We regularly comment here about our ability to beat bank rates. Banks could offer the rates we do, they simply choose not to. 70% of all foreign exchange transfers go through Banks, and because few still think to look for an alternative, they continue to charge high prices for transfers by offering uncompetitive exchange rates, and taking their profit on those margins. I was a victim of this when I moved to America for a year at university – as a student I still lost over 3000 pounds to fees and uncompetitive exchange rates over the course of the year, only realising the scale much later.
Why do Banks not compete with each other to offer better rates? The simple answer is, there is an unspoken agreement between them all. The libor rigging scandal - http://www.bbc.co.uk/news/business-32903415 – which has finally gone to court, is an example of how damaging this collusion between employees at various banks can be.
What the papers do not explain is how they manipulated the exchange rates to get larger profits. The various traders spoke in online chat rooms, calling clients derogatory names and working together to make huge profits on transfers, much more than they should, by timing transfers together with their criminal peers. For example – four traders will push through deals at the same time – this change in demand changes the market price for purchasing that currency, pushing the rate in the right direction for a fifth trader to take a much bigger margin against their client without the client being aware of the change.
The scale and volume of this criminal activity have led to record fines in the hundreds of millions for high street banks.
This blog was conceived to offer freely available public information for those looking to engage in a potential treacherous market, and make sure they have all the knowledge available to achieve the best rate on their transfer.
Not only that but we can also offer free quotes on your transfer. As a specialist currency brokerage, who have been in business for over 15 years, we are well positioned to offer you the best exchange rate, and highlight buying or selling opportunities to maximize your returns. We are what banks choose not to be.
The Euro has gained against the Pound in the short term today, but the Interbank Rate is still above 1.4, presenting a tempting opportunity for those looking to purchase Euros. Contact me on email@example.com overnight for a free quote and advice on how to navigate the markets over the next few months.
This is now the fourth time since the start of 2015 that Sterling Euro exchange rates have hit 1.40 and above.
Previously, the rates have only lasted a mere few hours or a couple of days as Limit orders fill and investors take advantage of short term spikes.
However, with the news this weekend that the Greeks may not be able to repay their next debt due on June 5th this could cause even further weakness for the Euro against both Sterling and the Dollar.
In recent times when the Pound has broken 1.40 there has been very little support to keep it above these levels but with the Greek news today this could potentially send Sterling higher against the single currency during early next week.
The Greeks are due to repay the IMF a total of EUR1.6bn during June but the Interior Minister Nikos Voutsis has claimed today that the ‘money will not be given and is not there to be given’.
It could be that they are scaremongering in order to be given either more time or more flexibility in regards to the current package but it clearly shows that things are not in order in Greece.
This is a worrying time for anyone holding Euros whilst at the same time creating excellent opportunities to buy Euros at these 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 firstname.lastname@example.org
Sterling Euro exchange rates have broken through 1.40 again today following some very strong UK retail sales data yesterday morning.
Retail sales were the best they have been since last November and this has boosted Sterling.
This afternoon inflation data in the US has come out much better than expected with year on year of 1.8% compared to the expected 1.7%. This has seen the Dollar improve by 1% against the Pound and even more against the Euro.
The good news for those holding Sterling is that often with Dollar strength we see Euro weakness and this is evident in today’s trading session with Sterling Euro challenging fresh highs today.
Next week on Tuesday we have more data due out for the US with the release of both consumer confidence and Durable goods orders. With the data coming out strong today if the figures are also good on Tuesday this could see further positive movement for Sterling vs Euro exchange rates.
With the uncertainty surrounding Greece still ongoing this is providing excellent opportunities to buy Euros so it may be worth buying a forward contract if you have a requirement to make in the future to prevent any unwelcome losses.
If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian email@example.com
The EUR has suffered further losses during Thursday’s trading, with the single currency taking another hit against the Pound. GBP/EUR rates have moved above 1.40, even creeping towards 1.41 at today’s high. With the pounds recent momentum continuing, we are once again seeing some of the best levels of the past 8 years for those clients looking to purchase EUR.
