Category Archives: Euro Strength

GBP-EUR Rates – Euro strengthens against the Pound yesterday and this morning

We are suddenly back below 1.33.

While this may seem unexpected, many may remember when the rates were flirting with the 1.30 region, touching it briefly then falling rapidly down to 1.28. Essentially the Euro becomes such a bargain in the eyes of investors they are forced to act. Purchasing the single-currency which causes it’s value on the market to surge. With Eurozone CPI Data to be released today (the main determinant when calculating inflation), we are likely to the see the rates running back up to the levels we have enjoyed over the last week.

Bank of England governor Mark Carney has attacked the Eurozone’s efforts to restore its economy as “timid”, urging it to make a “bold” move towards shared tax and spending arrangements. With the introduction of Quantitative Easing looming, it seems Sterling and the Euro and trying to find balance, the battlefield being the future of collective financial policy. Frankly, it is possible to see large lurches in either direction next week in this time of transition. Though I believe it is more likely to find the Euro stabilising for the near future around the 1.34 region.

Should you wish for a more long term prospectus, or a more personalised appraisal of you situation call into our trading floor and ask for Joshua on 01494 725353 – or email me on jjp@currencies.co.uk – I would recommend a calling since the week is almost over, a more detailed and immediate response to your inquiries should be welcome, with the weekend to ponder what actions to take.

A Return of Sterling Strength expected tomorrow (Joshua Privett)

A surprising afternoon to today’s trading saw some of the gains made against the Euro lost and the Interbank has returned to the low 1.33 levels. It seems the market has hit resistance at 1.34 and we are unlikely to see further gains in the long-term.

The Bank of England unanimously voted not to raise interest rates. This is one of the few ways they can communicate to markets that they actually would like their currency to be less valuable. While this sounds paradoxical, this is to ensure that our export and service sectors do not become too expensive for our largest trading partners in the Eurozone, otherwise our own recovery may be in danger.

So this drop today is a standard market movement when currencies reach a particular level of resistance. Up and down, and not by an amount to be newsworthy.

However, when a period of resistance is established, unexpected news can cause a sudden jump. Tomorrow the Eurozone will be releasing data on the current levels of inflation. This will affect the volume and rate at which money is printed in their new Quantitative Easing programme. If it comes in tomorrow as lower than expected, we could see a sudden run up to 1.35 and breach a new 7 year high rather than stagnating at the current levels. Particularly since the QE programme is in the early stages of planning and implementation.

If you would like some more tailored advice to your current situation, I will be happy to receive calls on the trading floor tomorrow – just call 01494 725353 and ask for Joshua. As a reference point this news shall be coming out at 10am. Alternatively email me on jjp@currencies.co.uk

Exchange Rate Forecast – Buy or Sell Euros (Andrew Bromley)

Sterling Euro has stayed within roughly 1 cent – low 1.3337 high 1.3422

The Greek election seems to be on analysts minds still, as it is believed that the dust has not yet settled. Although todays small trading range indicates a quieter days trading than previous weeks, it is worth noting that 1.34 and above has not been seen since before the economic crash in 2008 – quite some time! This attractive Euro buying rate has enticed a lot of clients to take advantage of the buying levels, as there is a huge level of volatility to be expected in the build-up to the UK General Election in May.

If you have an exchange requirement, please feel free to get in touch. There are various contract options available to take the risk out of volatile currency markets, absolutely worthwhile using to your advantage!

Direct line to the trading floor – 01494 787 478

Alternatively – AJB@currencies.co.uk

 

GBPEUR Greek news and forecasts – Will GBPEUR climb further?

Euro rates of exchange have continues to worsen this week. Euro concerns are high that the Greek news will spread and other member states will start trying to change their payback scheduled with the European central bank. This helps euro buyers but unfortunately euro sellers are struggling with a very different price compared to only ten days ago.  This is a trend I expect to continue as European economic data continues to show a worsening picture. The next is on Friday morning which I personally think will give euro buyers the best levels for the rest of the week.

