Category Archives: Euro Strength

GBP/ EUR progressively drops due to Greece striking a deal with creditors and poor UK economic data.

Over the last three months Greece had stolen the headlines with speculation of a possible ‘Grexit’. Greek Prime Minister Alexis Tsipras had been constantly negotiating with Eurozone leaders to secure a third bailout and stop Greece from going bankrupt.  The talks caused serious volatility within the currency markets and GBP/ EUR exchange rates spiked into the 1.44s. Finally, over a week ago, Greece won a conditional agreement to receive a third bailout, set to run for the next 3 years.

Last week we saw a contraction in the UK retail sector, normally a fantastic performer compared to global competitors and also poor industrial confidence figures yesterday morning. Poor economic data and a deal with Greece has pushed exchange rates back towards the 1.40 level. For clients who held on hoping Greece would leave the euro I am now of the opinion the window of opportunity for buying euros at the high has gone.

Over the last 7 days GBP/ EUR rates have dropped 3 cents. I think this trend could continue over the next month and GBP/ EUR exchange rates could drop back into the 1.30s. To put it simply if you bought €100,000 7 days ago it would have been £1,500 cheaper. For clients needing to buy euros within the next 30 days I would recommend getting in touch as soon as possible to book a rate. Feel free to drop me an email with your requirements and I will reply accordingly drl@currencies.co.uk (Dayle Littlejohn).

Will the EUR’s Value Increase? (Matthew Vassallo)

The EUR has lost some ground during Tuesday’s trading, following a strong run yesterday against both GBP and the USD. The EUR made significant gains against GBP during Monday’s trading, with the pair moving below 1.40 at the high. This move meant the EUR had improved by over 4 cents from the low of last week, providing EUR sellers with a much needed window of opportunity following weeks of watching the single currency lose value.

Poor UK Retail Sales figures knocked the Pound towards the end of last week and this momentum carried into Monday but better than expected UK Gross Domestic Product (GDP) figures this morning have helped the Pound recover some ground, with GBP/EUR moving back above 1.41. This is another example of how fragile the EUR is and despite the improvements mentioned I cannot foresee a major improvement under current market conditions. Whilst I do feel Sterling will struggle to break through the highs of last week I would be tempted to take advantage of this short-term spike and not gamble on the EUR gaining any sustainable value.

Looking ahead and we have Consumer confidence figures for Eurozone released on Thursday and the latest inflation data and unemployment rate of Friday, so bothy of these are likely to cause additional volatility on EUR exchange rates.

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 Exchange Rates Set for a Volatile Week (Tom Holian)

Sterling Euro rates have seen the best levels to buy Euros this month since 2007 following on from the Greek crisis and Mark Carney suggesting that the UK could raise interest rates before the end of the year.

This has helped to support the Pound vs the single currency but I think this recent positive movement could indeed be short lived.

Next week sees the release of UK GDP data on Tuesday and with the previous quarter showing growth os 2.9% I think owing to the strength of the Pound this is likely to have impacted the demand for British exports which could result in lower GDP for the second quarter.

If my predictions are correct we could see Sterling fall in value against the Euro so if you need to buy Euros it may be worth looking at getting something organised early next week.

On Friday the Eurozone announces both inflation data and unemployment figures. If inflation shows a rise it could be argued that the ongoing QE project for the Eurozone is working and could strengthen the Euro against the Pound even further.

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

 

 

 

What next for the Euro?

Just when events seem to be moving in favour of the Euro the rate remains at a stubbornly low level against its counterparts. Just what can we expect for the Euro in the future? With all of the Greek news effectively ‘dealt’ with it would have been reasonable to expect the Euro to make further gain. Yet instead it has got worse! Just what can we expect in the future for this now notoriously volatile currency?

The initial euphoria of a deal being reached has quickly passed with the last few months passage of events opening up much wider speculation about just how the Eurozone will deal with their problems. If you need to run through the process with any transfer it might be really worth your while to speak with me about all of your options.

Please email me Jonathan on jmw@currencies.co.uk for information about the what to expect next for the euro and your options in this market.

Sterling falls after poor Retail Sales data (Tom Holian)

Sterling Euro exchange rates have fallen this morning as predicted in one of my previous articles as the Greeks are now close to a resolution and UK Retail Sales falling by more than expected.

The estimate wad for 4.9% but with the release only showing 4% this has seen Sterling falling against the single currency and all other major currencies this morning following the announcement.

There is little economic data coming out this week to have too much of an impact but the ongoing Greek issue is causing the volatility for Sterling vs Euro exchange rates.

Next Tuesday UK GDP figures are due out and any revision could cause further movement on exchange rates.

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

 

 

Greeks finalise bailout and GBP/EUR rates fall to 1.42

Yesterday Greece passed the crucial reform bills necessary for talks on the €86bn Euro bailout to begin. The protests outside the Greek Parliament turned ugly once more, with further petrol bombs and other potentially lethal devices being deployed.

Today a significant amount of data will be released on the UK economy, but these will likely have little bearing on exchange rates at the moment. As such it is likely that we will see a gradual decline in rates today now that the bailout will be moving forward without any more objection from Greece.

Further down the line, I’m sure negotiations over the specifics of the bailout will become very contentious as they have in the past. But this will be weeks, or even months away. Those who have a Euro requirement in the next month may be looking at the best rates available as I type this article.

