Category Archives: euro weakness
Euro staying stable against Pound and Dollar – Australian Dollar, New Zealand Dollar and South African Rand continue to weaken (Daniel Wright)
The Euro has remained stable against Sterling over the past few days however we have recently seen key Eurozone leaders becoming much more bullish about the recovery of the Eurozone with many now starting to say the crisis is over.
Personally, I would be extremely surprised not to see any further fireworks for the more troubled economies within Europe however this positive stance may well lead to a little Euro strength in the coming weeks.
We have the ECB monthly report out on Thursday which will tell us a little more about how things are going but personally I do not see any major movements this week against the pound or the Dollar unless U.K or U.S data comes out completely different than expected.
If you have a currency transaction to carry out involving either buying or selling the Euro then I can help you get the very best exchange on the market – The company I work for has won awards for exchange rates and customer service so it is certainly well worth getting in contact with me if you have a pending currency requirement. You can email me on djw@currencies.co.uk I look forward to hearing from you.
Sterling Euro Exchange Rates Today (Tom Holian)
Sterling Euro has remained in a tight trading range today as data is limited. Tomorrow is the day where we’re expecting a little more volatility on the currency markets as the UK releases production data for both Industrial & Manufacturing sectors. Later in the afternoon the NIESR publishes its GDP estimate which is likely to influence the markets. With the recent release of positive data for the UK I would not be surprised to see this continue tomorrow and therefore push Sterling Euro requirements in an upwards direction.
The ECB has recently cut its own Eurozone growth forecast as it confirmed it would keep interest rates on hold at record levels on Thursday. The ECB has now predicted that the Eurozone will contract by 0.6% this year but it did insist that recovery albeit slow will occur in 2014. This has seen Sterling improve marginally against the single currency with the GBPEUR hitting levels of resistance at 1.1780.
If you need to make a currency transfer and want to ensure you are getting competitive exchange rates feel free to contact Tom Holian teh@currencies.co.uk
If you are buying property abroad but don’t need to make a currency transfer for a few months you may to consider buying a forward contract so for a more detailed explanation as to how to secure your currency in advance get in touch teh@currencies.co.uk
Bank of England & European Central Bank Keep Interest Rates on Hold (Matthew Vassallo)
Thursday has seen some major moves in the currency market, following a busy day of economic data releases. The EUR seems to be holding on for dear life against the Pound at the moment, although we have seen GBP find a lot of resistance around 1.18. In contrast however the single currency has surged against the USD, moving over 2 cents from the low of the day and providing USD buyers with some of the best levels on the currency pair this year.
Today’s key data for anyone with a EUR requirement, was the European Central Bank (ECB) interest rate decision and Mario Draghi’s subsequent press conference. As expected interest rates were kept on hold and there was no mention of further monetary policy. Whilst the Pound may be enjoying its run against the EUR at present, I do believe the arrival of incoming BoE governor Mark Carney could change the landscape dramatically. There is a lot of talk that he will be instigating aggressive rounds of Quantitative Easing (QE), with the hope that it will devalue the Pound enough to get the Eurozone trading with us again and in turn this should shorten our trade deficit and improve the overall health of the UK economy. For this reason I would suggest anyone looking to buy EUR should consider their positions imminently and those looking to sell should be keeping their eyes firmly fixed on developments over the coming weeks.
Here at www.eurorateforecast.com we are able to provide our clients not only with award winning rates of exchange but a bespoke service designed to give you the client, as much insight into the markets as possible. If you would like to find out the type of rates or contracts we offer, or need to be kept up to date with all the latest market movements, then please call us on 0044 1494 787 478 or email me directly at mtv@currencies.co.uk.
How do I know I am getting the best deals on pounds for euros? Speak to us!
Foreign exchange is one of the most overlooked areas of foreign property. All too often both buyers and sellers alike will go to great lengths to negotiate the price and fixtures or fittings of a property then neglect to consider the impact of foreign exchange fluctuations.
I think this week will bring some good news for Euro buyers, bad news for Euro sellers. I expect that the pound will find some strength and the Euro will weaken as attention turns back to the problems in the Eurozone.
For too long now rates have been strong and whilst I have written a great deal about why this is the case (to read more click here), I do think rates will get a little better in the short term for Euro buyers.
Here at eurorateforecast.com we are specialist currency brokers writing about the market offering you an opportunity to maximise your currency exchange. We help save you money using two methods:
1 – We can beat the rates of exchange offered by banks and other brokers. You may be happy with the current deal you receive but a quick phone call or email to us would probably save you money! If you are sceptical and would like more information all you need to do is email jmw@currencies.co.uk or call 01494 787 478 and ask to speak to me Jonny.
2 – We offer assistance with the actual timing of your exchange. Our personal proactive service means we take the time to learn the client’s requirements and work hard to ensure they don’t miss out on the best rates and latest news.
GBPEUR has already improved for Euro buyers this week and I would not be surprised to see it improve by up to another cent or two this week.
If you have a transaction to consider and would like more information on all your options and how to get the best rates of exchange please contact me Jonny directly on jmw@currencies.co.uk or call 01494 787 478.
I look forward to hearing from you and assisting with the your currency transfers
Will GBP/EUR Reach 1.20? (Matthew Vassallo)
The recent GBP/EUR rate fluctuations mean trying to predict which direction the currency pair will take next is becoming increasingly difficult. For months we have seen both the Pound and the EUR make inroads against each other, only for any developing trends to be extinguished at the first sight of trouble. Add to this various predictions ranging from 1.05 -1.30 and we are left scratching our heads wondering who to believe and when to change our currency.