 

If you are a euro seller and would like some assistance on the timing of the trades please feel free to get in contact. You can email myself directly at hse@currencies.co.uk

GBPEUR is surely bound to fall now?

GBPEUR rates have spiked 8 cents in the last couple of weeks, will this continue?! It surely cannot can it? I personally feel this recent spike is well worth taking advantage of that anyone wh0 keeps holding on to buy Euros expecting 1.50 (yes one of my clients has asked me to notify him when we hit 1.50!) might end up disappointed.

The question is how much of a fall can we expect? The pound is losing value against a range of currencies and I do not feel the longer term forecast of 1.40 and 1.50 will materialise for many years. If you wish to get a fresh update on the market and keep up to date with the latest news that will affect you and your currency interests please speak to me Jonny.

I work as a specialist currency broker who can assist in the safe transfer of funds at an exchange rate which will save you money. Please contact jmw@currencies.co.uk for more information!

GBP – EUR Rates – QE Press Conferance Lanches Rates to Fresh 7-Year Highs!

An extremely volatile afternoon, with the markets reacting to every syllable Mario Draghi uttered during his press conference. The trading floor has never been so loud. Euro weakness has never been so apparent – with the Euro falling to fresh 7 year lows against Sterling and the lowest rate ever recorded against the Dollar.

The rates were already priced in, what caused them to swing violently by a cent here and there was a nervous market and very active Banks speculating on the outcome. Nothing unexpected was announced, with the expected vagueness that has defined Mario Draghi’s tenure at the European Central Bank. But these fresh new highs are a fantastic opportunity!

There is much more room for the rates to move in the other direction. The Bank of England released minutes suggesting interest rates will be put on hold until later in 2016, and we are currently experiencing record low inflation. The only way for the rates to get better barring an unpredictable disaster in the Eurozone is for the UK economy to strengthen…a long term prospect.

Essentially the rates are currently gift wrapped. Draghi’s stumbling during the press conference may have caused a bit more movement against the Euro and the market will re-adjust as buyers realise the Euro is currently a bargain.

The sensible option will be to buy now. The gambler will wait until what happens with the Greek election. There is scope for movement in either direction, but I am of the opinion the likely coalition government that will result will produce an anti-climax for the most onlookers worrying about revolution and fires in Athens, moving the rates down a peg as a bit more confidence is brought back into the future of the Eurozone.

If you are sensible or a gambler, we can provide options for either to both take advantage of the rates now, even if you don’t have requirements until later in the year, or protect you in case the rates do drop down after the Election and stop you losing out too much on your gamble.

Call straight into the trading floor and ask for Joshua on 01494 725353 – or alternatively email me on jjp@currencies.co.uk

ECB QE is here! Euro weakness… What next?

The Euro has weakened to some very interesting levels, it is the best time to buy Euros with pounds since 2008, it is the best time to bur Euros with dollars since 2003! If you need to buy Euros please give us a call on 01494 787 478 and ask for Jonathan. I am very confident I can save you money versus other sources and will offer you a better price than banks and currency brokers.

You might think you are getting the best deal but in fact there could be a better one available! To check your price please speak to me Jonathan on 01494 787 478 or email jmw@currencies.co.uk.

Sunday’s Greek election is bound to be volatile and Monday morning could be a very bad or very good time to buy, depending on what happens! To be kept up to date with the latest news please contact me.

GBPEUR rates before the big QE decision

Everyone is trying to second guess market movement over the next 24 hours but I would remind people that the market moves on rumour as well as fact. As a result the he amount of currency orders being placed over this period, in itself, will change demand and prices. This has already been seen today with people taking profit from the recent climbs before tomorrow event. It is as a result giving euro sellers an opportunity for a gain to be taken of nearly 2 cents compared to last Friday.

Everyone’s eyes are still on tomorrow and what the implications could be of the QE program that has been promised. Currently I expect levels to either stay the same, for GBPEUR to climb slightly or to fall by a big bit.

