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UK Borrowing on target keeps the Pound High (Tom Holian)

Sterling vs Euro exchange rates have remained close to a 3 month high this week following the good news announced today by the government that UK borrowing in the year to April 2014 was less than the previous year by almost £8bn. The initial plan is for the government to destroy the budget deficit by 2017-2018.

The good news has helped to keep Sterling strong against the single currency this week and Mario Draghi’s speech this morning has done little to impact exchange rates.

UK Retail Sales for March are due out tomorrow morning at 930am and this could provide the Pound with a further boost if the figures come out stronger than expected. Expectation is for 3.8% growth.

It seems as though we could expect Sterling to remain strong into weekend so if you have a currency requirement to make to buy Euros it may be worth holding on until early next week to see if there is any more room for improvement for GBPEUR exchange rates.

Next week’s data to look out for

Tuesday 93a0m – UK GDP FIGURES
Tuesday 10am –  Eurozone Consumer Confidence
Thursday 930am – UK Mortgage Approvals 

If you have a currency requirement to make and want to save money when buying or selling Euros then contact me directly for a free quote Tom Holian teh@currencies.co.uk 

Sterling stays strong against the Euro (Tom Holian)

Sterling Euro exchange rates have remained above 1.21 during today’s trading session following the publication of the Bank of England minutes that came out this morning. The Bank of England has raised the growth forecast for the first quarter of this year from 0.9% to 1% which although is good news it was not necessarily as good as could be expected.

Many analysts were hoping for the data to be a little more hawkish and with some expecting maybe one of the members of the MPC to vote for an interest rate hike. However, as far as I am concerned this was a little blip for the currency pair. There was also good news from a CBI survey which showed that growth had increased in orders for the UK manufacturing sector.

The reason for the small blip today for Sterling Euro was because growth is ‘expected to only be a little weaker’ for the second quarter.

With ECB President Mario Draghi due to speak tomorrow morning at 11am and I think we could see some Euro weakness.

If you have a currency transfer to make and want to save money then feel free to contact me directly Tom Holian teh@currencies.co.uk 

EU PMI data helps surge the Euro. (Ben Amrany)

The Euro has recovered its losses from yesterday after EU PMI manufacturing data came out significantly better than expected causing the Euro to strengthen from a low against the pound of 1.2204 down to 1.2126. With the expectations that the Euro will weaken over the coming weeks now may be a good time to sell your Euros to buy the pound to capitalise on the gain.

Data compiled by Markit’s equivalent readings for Europe, seen as good indicators of future growth, showed that while France’s economy was still lagging, Germany continued to power the euro zone’s recovery. The PMI numbers showed the bloc’s private sector has started the second quarter on its strongest footing in nearly three years, although  new orders were again mainly buoyed by firms cutting prices. The data lifted the euro and the region’s government bonds.

Tomorrow morning the gains seen may get wiped away as the president of the ECB will be giving a speech after an IFO business climate survey. Mario Draghi tends to talk up the Euro zones economy but with inflation still continuing to fall he will be left between a rock and hard place in deciding the best line of action to boost the economy and to stop prices falling to low.

If you require buying or selling the single currency please do get in contact with myself Ben Amrany at bma@currencies.co.uk and I will get speak with you about your transfer and the options available to you.

The Best Euro rates

GBPEUR has climbed to some excellent levels on fresh fears over Ukraine and a further improvement for the pound. We are expecting the rate possibly improve a little more although I would not expect anything too significant.

If you need to buy euros tomorrow could be a very important day, I would recommend speaking with one of our team before committing to any purchase. If you are interested you may see a really good opportunity to buy your currency with the market at such good levels.

For more information please contact me on jmw@currencies.co.uk or call 01494 787 478.

