Category Archives: Euro Strength

EUR Drops Against GBP & USD (Matthew Vassallo)

It’s been a tough week for the single currency, with heavy losses against the Pound and a further drop against the USD.

GBP/EUR rates hit 1.2770 at today’s high, almost 2 cents worse than they were earlier this week. This move was initiated by yesterday’s UK Retail Sales figures, which came in much better than expected. However, the aggressive spike we saw means it is likely there are further issues behind the scenes and with the on-going economic difficulties faced inside the Eurozone, in terms of a stagnant economy and weak growth forecasts, the EUR may struggle to make any sustained inroads against GBP.

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

Sterling Euro above 1.27!

The outlook for GBPEUR remains very positive if buying Euros but I would not be surprised to see some shocks in the New Year. If you are buying or selling Euros now might be a good time to take stock of the current outlook and make some plans to buy or sell. Would you like to buy any currency please call us for the very best rates and service.

Why not consider a forward contract or a Limit order to protect yourself? Please email me Jonathan on jmw@currencies.co.uk for the latest news and information.

GBP EUR – Sterling Strength from Retail Sales

Sterling has had a welcome boost this morning following a much higher than expected level of Retail Sales. The data came in at 6.9% when the anticipated figure was 4.5% – a big shift! This could perhaps be in line with the crazy end to November including ‘Black Friday’ and ‘Cyber Monday’. This has provided Euro Buyers an opportunity to buy with the market back above the 1.27 level.

Looking further forwards, tomorrow morning there is a whole host of Eurozone economies releasing their CPI Inflation data (Consumer Price Index). The level of inflation for an economy can be a big driver as to an investors appetite to have money in the economy – hence why it can move the market so much. I don’t think that the inflation data tomorrow will be Euro favourable, so I’d be inclined to SELL EUROs prior.

Please feel free to contact me directly should you have an exchange requirement. The direct line to the trading floor is 01494 787 478 or email me AJB@currencies.co.uk

What can we expect for the Euro before the end of 2014?

The Euro is likely to be the biggest loser in the New Year as investors fears over QE (Quantitative Easing) take hold. What exactly can we expect from the Euro in the New Year? Wel;l if they look at rolling out full blown QE then the Euro is highly likely to weaken significantly. When the Bank of England launched QE the pound lost about ten cents against the Euro. When the Federal Reserve Bank in the US launched QE it caused the dollar to weaken a similar amount against the pound and Euro. Why is this?

QE is where a central bank buys up government bonds and other investments from banks and brokers to boost their liquidity. It serves to increase the amount of money in the financial system and ensures that the financial wheels in an economy are turning. This move by a central bank serves to kickstart an economy and by increasing the money supply devalues the currency. Which also has a knock on effect of increasing demand for exports (goods from that country are cheaper), further helping boost the economy.

So if the ECB (European Central Bank) are deciding on how much of  a QE programme to launch in the New Year, it is reasonable to expect the Euro will weaken. Suffering from low growth and high Unemployment the Eurozone really is struggling and this seems more than likely to manifest in the New Year.

Making some careful plans and being aware of what will drive your exchange rate is always sensible on exchange rates. For more information please contact me Jonathan on jmw@currencies.co.uk

Where Next for EUR Exchange Rates? (Matthew Vassallo)

The EUR has strengthened against GBP during Tuesday morning trading. This spike has pushed the pair back towards 1.25 on the exchange and has helped to curb yesterday’s losses, which saw GBP/EUR trade at a high of 1.2655. It’s been a volatile few days for the currency pair with spikes in both directions and although the EUR has found support in the higher 1.20’s, I do anticipate a major run for the single currency under current market conditions.

Tomorrow is likely to be a key day, with the latest Bank of England (BoE) minutes due out at 0.930, along with latest UK unemployment rate. We also have the latest Eurozone inflation data out, so expect a busy day for the EUR.

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@curerencies.co.uk

Sterling Euro Forecast (Tom Holian)

Sterling vs Euro exchange rates have had a very mixed few days with over 1% movement from high to low this week or the difference of £2,000 on a currency transfer of £200,000.

UK manufacturing data came out lower than expected and actually fell in October. Industrial production data was also a lot lower which caused the Pound to weaken against the Euro.

If manufacturing and industrial production slows down in the UK this will inevitably put pressure on the Bank of England to keep interest rates on hold.

German inflation data is due out early tomorrow morning and this is likely ot heavily influence GBPEUR exchange rates. Any rise could see strength for the single currency as it could support the previous monetary policy changes by the ECB in both September and October.

Also due out in the ECB’s monthly report which could provide us with further details as to what the ECB may do to combat low inflation.

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

 

 

 

GBP EUR Forecast – When to BUY EUROS?

Sterling Euro had a large shift today, with trading to close this evening in the 1.2650 region (having opened over 1.2715). The GBP-EUR day low was 1.2609 so with a Cent between high and low, timing has been of the essence today to maximise your return.

