Category Archives: Euro Strength

Volatile day on the markets as Mark Carney battles markets (Joshua Privett)

The difference between the high and the low today was more than a 1.5 cents. Mark Carney’s speech today was fantastic example of how much a single speech can affect market activity.

I predicted he would come out with calming tones about inflation to try and install more confidence in the UK recovery. The fact that interest rates were even mentioned was a surprise. The fact that he said the timeline had moved forward to raise them was a complete shock. In a matter of minutes Sterling moved up by more than a cent against the Euro.

This is a lesson in global economic climate. With interest rates being kept low for so long, investors are desperate for potential profit. Even emerging markets with traditionally higher returns are slowing down. Hints of rate rises are enough to flood demand for any currency, and hence bolster their value, visible on your screens at home.

However, the effects of a looming election brought rates back to the low 1.36′s. This has certainly been the trend over the past few weeks, though recent movements have shown the momentum is slowing.

The first bit of data that brought rates back up was UK retail sales. It’s possible that GDP figures for the UK on Tuesday next week shall present similar buying opportunities for those looking to purchase Euros.

Email me for some more tailored advice about your situation over the weekend on jjp@currencies.co.uk 

Euro Exchange Rate News – When to BUY Euros? ( Andrew Bromley )

Exchange rates have stayed stable today, despite much better than expected UK Retail Sales figures. We’ve also seen good figures forecasted for the use of the Bank of England, also expected to provide Sterling with a boost. As neither have assisted the Pound in breaking the 1.36s and above, I’d now be inclined to say that this will be the top of the trading range. Tomorrow morning Bank of England Governor Mark Carney speaks in Germany, potentially hinting at using the tools available to him that could de-value Sterling. Carneys reasons for doing so are to stimulate further UK export growth, as Monday UK Factory output was reported at a 2 year low. A stagnant UK export industry would be poor for overall UK economic growth, so should be seen as worrying for EUR buyers.

I personally think that the falling GBP is a sign of the future trend, as from next week UK Election build up properly starts. Parliament is dissolved from 1st April, so with politicians back on the war path to win their seats, expect the Pound to be on the receiving end. In every former period of political instability, the Pound has crashed, so there’s no reason for a change in trend now! Euro sellers should prepare themselves to take advantage…

Euro Buyers (as noted above) would be wise to consider buying now. If you do have a transaction requirement but don’t have the full funds available – I can help! Feel free to contact me directly on the direct line to the trading floor – 01494 787 478 – ask for Andrew Bromley! Alternatively, drop me an email AJB@currencies.co.uk

If you are selling Euros and would like assistance, please also feel free to drop me a line!

Andrew Bromley

GBP-EUR Rates – Firmly Established in mid 1.30′s

Euro leaders have only recently shown solidarity in times of tragedy. Yesterday’s devastating crash in the Alps being an example. But hopefully steps are being made in the right direction.

Angela Merkel, Germany’s Chancellor, and her meeting with Alexis Tsipras, Greece’s Prime Minister, was subsumed by diverted media attention and necessary changes to Merkel’s schedule. Both leaders had agreed that Greece needed structural reforms – although whether they meant the same ones remains unclear. To unlock further bail-out money from its European creditors, led by Germany, Greece must convince them that it is serious about reform. In February, Greece were using war reparations as a bargaining chip with Germany, pictures of the two leaders now shaking hands reversed some of the negative effects the prolonged stand-off had on the value of the Euro.

There was little data released today to cause substantial swings in the currency markets. However, tomorrow retail sales figures for the UK will be telling. Previously this data has produced significant Sterling strength. Those looking to buy Euros may have opportunities tomorrow after a torturous few weeks hoping for the rates to go back up towards 1.40.

The Euro today gained a lot of value against the US Dollar. US Durable Goods figures (massive market orders, for example planes and large volumes of cars which take a long time to produce), came in lower than expected. Signalling a lack of confidence concerning the durability of the US recovery. This sent the Dollar down against all currency pairings, giving the Euro a little boost.

If you have a Euro requirement and wish to plan or be offered an extremely competitive quote against your bank, then call into the trading floor on 01494 787478 and ask for Joshua. jjp@currencies.co.uk

Will GBPEUR hit 1.40 again?

The foreign exchange market is a very fickle beast, sometimes markets can fluctuate quickly and unexpectedly. The current market is one such market with exchange rates very difficult to predict and very likely to fluctuate. Therefore if you need to buy or sell Euros for sterling being prepared is the only way to benefit, simply ‘hoping’ rates will go the way you have planned is not good enough and will often lead to disappointment!

The next few weeks will see economic data released and political uncertainty from the UK’s General Election and also the Greek situation as well. Keeping up to speed with all the latest news is the only way to really make the most from your currency exchange. If you need to buy or sell the Euro please contact me Jonny on jmw@currencies.co.uk for all the latest events and news that will affect your rate!

Are we Seeing the Start of a EUR Fightback? (Matthew Vassallo)

The EUR has improved since that start of the trading week, particularly against Sterling. GBP/EUR rates have dropped by almost 4 cents from the high on Monday morning, to the low of today. Due to the consistent momentum seen in Sterling exchange rates over the past couple of months, the Pound has almost become a victim of its own success.

UK factory orders released yesterday showed a drop to their lowest figure in 2 years and this has reinforced fears that UK exports have been suffering due to the rising value of the Pound.  Our Eurozone trade partners are being priced out of the market, a scenario which was always likely given the movement on the exchange rates.

I believe we are now seeing the start of a realignment for the EUR but of course much will depend on economic developments inside key Eurozone economies, including a longer-term solution to the on-going issues surrounding Greece’s debt crisis. Personally I feel the Pound will struggle to break back through 1.40, certainly in the short-term and it is more likely the EUR will start to put pressure on 1.35 before long, if the current trend continues.

