Category Archives: Euro Strength

Buying Euro rates showing signs of recovery as UK financial situation stabilises (Joshua Privett)

The continued slide on Euro buying rates since 3am Friday morning seems to have finally stabilized, with GBP/EUR finding some support around the 1.20 mark.

After an utter panic sell-off of Sterling when the vote was coming in, and the continued movements caused by speculative traders, the realisation of a delayed fuse on policy change has caused allowed UK markets to stop reeling and begin to function normally. Money has begun pouring into the UK financial once more, unsurprising given how cheap everything has become.

Cameron has played a card which bought the UK three months. Whatever your political views, the markets reaction has shown unequivocally what the global financial system feels about the decision. The Pound had its single worst day against all major currencies, but by delaying the introduction of Article 50 (the first step in leaving the EU) to October, markets have been given the opportunity to act as normal.

With this, the Pound has essentially been bouyed by increased demand. So where now?

We have to sit tight. Cameron is currently in Brussels attempting to establish a timeline and step by step understanding of the process, as there is no precedent.

Expectations are that when a timeline is released markets will begin to return to further normality when they have official confirmation that no real change in financial policy will occur for years to come.

Immediate, substantial, and gradually evapourating opportunities to sell Euros have emerged. I strongly recommend that anyone with a Euro selling requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer in order to maximise your Sterling return.

I have never had an issue beating the rates of exchange offered elsewhere, and anyone completing on properties or waiting for funds to be released and do not want to miss out on opportunities currently available can pre-book their currency based on current levels for a future transfer.

Euro buyers may see markets stabilise further and create some opportunities, at least in the short-term. Feel free to get in contact to discuss how best to seize any opportunities which emerge.

EURGBP exchange rates at a 27 Month high

Euro sellers, a great window of opportunity has presented itself, the UK’s future departure from the EU may well have worked in your favour.

Will the trend continue? This depends on a number of factors but it would appear that rates are likely to remain this way for the foreseeable.

A number of factors could put further pressure on the Pound, if we look back at the last 5 days, more questions than answers have been raised over the Brexit vote. For starters, David Cameron’s resignation raises questions over who will be taking the UK through the withdrawal process, will it be Boris Johnson, Theresa May? What’s going to happen with the troubled Labour party with 19 of its members resigning, could this be the end of Jeremy Corbyn?

And what will Scotland and Northern Ireland do, as Remain majorities, will they opt to remain within the EU leaving the UK behind? What impact will this have on the British economy?

With the remaining EU members pushing for the UK to trigger article 50, starting the official withdrawal process from the EU, how will the UK cope with the building pressure?

Then of course, there is the flip-side to the argument. Given that the UK is the 5th largest net contributor to the EU, which countries will pick up the deficit the UK has left behind? Will other nations hold their own Referendums, it looks likely that France, the Netherlands, Italy and Sweden may hold their own.

Angela Merkel has called for calm re-negotiations with the UK, whilst nations such as the US and Germany opting to keep existing trade with the UK intact, could this lead to a smoother transition phase?

The EU has been hit by the Brexit vote and this is noticeable in the EURUSD exchange rates, which have dropped since Friday by over 5 cents. This highlights just how vulnerable the Euro is, as well as Pound Sterling. For those looking to buy or sell Euro’s, now could be an opportunity to do so in the event exchange rates worsen in the coming weeks.

Those looking to buy Euro’s may be put off by the large drop in rates, but given that GBPEUR rates were 1.02 during the recession, we are still a long way from these ranges.

If you would like to make a transfer but are concerned about the latest news, email Rob at rdl@currencies.co.uk, I’ll be happy to assist you with any of your currency requirements.

Sterling continues to fall against the Euro (Tom Holian)

Sterling has continued to fall against the Euro this morning as the panic selling continues from the weekend.

I expect the losses to carry on but perhaps not by as much as what happened during Friday’s trading session.

Chancellor of the Exchequer George Osborne has held a press conference this morning in an attempt to calm the markets after Brexit.

However, with over ten Labour MPs having resigned over the weekend in the wake of the referendum I think we could see further resignations over the next few days from all the parties.

Clearly the uncertainty of the Brexit vote is weighing heavily on Sterling exchange rates which is great news if you’re looking to sell Euros to buy Sterling.

Politically this is a very difficult situation for the UK and at the moment it is not clear who will be the next Prime Minister but Osborne looks like he will be staying in his position at least for the time being.

Osborne did say however that it would be ‘perfectly sensible to wait for a new prime minister’

There are a few economic data releases this week but the ongoing fallout of the Brexit will carry on making headlines.