For a full break down, how this could impact your situation or for information on the tools you can use to limit your exposure please feel free to contact me. My email address is hse@currencies.co.uk

The most volatile week on the Euro since 2012!… The best way to predict the future is to create it!

If you thought last week was volatile then you might want to keep your eyes peeled for the rest of this week! The Euro has the QE announcement on the Thursday and then Sunday we have Greek elections. Almost daily rates are fluctuating abnormal amounts so if you need to make a transfer making some careful plans is well worth you while.

In the words of famous management consultant Peter Druckner ‘the best way to predict the future is to create it’ and thankfully against such uncertainty using one of our contracts you can create the future. Forward purchasing using a ‘forward contract’ allows you to buy all the currency you need today paying only a small deposit and the balance within a year. Limiting your exposure to some of the most uncertain markets in years seems a very good idea to me.

Alternatively a Stop Loss order will automatically execute when the rate drops to a lower level than desired (protecting against losses) whilst a Limit order triggers when your desired higher rate is reached. Exchange rates change every second and such contracts guarantee your price even if the rate is just hit for a second.

With a similarly volatile couple of weeks expected now is the perfect time to be seriously considering your options. Speak to one of our knowledgeable and helpful team! For more information on the best deals please contact me Jonny on jmw@currencies.co.uk 

 

1.30 on GBPEUR, SNB removes EURCHF floor

The most important news today was the Swiss National Bank’s decision to not only cut their interest rate from -0.25% to -0.75% but to remove the floor against the Euro. To halt previous unprecedented gains on the CHF the SNB had promised to intervene anytime the EURCHF rate dropped to 1.20. With the Euro weakening to multi years lows in 2015 the CHF which was effectively pegged to the Euro was suffering from weakness against other currencies like the USD.

If you need to make any international currency exchanges involving the Euro make contact today for the best rates and information on when to make the trade! Please speak to me Jonathan on jmw@currencies.co.uk for more information!

Euro Rate Forecast – Best rates of Exchange for 2015 could be within the next week

The past few days have seen Sterling reach 3 1/2 year highs against the Euro! This is a result of markets pricing themselves ahead of the expected announcement of Quantitative Easing by the European Central Bank on January 22nd. However, we balance this with an internal look at Sterling. Yesterday it was announced that UK inflation had hit its lowest point since records began. Clearly our recovery seems to be built on weaker foundations than we first believed. As the Tories are currently running on how well the economy has been performing, poor data can cause an exaggerated effect on the market, as more fear a more contested Election in May.

As a result of this inflation data, it is likely that the Bank of England will announce a further delay of interest rate rises until 2016, when their minutes from the last meeting are released next week. This will likely weaken the Pound.

Conversely, since Eurozone inflation is set to be released in a few days, likely showing the single currency is STILL in deflation, we are definitely heading into a ‘sweet spot’ for purchasing Euros between now and next week.

If you would like to discuss your requirements for 2015 and how these tempting rates can be taken advantage of even for requirements later on in the year, email me at jjp@currencies.co.uk and I would happy to give you a more thorough overview of the markets and help you make some profitable plans.

Eurozone Inflation Data Could be Key (Matthew Vassallo)

The EUR lost further ground against GBP during Wednesday’s trading, with rates slipping back below 1.29 at the low. Despite small against the USD the EUR is still marooned under 1.19, with pressure on the single currency unlikely to lift in the short-term.

Investors now seem to be waiting until the European Central Bank (ECB) decision on January 22nd, which is when they may well announce a full scale Quantitative Easing (QE) initiative. In the short-term I feel the EUR will struggle to gain any sustained momentum unless any economic data releases are better than expected.

The next key release for the Eurozone is Friday’s inflation data and any reading better than expected could help to alleviate some pressure on the EUR. Despite today’s losses against the Pound I do feel the EUR will find support under 1.30 and we will need to see another shift in market conditions in order to breach this level.

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 rate with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk