Euro Rate Forecast

Currency experts forecast on the Euro

Euro slides to lowest rate against the Pound since June 2017

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Today we have seen Euro exchange rates drop off by almost 1% against the Pound, sliding to the lowest level we have seen for those bringing Euros back into Pounds for almost a year.

The past few weeks have seen confidence flooding back to the Pound, with a potential interest rate on the horizon and highly likely to come in May from the Bank of England and very little negative news regarding brexit, sterling has rallied and made good gains against the Euro.

For anyone with the need to buy Euros with Pounds in the near future this is fantastic news, we are now sat at the best level we have seen for GBP/EUR since June 2017 which is a great buying opportunity.

The Pound has been on a slow rise this year and today’s further boost shows once again that confidence in the U.K economy and indeed the Pound, is rising, but we do still need to be cautious that it would only take one bad piece of economic or Brexit news to stop it in its tracks.

For those who are regular followers of our site you will more than likely be aware that these spikes in the market do not seem to stick around for long – well they certainly haven’t since the EU Referendum anyway!

Tomorrow is fairly thin on the ground for economic data around Europe so you may see this trend continue as the week nears an end, with possibly some profit taking knocking it back as we enter the afternoon.

German inflation at 07:00am and European Trade balance figures at 10:00am are the two key points of note.

If you have a large currency exchange to make involving Euros then it is well worth you contacting me directly. You can get in touch with me by emailing me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to contact you personally to see how I can help you. We offer highly competitive exchange rates along with help on timing your transaction and would like to think our customer service is way above and beyond elsewhere. I look forward to speaking with you.

Daniel Wright
Daniel Wright is a Director at Foreign Currency Direct and is the creator, owner and main author of this website. Having spent many years as a currency broker Daniel has extensive experience and a wealth of knowledge on what can impact Euro exchange rates.

Inflation data to be next on the cards for Euro exchange rates (Daniel Wright)

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We have a fairly quiet week of economic data on the cards for Euro exchange rates this week however as we all know that certainly does not mean the exchange rates won’t be volatile!

The real key release of the week will be on Thursday morning when we have European inflation data out at 10:00am.

I still far from believe that all the European woes have gone away and that we will soon be due our usual yearly PIGS of Europe headlines as it all seems to have gone a little quiet once again for those European economies that have recently found trouble and economic problems.

This may however be days, weeks, months or even years before we see it all come back into the headlines so if you are looking to buy Euros in the near future then don’t count on it too much!

We have recently seen Euro at its strongest against Sterling in over a year and the key question now is how much better can it get? In my opinion the fears of the U.K leaving the EU are really the main issue for Sterling and should these be dampened then the Pound will start to rally back so if you have Euros to sell and you are waiting for the referendum, it may be prudent to look at booking out half of your need now. If the Pound begins to rally then it has a lot of room to start coming back up if it wants to and the domino effect we have seen in Sterling’s drop off could be mirrored in its rise.

If you have the need to buy or indeed sell Euros for your business, due to a property purchase/sale or for any other reason then it is important to have a proactive broker on your side and one that can get you the very top levels of exchange – It is very easy to settle for second best in this market but it is key to realise that even the slightest improvement in a rate of exchange can save you a huge sum of money.

If you would like to have a brief discussion with me (Daniel Wright) as to how I will be able to assist you with any pending currency exchange then feel free to email me directly on djw@currencies.co.uk and I will be more than happy to get in touch with you personally.

Daniel Wright
Daniel Wright is a Director at Foreign Currency Direct and is the creator, owner and main author of this website. Having spent many years as a currency broker Daniel has extensive experience and a wealth of knowledge on what can impact Euro exchange rates.

Europe wakes from its August hibernation- When to buy?

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Even though euro news has been out of the media recently due to the August holiday break and the Olympics, everyone with a currency requirement should be aware of it pending return. Moody’s the rating agency warned this week that it will take many more years to complete the fiscal adjustment program and structural reforms. They went on to warn that the task of sorting out the Eurozone crises is at best only halfway through. Read more here.

The first installment of news started yesterday as the Greek prime minister Antonis Samaras pleaded for more time to pay back debt. He said that the Greeks economy is “bleeding” and needs a little “air to breath,” this was at the start of several days of key meetings. Any extension will need to be signed off by Germany who has been against any form of extension, (a 2 year extension is expected to cost a further €20 billion to finance.)

This story will be key for anyone with a GBPEUR trade over the next 7 days; I would not be surprised to see GBPEUR swing upwards of 2% making a difference of €2,400 for every £100,000 exchanged. If you need to complete a trade within this time please contact the trading desk for times and days on when to potentially complete your exchange.

