Category Archives: Euro Strength

GBP/EUR Drops During Thursday Morning Trading (Matthew Vassallo)

The EUR has made gains against both GBP and the USD during Thursday morning’s trading, relieving some pressure on the single currency. GBP/EUR rates have dropped back below 1.27 on the exchange, following positive Eurozone PMI data this morning. There was also negative data for the UK, with Retail Sales figures coming out much worse than expected. This seems to have halted the Pound’s rise and it will be interesting to see whether the single currency can now start to put pressure back on 1.26 following this morning’s economic releases.

The EUR has been struggling to make any sustained inroads, particularly against GBP. GBP/EUR had crept up to a fresh two year high yesterday but the single currency found market support around that level and Sterling may well have hit a glass ceiling. I anticipate further economic difficulties for the Eurozone, so if you are holding EUR and wish to protect yourself against further market losses then one of our forward contracts can protect you from any adverse movement.

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

What can we expect this week for Euro exchange rates?

This week data from the Eurozone is fairly light but it seems reasonable to expect the Euro will remain on the back foot. Disinflationary pressures continue to leave a mark on the Euro, PMI (Purchasing Manager’s Index) data this week will give us some new information to work with but until Inflation can rise higher the spectre of Quantitative Easing or lower interest rates should rule out any strengthening of the Euro.

For assistance moving funds internationally including bringing Euros back from overseas please speak with me to discuss the various options available to you. Even though the Euro has lost lots of ground against a much stronger pound in 2014 (as you can see from the chart above) historically rates are nowhere near as bad for selling Euros as they were prior to the financial crisis.

It would seem reasonable to expect that so long as the UK economy continues on the current trajectory we will slowly see a return to more ‘historical’ rates for the Euro against the pound. Anyone selling a property or investment overseas and looking to return to the UK may wish to consider the ‘forward contract’ option. This will allow you to fix the price once a sale is agreed removing the uncertainty guaranteeing any pending UK purchase or investment.

Please speak to me to learn more about exploring the options available for your situation. Please email me on jmw@currencies.co.uk

 

Markets Still Waiting On Signals From The Bank Of England And The ECB (Colm Gilhooly)

In what is likely to prove a quiet day for UK and European data, the main focus is likely to be on tomorrow’s Bank of England Minutes and UK GDP on Friday for the pound, with the Euro likely to be hugely dependent on the next move from the ECB in August.

Most UK data of late has been very good, and there has been growing calls for the BofE to raise interest rates sooner than the early 2015 that most people were anticipating at the beginning of this year.  However last month all 9 members voted to hold interest rates despite some seeming to suggest in public that rate rises should be considered, and this month the decision was once again to hold rates although we don’t know how each member voted yet.  Tomorrow will reveal this so if any member has voted for a hike then it potentially brings forward the prospect of a rate hike, however if the decision is a unanimous hold again sterling could slip due to the fact a rate hike could still be a way off.

UK GDP is expected to be good, and we are forecast to be the fastest growing of all the G7 countries.  I expect Friday to reinforce this so overall the picture for the pound is looking good with the only big swings caused by UK interest rate forecasts. Hence tomorrow being very important.

I expect the Euro to remain under pressure in the short term as investors are still very nervous about what the ECB may do going forwards as they have left the door open for more action if required.  EU inflation is still very low and recent European debt to GDP ratios are still very worrying, so unless things start picking up very quickly there could be a lot of pressure put on the single currency.  EU unemployment figures come out on the 31st so be prepared in advance of this.

The biggest data today will be US inflation so expect a lot of USD EUR variation and a knock on effect to the pound as well.  The US rate decision isn’t until next week but expect a low inflation figure today to pave the way for more dovish comments from the Fed.  If you need to make a euro transfer into any major currency and would like assistance getting the best rate, then feel free to email Colm at cmg@currencies.co.uk and I would be happy to explain how our service works.