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

Volatile Times for Sterling / Euro. (Dayle Littlejohn)

Andy Haldane one of the 9 members that votes on the interest rate decision every month, weakened Sterling today by stating to combat inflation its a possibility that the UK could introduce Quantitative Easing or even cut interest rates. Therefore in today’s trading GBP/EUR reached 1.3977 and when they announcement came out to the public rates fell to 1.3742. This is a difference of over 2 cents. For anyone looking to buy Euros timing a trade is crucial as a £100,000 trade would achieve you an extra 2000 Euros if you had traded at the high compared to the low. In order to take advantage of swings within the market I would recommend placing a limit order.

Placing a Limit Order means that when the market moves to your specified rate, our system automatically purchases your currency, letting us work as your eyes and ears in the market. For more information feel free to email me on drl@currencies.co.uk or alternatively feel free to call 01494 787 478 and quote Dayle Littlejohn.

 

GBP-EUR Rates – Further Gains for the Euro today sees 1.37 reached (Joshua Privett)

About a week ago Sterling gained an additional boost against the Euro, as one of the members of the Bank of England Board indicated he was changing his mind about potentially raising the interest rate. Today’s minutes and the unanimous vote to keep interest rates as they are saw the market rapidly remove those gains previously priced into the value of the pound.

This is part of a trend we have become used to since the start of the week. Already moving 5 cents away from the absolute highs we saw less than 10 trading days ago, the question is no longer when will the Euro stop weakening? Rather the question is now a complex one. When will the Euro stop strengthening? Also, will there be a period of balance before we see the election beginning to weaken the value of Sterling.

Those with a requirement to purchase Euros still have an hour before the trading floor closes to call me on 01494 787 478 to discuss how to capture the still favourable rates. Alternatively, those with Euros to sell, please do not hesitate to email me, we can discuss how to take advantage of the current moves in you favour, tailored to your particular needs and timeline – jjp@currencies.co.uk

To what extent can the Euro recover?

The Euro seems to be making a small recovery following some slight improvements in the Eurozone’s economic outlook. Will this continue though? I would have thought that the Euro will remain on the weaker side for now but slowly retrace some of the more recent losses. Tonight’s US Federal Reserve Interest Decision is key! If the US outline further cuts to their base interest rate we should see the Euro weaken as the USD strengthens and further funds from the Euro move to the USD.

This weakness on EURUSD will be reflected on GBPEUR and will represent a very good opportunity for anyone buying Euros. For more information on getting the forecast for the Euro and receiving the best exchange rates please speak to me Jonny on jmw@currencies.co.uk

Eurozone Inflation weakens Sterling vs Euro (Tom Holian)

Sterling Euro exchange rates have fallen by over 1% today since the announcement of Eurozone inflation that was released this morning.

Inflation levels came out at 0.9% which is much higher than expected which has led to Euro strength.

GBPEUR rates have already  dropped 4 cents since this time last week highlighting the importance of being kept up to date with rates by using a currency broker.

Tomorrow the UK publishes the Bank of England minutes as well as unemployment data which could cause further volatility for Sterling vs Euro exchange rates.

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 Rates – Already movement of more than a Cent by 8:30am.

Rates have been very volatile recently with significant gains seen as the full extent of the European QE program is realized. However, the benefits are already visible as well. Data released over the weekend reveals the huge increase in investment in the Eurozone as a result of QE. The low value of the Euro makes investment cheaper, and with the easier access to credit under QE, investors are flocking to the faltering Eurozone, looking for opportunities in a world of weak global growth where such promising returns are few and far between.

Due to the panic of Euro Sellers, rates are struggling to hit below 1.39. Sellers are doing so as soon as rates dip below 1.395, rather than riding the more robust sentiments of Euro recovery. Eurozone CPI data is out today. One other effect of QE is to drive up inflation. Should the CPI data show that QE has already begun to increase inflation, we could see 1.39 breached.

Call into the trading floor on 01494 787478 If you have a currency transfer to make and want to save money on exchange rates compared to using your bank. Ask for Joshua – jjp@currencies.co.uk

Will GBPEUR reach the 1.42 again?

GBPEUR is likely to climb higher again in the future I feel and this will be due to movements on EURUSD. As investors anticipate the US will raise interest rates they are pouring funds in to the safe haven currency and it is appreciating value. As the dollar gains momentum much of the funds arriving in USD are as Euro. Investors are selling off Euro positions and holdings to buy the Euro in anticipation of an even stronger USD in the future.

EURUSD is expected to break parity in the coming months and some forecasts have the pairing hit 0.9 and 0.8 longer term! Sell your Euros now is I think the only way to avoid some seriously heavy losses longer term! If you wish to get an update on the market or discuss anything relating to your exchanges please contact me Jonathan on jmw@currencies.co.uk to learn more.

Bank of England Governor Mark Carney weakens Sterling!! (Dayle Littlejohn)

Yesterday Mark Carney in his speech (mid afternoon) devalued Sterling which to me is no surprise. Over the last week we have seen GBP/ EUR reach a staggering 1.4240 and the general feel is Sterling exports have now become too expensive for the countries within the Eurozone. Furthermore most of GB’s trading goes to the Eurozone and if exports are too expensive the general consensus is GB will isolate themselves  meaning our trade deficit will increase having a negative effect on the GB economy.

Therefore I am of the opinion Mark Carney will not want to isolate GB within the trading markets therefore will carry on devaluing sterling if he has too. Therefore if you are looking to buy Euros now could be a good time. For further information on award winning exchange rates please do not hesitate to email me on drl@currencies.co.uk or alternatively call 01494 787478 and quote Dayle Littlejohn.