EURO at multi week low against the Pound

The Euro has continued to weaken against the pound this week, down towards the lowest levels seen for multiple weeks and expected to be the low price for the rest of the month. All rather surprising as the euro remains well supported against a basket of other currencies including the USD were they have reached multiyear highs.  The main reason for the fall in EURGBP was put down to economic data yesterday which continues to show a concerning situation in the Eurozone and a better picture in the UK.  Unemployment in the UK reached a fresh 5 year low and inflation in the single currency again fell fuelling the concerns about deflation.  It also increased the chances that the central bank in Europe could introduce new policies at their next meeting in an effort to tackle it.  This has been widely discussed in the currency market and has now reached the major press as the chances of the interest rate being cut further in the Eurozone increases.

In review if you are needing to complete a trade this month buying pounds I would wait, buying euros I would move. If you have more time until into next month I would wait if I was buying perhaps and if I was selling euros I would still aim to get it concluded in April.

If you are in the market for any currency please contact the trading floor here – Steve Eakins – hse@currencies.co.uk

Euro rates favourable for buyers, why take the risk?

The Euro is at a very good level now historically when comparing to previous available levels. If you were buying last year you would have been looking at 1.14 to 1.20. This year you are looking at 1.19-1.22, clearly much better levels.

It is easy to get sucked in with the forecast and headlines expecting the rate to just continue to remain favourable. It is however often the greedy who get their fingers burnt! If you look at the Euro against the dollar and pound however you will notice it is at a very strong level historically. The conclusion therefore is that the euro is currently very strong, it just appears against sterling to be a little weaker but in fact it is just the strong pound which is pushing it up.

Any falterings of UK data could easily see the rates fall back and anyone who didn’t manage to secure a 1.20 + buying euros will clearly be disappointed!

All in all current levels should not be dismissed in the hope of significantly better ones down the line.

For more information on what is driving your exchange rates please speak to jmw@currencies.co.uk

Sterling On The Up Against The Euro – Trading Over 1.21

Sterling is picking up nicely against the Euro as UK jobs figures showed the unemployment rate has dropped to the lowest in 5 years, and European inflation was once again disappointing.  Whilst it dint show a deviation from the 0.5% this figure in itself is too low to be sustainable long term and suggests that unless things change soon, the ECB will have their hand forced to stimulate inflation.  With the Easter break fast approaching I still think there may be more Euro weakness to come but if you need to buy Euro in the short term it is a good opportunity.  Euro sellers may wish to move away from the single currency sooner rather than later as it looks like there is a lot more downside than up given the current figures.

If you do have a currency requirement and would like to get the best exchange rate then feel free to contact Colm at cmg@currencies.co.uk and I would be happy to explain our services.  Do remember Friday and Monday are bank holidays so if you yhavent done something by Thursday you may be powerless until the markets reopen on Tuesday- a very long time in currency terms!

UK unemployment and Euro Zone Inflation figures likely to drive the market today (Mike Vaughan)

Sterling has had a good start to this week remaining consistently above 1.21 creating some good buying levels for the the Euro. This morning will see the release of the latest UK unemployment figures expected to fall from 7.2% to 7.1% and closer to the 7% target that Mark Carney has set before he and the Bank of England MPC (Monetary Policy Committee) may consider raising the UK interest rate. We have seen the unemployment level fall to this figure in the past something that gave the pound a strong boost and we could see this scenario again this morning. Figures are scheduled for release at 09:30.

Also this morning will see the Euro Zone release its latest inflation figures at 10:00. Currently the Euro Zone is experiencing deflationary pressures hampering growth and with forecast for levels to fall year on year from 0.7% to 0.5% this could put more pressure on the Euro as a method of counteracting deflation could be for Draghi to cut interest rates, something that would de-value the Euro. Anyone buying Euros this morning could see some better value after 10:00.

To discuss the current market trends and the currency service we provide please contact the office on 01494 725353 or email me with an overview of your currency requirement and I will happily provide you with my insight on the current trends and the contract types we can offer to help you with your currency transfer. Email Mike at mgv@currencies.co.uk

 

Sterling Euro trading above 1.21 (Tom Holian)

Sterling Euro exchange rates have traded above 1.21 today following the UK inflation data out this morning which showed inflation fell from 1.7% to 1.6%. You may think that this would be detrimental to the Pound but the reverse is true owing to an increase in wage inflation.

