Category Archives: Euro Strength
If you need to buy Euros with pounds the next week could present some very interesting times with lots of new key UK data released which might help you. It does appear that the pound is likely to remain on the weaker side and we know sterling is struggling to benefit even from good news. Nevertheless I expect sterling might find some limited support presenting possibly better times to buy Euros.
The beginning of a new month sees the latest figures on Construction, Manufacturing and Services. I expect that the pound will continue to struggle in the coming weeks and anyone who needs to buy Euros should really be making some form of exit plan as the likelihood is the rate will become more expensive.
If you need to buy any currency in the future then making plans in advance is very sensible in this market. The outlook is for the pound to struggle as investors remain fearful over what will happen to the UK politically and economically in 2017. If you are planning a transfer than please get in touch with me to get a fresh update on the market and discuss all of your options.
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Sterling Euro exchange rates have been trading in a tight range this week in anticipation of this morning’s UK GDP figures. This particular period is the first quarter to be measured since the vote to leave the European Union and this could cause huge volatility for GBPEUR exchange rates when the data is released. The expectation is for 0.3% quarter on quarter so anything different is likely to cause big movements either way.
If the economic data is lower than expected this could also provide support for the Bank of England to possibly look at cutting interest rates when they meet next Thursday.
In recent comments made by Bank of England governor Mark Carney as well as deputy governor Ben Broadbent they have shown little concern in the low value of Sterling so to me I think they could possibly cut interest rates next week which is likely to cause Sterling to fall if this happens.
The Pound vs the Euro is clearly under pressure caused initially by the Brexit vote and also by the recent announcement that Article 50 will be triggered by March 2017. The uncertainty this has caused has seen Sterling hit close to its lowest level since 2011 providing an excellent opportunity for anyone selling Euros to buy Sterling.
If you’re in the process of moving to Europe or buying a property abroad before the end of the year it may be worth considering buying a forward contract which allows you to fix an exchange rate for a future date and avoids the risk of the market moving against you further.
Having worked in the foreign exchange industry since 2003 I am confident not only of offering you better exchange rates than using your bank when buying or selling Euros but also to help with the timings of your transfer.
If you have a currency transfer to make and would like further information or a free quote then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org
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Yesterday President of the European Central Bank Mario Draghi and Governor of the Bank of England Mark Carney both gave speeches in regards to the state of their economies.
Mario Draghi took a bullish stance and stated the Quantitative Easing program is running well and went on to exclaim change is unlikely anytime soon. Mark Carney on the other hand remained very dovish whilst being heavily criticized by the Economic Affairs committee. The Governor went on to exclaim he may not continue his position as Governor once his contract expires!
Due to both press conference the pound fell throughout yesterdays trading period. GBPEUR exchange rates were fluctuating around 1.1235 at midday and by the close rates had dropped to 1.1172. In monetary terms a €200,000 purchase would have been an extra £1,000 if you had traded at the end of the day compared to before both senior officials press conferences.
With exchange rates continuing to fall, a popular option for clients buying euros is to buy their euros up front. If all of your sterling is not available to you at the moment (for example you are selling a UK property) you can still secure your exchange rate now and pay later. This is known as a forward contract.
For more information in regards to the currency market, forward contract or how I can achieve you the best rates possible feel free to email me with your requirements, timescales, the best number to reach you on and I will give you a call to discuss your options email@example.com.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **
The EUR lost some value following European Central Bank (ECB) president Mario Draghi’s comments, during his speech last Thursday. Whilst the ECB kept interest rates on hold at 0% as expected, Draghi did hint at the fact they were open to extending their current monetary policy (QE) programme beyond the current timeline of March 2017.
This was immediately taken as a negative by the markets and the EUR weakened against both GBP and the USD, with GBP/EUR moving back through 1.12 on the exchange. This is a prime example of why EUR sellers should be looking to take advantage of the huge gains seen since the UK’s Brexit decision and not gamble on further improvement, when the Eurozone economy remains fragile and under increasing pressure.
Looking ahead and today is likely to be key for those clients holding EUR as we have Bank of England (BoE) governor Mark Carney’s speech, which will give us a key insight into the UK’s central banks stance on current economic conditions inside the UK. It should also point towards potential future growth and their current monetary policy stance. We also have Draghi talking again so expect additional volatility on GBP/EUR exchange rates during Tuesday’s trading.
Further ahead and Thursday will also hold weight for investors with the latest UK Gross Domestic Product (GDP) figures, which is perhaps the month’s key release for investors. This is because it gives them an overview of the current economic climate and will drive the markets and exchange rates alike.
If you have an upcoming EUR currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.
If you 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 on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on firstname.lastname@example.org
The slide in the Pound’s value is on hold for now, as versus the Euro it’s trading at just over 1.12 at the time of writing.
After trading in the late 1.09’s just a week or so ago, the Pound seems to be finding support above 1.10 which could have been spurred by some positive inflation data during earlier in the week for the UK. With inflation now at 1% the Bank of England (BoE) is on track to meet it’s 2% target which is a positive sign for the UK economy, but those hoping for further Sterling strength when compared with the Euro need to be aware of the following future forecasts.
Earlier in the month analysts at HSBC announced forecasts of parity for the GBP/EUR pair towards the end of next year, and just this week Credit Suisse lowered their price target for the commonly exchanged pair, suggested that we could see the pair trading in the 1.06’s within the next 3 months.
Should these forecasts come to fruition, those planning a Sterling to Euro currency transfer may be wise to consider performing that transaction whilst the pair currently sit comfortably above 1.10 at the inter-bank level.
If you would like to discuss timings and commercial exchange rates with me, feel free to get in touch. Our UK based currency brokerage has been operating for almost 17 years and we’re in a position to offer commercial exchange rates, which can save our clients thousands on currency exchanges.
You can email me directly on email@example.com or call in and ask for me (Joseph) on 01494 787 478. I’ve personally been working within financial markets for almost 10 years, and with this experience I’m able to walk you through what can be a stressful experience if you’re not used to making these types of decisions regularly.
Sterling has gained ground against the euro following positive inflation data. Inflation is a big worry following the vote to leave the EU due to the weak value of the pound it will be far more expensive to buy goods from abroad, this will be passed on to consumers. I estimate food may be hit hardest and we could see an increase of up to 5% in Q1 of 2017.
I think in order for Sterling to have a significant rally we will need to see article 50 triggered and decisive action taken in regards to trade negotiations. Theresa May has indicated article 50 will be invoked before the end of March 2017.
There is hope for the pound, however. There may well be opportunities for Euro buyers short term if you monitor the market and move on a spike. It is important to also keep in mind the Eurozone is not exactly in the best state. Italian banks have €360bn in bad loans, Greece is debt crisis continues, Inflation is shocking and there is the threat of further referendums. Draghi has done very well at sweeping this under the carpet. I think it is a case of keeping the music playing, but when the music stops there won’t be enough chairs.
If you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is vital during such volatile times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at firstname.lastname@example.org. Thank you for reading my blog.