The remaining 27 EU leaders will be meeting on Wednesday of this week to discussion the situation and David Cameron will not be there.

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

In light of how busy the fx markets are at the moment if you want a quicker response please include your phone number when contacting me.

 I look forward to hearing from you.

 

 

Pound plummets against the Euro (Tom Holian)

Following the result of the EU referendum this has caused mass panic in the financial markets and caused Sterling to fall by as much as 11 cents against the Euro at one point during Friday’s trading session.

The result has come as a surprise and only a few hours before the voting started to take place the bookies had set the odds to 10-1 on for a Remain vote.

On early Friday morning Sterling began to plummet vs the Euro and the hysteria continued during Friday afternoon as we saw big swings on exchange rates and I expect this to carry on early next week.

Prime Minister David Cameron has announced his resignation which will take place in October and if currency does not like anything it’s uncertainty.

We are now in a period of both political and economic uncertainty and I expect to see Sterling continue to fall against the Euro as we go into next week.

In my 13 years in the foreign exchange industry I have never seen such a huge daily movement between Sterling and the Euro and I expect Sterling to remain under pressure against the single currency.

Credit rating agency Moody’s has downgraded the UK economy from stable to negative and another reason why Sterling has fallen by such a huge amount against the single currency.

If you have been hanging on to sell Euros then now appears to be an excellent opportunity to take advantage of these spikes.

If you have a currency transfer to make and are buying or selling Euros and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Owing to the huge movements on GBPEUR rates if you’d like a quicker response on Monday morning please provide me with a phone number and a brief description of your requirement. Tom Holian teh@currencies.co.uk 

I look forward to hearing from you.

 

 

Will the Pound fall against the Euro?

I thank you for all your emails this morning, a number of questions have been raised in the wake of the EU Referendum.

What will happen to the Pound and will it get weaker? In my opinion, yes, the Pound will likely fall further.

This prolonged period of uncertainty is likely to impact many sectors, Financial, travel, housing, as well as small businesses that rely heavily on EU trade. But the biggest shock is to the market, investment is likely to move away from the UK until a level of certainty can be assured.

What deal will the UK get now from the EU, is it likely to be good? Will the EU be strict with negotiations to sway other nations from leaving the Bloc?

Who will be the next Prime Minister now David Cameron is stepping down, and when will article 50 be triggered?

Will Scotland demand Independence from the UK? Nicola Sturgeon has already discussed today the potential for another Referendum.

There are a lot of questions and very few answers, and this is why I believe the Pound will slump further. Without knowing the bigger implications of today’s historic vote, investment within the UK is likely to dry up, pushing investment to safer haven currencies such as the Swiss Franc and US Dollar.

If you need to buy Euro’s, it may be worthwhile doing so sooner rather than later. In the event you have Euro’s to sell for Pounds, rates of 0.80 are attractive and have only been seen a handful of times in the last 2 years. Email me at rdl@currencies.co.uk if you have any questions.

Why you should buy Euros now

The vote is out on the Referendum, the UK will be withdrawing from the EU – the date is yet to be confirmed.

Of little we do know, David Cameron will be resigning and the likelihood is that a new Prime Minister will be introduced in October. The short term outcome for the UK is shrouded in uncertainty, who will be the new Prime Minister? What deal will the EU provide? What impact will this vote have on the UK economy and further seas?

We don’t know, and that’s the biggest problem. Uncertainty drives fear and fear drives investment away from the Pound into safe-havens, such as the US Dollar.

And the news this morning of Scotland’s Referendum could have major implications for the United Kingdom if they vote to leave the UK.

As a Euro buyer, you are looking for an opportunity for Pound strength, and the likelihood of Pound strength in the foreseeable is unlikely given today’s outcome. As it stands GBPEUR levels have fallen again to 1.24 during Boris Johnson’s speech, and fell further upon Nicola Sturgeon’s discussions surround a Scottish Referendum.

An exchange of 1.24 is still attractive, given that the 10-year average is 1.25. If you have Euro’s to buy, I would consider emailing me at rdl@currencies.co.uk sooner rather than later.

Buying Euro rates moving wildly, but within short trading band (Joshua Privett)

Polling day has not dissapointed, as Euro buying rates have been fluctuating wildly on small pieces of information pertaining to privately released exit polls and odds from betting companies.

Markets are moving heavily every few seconds, but struggle to break out of the current trading band on 1.29-1.31 on GBP/EUR and seem heavily moored at 1.30.

Since Monday markets have been pricing in a remain vote, and the odds still heavily favour this outcome, and the polls are starting to reflect this further still. But there is still enough uncertainty in the markets to keep the value of the Pound in check.

