Category Archives: Media Quotes
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
Sterling Euro exchange rates in May – What can we expect? (Daniel Wright)
With positive growth figures for the U.K and interest rates being cut in Europe the signs are that we are potentially starting to turn a corner for the Pound against the Euro which is great news for those looking to buy property over in France in the near future.
Investors will however be closely monitoring how economic data for the U.K is this month and any hints of the U.K taking one step forward and two steps back will not be looked upon greatly for the Pound so this is one thing we need to be aware of. My personal opinion is that things are indeed on the up for the U.K and although I do not expect major economic growth until at least 2014 I think we should now be able to tread water and avoid the dreaded recession for the foreseeable future unless we do see another major incident within the Eurozone that could dent the U.K too.
With the major economic releases out of the way and the recession avoided the spotlight does not appear to be back on Europe and any comments from members of the European Central Bank regarding future fiscal policy will be taken extremely seriously this month. Just last week following the ECB interest rate cut, at a press conference held by head of the European Central Bank Mario Draghi the mere mention of possible negative deposit rates led to the Euro losing ground by almost a cent against Sterling in a matter of minutes, so if this policy is adopted in the future we could see further Euro weakness.
All in all I feel that we are now more likely to see Sterling go back above 1.20 than we are to see it go back below 1.15 however in such a fragile market if you are looking to buy Euros with Sterling in the near future then it is key that you keep a very close eye on the markets as things can change very quickly and even the slightest movement in exchange rates can drastically effect the price of your overseas property.
Potential UK Recession Key for GBP/EUR Rates (Matthew Vassallo)
Bad news for the UK economy seems to be a regular occurrence of late and the situation continues to look bleak as we head into a key period for GBP/EUR exchange rates. The EUR has tried to strengthen amid this negativity but is constantly hampered by its own economic problems, which are deep rooted throughout the Eurozone economy.
It is almost a guarantee that we will hear of further unrest, whether it be in Cyprus, Ireland or one of the larger nations such as Spain, Italy or France. All have the ability to create another global financial crisis if their economies were to collapse and at times the Eurozone seems as if it is held together by nothing more than empty promises and increasingly harsh austerity measures.
As mentioned above the coming weeks could prove crucial to the short to medium-term outlook of GBP/EUR. The 25th of April should be a key date in anyone’s diary who has a GBP/EUR requirement, as this is when we will find out whether the UK economy falls back into official recession. Whilst these figures could well be revised, the initial market may well mirror these results. I cannot see GBP gaining much momentum even if we do avoid recession, although there will be an element of market confidence returning to the Pound and it shouldn’t lose any more value. If we do in fact find ourselves back in a recession the Pound will struggle to make any serious inroads against the major currencies and provided the Eurozone doesn’t throw up any nasty surprises (something which sounds unlikely given the recent history), then we are likely to see Sterling move back towards 1.14.
Here at Foreign Currency Direct plc 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 we can offer, or need to be kept up to date with all the latest market movements then please call us on 0044 1494 787 478.
Euro weakens following comments that we may see a cut in interest rates soon
The Euro lost ground yesterday following comments by ECB member Weidmann who said “The ECB may adjust rates if new information warrants it”.
This suggests that we may now be moving ever closer to an interest rate cut in Europe which may weaken the Euro against all major currencies.
An interest rate cut is generally seen as negative for the currency concerned and a hike a positive as it makes a currency more attractive to investors. Even the slightest hint of a rate cut and a currency can devalue which is why we headed back to roughly 1.17 (0.8547) against the Pound (over a cent higher than the low of the day) before close of trading.
This highlights the need to have someone on your side monitoring rates of exchange… I saved some clients over £2000 on their €235,000 purchase yesterday by telling them to sit tight and wait after the drop we saw in early morning trading…. The decision of course always has to be the clients but they agreed and got their Euros a lot cheaper at the end of the day.
I cannot directly advise you but I can give you lots of information to help you make an informed decision.
If you have a pending currency transfer to carry out and you want the very best exchange rates to either buy or sell the Pound and you want to be kept fully up to speed with market movements that may save you €1000s then contact me directly and I will be happy to help you compare with your bank or current provider – I pride myself on not only rates but customer service too.
You can contact me directly djw@currencies.co.uk please quote ERF in the subject title and leave me a number to call you on, I look forward to speaking with you.
What to expect this week for Euro exchange rates?
Euro exchange rates have remained relatively stable against the Pound and US Dollar today but have posted strong gains against the Australian Dollar following worst than expected growth forecasts from China. With China being the largest net importer for Australian raw materials and with the Australian economy heavily reliant on its mining sector this is a cause for concern for the Aussie and is likely to create some good opportunities to buy AUD in the coming few days.
Slightly closer to home what data this week may affect the Euro? Starting with tomorrow we have the ZEW economic sentiment survey released at 10:00 BST. The ZEW is a well respected think tank and this data will be closely monitored as it shows the levels of institutional investment sentiment and is a key market confidence indicator. It gives the balance of investors and analysts market confidence of the Euro zone and can directly impact of on the value of the Euro dependent on a positive or negative release. Later tomorrow watch out for a speech from ECB governor Mario Draghi, again his comments can drive the markets – is notoriously optimistic so could lead to Euro strength during and after his speech scheduled for 14:00 BST.
