Category Archives: Euro Strength

Roller coaster day for GBP/EUR (Joshua Privett)

Today started off as if the Euro was going to make further in-roads against Sterling, with GBP/EUR rates creeping down to the brink of 1.35. With the amount of current market volatility in effect since Black Monday, there are multiple forces causing Euro strength. But I think this shift down and then back up to where we started the day in the high 1.36’s was the expectation that GDP figures would come in lower than expected for the British economy. However, they ended up defying expectations and holding steady, giving Sterling back the strength it lost momentarily today.

News concerning the global economy following the events of Black Monday will be coming out over the weekend. The fact that Sterling is shooting up at the end of trading as I type this (just breaching 1.37), suggests that the value of the Euro is deflating even further.

The Euro got a massive boost this week following the flight out of the stock-markets and into safe-haven currencies. As the stock-markets are rebounding, the process is now reversing. So Sterling is gaining against the Euro in the last few minutes of UK trading, as investors are confident that nothing has come out before the weekend to spoil their plans of purchasing stocks while they are cheap.

We will know more about what to expect next week after the weekend, so I suggest that anyone with a Euro requirement should contact me on jjp@currencies.co.uk over the weekend so that I can offer some tailored advice to your situation as the markets open next week.

UK GDP and Eurozone Consumer Confidence – Impact on GBP vs EUR Exchange Rates (Tom Holian)

UK GDP figures that were published this morning did little to help Sterling exchange rates as it came in exactly as expected and this caused the Pound Sterling to fall marginally against the single currency.

With Sterling having a very difficult start to the week against the Euro the data did little to help the Pound.

However, possibly more key to the Euro’s strength this morning was Eurozone Consumer Confidence data which came out better than expected and this has seen GBPEUR rates fall by 1% from the high to low this morning creating some excellent opportunities to sell Euros into Sterling.

With China cutting interest rates earlier this week and the US less likely to interfere with monetary policy at next month’s meeting this has helped to strengthen the single currency.

Added to this I think the Bank of England’s likelihood of raising interest rates any time soon has also been pushed further back.

Eurozone inflation data is due out on Monday morning and this could cause further movement in favour of the Euro if the the level is higher than the expected 0.2%

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

 

 

 

Recent EUR Strength Softens (Matthew Vassallo)

The recent EUR strength has started to soften over the past 24 hours, particularly against Sterling, with the pair moving back above 1.37 at today’s high. The EUR had made gains during the early part of the trading week, moving back below 1.35 before falling away again and many clients questioning whether this is just another false dawn for the single currency.

Personally I was expecting the EUR to move away from the 8 year lows we saw against Sterling only a month ago and this happened as the result of various external factors.

Initially the Pound was rocked following poor UK Retail Sales figures but this downturn was compounded following news that the new Greek debt deal had been ratified through the German parliament. This immediately brought some much needed market confidence back to the EUR, following months of negative reports. This combined with the global panic over the sharp fall in Chinese stocks helped to push GBP/EUR rates back below 1,40 and currently the EUR is sitting approximately 8 cents higher than the recent lows.

Considering the Pound has already started to recover I would be tempted to sell off any EUR positions off the back of this improvement and not gamble on any sustained improvement in Greece, which is likely to come under the spotlight again before long.

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

Euro’s value swinging wildly (Joshua Privett)

One of the more interesting currency stories since ‘Black Monday’ has been the Euro.

The value of the Euro was catapulted upwards following the crash in stock prices. Investors sold off shares and chose to store this liquidity in the single currency, due to its recent stability and undeniable cheapness relative to the USD and GBP (the more traditional safe-haven currencies). As such this mass volume of EUR purchases drove up the value of the single currency.

However, the global landscape seems to be changing once more. The slide in shares has halted and now rebounded. China’s stock market closed 5% higher at the end of the day, though this is small relative to how much has been lost already, it shows that the slide has halted for now. This has caused many investors to move back out of the Euro once more, making a massive profit from the increased value of the Euro and also buying stocks again while they are dirt cheap. There’s always money to be made in a crisis.

With this market activity the Euro is deflating across the board. Even commodity currencies who were hardest hit by the poor news emerging from China, one of the biggest buyers of their goods, are making gains against the Euro as a combination of positive Chinese data and the Euro’s own deflated value. EUR/CAD, EUR/AUD, and EUR/NZD have all been trading higher after the past 24 hours.

