Category Archives: Euro Strength
Those who have been reading the blog recently will certainly have noticed a pattern! I can assure you I am very surprised to still be writing the same advice. The election is only 13 days away and the rates have yet to drop. Traditionally this does happen in the last few weeks before the election, but due to the dramatic neck-and-neck, uncertain and almost aggressive nature of this election, many, including myself, are surprised this did not encourage rates to drop sooner.
It seems the GBP weakness is being balanced out by the current events in Greece. While they are on course for their repayments, they are fighting every inch of the way. Today they unlocked additional bailout money, an important step. This means they must have demonstrated a clear intent to undergo at least some form of austerity and financial reform.
In general the rates have fallen due to the election. In March we saw rates of 1.42, and they have been as low as 1.36 when the election first began to enter the news cycle. I would not be surprised if this was reached again, and even breached, when rumours about a coalition with the SNP begin to emerge…
So my advice is the same, if you have a Euro purchasing requirement over the next few months, it is important to act sooner rather than later. Even if your funds are not available yet there are options available to you to secure these historic rates and prevent any exposure to what is sure to be an incredibly volatile period. Email me over the weekend on firstname.lastname@example.org to discuss your situation in more detail.
This morning at 8.30am, retail sales figures (a measure of the total receipts of retail stores) came in 1.2% worse compared to last year. This piece of economic data dropped GBP/ EUR exchange rate by just under a cent. Therefore clients looking to purchase €100,000 will now have to pay an extra £500, therefore timing a trade is crucial.
For more information on the upcoming economic data releases feel free to email me on email@example.com or alternatively call 01494 787 478 and quote Dayle Littlejohn.
GBP/EUR rates have hit 1.40 during Wednesday’s trading, as Sterling’s positive move shows no signs of relenting. This recent spike has surprised many, as it was felt the UK general election was likely to bring some uncertainty to the markets. However, for the time being this seems to have been countered by the on-going concerns surrounding Greece and its potential exit from the Eurozone.
We also had information that two members of the Bank of England felt their decision to keep our base interest rate on hold was ‘finely balanced’. This indicated we could see a change in vote at the next policy meeting and with no one expecting rates to be cut again, rumours that we will see a rate hike before the end of 2015 may start to gather pace again.
With UK Retail Sales figures out tomorrow, along with Eurozone Manufacturing & Construction data we could see further volatility on the pair. We also have a Eurogroup meeting on Friday, which could give us a key insight into the current feeling surrounding the Eurozone and a possible Greek exit.
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 rates with your current provider, then please feel free to contact me directly on firstname.lastname@example.org
Sterling Euro exchange rates had a good week this week apart from the final trading session on Friday afternoon which saw a crash.
The Euro fought back against the US Dollar and also the Pound possibly due to profit-taking and the Euro providing resistance.
However, there are big problems behind the scenes with the Euro as we already know that the next Eurogroup meeting to be held on April 24th will see no deal for Greece and that rumours keep growing that they will run out of money in a few weeks.
Over the same period we have the UK general election and with no party yet close to forming a majority according to opinion polls this could result in a hung parliament and therefore another coalition government.
When this happened last time Sterling saw a steep fall against the Euro in a very short period and we could see history rewrite itself.
If you need to buy Euros it may be worth considering buying a forward contract which allows you to fix an exchange rate for the future and eliminate the risk of the market moving against you.
If you have a currency transfer 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
I think that if you need to sell euros for sterling you are currently looking at an excellent opportunity. Selling euros has been a stress in 2015 as the Eurozone launched their QE programme and Greece has been back in the headlines. It seems that those issues are unlikley to go away and the Euro is going to continue to be under pressure. With that in mind if you need to sell Euros for the pound moving sooner during the uncertainty of the UK’s General Election seems sensible.
I can help with the planning and execution of any international money transfers you need to make. As well as offer an exchange rate better than your bank we can also help with the timing of any currency exchange. For more information please contact me Jonny on firstname.lastname@example.org
The Pound has enjoyed an additional period of strength following the Easter Bank holiday weekend. This has been largely linked to a huge deal to buy British Oil exploration firm ‘BG Group’. The deal would see a purchase of £47 Bn, strengthening the Pound substantially. This Pound strength tied with the Euro weakness from yet more Greek bailout talks has helped push levels surprisingly high. Alexis Tsipras (the Greek Prime Minister) is in Russia this week, discussing the current bailout terms. A €448 Million loan repayment to the IMF due today. If there’s any indication that Greece will stall, expect substantial and swift Euros losses. However, as much as the papers print the worst case scenarios surrounding the Greek bailout, I personally don’t feel that Greece will be allowed to leave. The Russian link is a curious one as there are several (tenuous!) potential trade offs that could play out. The first and perhaps most memorable to UK clients is Russia’s involvement with the financial crash in Cyprus 2013. Just prior to Cyprus announcing it was bankrupt, the equivalent to billions of Russian Euros left the island back to Russia, leading conspiracy theorists to indicate Russian money was propping up their economy. The second concern would be for of land exchange. Would Russia part with large sums of money to have another sea port in Europe to park its warships? We saw the annexation of Crimea, would a small uninhabited Greek Island (available at a small cost to the Russians) be a useful trade off? Both are speculation, however the ideas are not new so should be in the back of Euro buyers and sellers minds.
If you have a currency requirement, please feel free to get in touch. Holders of the Pound should be wary of potential losses in the build up to the general election. If you are buying a property overseas, serious consideration should be given to ‘forward buying’ your currency. Feel free to contact me directly if you’d like to discuss a requirement, the direct line to the trading floor is 01494 787 478. Alternatively, drop me an email to AJB@currencies.co.uk
look forward to hearing from you!
With the election campaign now fully in swing we are in line for a huge amount of volatility for Sterling Euro exchange rates over the next few weeks.
Sterling crashed against the Euro on Friday owing to a big slowdown in UK construction which sources have suggested owes itself to the uncertainty of who will get into power in May.
Builders have delayed their decision and will continue to do so which could result in this sector really feeling the effects over the next couple of months.
With Sterling having remained high against the Euro for a few weeks and hitting an 8 year high in early March I think the Pound could be set for further falls over the next few weeks.
The problem for the British economy is that if the Pound is too strong this tends to have a detrimental effect on British exports which ultimately will lead to less money coming into the UK and therefore a fall in the value of Sterling.
It has been announced by the Greek finance minister that the next IMF bailout payment which is due for April 9th will be paid by the Greeks on time. The loan amount is EUR450mn which is no small figure and them demonstrating that they can afford the repayments can only be seen as a good thing for the Euro which could lead to further drops in GBPEUR exchange rates.
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
We are getting very close to the General Election, only thirty six days in fact. Historically, in the build up to a General election we will see the currency in question drop significantly.
This is due to economic and political uncertainty, Although we saw gains for Sterling against the Euro I predict the gains to be short lived. The 2010 General Election saw the pound drop over seven cents and the current election is one of the tightest for some years.
Sterling weakness may continue after the election. I think it may be a while before we see some stability with the EU membership debate sure to take centre sage post election.
If you are a Euro buyer, it may cost you to procrastinate, hanging on for that extra buck. Purchasing now will meaning buying close to a seven year high. Who knows where GBP/EUR will be say by the end of April.
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 firstname.lastname@example.org or call on 01494 787 478 and ask for Daniel Johnson.