Category Archives: Euro Strength

Anti-climax on the markets following Greek ‘NO’ vote in referendum (Joshua Privett)

I was up at 4 am this morning to see how GBP-EUR rates were behaving while Asian markets had opened, hoping to get some insight into how markets would behave today. Within 10 minutes the rates went from 1.401 to 1.415! It then settled down around 1.408, suggesting that we were in for a volatile day once UK and European markets opened. However, today was largely an anti-climax. Rates got up once again to a high of around 1.414, but are now settled just below 1.41.

This disappointment for many Euro buyers is a lesson on market mentality. Most Euro holders ditched the single currency as soon as the referendum was announced, which pushed us back above the 1.40. The announcement of a NO vote only scared the last few remaining Euro holders who were ‘on the fence’ out of the Euro, weakening it further but only slightly.

It would not be a stretch to say that the GBP-EUR rates on offer today could be the best available for the rest of 2015. The Greek referendum was called as a negotiation tactic for the Greek government to receive a better bailout deal through a popular mandate. Essentially the nation stated ‘we won’t accept this, so offer us something more palatable if you want to see any money paid back at all’. The results will be used to try and achieve long term stability for Greece and the Eurozone in partnership. So while many were disappointed the rates did not climb higher, myself included, the progression of new talks (with a new Greek finance minister) will likely yield positive results, and move rates away from our highs at 1.40.

The last time talks went positively, GBP-EUR rates moved down by 6 cents in 7 trading days, which is why I believe these current highs may now be the best available for the rest of 2015.

Those with Euros to buy should call into 01494 787 478 today and ask for Joshua to receive a free quote on their exchange and some advice on how to buy at the high of the day (or year…). Those who do not have a requirement until later in the year do not have to wait until then and miss out, these rates can be pegged at no additional cost so that you do not have to hope the rates you have to purchase at will be in the same league as they are today. jjp@currencies.co.uk

 

EUR Strengthens Against GBP Ahead of Greek Referendum (Matthew Vassallo)

The EUR has made inroads against GBP during Thursday’s trading, with the pair dipping back below 1.41 on the exchange. It’s been an extremely volatile week for GBP/EUR rates, even by recent standards. As discussed in previous posts Greece missed its repayment on Tuesday and as such defaulted on its loan, which initially caused the EUR to lose value against the Pound. The IMF were keen to offer further talks but Mr Tsipras decided he would take the vote to the Greek public by calling a referendum for this Sunday, so the Greek people could decide whether or not to accept the reform proposals being put forward.

Unfortunately for Mr Tsipras this stance seems to have backfired as no outcome from the referendum is likely to help his cause, as a NO vote would have alienated Greece form its creditors completely and a YES vote would see his position as Prime Minister become unobtainable. He has now tried to back track and has accepted the new bailout proposals minus a couple of minor changes but it now seems as though Germany in particular, want to see the outcome of the referendum before discussing any further proposals. It almost like they are saying to the Greek government that they have made their bed and now they must lie in it.

Personally I feel a resolution will be reached, which will give Greece at the very least another stay of execution and therefore I would be very tempted to take advantage of the current levels, which remain close to an 8 year high.

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

Tsipras finally stops Stonewalling (Daniel Johnson)

Alexis Tsipras has agreed to the majority of the terms in an agreement put forward by its creditors last weekend. He is obviously being a stickler on certain issues. I would suspect it to be a reduction in pensions considering as many families support two generations on a  single pension. To budge would be a serious move away from Tsipras’ stance pre-election and would not go down well with the Greeks.

If a deal does come to fruition expect Euro to strengthen considerably. If I was purchasing Euros I would get them bought ASAP during these very favorable levels.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me at dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

Why a deal MUST be struck!

There are now so many different things going on with Greece it is difficult to keep track. I am amazed it has gone this far but we are constantly being surprised when it comes to Greece! I am of the opinion that two things will happen now.  The first is Greece will stay in the Euro and that following the agreement of a new bailout the Euro will strengthen. As disturbing as the amounts of money involved are to the process here, I just cannot see how the Eurozone will let Greece leave the Euro. To do so would be a gross turn in the history and spirit of the European project and the Eurozone.

Such a move would lead to further troubles with other Eurozone members as stagnant economies are allowed to disintegrate and effectively wither and die. This is not what the Eurozone was setup to do and is not what the Eurozone members will stand by and allow to happen. More likely I feel is that a deal will be struck to keep the Greeks in the Euro and provide further extensions on the previously agreed bailout terms. Just what is around the corner is very difficult to ascertain with the Euro but on balance I think even at this late stage it is not too late to have hope.