The Bank of England’s target rate is 2% and the figure was the lowest level since October 2009. The problem on the continent is that inflation is too low only at 0.5% and the ECB have recently suggested that they will potentially use QE it order to stimulate the Eurozone instead of cutting interest rates. This is another reason why we have seen the Pound gain against the Euro since the comments mad by ECB president Mario Draghi towards the end of last week.

Tomorrow morning the UK publishes unemployment figures in the form of the UK Claimant Count. Expectatations are for a fall of 30,000 so anything better could lead to Sterling gaining against the Euro.

Tomorrow also sees the release of Eurozone inflation figures at 10am. With inflation at just 0.5% this will put more pressure on the ECB to either cut interest rates or go ahead with QE and rumours are that it could occur by June.

If you have a currency requirement coming up and want to save money when transferring Euros then contact me directly Tom Holian teh@currencies.co.uk 

 

Sterling Euro exchange rates creep up following lower inflation levels (Daniel Wright)

The Pound has made minor gains against the Euro in morning trading following inflation figures coming out a little lower for the U.K.

This means that wage growth is creeping in line with inflation which should lead to the economy picking up at an even faster pace as in essence people in the U.K should have more money to spend.

One of the key factors for an interest rate hike consideration by the Bank of England is this very measure as to hike rates when we are only seeing what is essentially the economy growing from people spending their savings would be a dangerous game to play.

An interest rate hike is generally seen as positive for the currency concerned hence the reason that even a higher possibility of a rate hike happening earlier can lead to a spike in the vale of then Pound.

Should you be looking to buy or indeed sell Euros with Sterling in the near future then it may be prudent to get in contact with me directly as I can help you both in terms of getting a great rate of exchange and assistance with the timing – Feel free to contact me (Daniel Wright) directly by email on djw@currencies.co.uk and I will be more than happy to contact you personally.

Eurozone Industrial Ouput Grows by 0.2% (Matthew Vassallo)

GBP/EUR rates have risen again during Monday’s trading, moving the currency pair back through 1.21 on the exchange at today’s high. The EUR had made early gains against GBP and this came in line with this morning’s economic data release, which showed that Industrial Output in the Eurozone had grown by 0.2% in February. Despite this positive news the EUR failed to hold its position after gains late last week and it seems the on-going concerns over the French economy and potential future deflation, are hampering any further EUR gains.

Key data this week includes tomorrow’s Eurozone trade balance figures and Wednesday’s CPI numbers. If we see positive figures the EUR may find enough market support to move back towards 1.2050 on the exchange.

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 mtv@currnecies.co.uk.

Next week is very important for the Euro

Greece was positively in the headlines yesterday as Greek bonds were 8 times oversubscribed by investors. Greek debt was one of the causes of Euro weakness which two years ago saw the Euro plummet. Yesterday’s news marks a turning point and could underline a renewed round of Euro strength depending on some other issues.

This morning’s German CPI Inflation data has shown no changes which has given the Euro a small lift. Spanish CPI just released has fallen slightly. With Inflation fast becoming a major headache for the ECB, this is the key topic. There have been numerous discussions of late about extra measures the ECB will take if the overall figures fall.

Next week on Wednesday we have the all-important CPI Inflation data for the Eurozone. This is a very important release and anyone with a Euro requirement ahead of this may wish to assess their position.

The ECB has forecast improvements in the Inflation outlook but if prices keep falling there is scope for some kind of monetary easing which would likely weaken the Euro. GBPEUR and EURUSD have been fairly flat and range bound in the last few months, this could be a trigger to higher or lower prices depending on the outcome.

To keep an eye on rates movements yourself, you can email me Jonathan on jmw@currencies.co.uk