The first question most clients will ask me if they have a GBP/EUR requirement is whether rates will reach 1.20 again over the coming months. Personally I believe we will see pressure put back on that level but may find it a difficult resistance barrier to break in the short-term. We have already seen key figure-heads such as Mervyn King talking our economy down, in order to ensure the Pound does not gain too much value, which will in turn have a negative impact on our export industry.
We also need to consider that despite the recent interest cut by the European Central Bank (ECB), their president Mario Draghi has been talking up the future of the EUR and has seemed more bullish than usual in his recent press conferences. Whilst we can say with some certainty that the economic problems in the Eurozone are far from over, other factors which are likely to keep the Pounds value down.
The EUR has performed well against the AUD of late, with its recent rally being furled by the recent interest rate cut by the Reserve Bank of Australia (RBA).
Here at www.eurorateforecast.com we are able to provide our clients not only with award winning rates of exchange but a bespoke service designed to give you the client, as much insight into the markets as possible. If you would like to find out the type of rates or contracts we offer, or need to be kept up to date with all the latest market movements, then please call us on 0044 1494 787 478 or email me directly at mtv@currencies.co.uk.
Rates improve for Euro sellers, GBP weakness
A run of poor data for the UK has created some excellent conditions to sell Euros for GBP. The rate is currently at a 4 1/2 week high for selling euros versus pound sterling. It is possible rates may even get better of the UK data continues to disappoint.
Tomorrow we have UK GDP (Gross Domestic Product) which is the first revision of last months data. The expectation is for no change but it is possible that we could see the pound suffer further if it is bad news. The recent GBP Strength has been underpinned by the better GBP news, if this turns out to be incorrect, it is likely the pound will suffer.
Friday we have German business confidence and GDP data which may well be a market mover on the euro. If you have been holding back waiting to see better levels to sell euros for GBP, this may be the opportunity you have been waiting for. The longer term expectation on the exchange pairing remains Euro weakness, GBP strength. This is why many businesses and those selling property in Europe have been forward buying to take advantage of the improvements.
If you are looking to get the best deal on your currency exchange or just learn more about what will affect your rate in the future, please contact me Jonny directly. I work as a specialist foreign exchange broker and can help you move money internationally at a much better rate than via your bank or other sources. To learn more or for a free, no obligation comparison please contact me directly for more information.
I look forward to hearing from you and assisting with the best deal
Currency transfer to consider soon?
Finally rates for clients buying Euros have improved. If you are buying Euros we are back at the best levels since January to be considering an exchange. Buying €200,000 is now some £5963 less costly than it was a couple of months ago.
Unfortunately this is not likely to continue in the coming weeks with added pressures on the pound and euro confidence returning. All too often those buying Euros think just because Greece or Spain is in the headlines that will translate into better rates on the Euro. This is not the case!
Why is the Euro so strong? Last year if you were looking to buy Euros for a property purchase you were probably budgeting on a rate of at least 1.20, more likely 1.25. Since that time confidence has returned to the Eurozone and Euro buyers are faced with rates today of 1.18.
There is confidence in Europe because of the belief that the ECB (European Central Bank) will do whatever it takes to help the countries that are in trouble. By offering to purchase the debts of Greece and Spain the ECB has give the market confidence. This major step last year has given markets confidence to invest in Europe and helps to explain why the Euro is strong.
The pound is still very weak and it may get worse! The UK has always relied on a strong global economy to create growth. From the days of the Empire to today, Great Britain needs people overseas willing to spend money on it’s products and services. The Eurozone being in recession is not good for Britain who relies on European orders to help the Manufacturing Industry.
The main driver on the Euro last year was the prospect of Greece or even Spain leaving. This has not materialised and is highly unlikely too as the ECB are now backing up the weaker nations. Problems in the Eurozone will continue to hit the headlines but I would not expect any moves above 1.20. If you have a requirement to buy euros in the short term I believe you are looking at an excellent opportunity at current levels.
If you are selling euros to buy another currency we could easily the rate improve slightly in the coming weeks depending on how the economic data comes out. All of the bad news is quite clearly in the market for the euro so we could see some profit taking in the short term which would help. If you are considering an exchange an understanding of what is driving your rate is crucial to helping you to achieve the best price. For the best rates and professional service or any information relating to moving money internationally at a good price, please feel free to contact me Jonny directly jmw@currencies.co.uk
UK Growth Forecasts up on Bank of England Comments which strengthens the Pound (Tom Holian)
The Pound gained this morning against the single currency as the Bank of England upgraded UK growth forecasts. During the UK Quarterly Inflation Report Governor Mervyn King said that inflation should drop to its target of 2% in the next two years. This helped give confidence back to Sterling which has been on a downward trend during the first two days of this week. The news was taken well by the markets and with the FTSE hitting recent high and more positive outlook for the UK we could see Sterling have a further lift this week.
It was announced this morning that France is now in a triple dip recession and with the combined positive news from the Inflation Report this morning this helped Sterling push up against the Euro by 0.5% or the difference of £220 on a €50,000 currency transfer. On a different note it could be argued that as Mervyn King is stepping down in July he may be trying to leave his legacy in place that all things are on the way up so his tenure is seen in history as a positive reign.
Tomorrow see the Eurozone announce their own Inflation data at 10am UK time so if you have a currency requirement and want to be kept up to date over the next few days or would simply like a free quote please email me directly Tom Holian teh@currencies.co.uk
