Category Archives: Euro Strength

GBPEUR Stress Tests warry

Sterling levels have been volatile again this week but levels are now tip toeing ready for the European Stress tests over the weekend. These are released on Sunday afternoon and summaries the work of over 6000 people who have been checking and testing the top 300 institutions across Europe.  Banks and Brokers are opening over the weekend as a result of the news and what information they publish. This will probably result in a large amount of money changing hands on Monday and levels being volatile. For another that is not a central bank or multimillionaire this is something to be wary of; it could give you an opportunity or equally provide a extra cost on any purchase you have. The safest thing to do to avoid risk is to limit your exposure beforehand by either buying early or putting limit orders in around the market. These act like a safety net around the market making sure you say within targets you set, very useful in these kind of scenarios.

For more information on your options and the potential reaction to these stress tests contact myself directly via email at hse@currencies.co.uk  My name is Steve Eakins and I look forward of being of assistance.

Eurozone Consumer Confidence Figures Better than Expected (Matthew Vassallo)

Eurozone Consumer Confidence figures were release today and came out better than expected at -11.1%. Whilst this is still not a good reading, any improvement above expectation is seen as positive and helped the EUR to solidify its position against GBP under 1.27 on the exchange.

The Eurozone continues to fight against weak growth forecasts and high unemployment but this in itself is starting to negatively affect other major economies, including the UK and it I do feel the EUR is more likely to move back through 1.25 against the Pound, the GBP spiking back through 1.28 on the exchange.

EUR/USD rates continue to trade well below 1.30, as the USD continues to find market support against the single currency. An upturn in the US economy has helped sustain the greenbacks position and I do not see any shift in market perception in the short-term.

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

Important Euro data

GBPEUR has mainly been determined by the pound this week but tomorrow at 9.00 am the Eurozone composite PMI (Purchasing Managers Index) will possibly be an important market mover. There is a strong likelihood it will be bad news but with generally negative tones persisting on the Euro it is unlikely any further bad news will cause the rate to lose too much ground. There could even be a slight upside surprise on the rates since the Euro is being viewed negatively by investors, any small improvement in the data could cause the Euro to find a little traction.

I would view any improvement on the Euro as well worth taking advantage of if selling since the longer term prospects I do feel favour the pound over the Euro. Making firm predictions is of course impossible but we really strive to offer useful information and an award winning rate when you do trade. For more information on getting the best deals please contact me Jonathan on jmw@currencies.co.uk

Bank of England Minutes (Tom Holian)

Sterling Euro exchange rates have remained relatively flat today as the Bank of England minutes came in exactly as expected. The vote was 7-2 in favour of keeping interest rates the same and the amount of QE has been kept at £375bn.

I think the currency markets are waiting to see what happens with UK GDP due out on Friday. The chief economist within the Bank of England was quoted recently as saying the economic outlook is different compared with the optimism of 3 months ago and that interest rates may not go up until summer 2015.

If he thinks the economy has slowed down I think we could see this reflected in the GDP figures on Friday which could see GBPEUR rates fall.

UK Retail Sales are also due out tomorrow and any negative data could see Sterling weakness.

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 teh@currencies.co.uk

 

 

 

 

Sterling Euro – Forecast For The Week Ahead

The Sterling Euro exchange rate has a busy week ahead as the next 5 days hold several key data releases.

Wednesday 23rd October – Bank of England Minutes

Wednesday has the release of the minutes of the Interest Rate meeting which was held at the beginning of the month. The meeting is held by the Monetary Policy Comittee (MPC) and chaired by the governor Mark Carney, deciding the Bank of England base rate for the month – one of the key indicators of economic strength / weakness. The Interest rate has remained at 0.5% for in excess of one year, however as the UK has achieved sustained economic growth, economists in the city have been murmuring towards and increase in the rate – a real indicator to the progress made. The minutes on Thursday will give us a good insight in to the internal thoughts of the MPC and can really move the markets. My thoughts are that the short to medium term will primarily hold Sterling strength, and would therefore be inclined to sell GBP prior to Wednesday.

Thursday 24th October – Retail Sales Figures

Those selling GBP will also want to be wary of both Thursdays Retail Sales Figures and Fridays GDP announcement (paragraph below).

Friday 25th October – UK GDP Announcement

Friday holds potentially the most important piece of data for the week. The GDP figure for Quarter 3 2014 is released and given the turbulent quarter (primarily Scotlands Political activity) we can potentially expect a market provocative figure. I have seen GDP figures move exchange rate pairings by over 2% in a moment of seconds. Had you been selling €100,000 and the rate moved against you, you’d achieve thousands of pounds less!

As such, please feel free to contact me with regard to any transfer requirement you may have. My contact details are either ajb@currencies.co.uk or 01494 787 478

Will the Euro recover against the pound?

This week is a busy week and it may be that exchange rates move outside of recent ranges. The expectation longer term is for the pound to rise against the Euro since the UK appears to be on a stronger economic footing than the Eurozone. My personal approach would be to sell Euros on the dips in your favour to avoid potential pitfalls of the pound rising against the Euro in the future.

