Category Archives: Euro Strength

Sterling Euro – Forecast For The Week Ahead

The Sterling Euro exchange rate has a busy week ahead as the next 5 days hold several key data releases.

Wednesday 23rd October – Bank of England Minutes

Wednesday has the release of the minutes of the Interest Rate meeting which was held at the beginning of the month. The meeting is held by the Monetary Policy Comittee (MPC) and chaired by the governor Mark Carney, deciding the Bank of England base rate for the month – one of the key indicators of economic strength / weakness. The Interest rate has remained at 0.5% for in excess of one year, however as the UK has achieved sustained economic growth, economists in the city have been murmuring towards and increase in the rate – a real indicator to the progress made. The minutes on Thursday will give us a good insight in to the internal thoughts of the MPC and can really move the markets. My thoughts are that the short to medium term will primarily hold Sterling strength, and would therefore be inclined to sell GBP prior to Wednesday.

Thursday 24th October – Retail Sales Figures

Those selling GBP will also want to be wary of both Thursdays Retail Sales Figures and Fridays GDP announcement (paragraph below).

Friday 25th October – UK GDP Announcement

Friday holds potentially the most important piece of data for the week. The GDP figure for Quarter 3 2014 is released and given the turbulent quarter (primarily Scotlands Political activity) we can potentially expect a market provocative figure. I have seen GDP figures move exchange rate pairings by over 2% in a moment of seconds. Had you been selling €100,000 and the rate moved against you, you’d achieve thousands of pounds less!

As such, please feel free to contact me with regard to any transfer requirement you may have. My contact details are either ajb@currencies.co.uk or 01494 787 478

Will the Euro recover against the pound?

This week is a busy week and it may be that exchange rates move outside of recent ranges. The expectation longer term is for the pound to rise against the Euro since the UK appears to be on a stronger economic footing than the Eurozone. My personal approach would be to sell Euros on the dips in your favour to avoid potential pitfalls of the pound rising against the Euro in the future.

This week we have the Bank of England Minutes which are not expected to show much change, Thursday UK Retail Sales which I think could be a big market mover and Friday we have UK GDP, the first estimate for Q3 economic growth. Thursday we also have flash PMI surveys for the Eurozone which may well be market movers too, all in all plenty to move the market!

If you need to move any currency internationally now is a good time to make some careful plans regarding your currency exchange. For more information on the forecast please contact me Jonny on jmw@currencies.co.uk

GBPEUR rates continue to fall

GBPEUR levels are CRASHING THIS WEEK, THIS MONTH. There have been a number of factors impacting market trends but it is safe to save a negative trend has been well established. UK data this mounting continue to be poor as it reflects September when everyone was wary about the Scottish vote. European news continue to been poor, very poor in fact which is driving investment away from the single currency and the Pound by association.  There is the potential that next month we will see a pick up and a change in trend for the GBPEUR pairing but I think we will have to wait a while to re-capture the losses we could see over the next fortnight. As a result anyone buying euros may want to move sooner rather than later to avoid any further disappointment.  Euro sellers should equally be in a position to move when the tide turns which could only be 10 days time.

For more information on any of the topics above please feel free to get in contact when you get some time. Feel free to contact myself directly for a personal reply at hse@currencies.co.uk

GBPEUR drops! Have you made plans for the worst case scenario?

The pound suffered today as Inflation data showed a fall, meaning no real rise to raise interest rates anytime fast! This bodes well for anyone selling the Euro to buy the pound but I would be concerned if buying the euro with the pound since the exchange rate looks likely to fall if this continues.

Ultimately there are many factors affecting the pound lately including the fears of Ebola and the general deterioration in sentiments on the currency markets. For more information please contact me Jonathan on jmw@currencies.co.uk

A Quiet Week for the EUR (Matthew Vassallo)

It’s been a quiet week for the EUR with little economic data of note out to shift the single currency. We have seen the EUR realign itself slightly against GBP, with the pair floating around 1.27 on the exchange. This has come after a difficult couple of weeks for the EUR, which culminated in the Pound hitting a fresh two year high of 1.2855 last week.

I believe we will see the EUR supported around the current levels and in my opinion we are more likely to see a move back towards 1.25, rather than see rates spike up to 1.30. ECB president Mario Draghi’s speech this afternoon could cause additional volatility for EUR exchange rates. Depending on his stance regarding the Eurozone recovery is likely to determine how the markets react to his speech.

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

Will NIESR GDP Boost The Pound Versus The Euro Today? (Colm Gilhooly)

Today we have UK Industrial and Manufacturing Production figures released at 9.30 which will give an indication of how the UK economy is performing and therefore influence sterling euro exchange rates.  However the big news of the day is likely to be the unofficial GDP figures released by the NIESR (National Institute of Economic and Social Research) which is a very well respected think tank who’s figures often accurately forecast how official UK figures will actually appear.

If the data is strong we could see sterling euro exchange rates go up substantially.  However as always with data forecasts, the outcome and the effect on the markets will always be a bit of a gamble.  In my view the Euro will come under more pressure over time, so if you are selling euro it may be worth moving soon to take advantage of the recent strength following the ECB decision.