Allowing Greece to leave is a direct contradiction of the fundamental principles of the European Union and the Eurozone and should not be allowed to happen at whatever cost. Greece needs to be nurtured and put under strict conditions to allow an economic recovery to develop and the lives of the Greek people to improve.

For more information on this situaiton please email jmw@currencies.co.uk, I look forward to your thoughts, opinions and offering solutions.

GBPEUR rises to 1.43! Will Greece be in the Euro by Wednesday?

The Euro is clearly in for a tough couple of days as we try to work out just what is around the corner for Greece. The Greeks have clearly decided to play hard ball and negotiations are going to go right down to the wire. I am still hopeful of a deal because I think the alternatives are too problematic. This viewpoint previously shared by many now appears to be losing favour and the next two days will see some major movements on exchange rates including the Euro.

If no deal is reached and Greece leaves the Euro I think the rate could hit 1.45 or 1.50. If a deal is hit GBPEUR should cool back to say 1.36. Such exceptional potential volatility should worry anyone with a large currency transfer to consider as it could cost you greatly.

We are in business to provide a better exchange rate for your international money transfers plus offer key information as to events that might impact your rate. If you are reading this and need to buy or sell Euros soon I would be be most interested to hear from you and offer my thoughts and opinions on the transactions your situation.

My name is Jonathan Watson and in my work as a specialist currency broker I have written numerous articles on the Euro. To learn more please contact me Jonny on jmw@currencies.co.uk

Is Greece too big to fail?

WE will know the answer to this question very soon, the Greek strategy appears to be to let the Eurozone save them or leave…. A risky strategy and one which the ECB, IMF and other creditors will do well to be careful of. I would not underestimate the power of the Greeks in negotiating however and we will know very soon just what to happen.

If you need to buy or sell euros I would be very cautious but be careful of what might happen. All in all we are in some of the most uncertain Euro times in history, the future of the Eurozone is at stake! If you need to buy or sell Euros please speak to us about getting the best deals for your currency. We are in business to look after anyone buying or selling Euros and help with better rates and service! If you wish to learn more I would be very interested to hear from you on jmw@Currencies.co.uk

What Next for Greece and the EUR? (Matthew Vassallo)

With Greece’s next repayment deadline fast approaching, investors across the globe will be focused on a couple of key issues. Can the Greek government provide enough evidence to its creditors that it is implementing the necessary reforms to receive further bailout funds from the IMF? The second key point will be if the answer to the first question is no, will they be granted an extension beyond next Tuesday?

With talks on-going it seems as though progress is being made, although they are yet to reach an agreement. The key points for debate include the IMF’s insistence that Greece cut its state pensions, something the Greek Prime Minister promised he would not allow when he was voted into power. Personally I feel there will be an 11th hour agreement, whether this be in the form of an extension on the repayment, or an agreement over further austerity measures to be implemented by the Greek government. Either way I feel Greece will get another stay of execution and the problems are likely to be swept under the carpet for a few more months, until the situation resurfaces again.

Personally I feel that the EUR will continue to find support around the current levels, as it has done for much of the year. I would be tempted to purchase EUR around the current levels and not gamble on the situation in Greece. The economic data coming out of the Eurozone has shown a marked improvement of late and if the situation in Greece is resolved, even in the short-term, then I feel the EUR will gain value from its current position.

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 

GBP-EUR Rates fall after highs of 1.41 (Joshua Privett)

GBP-EUR rates have fallen today and it seems we are on the brink again of falling below 1.40 as it is steadily falling as I type this.

The reason for the fall isn’t because a Greek deal has been reached. Rather there has been a huge influx of capital into the Euro, boosting its value, after poor GDP data released concerning the US economy this afternoon (which actually contracted -0.2% for the first quarter of this year).

It is surprising that talks with Greece actually deteriorated today, but it was not enough to stop this significant wave of Euro buyers looking for greater profits outside of the United States.

Greek Prime Minister Alexis Tsipras has criticised Greece’s creditors for failing to agree to the reforms proposed by the Greek delegation. He refused more pension and spending cuts and criticised his country’s international creditors for not accepting a deal, suggesting they may not want one.

But markets are used to this. It is the same song being played on the radio over and over and sooner or later you stop singing along to it. A deal is a necessity and the only rational course for the Greek economy, and it will likely be reached at the 11th hour. This was just more fanfare before Tsipras entered fresh talks this afternoon to secure a debt deal. He has until the end of the month, and he will use every delay tactic in the book to try and secure the best deal for his country. But a deal will be reached nonetheless.

