hours, saving many with a Euro bill for a property or invoice hundreds or thousands of Pounds on their purchase.

Inflation is a key measure of economic health and activity, and is the main driver in deciding whether central banks such as the Bank of England decide to take any bold steps to cut or hike interest rates in a bid to stimulate economic activity.

Yesterday saw some important and notable improvements in the UK’s inflation rate – despite the recent shocks of the Brexit vote. The holiday period and a rise in oil prices has contributed to the first positive trend in inflation since the Autumn of 2015, and as such the fall which began last Friday on the Pound’s value halted.

Now tomorrow it is the Eurozone’s turn.

The Eurozone is expected to see a significant contraction. This may even be a month of deflation overall (negative inflation). A slowing Germany, a lack of confidence in the Italian economy, and very low tourism in countries traditionally vibrant in the summer months such as Greece has lowered expectations heavily. Should these negative expectations be confirmed tomorrow morning at 10am, its likely GBP/EUR will be touching about 1.16 back more and back to an area of support established last week.

In these situations it is important to be in a position to move quickly should any tempting opportunities emerge, as our regular readers will note that any improvements or dramatic downward turns are normally matched by a correction of some form.

In these situations automatic buy orders are popular option to try and capture some of the volatility at any desired peaks which emerge, even if they are only available for a few seconds – ensuring that opportunities are not missed.

These can also be combined with forward contracts which many readers may be more familiar with, where you can pre-book your currency purchase in the future at desired levels available today.

I strongly recommend that anyone with a buying Euro requirement should contact me on 01494 787 478 and ask the reception team to be put through to Joshua Privett to discuss how best to approach the next 24 hours in order to maximise your currency return.

Or fill out the form below and I will contact you as soon as I am available to help you formulate a plan of action and outline the options open to you for your purchase as I fully appreciate your choice will be governed by your personal situation.

Euro sellers can also get in contact to discuss the options open to you over the coming months to try and maximise the effects from any underwhelming UK performance figures over the next few months. jjp@currencies.co.uk

Where Next for EUR Exchange Rates? (Matthew Vassallo)

The EUR continues to make inroads against GBP, with the pair dropping to 1.1456 at this morning’s low. However, the EUR hasn’t performed as well against other currencies, in particular the USD, since the Brexit vote. We need to remember the negative impact this is likely to have on the Eurozone region, which is losing one of its integral members. It has managed to claw back some of these losses over recent days, in line with another spike against Sterling.

Whilst the current trend will not last forever, it does seem as though the Pound will struggle to make any sustainable impact whilst there is so much market uncertainty surrounding the UK economy. With reports surfacing over the weekend that UK Prime Minister Theresa May will not look to invoke Article 50, triggering our Brexit from the EU, until 2019 this market uncertainty is likely to continue. I would not be surprised if we find there is a ‘glass ceiling’ type barrier, which the Pound could struggle to surpass and for that reason I would be keen to protect any Sterling positions from further losses.

Looking ahead and we are likely to see additional volatility on GBP/EUR rates this week, with a host of key economic data releases. Today we have a host of inflation data for the UK, along with Eurozone Trade Balance figures. On Wednesday we have the latest UK unemployment figures and with the official unemployment rate expected to remain unchanged at 4.9%, expect the markets to spike if the reading comes outside of this figure. Finally on Thursday we have UK Retail Sales figures, along with Eurozone inflation data, so expect a busy on the exchange.

If you have an upcoming 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 Matt. Alternatively you can register your details through this blog, or email me directly on mtv@currencies.co.uk

Should I buy my euros now? (Dayle Littlejohn)

For clients holding onto sterling waiting to buy euros, the golden question many are asking is ‘will exchange rates improve or continue to fall?’ Since the UK public decided to vote out of the EU, investor confidence has dropped and therefore exchange rates have been falling and I predict this trend will continue.

Economic data releases

Tomorrow morning at 9.30am the UK are set to release their latest Consumer Price Index (inflation) numbers and a small decline is expected. This therefore gives indication that pound could lose further value. Furthermore UK Retails Sales figures are set to be released Thursday at 9.30am and again a small decline is expected which should weigh down on the pounds value.

As for the Euro, inflation numbers are released at 10am on Thursday and a small decline for the monthly figures are predicted. Therefore if I buying euros this week moving sooner rather than later may be wise. If you are selling trading in between the UK retail sales figures and Eurozone inflation numbers may be the best strategy.

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! **