Category Archives: Euro Strength

Sterling Euro Rates in Limbo (Tom Holian)

Sterling Euro exchange rates have had a very topsy turvy day during today’s trading session with a 2 cent movement from the high to low.

UK Trade Balance published yesterday morning showed the worst trade gap in history for the UK which is alarming for the British economy and something that Chancellor George Osborne has struggled with since his role began.

UK Industrial and Manufacturing data published this morning came out much worse than expected and typically this should have weakened Sterling vs the Euro however the reverse happened today with Sterling surprisingly gaining against the single currency.

US Federal Reserve Chairlady Janet Yellen spoke this afternoon to discuss the US economic policy and what the future holds for the US.

This I believe has led to the Sterling strength earlier today as I think the US are less likely to raise interest rates as quickly as previously expected.

We end the week with Eurozone GDP data and I think this will come out very positive for the single currency and likely to see Euro gaining vs the Pound at the end of the week.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk 

Alternatively call me anytime after 830am in the morning and ask for Tom Holian when calling.

 

 

GBP/EUR in serious and prolonged slide (Joshua Privett)

GBP/EUR rates have been falling drastically once more today as the rout in the global financial markets, as a result of the now pronounced slowing of British economic performance continues.

Today the rates continued to fall and buying Euros has now become more expensive by over 1% each day this week.

The reasons for the sudden falls after about a week of relative stability for the Pound’s value against the Euro is similar to why Euro buyers were experiences earlier in January, the British economy is slowing.

Growth forecasts are being revised downwards across most sectors, most crucially since last week where this was finally seen in the financial service sector as well – the engine room of the British economy.

In December and January, due to flooding inhibiting production and transport, we saw contractions in the retail, manufacturing and industrial sectors, finally resulting in today’s announcement that the UK’s trade goods gap was the biggest ever recorded.

This puts a heavy burden on the financial sector to make up the difference to keep producing growth and bolster confidence in the UK and therefore the Pound. However, due to the recent near-crashes in global financial markets with massive share-sell offs from investors in Japan, China, Europe, the US, and the UK, this confidence is being hit daily.

Slow global growth is not a short term phenomenon, and even George Osborne noted that this will be the most difficult year for the British economy since the financial crisis. The Pound will be under serious pressure this year against a largely recovering Eurozone based on these current forecasts, and with further flooding from Storm Imogen further slides are expected.

I strongly recommend that anyone with Euros to buy in the coming months should contact me on jjp@currencies.co.uk to discuss a strategy for your transaction in order to maximise your Euro return.

Whilst the outlook is concerning, currency markets rarely move in a straight line, and opportunities may present themselves in the short term after such significant movements. Any favourable rates of exchange can actually be fixed with a small deposit for up to a year, to avoid any harmful currency exchange movement affecting your transfer.

Euro sellers can also reach out to me, and I will answer you personally to best explain how to ride these currently favourable movements to their peak within the time frame you have to complete your transfer.

 

 

 

Sterling vs Euro Exchange rates set for further falls this week with the NIESR GDP Estimate (Tom Holian)

Sterling Euro exchange rates have already had a difficult start to the week falling below 1.30 as predicted in my previous two articles.

Sterling is coming under increasing pressure again particularly as the Bank of England have now changed their voting pattern from 8-1 to 9-0 in favour of keeping interest rates on hold at 0.5%.

The vote has been 8-1 since July 2015 so the change has caused Sterling exchange rates to fall against all major currencies.

The Quarterly Inflation Report from last Thursday also suggested that inflation may not rise to the target of 2% until 2018 and my view is that interest rates in the UK will remain low for the foreseeable future.

The NIESR GDP estimate is released tomorrow afternoon and with UK GDP struggling owing to the global slowdown I think tomorrow’s data could cause further losses for GBPEUR rates.

The NIESR looks at the last three months worth of GDP as opposed to the Office for National Statistics and usually they are very accurate with their prediction.

UK Industrial and Manufacturing data is also published tomorrow and with last month’s figure the lowest in 6 years I expect to see more of the same.

We end the week with Eurozone GDP data and I think we’ll see Euro strength vs Sterling to end the week as I expect the data to come out better than expected.

Therefore, if you need to buy Euros it may be worth doing early in the week and if selling Euros then perhaps later in the week.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank or another currency broker then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

Alternatively call me directly on 01494787478 and ask for Tom Holian when calling.

 

 

Why did GBPEUR plummet towards the end of last week and will this trend continue this week? (Dayle Littlejohn)

There were 2 main reasons for GBPEUR dropping back into the 1.20s towards the end of last week.