At this point, if you are a Euro seller, you are now in a position of greater risk than Euro buyers, which is the first time I have typed this in quite a while. The odds for a remain vote have oscillated from 10/1 to 7/1 whilst a Leave vote is moored at 1/6 and 1/7.

The results will likely be given unofficially just after 4am when counting finishes in the heavier city boroughs, so it will be Asian markets open to trade on the news first, before the UK will have access to markets and the results at 7am tomorrow morning.

To avoid the serious volatility expected, I strongly recommend that anyone with a currency requirement should consider moving ahead of time. Euro buyers who are more inclined to wait and gamble on a remain result will have to wait and see how markets behave. I will be in the office from 5 am tomorrow, if you wish to have immediate results, trends and expectations relayed to you, as well as a live quote for what I’m sure are very varied requirements for our customers, simply email me overnight on jjp@currencies.co.uk

Will GBPEUR be at 1.15 or 1.40 on Friday morning?

These are I believe the extreme levels of exchange rate we could see on Friday morning as Europe awakens to a new dawn in its history. The history of Europe shows us a continent in constant flux but this chapter will be crucial and will have a huge impact on exchange rates. GBPEUR is delicately poised above 1.30 ready to advance boldly upwards towards 1.40 or fall dramatically below 1.20 as markets keenly await the news. Tomorrow will see exit polls and last minute campaigning focusing on swaying the undecided voters of which they say make up around 11% of the population polled. The market has started to price in a Remain vote but with there still according to the bookmakers a 30% chance of a Leave vote being the outcome, there is scope for a big surprise on Friday morning.

The Euro will not be exempt from the uncertainty too with two possible side effects on the single currency I have highlighted. Since the Euro is the most commonly used currency in the EU a sign of the UK remaining could spell Euro strength although the pound will surely be the big benefactor of sentiment. Conversely signs the UK is leaving could spell Euro weakness since it might be a sign of the beginning of the end of the EU.

All in all no one knows exactly what will happen but assuming the bookmakers are right then the Remain camp will win and we will see the pound rally on Friday. If you are selling Euros and hoping to buy the pound moving sooner ahead of the event might be best, if buying Euros waiting until after might be best. Make no mistake Friday will be a very volatile day on the exchange rates so if you are hoping to buy then make sure you have done your homework!

If you have a transfer to look at between now and then why not contact me to see if I can help? I will be working almost solidly from tomorrow until Friday evening and will be available to help with any transfers you are considering. We are getting to the crunch time, leaving it right up until now the vote might be too late! For more information please email me Jonny on jmw@currencies.co.uk to learn more.

EUR Benefiting From UK Referendum Uncertainty (Matthew Vassallo)

The EUR has gained value against GBP recently, for the most part, due to the on-going uncertainty surrounding the UK’s future participation in the EU. With next week’s referendum hanging over the markets, it is no real surprise to see Sterling wobble ahead of such a key vote. The Pound did find some support following better than expected Retail Sales figures and unemployment data but the general trend has certainly been a negative one. With the latest pre-polls showing the Leave camp holding a slight lead, investors are starting to fear the worse.

This negative feeling has dragged Sterling’s value down, as investors are starting to factor in a possible Brexit. The current value is only in my opinion due to this uncertainty and therefore any clients holding EUR who are not willing to gamble on the result of the referendum, should take advantage of the gains they’ve made and not gamble on such a volatile and unpredictable market.

Those clients holding the single currency should also head a warning, as it is not only the Pound that is going to be negatively affected by a Brexit. The EU will be losing an integral member and this will no doubt cause confidence in the EUR to wane. How this will correlate against GBP in the aftermath of a Leave vote is difficulty to quantify but do not expect one way traffic on the exchange.

If you have an upcoming EUR currency requirement and would like to protect your positon ahead of next Thursdays vote, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

Sterling finishes a cent higher as the Referendum bubbles along

Firstly I just want to take the opportunity to mention the tragic news that MP Jo Cox has been murdered this afternoon. Whilst the whole country fiercely debates the EU referendum and the future of this country, we should all recognise the sadness for Jo’s friends and family.

Sterling/Euro is residing in the 1.26 region this evening having nearly falling into the 1.24’s this morning.

The Bank of England warned that the referendum is the largest immediate risk the financial world faces at the minute. The Bank made it clear that the repercussions of a Brexit would over-spill substantially further than the UK and Europe affecting the globe. Janet Yellen Chairlady of the Federal Reserve Bank in the USA has also suggested they will be monitoring how events unfold before they consider making any decisions regarding monetary policy.