Once a deal is closer to being reached, the rates which have been steadily creeping up will instead drop off as a lot of the uncertainty which surrounds the Euro will be removed. Those looking to buy a large sum of Euros within the next 6 months, either for a property or your business, these rates are likely the best that will be available in that period. The Eurozone as a whole is recovering well, they are out of deflation and growth is once again being recorded. Once the Greek issue is dealt with or ‘swept under the rug’ it will be hard for the Pound to gain against the Euro back up to the current levels.

You can effectively peg these rates as they are very easily, so that you do not have to leave yourself exposed to market movements before you need to do your transfer, and budget more effectively. Email me overnight on jjp@currencies.co.uk to for more details on how to take advantage of these historic highs and work out a tailored roadmap to maximise the exchange rate on your transfer.

When will a Greek deal be signed?

GBPEUR has been very volatile this week spiking between 1.38 and 1.41! The current forecast is that the Euro will rise once we get some news, a restoration of confidence in the single currency seems reasonable once a deal is signed. However there is still a very long way to go for this to happen, swings of up to 3 cents in either direction seem feasible I expect the trading range to be 1.35-1.43, as you can see much of the uncertainty is price in. A signing of the deal should cause the Euro to strengthen, if you need to buy Euros I think you should be very careful you don’t miss out on what are currently some of the best rates in many years.

For more information on what you can expect in the future on the Euro plus trading strategies to help you approach your currency purchase in the future please contact me Jonny on jmw@currencies.co.uk. Please note our services are for private individuals and businesses looking to make foreign exchange payments to pay Invoices, buy properties and repatriate investments. We do not offer information for currency speculators. If you are unsure if we can help please email me!

How long will GBP/ EUR stay in the 1.40s? (Dayle Littlejohn)

As stated in previous posts Greece are heavily weighing down the euro because of constant talks of a possible ‘Grexit’. Greece must repay €1.6bn to the IMF by the end of this month, or run the risk of defaulting from the Eurozone.  I believe a deal will be struck towards the end of the week and GBP/ EUR will fall back towards the mid 1.35s.

What does this actually mean for euro buyers?

Simply it means if you are looking to purchase euros in the upcoming weeks/ months a window of opportunity has presented itself. If we look back only 2 weeks ago (9th June) the mid market level was 1.3550, now its 1.4050. For clients looking to purchase €200K this trade will now be over £5,000 cheaper than 2 weeks ago.

Its important when buying currency to have an understanding of what effects exchange rates. For more information and a further forecast feel free to email me directly drl@currencies.co.uk.

What next with Greece?

Just what can we expect with the Greeks and the outstanding payments? I can not see how a deal won’t be reached and that should cause the Euro to rise against both the USD and GBP by about 3-4 cents. Making plans in such a market is very difficult but to just leave everything to chance is perhaps more dangerous! All in all it would not be surprising to see a deal reached next week or over the weekend which could end the uncertainty, as I say the expectation is for Euro strength.

To make the most of the market and learn about all of your options please speak to me Jonathan on jmw@currencies.co.uk I am very confident my many years experience handling clients foreign exchange requirements will help you save some money and make a more informed decision about your transfer.

WIll GBPEUR hit 1.40 again?

Trying to establish the best time to buy Euros is no easy task and I really feel sorry for anyone trying to do this currently! The overall expectation is for the rates to continue to rise but once a Greek deal is signed the Euro should strengthen and become more expensive. There is some important economic data to come in the next 24 hours too which could also upset the current favourable trends. If you need to buy or sell Euros why not speak to us about some of the options you have to fix and lock in rates? Just leaving it all to chance is never a good idea when buying currency!

Greece is a major unknown and whilst most analysts are stating some kind of deal will be reached, the outlook is very choppy. The recent ranges on GBPEUR have been 1.35-1.42, I expect we will remain in this range even once a deal is signed. The signing of a new deal or any ‘arrangement’ to deal with Greece could see GBPEUR drop to 1.35, maybe lower. Any further uncertainty as we approach the end of the month and Greece’s deadline should see the Euro rise again against its peers.

For more information on getting the best exchange rate for your international money transfers please speak to me Jonathan. I cannot tell you exactly what to do but can hopefully provide some useful insight into just what to expect in the future. Please contact me directly on jmw@currencies.co.uk, I look forward to hearing from you.