Call me on 01494 787 478 and ask for Joshua to discuss how to secure the most favourable rates of exchange while they are still available. Even if your requirements are not until later in the month, it is a simple task to peg the rates as they are to avoid missing out. jjp@currencies.co.uk

Short Term GBP/EUR Outlook (Daniel Johnson)

GBP/EUR currently sits very close to 1.43. One of the best trading levels for Euro buyers in the last 8yrs. I feel Sterling is currently over valued, GBP is only in this spot due to the Greece debacle, but with some above average data releases in the UK and Mark Carney indicating there may be a rate hike, Sterling is higher than ever. If I was buying Euros I would get it done, it truly is an exceptional time to be buying.

If you are selling Euros in the short term you are in a difficult spot. I did indicate to some of my clients yesterday when we saw a trough it may be a good time to move. However it is difficult for people to accept any loss on trading back their Euros. With the Greek saga set to continue for a minimum of 2-3 weeks I wouldn’t expect any significant movement in the Euro’s favor. It may be wise to move when we see a trough such as yesterday when GBP/EUR dropped from the high 1.43’s into the high 1.41’s.

I do provide a rate alert service if you would like me to monitor the situation for you, I also have some rather large GBP/EUR trades going through in the coming days which potentially I can tag new clients on to to achieve a very competitive rate.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

– See more at: http://www.poundsterlingforecast.com/#sthash.JMQnDdsc.dpuf

When should I sell my Euros?

Tomorrow morning is the UK Bank of England Minutes from their latest interest rate decision. I am of the opinion this might present some good opportunities for Euro sellers looking to buy the pound as investors who have been buying up sterling in anticipation of next UK interest rate rise unwind positions as the members confirm the 9-0 vote.

Selling Euros is a tricky situation but I think moving sooner is the best way forward since the Euro crisis is far from over plus the pound is going from strength. If you need to sell Euros selling on any small dips in your favour is I believe the best way to mitigate any losses.

For more information at no cost or obligation please speak to me Jonathan on jmw@currencies.co.uk

Where Next for EUR Exchange Rates? (Matthew Vassallo)

Following weeks of negative media coverage around Greece, it is not surprising that the EUR has suffered as a result. So much negative attention has made it nearly impossible for the single currency to make any sustained inroads into the other major currencies and despite a new deal between Greece and its creditors seemingly on the table, this negative trend has shown no signs of letting up.

I feel that investors have now lost complete confidence in Greece and their ability to repay their ever mounting debts. Despite a new deal on the table the EUR has weakened further over the past week and I feel this is due to the fact the markets are not convinced that it will have a positive effect in the longer-term. We have seen the EUR improve against GBP this morning, with the pair moving back down to 1.43 on the exchange and it may be that the EUR is finally finding some respite around the current levels.

Personally I do feel that despite a lack of confidence in Greece any positive steps will boost the EUR in the coming weeks. Eurozone economic data is stronger across the region than it has been for some time and it seems as though the recent Quantitative Easing (QE) programme is also starting to have a positive effect. If you were to remove the problems in Greece from the scenario then there is no doubt in my mind that the Pound is considerably overvalued.

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 reaches fresh 8 year highs! (Dayle Littlejohn)

The question on lips of clients who are buying euros, is will GBP/ EUR reach 1.50? I think it is very unlikely. Greek banks are set to reopen next week and it finally looks like a deal will be struck within the next couple of days and a ‘grexit’ wont occur. If this is case I think rates will drop back to the 1.39s.

If you are looking at buying euros this could be the perfect opportunity. For more information regarding the process of trading feel free to email me directly drl@currencies.co.uk (Dayle Littlejohn).

Will EUR Exchange Rates Continue to Fall? (Matthew Vassallo)

With the current trend of EUR weakness showing no signs of letting up, many clients are now questioning if and when the EUR will find some much needed market support. Although the current trend will not last forever, it is difficult to pinpoint how and when the EUR may get back on track. This is in part due to the fact we are in uncharted territory, with the situation in Greece dragging down the rest of the Eurozone and with confidence in the single currency at a low, it will take more than just some positive economic data or bullish comments to turn the trend around.

This is particularly true when you look at GBP/EUR rate, which today hit 1.4348 at the low. These are some of the worst levels of the past 8 years but the situation may well get worse before it improves.

With the situation in Greece showing no signs of improving, despite the deal agreed yesterday, it is possible that investors have lost complete confidence in a recovery for Greece. With the IMF sceptical about how the deal will help either Greece or its creditors and years of harsh austerity in Greece now a given, we may find the EUR dips further before finding some level of support.

Personally I would be tempted to secure any EUR sell backs sooner rather than later and get out of what is becoming an increasingly alarming situation and even though rates continue to trade near an 8 year low, these current levels could look very attractive in a couple of months 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

GBP/EUR 1.42! Buy,Buy,Buy (Daniel Johnson)

GBP/EUR has broken 1.42. One of the highest levels in the last eight years. There is the possibility of it rising higher on the back of the Greece situation, but personally if I had to buy Euros I would be getting it done now.  The head of the BOE, Mark Carney gave an  indication that there may be an interest rate hike sooner than expected has caused GBP/EUR to break through the elusive 1.42 mark. If Alexis Tsipras the Greek Prime Minister gets his wishes, then the recent agreement in principal between Greece and its creditors will be ratified.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me at dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.