Monthly Archives: January 2013
We are currently looking at EUR/GBP & EUR/USD rates thinking how much stronger can the Euro get. Even when Spain showed that their GDP had contracted the Euro still continued to gain against the pound and USD. We have been reviewing our forecasts, as previously we stated that if the rate fell against the pound below 1.20 we felt there would be a resistance level of 1.17. Now that the Euro has been lingering below this level (1.1650) we feel the next test will be the 1.15 point. This is where many investors will have limit orders in the market to sell their Euros. How long it takes to reach this level is difficult to predict but the amount of sterling weakness across the board coupled with the Euro strength leads us to believe that this could occur. The pound may just surprise us and rebound so you should always be extremely cautious as things can turn around very quickly.
If you are planning on selling Euros to buy sterling the 5.5% movement in your favour since mid-end of December is a great return on your funds. If you were selling €200,000 now compared to 4 weeks ago then you would be achieving and around £10,000 more now. This is a fantastic return in the space of a month and I would imagine that most of you who have Euros to sell were more than likely banking on rates of around 1.23-1.25. If you want to capitalise on the favourable rates and do not want to take the risk with your funds then please feel free to contact me for a quote at email@example.com. We will always strive to beat any rates you are quoted by your bank or any other broker. Please leave me your contact details and I will contact you straight away to discuss the options that are available to you. Plus we will give you a very personal service which you just will not get from any bank.
This morning the Euro has been very range bound as Germany posted slightly better than expected unemployment figures. The data showed that unemployment dropped to 6.8% but the markets were expecting to see the figures at 6.9%. This should bring a little more strength to the Euro.
Potentially the biggest market mover of the day for the Euro could be in the form of German Inflation data out at 1pm this afternoon. Figures are expected to come out at 2% for the year and a drop of -0.4 % for the month. Should the data come out not as anticipated then you could find some volatility with the rates in the lead up to the weekend.
Should you have a requirement to buy or sell the Euro please do feel free to contact us for our opinion on the markets and the rates of exchange that we can offer. We deal with all the major currencies and you can find that savings over your bank can amount to as much as 4%
Thank you for reading.
Euro exchange rate have continued their recent assault on the currency market bringing levels against the Pound and US dollar to 14 month highs. Will this continue?
To me it is all a little surprising how far the Euro has moved, sure if you look at the fundamentals behind the UK and our European counterparts, yes the data has been poor from the UK but surely we are still in a better position than Europe? One could argue that Mervyn King (head of the Bank of England) its getting his way as he has been open in calling for a weaker pound to improve the UK’s exports, he is also notorious for talking down the UK’s chances of short term recovery whereas Mr Draghi (his counterpart at the European Central Bank) is often far more bullish when it comes to European finances. For me this is somewhat of a facade and I for one feel this pair is due a correction heading back towards the 1.20 territory. Should you be selling Euros, for this reason, and whilst levels are not far from a 14 month high, it may well be worth considering your options – this may include the use of a forward contract allowing you to guarantee your position even if you do not have full availability of your funds.
As for EUR/USD I think this too will see a correction short term moving back towards 1.33. The dollar then may well come under further pressure when the US debt ceiling deadline draws near come April.
If you would like updates on the market, register your interest by emailing me with your particular currency requirements (contact details, currency pair, volume and time frames). I would be happy to run through my current forecasts and to provide you with a quote for your upcoming exchange. I can be reached at firstname.lastname@example.org
Anyone reading this site who is fairly savvy on transferring money abroad may think that we are just ‘another currency broker’ and that they are all the same.
Well at 10.30 today I had a new client contact me buying €210,000 on a forward contract. He was already dealing with another company and wanted to check if he was getting the best deal. Lucky he did! One e-mail and 35 minutes later, he was £744.74 better off!
Even if you have been dealing with another company for some time a quick call or email to us could save you money. Just like car insurance, shopping around on your currency can save you money.
For a free no obligation discussion of your exchange please feel free to contact me Jonny directly on 01494 787 478, or email email@example.com
I look forward to hearing from you and genuinely saving you money!
The Euro has once again continued to strengthen against the pound and has now spiked at over a year high. The main contributing factor was how the UK economy now seems to be in a triple dip recession. UK GDP figures showed a contraction for the last three months of 2012 to -0.3% This was below analysts expectations and on the back of this we witnessed the pound hit a low of 1.1713.
It has not only been sterling weakness that has contributed to the gain for the Euro. Today we had the president of the ECB speaking stating that the ECB outlined three “extraordinary” steps taken by European leaders and institutions to battle the three-year sovereign debt crisis that has pitched the 17-nation bloc into recession. Governments have pushed through structural reforms with “urgency” and these are “now bearing fruit,” said the ECB boss. European leaders had recognised structural flaws inherent in the single currency and were now pushing for greater integration.