If you are looking for the best exchange rate and to buy at the high, please register your interest by email hse@currencies.co.uk

Making forecasts and helping people achieve the best exchange rate is what we do. If you have found this blog useful all I would ask is try us out.

At the end of the day if we could not help we would not be in business and all you may lose is 3 minutes on the phone.

Thank you,

Steve Eakins

Stephen Eakins
http://www.eurorateforecast.com

Will the Euro continue to weaken?

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Recently the pound has been posting some excellent gains against a host of major currencies reaching close to an 18 month high against the Euro, but what next? Is this run likely to continue? These are questions a number of my clients are asking me and personally I don’t think anyone can hold their hand with confidence and predict what direction the market will take next, however let’s explore the potential outcomes and what data sets are coming up that may affect the pound against a number of commonly traded currencies.

Buying Euros

Many Euro buyers have been waiting for the market to breach the 1.20 mark before dipping their toe in the market and now we have breached the 1.21 level many are still holding on, to me this could be a risky strategy and I have seen this happen on a number of occasions with people getting their fingers burnt. I do not feel this is necessarily the peak of the GBP/EUR range and I would not be surprised to see continued strength in the short term for the pound (mainly caused by the increased uncertainty in Europe and in particular the concerns within Spain) however I do feel many are forgetting and in some ways dismissing the continued underlying problems in the UK.

The situation in Europe is a European problem and not just that of the Euro zone. The UK is massively exposed to the debt problems being one of the largest contributors to the European stability fund, we therefore will also have huge problems should any of the Euro zone countries default and this is something that is likely to curb sterling from making any further significant gains against the Euro in my opinion. A near 18 month high therefore surely represents a good opportunity?

Should you wish to discuss your thoughts or have an upcoming transfer then do feel free to email Michael at mgv@currencies.co.uk and I will happily run through the contract options available, including the potential use of a forward contract where for a small deposit your rate can be guaranteed up to two years in advance.

Michael V

Volatility the ‘buzz’ word!

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Sterling has clawed back ground after the losses posted on Wednesday and Thursday creeping back above the 1.20. The Euro has however seen a slight increase against the dollar posting gains of over 1 cent from the high/low and trading back into the 1.29s.

GBP/EUR movements appear to have been dominated by improved retails sales figures released at 09:30 this morning as the data showed sales figures rebounded strongly in December. These figures to me are not surprising with the Christmas period likely to have over inflated the figures and as a Euro buyer I would not get too excited! I still feel with the rate hovering around 1.20 this represents a good buy opportunity particularly with the uncertainty within Europe still dominating this pair, and the currency market as a whole.

What next for the Euro?

As my colleague Jonny alluded to in his recent post (see below) the market conditions are following a worrying trend. In the past 5 years the market has breached 1.20 on four separate occasions and within a 1-4 month window the pound has lost anywhere from 4-15% in value against the single currency. I am not for a minute suggesting that this trend will continue, however I do feel Euro buyers hoping for further positive movements are treading on thin ice. Currently I think a strong argument can be made for both Euro strength and Euro weakness in the coming weeks as this pair is dominated by a raft of negative data within the Euro zone and the UK. For this reason I believe the best option is to remove that risk, and whether buying or selling Euros (particularly should you have a short term requirement) you may wish to remove this risk and consider your options. As a currency broker I have a number of options available to safeguard and guarantee your rate for a fixed period of time, this can be arranged through the use of a forward contract. Alternatively those with a penchant for risk, but at the same time don’t want to get their fingers too badly burnt, you may wish to consider a stop/loss contract. This is basic terms is your best and worst case scenario.

To discuss these contracts in more detail please email me at mgv@currencies.co.uk

Michael V

New European Bank Levy Proposed

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Today the European Central Bank released information about a proposed bank levy they wish to impose.  This is to help and support the banks against failing again, however many are still wary about the current position of the banks.  This is something that countries that have tried a national approach first would have access to this, for example Greece, Spain and more recently Italy and the UK.

In my option the cracks in the Euro zone are continuing to get bigger and this is simply a small plaster that will struggle to heal it.  It may strengthen in the long term but as this is something that would initially cost the banking sector the Euro weakened today. Going forward the euro may continue to weaken until some form of unity is installed between the strong north and the weak south.  For more information feel free to contact me directly on hse@currencies.co.uk.

Stephen Eakins
http://www.eurorateforecast.com