If you need to make a currency transfer, and want to get the best exchange rate, then feel free to email Colm at cmg@currencies.co.uk and I would be happy to help.

 

Euro selling Opportunity

If you need to sell Euros you are looking at a very good opportunity currently. The Euro had weakened owing to a number of measures by the ECB (European Central Bank) to bolster growth and try to increase inflation. The ECB  has now had to embark on QE (Quantitative Easing) which has strangely caused the Euro to strengthen…

The Euro has weakened this year and this is presenting a good buying opportunity still. However with the likelihood being the pound and dollar will strengthen against the Euro longer term it would be very much worthwhile anyone selling Euros makes some firm plan to sell now. Historically speaking the rates for selling Euros are at a good level which will not last.

Many clients who are in the position of selling Euros for pounds or dollars are upset at not having moved earlier this year or last year when rates were much better. Unfortunately as time ticks on the pound and dollar are highly likely to continue to appreciate against the Euro, anyone thinking of selling Euros should be weary of the forecast and make plans. The recent move in favour of anyone selling Euros for GBP today is an example of a spike that should be capitalised on if you want to limit losses.

For more information at no cost of obligation please contact me directly on jmw@currencies.co.uk

The Euro should be the focus in October

GBPEUR and EURUSD movements have mainly been determined by the pound and dollar in the month of September. We saw the pound grab headlines owing to the Scottish Referendum and investors have been keeping a close eye too on USD news with the Federal Reserve seeking to raise interest rates in the New Year.

I would not be betting on the Euro doing too well this month although much more will be known tomorrow after the QE decision tomorrow. If you need to buy or sell the Euro keeping a close eye on the rates is sensible, if you are busy and don’t have time , why not call us to learn the latest news on the markets. Register your interest with me on jmw@currencies.co.uk

 

 

Will the Recent EUR Losses Continue? (Matthew Vassallo)

The EUR has come under pressure recently, particularly against GBP and the USD. Heavy losses over the past couple of weeks have pushed GBP/EUR rates up to a fresh two year high, around 1.28 and with EUR/USD rates sitting comfortably below 1.30 the single currency is clearly feeling the strain of stagnate Eurozone economy.

The key question now is whether we see a sustained period of GBP strength, or will the EUR find support around the current levels? Personally I feel it will be difficult for the current trend to continue, as regardless of the market conditions the Bank of England (BoE) will not want to see Sterling’s value soar. Add to this a likely overreaction by the market to last week’s referendum results and I believe we will see the EUR find support around the current levels.

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 closes in on a 2 year high

As uncertainty increases in the single currency its value has been falling. It is currently on for the worst quarterly performance seen since the financial crises started back in 2008.  As deflation risks increase there is a building pressure on the central bank to introduce a new policy to try and get more spending. This will probably be in a form of QE. This is something that the UK, US and Japan has all now completed and in essence is putting more money in the system. The theory is that as more money is in the system, people are more likely to spend creating both growth and a higher taxable revenue. The problems with it is that as there is more money in the system its value falls. This is what we saw here in the UK when this process started a few years ago.

Now as this is quite a big difference between both the UK and the USA the currency pairs have been moving largely to price this in, weakening the euro and giving anyone who is looking to buy the single currency a great opportunity to get a good price.

These SPIKES don’t normally last for long so to get the best price you generally want to move sooner rather than later. Here we can give you access to the live markets within a few minutes and with access to award winning exchange rates you can be comfortable in the knowledge that you are going to save money. For more information or a live quote please break radio silence and get in contact. Contact the Author STEVE EAKINS via email at hse@currencies.co.uk for a personal and quick response.

Happy trading!

Eurozone PMI encourages Euro gains

PMI means Purchasing Managers Index and the data reflects improvements in various sectors by surveying purchasing manager’s at well know businesses. The feedback is then compiled and provides insight as to how they are feeling and how their business is performing. Today’sdata was initially positive but there is a lot of data still to come this month and next month which could move the euro further.

Of note is the ECB (European Central Bank) Meeting which will determine whether or not the ECB will embark on QE (Quantitative Easing). Should QE be launched the Euro could weaken significantly so anyone who needs to sell euros should in my opinion be plannign an exit strategy quickly.

For more information on how we can help you to limit your exposure to the extremely volatile and unpredictable currency markets please get in touch on jmw@currencies.co.uk with a quick overview of your position.

No vote pushes GBP/EUR through 1.28 (Mike Vaughan)

Thankfully the vote for Scottish independence was a ‘no’ and the threat of a 10% decline in the value of sterling avoided. As a result the market pushed briefly above 1.28 before settling just above the 1.27 level.

The vote has been a relief to many and will no put focus on other areas, notably the underlying factors within the Euros Zone, that will determine how the Euro will trade in the coming weeks and months. For me I believe levels will now stabilise and we are likely to see a period of calm with markets still digesting the Scottish referendum and would look for the range to remain between 1.26-28. For anyone selling Euros the signs are not good and I would be trading on any dips towards the 1.26 level.

Should you wish to get more information on the currency service we provide and you would like a current price for your fx transfer then please email Mike mgv@currencies.co.uk