GBP/EUR at 1.2650, is this a good time to buy the Euro? (Mike Vaughan)

Following sterling’s strong shift this week the pound has started on the back foot against the single currency this morning but is still trading at strong levels around the 1.2650 mark. The main focus this morning will be Euro Zone inflation figures at 10:00 – forecast to stay the same and could be a slight non event, however should levels fall below the current level then expect further pressure on the Euro and a potential shift through 1.27 GBP/EUR and 1.35 EUR/USD.

Tomorrow will also see the release of the Euro Zones trade balance figures.

Should you need to arrange a currency exchange and need more information on the various contract types available and how our currency service operates then please get in touch. As one of the UK’s largest independent currency brokers we have access to multiple sources helping us to maximise our clients exchange. Te get more information please contact the office on 01494 787478 or email Mike at mgv@currencies.co.uk

 

Sterling Euro exchange rates close in on two year high despite average earnings dropping (Daniel Wright)

The Pound has still made further gains against the Euro in trading today, even with average earnings for the U.K dropping  a little which may slightly slow the chance of an interest rate change as soon as may have been thought yesterday.

Wage growth vs inflation is one of the key factors for the Bank of England to look at raising interest rates in the U.K however this does not appear to have knocked the Sterling strength train off of its tracks and it is indeed up against the Euro for the day at the time of writing this.

An interest rate hike for an economy generally leads to a spike in value for the currency associated to it and with the markets moving on speculation as well as fact the mere rumor of a hike coming closer can strengthen a currency significantly.

This is an extremely key time for the Euro as we have not only recently had a rate cut but also the mention of the prospect of QE (Quantitative Easing) which may also damage it a little.

If you have an upcoming transfer to carry out and want to get the best exchange rates along with great customer service and knowledge of the markets then email me directly on djw@currencies.co.uk  I welcome all contact for bank to bank transfers however i’m afraid I cannot help with cash transactions or speculation.

Further Loses for the EUR Following UK Inflation Data (Matthew Vassallo)

The EUR had another rough ride today, as investors watched the single currency lose market position against both GBP and the USD. GBP/EUR levels have risen sharply following positive UK inflation figures releases this morning. The Pound spiked by over a cent against the EUR at today’s high, with GBP/EUR rates moving comfortably through 1.26 on the exchange and close to a two year low for the EUR.

EUR/USD levels also dropped, hitting a low of 1.3561 on the exchange during Tuesday’s trading. Whilst the USD has had struggles of its own over recent months, the same can be said for the EUR and the recent volatility on the pair is testament to the uncertainty each currency currently has with investors trying to predict their next moves.

If you have an upcoming EUR currency requirement and you would like to protect yourself against further market loses, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currnecies.co.uk

Euro Zone inflation figures on Thursday the main focus this week (Mike Vaughan)

Euro exchange rates have clawed back some ground today gaining 0.25% against the the pound and 0.15% against the US dollar on a relatively quiet day data wise. This week the main focus as far as I can see will be Thursday’s inflation figures.

Recently inflation has been falling causing concerns over deflation and the pressures this will bring, indeed it was this concern that led to the ECB cutting interest rates in June. With little room for maneuver with interest rates it is unlikely the ECB will cut again, however falling inflation may mean other policies may have to be implemented that could put the Euro under further pressure.

Other data of note will include Wednesday’s trade balance figures.

Should you have a currency requirement involving the Euro and you would like further information regarding the currency service we can provide then please email Mike at mgv@currencies.co.uk

Portuguese Bank fears causes market crash (Mike Vaughan)

Yesterday’s breaking news concerning Portugal’s largest bank caused shock waves across the markets. Weak economic data from Italy and mounting concern about the future of Banco Espirito Santo drove the sell-off, spreading from southern euro nations across Europe. Banco Espirito Santo shares dived more than 17% at one stage despite government assurances the bank was solid.

As a result, the Lisbon stock exchange fell more than 4%, Madrid’s IBEX was down 2.7%, while the Paris Cac 40 and Frankfurt’s Dax were both 1.8% lower. For me this uncertainty and lack of transparency (Portugal’s central bank then ordered an audit into the group’s accounts, which uncovered “serious” accounting irregularities) will keep pressure on the Euro and this is something that should keep Euro sellers on their toes.