Poor manufacturing data this morning provided Euro sellers a window of opportunity; primarily Manufacturing figures coming in at 1.7% against a predicted figure of 3.2%. Sterling then saw a resurrection of sorts as the NIESR (National Institute for Social and Economic Research) came in as forecasted at 0.7%.

Looking forwards tomorrow has the UK Trade Balance figures (expected to show a slight reduction) with Thursday having a host of Eurozone CPI (inflation) figures). If I were buying Euros I’d be looking to get an exchnge booked after Thursdays CPI figures, as there is a chance that the poor EU economies will be mirrored by unfavourable CPI levels.

If you are looking to get an exchange booked, please feel free to drop me a line direct to the trading floor – the correct timing of an exchange can be worth thousands of pounds! 01494 787 478 or alternatively email me directly AJB@currencies.co.uk

Thursday’s ECB Monthly Report Key for EUR Exchange Rates (Matthew Vassallo)

The EUR has made gains against GBP during Tuesday morning’s trading, recovering some of the position it lost yesterday. GBP/EUR rates are now back below 1.27 and this could be attributed to this morning’s poor UK Construction & Production data which came out worse than expected.

The EUR has had a tough ride against Sterling for much of the year, although the single currency has found support in the 1.27-1.28 range, with the Pound finding it exceedingly difficult to breach this level.

All eyes will now switch to the latest European Central Bank (ECB) monthly report, which is released on Thursday. This is usually a key market mover and will give us a detailed insight into the relative health of the Eurozone economy. There is also Eurozone employment data released on Friday, which is worth monitoring if you do have an upcoming EUR currency requirement.

If you do have an upcoming EUR currency transfer to make and 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 directly on mtv@currencies.co.uk

GBPEUR Spikes

The Euro rollercoaster continues! The Rates are back above 1.27 representing a great time to buy the Euro which may not last. Looking into the New Year exchange rate could drop if the pound comes under pressure owing to the uncertainty of the UK’s General Election. On balance the pound looks like it really  could struggle in the New Year, anyone considering buying Euros really should beware of this important event.

For more information on the Euro and how to maximise any currency exchanges that you need to consider please contact me Jonathan on jmw@currencies.co.uk

Sterling Euro falls owing to ECB announcement (Tom Holian)

GBPEUR exchange rates have fallen by as much as 1% or the difference of £1,000 for a currency transfer of £100,000. In order to achieve the best exchange rates it is important to make contact with a currency broker who can watch the currency markets for you.

Today for example the comments from ECB president Mario Draghi have strengthened the Euro against Sterling as the ECB has stepped up plans for more stimulus measures coming soon.

No change was announced today but the rhetoric used has suggested the ECB will act very soon. Indeed, the central bank has yet to buy any government bonds but they are ready to act as and when required.

Low inflation and slow economic growth has been the cause for Euro weakness over the last few months and if the ECB do announce a plan with definitive dates and policies I think we could see the single currency strengthen against the Pound.

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

 

 

 

Euro Rate Forecast – When to BUY or SELL Euros?

Yesterday saw a very strong shift for Euro buyers yesterday, moving roughly 1% in favour of the buyers (on a £200,000 purchase of Euros that equates to a further €2,500!). Yesterday opened up with poor European ‘Markit Data’ at the same time as positive UK ‘Markit’ was released. Markets had been readying themselves for a volatile trading period during George Osborne’s Autumn Statement at 12:30, however it has been generally well received. Apart from the headline Stamp Duty reductions, Osborne managed to conceal a forecasted increase to UK borrowing, providing Euro buyers with near 3 year highs.

This afternoon (13:45) the Eurozone Central Bank governor Mario Draghi releases his monetary statement, followed by a question and answer session with his audience. There are murmurings amongst international analysts that Draghi will potentially use drastic matters to stimulate his stagnant economies.

If you are looking to buy Euros, I’d be inclined to wait until after the press conference this afternoon, as announcements of monetary stimulus tend to weaken a currency. If you are looking to SELL Euros, you may save yourself thousands by getting an exchange booked sharpish! If you are still waiting to take delivery of your Euros, there are various contract options available to you to avoid adverse movements – please feel free to get in contact by using the contact details below…

Andrew Bromley

AJB@currencies.co.uk

01494 787 478 (direct line to the trading floor)

 

Euro rate forecast – turbulent 48 hours ahead for GBPEUR

Today we have the UK budget statement from the chancellor which I expect to be somewhat euro negative and could potentially give euro sellers the best levels seen this week. European Retail figures are also due this morning and will probably help further. Tomorrow however is probably a totally opposite day with European news expected to worsen giving buyers a better level.  The European Central Bank monthly meeting and commentary is going to be keenly watched for information about when the bank may start to expand its asset buying into government bonds so will be euro negative.

For a full break down of what is expected and the key times to trade your transfers contact myself directly – Steve Eakins – hse@currencies.co.uk