The single currency has been under pressure ever since the UK general election results were confirmed and it has struggled to regain its position since. Despite a slight improvement in Eurozone data, the on-going concern surrounding Greece has left a black cloud hanging over the Eurozone. The EUR will struggle to make any sustained inroads whilst the situation continues and I do feel any move back below 1,40 should be taken advantage of by EUR sellers.
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 firstname.lastname@example.org
The GBP EUR rates have been as varied as the UK weather over the last two trading days.
Yesterdays ‘Deflation’ figures were well documented, however haven’t had a long term impact on rates. Prior to the deflation figures rates spiked up to 1.3770, falling back to the early 1.38s.
Today the GBP strength can be linked to the build up to the release of Bank of England Interest Rates Decision minutes. The previous meeting gave the Pound a boost, as two of the 9 members that vote indicated that they were close to voting for a rate hike. A hike would be good news for the Pound, so it wouldn’t surprise me if rates pushed up to the 1.40s this afternoon…
If you have an exchange requirement, feel free to drop me a line on 01494 787 478. There are various options available to you to book your currency, even if you don’t have the full amount of Sterling available.
Should you prefer, feel free to drop me an email with your requirement to AJB@currencies.co.uk
Sterling Euro exchange rates have moved by almost 2 cents from the high to low during today’s trading session as inflation data caused the markets to move dramatically.
As predicted in my previous report Eurozone inflation was much higher than expected whilst UK inflation came out at its lowest level since 1996.
This caused the Euro to strengthen very quickly following the figures but it started off the morning in a very sorry state and we almost hit 1.40.
Very early this morning an ECB member suggested that QE could be increased in the Eurozone over the next couple of months as an aid to helping inflation which saw the currency weaken in the run up to the release of the data.
The Bank of England minutes are due out at 930am tomorrow morning and my suspicion is that we’ll see at least one member of the MPC voting for a rate hike for the UK which could send Sterling higher against the Euro and possibly hit 1.40.
Finally, the US market releases its own minutes from its most recent interest rate decision and I think we could see Dollar strength which often results in Euro weakness.
If you have a currency transfer to make and want to save money on exchnage rates compared to using your bank then contact me directly for a free quote. Tom Holian email@example.com
GBPEUR exchange rates had a difficult end to the week with rates falling into the 1.37 territory after briefly tipping past 1.40 on Tuesday’s trading session.
With the UK general election now becoming a distant memory the markets turn towards data announcements and next week there are quite a few which are likely to have an impact on Sterling Euro exchange rates.
Tuesday is perhaps the biggest potential mover for the Pound vs Euro with the release of both UK and Eurozone inflation data.
The expectations are for the UK to reveal falling inflation whilst in the continent the expectation is for inflation to start increasing again.
Indeed, if Eurozone inflation shows a rise this is likely to give the Euro strength as it could be argued that the recent addition of QE has started to work.
Inflation is also a key indicator as to how an economy is performing and will have an impact on economic growth.
Therefore, if you have a requirement to sell Euros into Sterling it may be worth taking advantage of exchange rates on Tuesday afternoon.
Also next week is the release of the Bank of England minutes and I think we could see some more support for an interest rate hike for a couple of members.
Bank of England governor Mark Carney recently suggested that interest rates can go up but not until 2016. However, the MPC is made up of 9 voters so Wednesday could see Sterling gaining against the Euro if there is an increased appetite for a UK rate hike.
If you have a currency transfer to make and want to save money on exchange rates compered to using your own bank then contact me directly for a free quote. Tom Holian firstname.lastname@example.org
It has been a mixed week for GBP/ EUR exchange rates with highs of 1.4021 and lows reaching 1.3812. Sterling gained momentum at the beggining of the week off the back of news that the conservative party formed a majority governement. The rates then fell when the Governor of the Bank of England unveiled his quarterly inflation report. Inflation for the second month was at 0% well below the banks 2% and very close to deflation. Mark Carney and the BoE then went on to cut the 2015 growth forecast from 2.9% to 2.5%.
For clients who were looking to purchase €200,000 this week they could have made it £2,000 cheaper by trading at the high compared to the low. If you are looking to trade sterling to euros in the upcoming weeks feel free to email me for a forecast email@example.com or alternatively call into the office 01494 787 478 and quote Dayle Littlejohn.