Those with Euros to sell should be moving much sooner rather than later. These current rates are a gift after months of anguish as GBP/EUR had been at their highest point in 8 years. With the rates moving up time is off the essence. Call me today on 01494 787 478 and ask for Joshua for a free quote on your transfer, I guarantee to beat any quote offered elsewhere. jjp@currencies.co.uk

Absence of US Rate Rise causes Euro to Strengthen (Tom Holian)

Sterling Euro exchange rates fell today owing to the US Federal Reserve now becoming much less likely to raise interest rates owing to the recent movements made by China.

This means that global investors are now a little less likely to hold funds in Dollars and instead invest in the Eurozone.

This has seen the single currency gain more confidence and therefore gain vs US Dollar and Sterling during today’s trading session.

With the US unlikely to raise rates in the near future this also means that the Bank of England will more than likely delay an interest rate hike themselves causing Sterling to drop.

On Friday the UK releases GDP figures are 930am and if the figures come out worse than expected we could see further falls for GBPEUR towards the end of the week creating some excellent 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

 

 

Where Next for EUR Exchange Rates (Matthew Vassallo)

The EUR has had another volatile few days on the exchange but the good news for EUR sellers is that we have seen it gain value against most of the major currencies. After months of negative media reports and weak growth forecasts, are we finally seeing the start of a sustained EUR improvement?

Personally I would be wary about assuming the current trend is going to continue without resistance, particularly when you consider how fragile the single currency has been over the past few months. Any sustained market confidence will not arrive overnight and investors will need to see a market improvement, particularly regarding the situation in Greece. However, whilst Eurozone economic data is improving and with their Quantitative Easing (QE) starting to have a positive effect, I do feel the EUR will find support away from the recent 8 year lows.

Personally I would be tempted to sell any EUR positions off the back the recent improvement and not gamble on what has become an increasingly volatile and unpredictable market.

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

GBP/EUR rebounds after ‘Black Monday’ (Joshua Privett)

Markets are beginning to stabilise once more following an incredible day for the Euro yesterday. For example the single currency strengthened by more than 2.71% against Sterling and reached the best levels to sell Euros since May.

Black Monday was the nickname used to describe the mass sell off of shares as China’s stock market almost collapsed. As money was withdrawn from the stock-market on a global scale, the Euro became the target for much of this liquid capital.

Traditionally these mass panics on the stock-market causes safe haven currencies such as Sterling and the USD to strengthen. But the cheapness of the Euro, coupled with the recent success of the Eurozone in solving its financial and political issues, meant that the lion share of investors filtered into the Euro and strengthened the single currency against its competitors.

The intervention today by the People’s Bank of China to stabilize market turmoil has caused some of the more brave investors to step back into the stock-market whilst the merchandise is cheap. This is causing the artificial strength of the Euro to deflate. GBP/EUR has moved back up to 1.37 during today’s trading as a result.

Is the recent run over for Euro sellers? I think so. At least in the short term. I recommend anyone with Euros to sell to contact me overnight on jjp@currencies.co.uk for a free quote on your transfer. I doubt these rates will rise much, particularly with the current market uncertainty, but it’s unlikely to make further gains so waiting wouldn’t benefit you. You can alternatively call me on 01494 787 478 for a direct and frank discussion about your situation.

Chinese Data causes massive movement for Sterling vs the Euro (Tom Holian)

Sterling vs Euro exchange rates had one of their biggest falls in 6 years with markets moving by as much as 4 cents from the high to low during today’s trading session.

The Euro has been used as a carry trade currency recently and today’s unwinding of global positions has seen a flight back to the Euro seeing its lowest level to buy Euros with Sterling for a few months.

Carry trading in simple terms means borrowing from a low-yielding currency with a very low interest rate and investing in riskier commodity based currencies with a higher interest rate yield.

However, with the data from China causing havoc with global stock markets we have seen enormous movements for the AUD, NZD and ZAR as they are sold off to move back to the Euro.

Indeed, the FTSE at one point had lost as much as £100bn off its value.

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

Stock-markets losing value continues to boost the Euro (Joshua Privett)

The Euro is receiving a significant portion of the massive capital fleeing from the USD, the Pound and various commodity currencies. Since markets opened this morning the Euro has already gained 1.5 cents against Sterling as stock markets in London opened 3% down on their value before the weekend.