This week we have the Bank of England Minutes which are not expected to show much change, Thursday UK Retail Sales which I think could be a big market mover and Friday we have UK GDP, the first estimate for Q3 economic growth. Thursday we also have flash PMI surveys for the Eurozone which may well be market movers too, all in all plenty to move the market!

If you need to move any currency internationally now is a good time to make some careful plans regarding your currency exchange. For more information on the forecast please contact me Jonny on jmw@currencies.co.uk

GBPEUR rates continue to fall

GBPEUR levels are CRASHING THIS WEEK, THIS MONTH. There have been a number of factors impacting market trends but it is safe to save a negative trend has been well established. UK data this mounting continue to be poor as it reflects September when everyone was wary about the Scottish vote. European news continue to been poor, very poor in fact which is driving investment away from the single currency and the Pound by association.  There is the potential that next month we will see a pick up and a change in trend for the GBPEUR pairing but I think we will have to wait a while to re-capture the losses we could see over the next fortnight. As a result anyone buying euros may want to move sooner rather than later to avoid any further disappointment.  Euro sellers should equally be in a position to move when the tide turns which could only be 10 days time.

For more information on any of the topics above please feel free to get in contact when you get some time. Feel free to contact myself directly for a personal reply at hse@currencies.co.uk

GBPEUR drops! Have you made plans for the worst case scenario?

The pound suffered today as Inflation data showed a fall, meaning no real rise to raise interest rates anytime fast! This bodes well for anyone selling the Euro to buy the pound but I would be concerned if buying the euro with the pound since the exchange rate looks likely to fall if this continues.

Ultimately there are many factors affecting the pound lately including the fears of Ebola and the general deterioration in sentiments on the currency markets. For more information please contact me Jonathan on jmw@currencies.co.uk

A Quiet Week for the EUR (Matthew Vassallo)

It’s been a quiet week for the EUR with little economic data of note out to shift the single currency. We have seen the EUR realign itself slightly against GBP, with the pair floating around 1.27 on the exchange. This has come after a difficult couple of weeks for the EUR, which culminated in the Pound hitting a fresh two year high of 1.2855 last week.

I believe we will see the EUR supported around the current levels and in my opinion we are more likely to see a move back towards 1.25, rather than see rates spike up to 1.30. ECB president Mario Draghi’s speech this afternoon could cause additional volatility for EUR exchange rates. Depending on his stance regarding the Eurozone recovery is likely to determine how the markets react to his speech.

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

Will NIESR GDP Boost The Pound Versus The Euro Today? (Colm Gilhooly)

Today we have UK Industrial and Manufacturing Production figures released at 9.30 which will give an indication of how the UK economy is performing and therefore influence sterling euro exchange rates.  However the big news of the day is likely to be the unofficial GDP figures released by the NIESR (National Institute of Economic and Social Research) which is a very well respected think tank who’s figures often accurately forecast how official UK figures will actually appear.

If the data is strong we could see sterling euro exchange rates go up substantially.  However as always with data forecasts, the outcome and the effect on the markets will always be a bit of a gamble.  In my view the Euro will come under more pressure over time, so if you are selling euro it may be worth moving soon to take advantage of the recent strength following the ECB decision.

If you need to make a currency transfer, and want to get the best exchange rate, then feel free to email Colm at cmg@currencies.co.uk and I would be happy to help.

 

Euro selling Opportunity

If you need to sell Euros you are looking at a very good opportunity currently. The Euro had weakened owing to a number of measures by the ECB (European Central Bank) to bolster growth and try to increase inflation. The ECB  has now had to embark on QE (Quantitative Easing) which has strangely caused the Euro to strengthen…

The Euro has weakened this year and this is presenting a good buying opportunity still. However with the likelihood being the pound and dollar will strengthen against the Euro longer term it would be very much worthwhile anyone selling Euros makes some firm plan to sell now. Historically speaking the rates for selling Euros are at a good level which will not last.

Many clients who are in the position of selling Euros for pounds or dollars are upset at not having moved earlier this year or last year when rates were much better. Unfortunately as time ticks on the pound and dollar are highly likely to continue to appreciate against the Euro, anyone thinking of selling Euros should be weary of the forecast and make plans. The recent move in favour of anyone selling Euros for GBP today is an example of a spike that should be capitalised on if you want to limit losses.

For more information at no cost of obligation please contact me directly on jmw@currencies.co.uk

The Euro should be the focus in October

GBPEUR and EURUSD movements have mainly been determined by the pound and dollar in the month of September. We saw the pound grab headlines owing to the Scottish Referendum and investors have been keeping a close eye too on USD news with the Federal Reserve seeking to raise interest rates in the New Year.

I would not be betting on the Euro doing too well this month although much more will be known tomorrow after the QE decision tomorrow. If you need to buy or sell the Euro keeping a close eye on the rates is sensible, if you are busy and don’t have time , why not call us to learn the latest news on the markets. Register your interest with me on jmw@currencies.co.uk