Firstly ‘Super Thursday’ was not so ‘super’. The interest rate decision was changed from 8-1 to 9-0 in favour of keeping rates on hold and growth, inflation and wage increase forecasts were cut.

Secondly throughout Friday we saw a mass sell off of USD to buy Euros due to poor Non Farm payroll numbers and the increasing speculation that the US will not raise interest rates until 2017.

This week could be another tough week for the Pound v Euro. UK trade numbers (Tuesday) and NIESR GDP estimate numbers (Thursday) I expect will show a slight decline. Couple with further news from the US in regards to halting interest rate hikes, I wouldn’t be surprised to see GBPEUR finish again this week in the 1.20s and a possible sustained period in the 1.20s throughout February.

If you need to buy or sell Euros in the upcoming days, weeks or months feel free to email me with your individual requirement (buying a property/ paying a company invoice), the best number and a convenient time and I will personally respond with my forecast, strategy and the buying process. drl@currencies.co.uk Dayle Littlejohn. Alternatively feel free to give me a call on 0044 1494 787 478 and ask to be put through to Dayle Littlejohn.

IF YOU WOULD SIMPLY LIKE A COMPARISON AGAINST YOUR CURRENT PROVIDER EMAIL ME WITH THE EXACT FIGURES AND I WILL GIVE YOU OUR LIVE BUYING PRICE AND TOGETHER WE CAN DO A COMPARISON!! THIS TAKES 30 SECONDS AND COULD SAVE YOU THOUSANDS!! 

What to expect for Sterling Euro Rates this week (Tom Holian)

Sterling Euro exchange rates have had another difficult start to the month and I expect to see further problems for the currency pair next week.

The Pound has suffered after the change in the voting pattern from 8-1 to 9-0 in favour of keeping interest rates on hold on Thursday and the UK Quarterly Inflation Report suggested that inflation may not hit the target level of 2% until 2018.

This has led to a big seek off for Sterling and GBPEUR exchange rates have dropped into the 1.29 levels at the end of last week.

I think we could see more of the same with the release of UK industrial and manufacturing data on Wednesday.

The month before saw the lowest levels in 6 years and I don’t think there will have been much change with these results either so I would expect Sterling to struggle following the announcement.

We also see the release of the NIESR GDP estimate for the last 3 months and they are usually fairly accurate with their figures.

UK GDP has been slowing down and coinciding with the global slowdown I think this data could also come out worryingly low.

We end the week with Eurozone GDP data on Friday and as the figures from Europe have been relatively strong since the start of December I think this release could really help strengthen the single currency.

Therefore, if you need to buy Euros it may be worth organising early in the week and if you need to sell Euros it may be worth seeing what happens on Wednesday.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Sterling faces a difficult week ahead vs the Euro (Tom Holian)

Sterling has again dropped below 1.30 this week against the Euro following the change in the voting pattern by the MPC who represent the Bank of England with a 9-0 vote in favour of keeping interest rates on hold.

MPC member Ian McCafferty has finally changed his mind and this has caused Sterling Euro rates to drop.

The UK Quarterly Inflation Report was also published on Thursday afternoon and with inflation running at just 0.2% this is a real concern for the Bank of England.

Indeed, the change in the forecast is for inflation to not hit its target of 2% until March 2018 and I think this means that UK interest rates are unlikely to go up until we get much closer to the target level which has caused confidence in the Pound to drop at the end of the week.

On Tuesday the UK announces Trade Balance data for December and I think we could see this coming out negatively causing further losses for Sterling exchange rates.

However, I predict Wednesday will be the biggest cause for volatility when the UK releases both Industrial and Manufacturing data.

My reasoning is that the data published recently showed the lowest levels in almost 6 years so I don’t expect to see much positive news from this announcement.

The other longer term problem for Sterling is that the fears of a Brexit are still brewing and until there is more certainty which is not likely to be for quite some time I think we could see Sterling Euro rates go in a negative direction during the course of next week.

My prediction is for Euro strength vs Sterling.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

GBP/EUR weekly round up and the week ahead (Dayle Littlejohn)

Its been another poor week for the POUND V EURO. The UK interest rate decision disappointing the market as the vote has changed from 8-1 to 9-0. Mark Carney (Governor of the Bank of England) has also cut GDP and inflation forecasts for 2016.

A well timed €200,000 purchase this week would have saved you £3,600.

Next week we have trade figures for December. I believe Sterling was overpriced against the euro in December therefore I expect UK trade figures to show a decline and therefore a drop in sterling value Tuesday morning. Wednesday at 3pm the NIESR GDP estimate is set to be released. With Mark Carney cutting the Bank of England’s forecast it wouldn’t surprise me if the NIESR follow suit.