The Bank of England did not change exchange rates today as expected and it was suggested that a Brexit would potentially cause the next decision to be a cut rather than a rise. This would be very significant for the UK if there was a cut but it’s certainly worth considering that the Banks forecast suggested there might not be a rate hike till 2018 anyway based on GDP and Inflation.

Tomorrow Mario Draghi, President of the ECB will deliver a speech which will no doubt have a sole focus on a Brexit. It has been no secret that the EU has been planning worst case scenarios if the UK leaves. Draghi has expressed his concerns on multiple occasions of the dangers of the UK leaving the EU so expect more of the same. The GBP/EUR rate could certainly have a very volatile end to the week.

If you would like to discuss anything regarding currency in the next few weeks please feel free to send me Ben Fletcher an email at brf@currencies.co.uk. There is so much happening in the world of currency at the moment and I am more than happy to help you make sense of what you’re looking to achieve.

What are my options buying and selling Euros ahead of the EU Referendum?

The split is now pretty much 50 / 50 between the Leave and Remain camps as we enter the final week of the campaign. June 23rd will see the vote and the rates are likely to be very volatile around this time, making difficult any decisions to buy currency. To navigate the uncertainty we offer a number of options as well as a helpful proactive service to help you keep up to date with the latest trends and news on the markets.

If you are looking to buy or sell Euros then the next week is likely to not only present opportunities but also create headaches. As tempting as it is in this market to hang fire and try to maximise your deal from getting the best deal it is also important to factor int he possibility the market will move quickly and sharply against you possibly costing you thousands. Usually I would be giving clients some real insight into the markets and trying to help pin point a certain moment when an optimum trade might take place. However with so much uncertainty I would be suggesting more of a defensive strategy to try to mitigate any losses. If you are looking for any guidance buying or selling Euros and wish for some information on your options and what to expect please email me Jonathan on jmw@currencies.co.uk

Two popular options to help limit any losses are the Limit Order and Forward Contract. A Limit Order works by helping you achieve a better rate than is currently achievable in the market. You choose the higher desired exchange rate you wish to exchange at and we put an automatic order into the market to secure that level. Once the level is hit we automatically purchase your currency and you are guaranteed your exchange rate. This save you the hassle of watching the rate continuously and allows for the rate to be hit overnight or outside of normal trading hours.

A Forward Contract allows you to lock in current exchange rates even if you don’t have full funds available. For a small deposit of the total you can lock in today’s rates on a larger sum and give yourself time to pay it off. This is perfect for businesses and private individuals who know they will have a transfer coming up in the future and wish to lock in their price now. Many clients  buying and selling property have been quick to use this contract in recent weeks so they understand exactly how much any future transfer will cost them.

Do you have a target exchange rate you are hoping to see in the next week? Are you considering a currency purchase and struggling to make sense of the current market and what lies ahead? You are not alone and whilst I cannot tell you exactly what will happen (no one can!) I am positive I can offer some useful information and expertise to help you properly manage your exposure to the currency markets.

If you wish to learn more or run through our service please email through a brief description of your situation and any target levels to jmw@currencies.co.uk.

 

Sterling volatility increases as the EU Referendum approaches, with further weakness likely (Joseph Wright)

With the vote on the UK’s political future now just 8 days away both currency and stock markets are beginning to show signs of strain, with GBP exchange rates particularly volatile so far this week.

Mondays trading session, according to Thomson Reuters volatility index was the most volatile day of trading since the global financial crises in 2008, and looking back to how GBP exchange rates were struggling for direction on Monday I’m not surprised.

The uncertainty has also spilled over into equity markets as the UK’s main index, the FTSE 100 is trading at it’s lowest level since February. Due to the falling value of Sterling and stockmarkets the Bank of England have taken the decision to offer additional liquidity auctions in order to ease the pressures on financial institutions.

The most popular tabloid paper in the UK, The Sun added fuel to the fire yesterday by offering their support to the ‘Leave’ campaigns with the front page headline ‘BeLeave in Britain’. It’s now clearly apparent that the ‘Leave’ campaigns are gaining momentum and that’s whats been driving down Sterling’s value.

From this point onward I think we could see further GBP weakness in the lead up to Referendum, particularly if prominent polls and bookies continue to suggest a high likelihood of a UK exit. Many within the market place had expected Sterling to be trading at the lower levels against the Euro around this time, and whilst the Pound has been falling some may argue it’s overvalued at present, as should the UK decide to leave major analysts from the likes of HSBC and LLoyds have outlined price targets of near parity with the Euro.

If you have an upcoming currency exchange to make between GBP and EUR, feel free to get in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible. You can also call in and ask reception for me on 01494 787 478.