China’s woes have decreased confidence in global growth for the foreseeable future to a point where investors are having to sell off shares to remove risk from their positions. China used to account for 60% of global growth, which is why worsening news from a single nation can have this kind of dire affect on the global markets.

Sterling and the USD’s recent strength was based on the accepted truth that they will both be raising interest rates within the next 6 months. China’s economy was already causing some hesitation for the Bank of England and the FED to do so, this recent news will force a wait-and-see approach. As such, most forecasters are expecting raised rates to be pushed back for another 6 months to a year. Investors are now flocking to the Euro in search of short-term gains rather than a year-long wait for returns.

I would strongly recommend that anyone who has Euros to buy over the coming months should get in contact immediately for a free quote on their transfer. This is not a short-term boost for Euro against Sterling, one of the main drivers for currency markets is interest rates, and this ‘golden egg’ for Sterling has now been moved past the horizon for anyone hoping it would help their transfer. I would not be surprised to see GBP/EUR at 1.35 by the end of the morning.

Call me on 01494 787 478 and ask for Joshua to receive a free quote on your transfer and tailored advice on your situation. jjp@currencies.co.uk . Those with Euros to sell, email me to discuss how to ride this move in your favour to its conclusion.

 

Sterling Euro Exchange Rates at lowest level since June (Tom Holian)

Sterling Euro exchange rates have hit their lowest level since June as Chinese data impacts upon global stock and currency markets.

The Chinese recently devalued the Yuan and with the release of some very poor Chinese data during the week this has discouraged the Federal Reserve from increasing interest rates at their next meeting in September.

With the markets widely anticipating a rate rise in the world’s leading economy either in September or December it now seems less likely as any movement could harm the US economy .

This had led to the Dollar weakening against the Euro and the single currency therefore strengthening against Sterling providing the best opportunity to sell Euros into Sterling for two months.

It appears as though what is happening in the US and China is what is affecting Sterling Euro exchange rates.

On Tuesday the US releases consumer confidence and depending on the outcome could further strengthen the Euro vs Sterling if the data is not as good as expected.

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 rates falling dramatically

Sterling has completely crashed in value today, alongside the USD.

The news recently concerning economic slowdown in China has worsened overnight with reports of a slump in factory orders, reflecting a lack of both domestic and foreign demand for Chinese goods. This weakened Sterling on two fronts.

China’s woes have translated into worries about future global demand for goods and services, as economic growth forecasts are being revised worldwide. Raising interest rates are a sign of confidence in the economy from their economic guardians, so this worsening news out of China has put a spanner in the works. The UK and the US will likely have to push back the time when they will raise interest rates, which is why both have performed poorly on the currency markets today.

Secondly, the news out of China caused panic sell-offs on the stock-markets, lowering their value. As the UK is a financial centre, the value of our own markets came under pressure, which forced further Sterling weakness.

The Euro by contrast today produced positive manufacturing and services data. Some Euro buyers I have spoken to today had hoped that Tsipras’s resignation as Greece’s Prime Minister would get rates back up to where they were a few months ago at 1.44. Clearly this hasn’t happened. In fact, his call for a snap-election was received positively by the markets, it was a way to purge his party of many of the anti-EU members who had attempted to rebel against his authority in recent votes. He would not have called the election in September if he wasn’t confident he could win again.

I strongly recommend that those with Euros to buy get in contact with me directly for a free quote over the weekend. Markets don’t really move over the weekend while trading is closed, and I will be at work before trading lines open on Monday as I anticipate a number of readers will be requesting quotes before the Euro drops further. As such there will be several large trades going through on GBP/EUR at that point which I can potentially tag new clients on to in order to achieve a very competitive rate. Even if your requirements are not for a few months, these rates can be pegged at no additional cost.

Contact me for more information – Joshua Privett- jjp@currencies.co.uk – 01494 787 478.

Pound Sterling plummets against the Euro (Tom Holian)

Sterling Euro exchange rates have seen a big drop yesterday and a fall below 1.40 as the Germans agreed the third Greek bailout and the Greeks have also called an election for 20th September.

This has seen a huge strengthening for the single currency against both the Pound and US Dollar.

Coupled with the news in the US that interest rates are now very unlikely to go up in September this has seen Dollar weakness which often results in Euro strength.

The relief that Greece will be able to make their repayments for the next three years has helped to increase confidence in the Euro and hence the currency movements seen this week.

The Eurozone releases services data at 9am this morning and if this shows any signs of positive movement we could see even further gains for the Euro.

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