As for the Euro Germany (the powerhouse of Europe) are set to release trade figures and GDP numbers next week. Both numbers are set to show an improvement therefore good news for euro sellers and bad news for euros buyers.

If you need to buy or sell Euros in the upcoming days, weeks or months feel free to email me with your individual requirement (buying a property/ paying a company invoice) and the currency pair (EUR/GBP, EUR/USD) I will personally respond with my forecast, strategy and the buying process. drl@currencies.co.uk Dayle Littlejohn. Alternatively feel free to give me a call on 0044 1494 787 478 and ask the to be put through to Dayle Littlejohn.

IF YOU WOULD SIMPLY LIKE A COMPARISON AGAINST YOUR CURRENT PROVIDER EMAIL ME WITH THE EXACT FIGURES AND I WILL GIVE YOU OUR LIVE BUYING PRICE AND TOGETHER WE CAN DO A COMPARISON!! THIS TAKES 30 SECONDS AND COULD SAVE YOU THOUSANDS!! 

 

EUR Strength Puts Further Pressure on GBP (Matthew Vassallo)

The EUR has made gains during Thursday’s trading, with a move against GBP particularly poignant. GBP/EUR rates have dropped by 2 cents from today’s high and what was dubbed “Super Thursday” by investors has proved to be anything but for those clients holding Sterling.

We had a host of key UK data releases today but they have made for grim reading. Whilst rates were kept on hold at 0.5% but the subsequent minutes have shown that the vote against rate hike was now unanimous. This has been 8-1 over recent months and the fact not one member voted in favour of a rate rise, is likely to handicap any major advances for the Pound over the coming days.

Bank of England (BoE) governor Mark Carney has also made a public address and was not overly bullish, again news which is not going prove to be positive for Sterling. The BoE’s Quarterly Inflation report was also released and with on-going concerns surrounding the current levels, it is no real surprise to see all members vote against a rate hike under current market conditions.

The UK recovery is certainly stuttering and although I still feel the Eurozone has a number of ‘ticking time bombs’ to contend with, the current market feeling is not allowing any sort of sustained support for the Pound. I’m still expecting it to find support around 1.30 but until the BoE’s stance changes then a move back to 1.35 is unlikely. European Central Bank (ECB0 president Mario Draghi has been far more bullish in his recent statements and despite the acceptance that they will have to extend their current Quantitative Easing (QE) programme beyond September of this year as planned, he is as committed as ever to ensuring the future of the single currency and has stated the ECB will do whatever necessary to support the Eurozone economy moving forward.

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 on 00 44 1494 725 353 and ask one of the reception team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

GBPEUR rates falling – BOE – Inflation hits the Pound – STEVE EAKINS

The price of buying the single currency has been getting more expensive this week, rates have been falling and we are currently heading towards the 1.30 level again. This was further accelerated this afternoon following the latest update form the Bank of England. This confirmed a slowdown in the economy and an updated contraction in growth forecasts. This as a result weakened the UK Pound as investors started to pull out of the currency.

Moving forward I do think that there is more risk than reward for anyone with Sterling to SELL.  The economy is slowing and data continues to show this.  Yes data in March will be better in comparison to that of this month so next month rates could start to pick up. The question to ask however is will this period of gains, be greater than the losses we will incur in the near future? Most don’t think they will or that the gains will be so small the risk is not worth taking. So in march rates could either be a little better or a lot worse for anyone with euros to buy.

If you want to discuss the market in more detail please feel free to get in contact with Steve Eakins at hse@currencies.co.uk or call +44 1494 787 478

Further into the future be very aware of the ‘elephant in the room’ that being the Brexit debate. Remembering that the Scottish referendum in 2014 had a rather negative impact on the strength of the pound, around 8 cents at the peak.  This is a far bigger conversation is is fundamentally changing or putting pressure on the definition of the EU< with free trade, movement and benefits in debate. It seems likely that rates will fall further around this event, almost a certainty.  Therefore if you have GBP to sell you may want to look at this before this event start to have a big impact.  On the other hand if you are someone looking to buy GBP then this is good news, and you may in turn want to wait to take advantage of this movement in your favour expected around Summer.

If you want a full break down of forecasts moving forward, live prices and current trends please contact myself Steve Eakins at hse@currencies.co.uk for a conversation or call +44 1494 787 478

 

Look forward to hearing from you.

EU Talks causing havoc for Sterling Euro Exchange Rates (Tom Holian)

Sterling Euro exchange rates have moved by almost 2 cents from the high to low during today’s trading session as the talks regarding the EU deal with the UK are ongoing.