Heading into the rest of the trading week look out for the following:
- Thursday – Spanish Bond Auction.
- Friday – European Trade Balance figures.
To discuss the market trends and current data that might affect your particular currency transfer then please contact the office on 01494 787478. Should you wish to test the service or discuss the contracts we have available then please email me with a brief description of your current trade/requirement and I will happily provide you with a live quote. I can be reached by email at mgv@currencies.co.uk
Euro strength ahead of the ECB interest rate decision at 12:45
Euro exchange rates have rallied this morning bringing moves over the past 48 hours to more than 1% against the pound. This comes ahead of another busy day for the Euro with the first meeting of the the European Central Bank following the €10bn bailout of Cyprus and the much publicised issues surrounding the bailout. Many investors will be looking for Mario Draghi (head of the ECB) to give a vote of confidence to the Euro zone and its single currency and with Draghi notoriously optimistic, epositive rhetoric from Draghi could lead to further Euro strength this afternoon.
Against the USD the trends are still in favour of the dollar and may continue due to continued demands for the dollars safe haven status. Overnight the Bank of Japan increased stimulus as it aims to double the monetary base over two years through the aggressive purchase of long-term bonds, in a dramatic shift aimed at ridding Japan of the deflation that has dogged the country for almost two decades. This is a bold move for the new central governor Haruhiko Kuroda and may shift investors risk apetite. As a result the JPY has devalued and with the Yen often heaviliy involved in currency speculators risk portfolio this may create significant shifts in currency trends over the coming days creating volatility for the safe haven currencies (historically USD and CHF) and many riskier assets such as the AUD, NZD, ZAR and EUR. Wacth for some big shift over the next few working days.
Should you have any upcoming money transfers to arrange and you have found this blog useful then why not contact us to see what we can do for you? The purpose of the site is to give you independent market views to help you make an informed decision with your currency exchange. By giving yourself as much information as possible it can put you in a far stronger position when attempting to maximise your currency exchange, allowing you to limit your exposure to adverse market movement. Should you wish to find out more about the specialist currency service we provide, whether you are a private or corporate client, then we can help. Please get in touch either on 01494 787478 or by emailing me with a brief description of your individual requirement and I will happily contact you and run though your options. You can reach me direct at mgv@currencies.co.uk
As the market continues to digest the situation in Cyprus and the prospect of a 40% levy on certain bank deposits, it is likely to be the pound that is the overiding benefactor…..
Following the resignation of the Bank of Cyprus’ chairman Andreas Artemis – the Central Bank has taken steps to appoint an administrator to overlook the day to day running of the bank and until the full terms and day today running of the finances within Cyprus are made clearer (including proposed bank levies up to a maximum of 40% on some savings) it is likely to remain an extremely volatile period for the single currency. A major benefactor of this could well be the pound, indeed during the two week period of uncertainty the pound has gained just shy of 4% and with the continuing threat of the triple dip recession in the UK, this could be an unexpected opportunity for any Euro buyers. Tomorrow we will see the latest revised figures for GDP Q4 of 2012 followed by European Consumer Confidence figures and Business Sentiment. I would expect little difference from the GDP data but we could well see a slight change in confidence levels in the EU and this could create some further opportunities for Euro buyers tomorrow morning. Figures are released at 10:00.
When buying foreign currency it is important to give yourself the best opportunity to maximise your conversion. By using the services of a specialist foreign exchange brokerage this will give you the ability to take control of your currency requirement. This can be done through utilising one of the many contracts we have available such as spot/forward contracts and stop/loss or Limit orders. We will also aim to contact our clients as soon as a particular target rate has been achieved through our market rate alert service. To discuss the service we provide in full or to have me contact when a particular rate becomes available then please contact me at mgv@currencies.co.uk giving a brief description of your particular requirement and target rates in mind and I will be sure to alert you if this price becomes available.
To discuss the full currency service please contact 01494 787478 or email mgv@currencies.co.uk
EUR Strength Not a Certainty But Will Sterling’s Fight Back Continue? (Matthew Vassallo)
The EUR has certainly benefited from Sterling’s demise more than most other currencies since the turn of the year. Following some positive statements form various eurozone leaders, it did seem as if we were going to be witnessing one way traffic on GBP/EUR for much of the first half of 2013. Sterling has gone against the grain however and started to make some inroads against its euro counterpart during Wednesdays trading. Predictions were for a further fall on GBP/EUR, with some not expecting much positive movement at all as we move towards quarter 2 of this year.
The one thing we can be sure of is that whilst both the UK and eurozone economies continue to stagnate, it will be very difficult to forecast the pair, or identify any real market trends. I would expect the recent volatility to continue, with a potential respite coming if the UK does in fact manage to avoid the now well documented triple-dip recession. On the eurozone side, developments in Italy are key and a run of consistent economic data is need if the EUR is to really push forward.
Here at Foreign Currency Direct plc we have won multiple awards for our exchange rates and service. If you have an upcoming currency transfer and would like to be kept up to date with all the latest market movements, or would like to speak to us regarding the currency options available to you then please feel free to contact me directly at mtv@currencies.co.uk or call us on 0044 1494 787 478.