This all helped the Euro to gain against most majors but anyone with a requirement to sell the single currency should bear in mind that Europe are from having their issues all resolved. There is certainly more scope for the Euro to continue to gain but be cautious as these are the best levels for a year.
If you are interested in finding out what we feel will happen for GBP/EUR or if you have a requirement to buy or sell the Euro over the coming weeks/months please feel free to contact me with your contact details and what your requirement is and I will call you to explain the options that are available to you.
You may contact me at firstname.lastname@example.org
The Euro has continued today with gains against both the pound and the US Dollar. There seems to be nothing currently getting in the way of the strong Euro even with controversy between ECB Governing Council member Ewald Nowotny and Eurogroup head Jean-Claude Juncker’s.
Juncker has this week that he is concerned about the strength of the Euro but Nowotny has stated that the ECB targets price stability rather than exchange rates. This coming from an ECB member has once again boosted the Euro with rates up 0.25% against GBP and 0.15% against the USD.
Looking forward for those that have Euros to sell to buy pound sterling I think that there will be a resistance level of 0.8333 (1.20) You will find that as the rate hits that level many limit orders will be filled from investors capitalising on their gains. If you do have Euros to sell then rates may just be spiking at present and compared to where we were just 1-2 months ago the levels are extremely attractive. If you would like to compare our rates or find out the service that we provide to help you maximise your currency conversion please email me with your enquiry at email@example.com
Over the next couple of days the markets will eagerly be awaiting comments from the UK Prime Minister David Cameron on all things Europe.
The PM is to speak in Europe to set out plans on how the UK will repatriate some powers from Brussels to Britain. We believe his plans would then give the public a referendum on whether they back the new relationship. The vote may not happen though for 4-5 years.
However the much anticipated speech has meant that the pound has weakened against the Euro for over a week now because of the uncertainty it is bringing over the UK’s membership of the European Union.
Nobody really knows how the market will react to the PM’s comments so if you have a transfer coming up you may wish to keep in contact with us so we can be your eyes and ears on the market.
As I am sure you are all aware there are numerous reasons why the pound rises and falls against numerous currencies over the course of a day. This website is aimed at giving you a brief understanding into the state of the Euro on a given day. I appreciate that you do not all have time to watch the markets all day, everyday but I will be happy to keep you informed of the market movements to do with the currency pair that you require.
If you need to buy or sell any major currency and would like to know more about our outlook for the currency you need and how we can make you a significant saving on your exchange please feel free to contact me at firstname.lastname@example.org and I will come back to you with the options that are available to you.
Thank you for reading.
They do not call him ‘Super Mario’ for nothing. Mario Draghi has the power to move markets. I think anyone who is considering a transfer for the Euro this year should be aware of this. You could argue his comments are the most important reason for the shift on GBPEUR from 1.2860 to 1.2011 in 6 months. And EURUSD has moved from 1.2065 to 1.34 in the same time frame.
Euro buyers who have ignored us and assume that GBPEUR and EURUSD would get better ‘just because there are strikes in Greece’ are today paying the price for ignoring the more fundamental reasons for Euro movements we continue to highlight
SO the million Euro question is will the Euro keep climbing against sterling and the dollar? Will we break 1.20 on GBPEUR? Well it is looking quite likely. With so many hurdles for sterling ahead even if we do hear some bad news for the euro, the pound looks unlikely to capitalise.
The change in sentiment is astonishing and is a good indicator of what any Euro buyers or sellers can expect in the future. The ‘stabilisation’ seen by the European Central Bank in the Eurozone is likely to remain in the short term. The banking regulations and lower borrowing costs of Spain and Italy make progress for Euro members more likely. The fact that Mario Draghi and members of the ECB will do ‘whatever it takes’ is a huge boost for the Euro. Euro buyers who have ignored that statement and assume that GBPEUR and EURUSD will become better ‘because there are strikes in Greece’ are today paying the price for ignoring the more fundamental reasons for Euro movements.
If you are selling Euros the market is excellent right now, for many it is at a level that they perhaps did not expect. Whilst further improvement for Euro sellers are likely, last week’s 3 cent moves proves no rates should be taken for granted.
Even if your transfer is just a one off or you have never moved large sums before bank to bank, speaking with us is a great way of ensuring you maximise your money transfer. We offer a commercial exchange rate better than the banks and other brokers plus we offer assistance on when may be a good time to exchange. I predicted back in September we would soon hit 1.20 and have been suggesting any Euro buyers purchase sooner rather than later. Anyone who failed to buy Euros last week and is still waiting to now is on a €200,000 transfer looking at a £4500 extra cost! If this is you do not wholly despair as we can save you that kind of cost versus the bank and depending on your timescales you could see small spikes to take advantage of. You probably need to act fast however…
If you are buying or selling Euros last weeks movements are really important. Even if your transfer is just a one off you can speak with me directly for free on 01494 787 478 or email me Jonny directly at email@example.com
I always go that extra mile for my clients and am confident I can get you a better deal on your Euros.