As further news comes out regarding Portugal’s banking woes and the market begins to digest the information I would expect some volatility for the Euro. Let us be your eyes and ears on the market. By keeping in touch with your broker we can contact you should the market reach a particular target level or indeed start falling and help mitigate your losses. Email Mike at mgv@currencies.co.uk

Will the EUR Continue to Weaken Against GBP? (Matthew Vassallo)

The EUR has struggled to make any serious inroads against the Pound over recent weeks, dropping to a near two year low. Whilst it has gained slightly from this position over the past couple of days, any sustained move back below 1.25 seems unlikely at this juncture. The EUR has been handicapped by the on-going economic disparities inside the Eurozone and although ECB president Mario Draghi continues to remain bullish over the EUR long-term future, investors seem unconvinced.

With little data out this week GBP/EUR was always likely to remain range bound, although worse than expected UK trade balance figures this morning did halt the Pound’s recent momentum and has allowed the EUR to keep GBP below 1.26 on the exchange for the time being.

If you have an upcoming EUR currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our exchange rates with your current provider, then please feel free to contact me on mtv@currnecies.co.uk

Big day looms for GBP/EUR rates

The Euro has today recovered some of its losses against the pound with GBP/EUR back down at 1.2560. The trend is still Euro positive so if you have Euros to sell our recommendations are to look at your exchange in the near future as the rates could continue to go against you if buying sterling.

Tomorrow could be a volatile day for GBP/EUR as their is a host of data out from the UK most importantly the interest rate decision out at midday. There has been a lot of talk about when interest rates will rise in the UK. This being the main contributing factor to the pound rising so significantly of late. We are not expecting a change in rates tomorrow but if the unexpected happens the pound could rise. We also have all of the trade balance figures for the UK which could be a bigger market mover than the interest rate. A healthy number will surely be GBP positive.

In Europe there is the ECB monthly report. They will discuss the current economic situation in Europe and as things have not been going to well a dip in the value of the Euro is expected. his will be good for Germany as the lower the Euro goes the better it is for their exports.

If you are buying Euros I would be exchanging your funds on spikes in the market to keep capitalising on the favourable rates. If you require buying or selling the Euro then you may find out more about our service by emailing myself Ben Amrany at bma@currencies.co.uk 

Thank you for reading

Ben Amrany

EURO sellers delight as UK data misses targets

Euro sellers find themselves at the moment with a short term opportunity, some light relief as generally there has been an onslaught of losses recently. UK manufacturing and productivity data yesterday missed expectation and gave you guys an opportunity. As mentioned I think this will probably only last the day as tomorrow UK data returns and again is expected to return to the normal way of positive and Pound gains as a result.

Here we help our clients by timing trades plus giving them the knowledge to make an educated decision. Plus with award winning exchange rates available you can be sure that you will save money compared to your Banks.  Most financial publications publish the inter-bank trading level which is currently around 1.2550. This is the trading levels of the central banks and not offered to mere mortals like you and I. When you go to the bank for a price you will see the quotation they provide will be far from this which adds to your costs.  We here are much closer to that level and hence you see a saving. Historically over the last 10 years of trading independent comparisons have shown the savings here to be between 2%-4% compared to the banks. So generally thousands!

Contact the author STEVE EAKINS for more information – his direct email address is hse@currencies.co.uk

When should I sell Euros?

If you are selling euros I really do think that moving sooner is the wisest thing to avoid further movements against you. Many have been holding on expecting rates to improve but this is a risky strategy, particularly against sterling which is very much supported at present. Any short term needs to sell Euros should probably not be delayed too long.

 To keep an eye on rates movements yourself, you can view live interbank rates here. To receive assistance moving funds back from Europe to the UK following say an overseas property sale or a liquidation of assets, please contact me on 01494 787 478 email me Jonathan on jmw@currencies.co.uk