Prime Minister David Cameron has defended his EU reform deal after London Mayor Boris Johnson questioned it.

Cameron has said that the ‘deal is not perfect-but will the British position be stronger and better? Yes it will.’

These are quite positive words from the PM but the continued uncertainty is weighing heavily on Sterling and until it is resolved I think the Pound will continue to struggle vs the Euro.

Tomorrow the Bank of England meet to discuss interest rates as well as the release of the UK Quarterly Inflation Report. 

With inflation remaining worryingly low at just 0.2% compared to the target level of 2% this will keep interest rates low until next year and with the MPC due to vote tomorrow if there is a change from the expected 8-1 to 9-0 we could see Sterling Euro exchange rates fall.

We end the week with US unemployment figures which often causes a huge amount of volatility.

My expectation for the next few days is for Euro strength and Sterling weakness creating some good opportunities to sell Euros into Sterling.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

Alternatively call me directly on 01494-787478 and ask for Tom Holian when calling.

 

 

Sell your Euros now! Euro weakness likely to manifest in March

The beauty of exchange rates is that there is always something up ahead to focus on that will present an opportunity. Whilst we cannot accurately predict exactly what will happen we can make a guess based on what we believe will happen. If you sift through our blog it does make for some interesting reads as we are correct a surprising amount of the time! If you don’t believe me then please search back through the site and check my claims.

So what next I hear you cry… Well I can see a strong likelihood of Euro weakness in the future as the ECB (European Central Bank) have closely hinted they will be looking at further stimulus later this year. The stimulus on offer is predicted to be either more QE or an interest rate cut. With the Bank of Japan adopting negative interest rates and the US Federal Reserve scaling back their interest rate hike expectations central banks are just taking a step back from previous hawkish positions. A step back for the ECB is bad news for the Euro as it is very likely to weaken.

The Euro had risen against a backdrop of rising confidence in the Eurozone but there was always a suspicion that the ECB hadn’t gone far enough with their plans in December. Consequently the ECB will I believe be looking to make an impact in March and suggest anyone selling Euros to buy a foreign currency really starts to take up some of the excellent offers around!

For more information on no cost or obligation please speak to me Jonathan on jmw@currencies.co.uk. I am very confident I can help with some news and information to help you to get a better price than the banks or other companies.

 

Euro strengthens following positive employment figures (Joshua Privett)

The Eurozone recovery appears to be continuing at a steady pace with further gains made against unemployment. The positive today news caused the Euro to strengthen, resulting in GBP/EUR rates being on the verge of bumping below 1.31. Luckily for Euro buyers these have since recovered.

Today was a reminder to the currency markets that there is still substantial room on buying rates for Euros to gain further expense, particularly with GBP/EUR being as low as 1.28 only a few weeks ago.

Further Eurozone data is expected to be released tomorrow and will likely paint the Euro in a similarly positive light. 

The European Commission will be outlining their growth forecasts for the first half of 2016 which will be the focus for the markets tomorrow.

We have been seeing the benefits over the past few months of the emergency financial stimulus measures which were introduced in January 2015 (most recently with today’s employment figures).

The announcement that these measures were necessary last year were what initially caused the Euro to spiral downwards in value. But finally the positive effects of pumping huge volumes of capital into the economy are paying off, which is why the Euro is enjoying year long highs against Sterling and 6 year highs against the Australian Dollar.

Should these confirm market expectations, I would not be surprised to see similar losses on GBP/EUR tomorrow.

Looking further forward, it’s unfortunate that Thursday is expected to be another difficult day for Sterling. This is when the Bank of England are due to meet to discuss their latest interest rate decision.

For the past 4 months consecutively this has caused the Pound to suffer on the exchange market, with this translating into more expensive buying Euro rates. This is because the chance of a rise in interest rates for the UK is almost non-existent – in fact Mark Carney, the Governor of the Bank of England, has now stated on two separate occasions that due to historically low inflation a hike will not be considered until at least 2017.

With Euro strength and Pound weakness expected before the first weekend in February, those with Euros to buy may be wise to seize these two week highs for GBP/EUR if you are planning a purchase over the next few weeks and months.

I strongly recommend that anyone with Euros to buy should contact me on jjp@currencies.co.uk, and I will respond personally to discuss a strategy for your transfer in order to maximise your Euro return.

I have never had an issue beating the rates of exchange offered elsewhere, and these current improvements for GBP/EUR can be fixed to avoid your transfer getting more expensive whilst you wait.

Euro sellers can do the same, and I can explain the options open to you which ensure you ride these current movements in your favour to their peak before the deadline you have to make you transfer.