Tag Archives: rates
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.
We have had the best rates for selling Euros in around a month against, GBP, USD & CAD
The Euro has recently significantly gained against the pound and a range of other currencies notably the USD and CAD. In Europe, finance ministers from the 17 countries that use the euro started a two-day meeting in Luxembourg yesterday. The officials are expected to discuss Greece, Spain and other matters related to Europe’s debt crisis.
This came on a day as the euro zone launched its 500 billion euro debt rescue fund in what Euro Group leader and Luxemburg’s Prime Minister Jean-Claude Juncker hailed as an historic milestone. The fund is known as the European stability mechanism. (ESM) It will hold a first chest of 200 billion Euros when the first instalments of government capital are paid in by the end of the month.
So this fund is on top of the around 150 billion Euros still available in a temporary fund, the European Financial Stability Facility (EFSF) should countries like Spain & Greece need a bailout.
Yesterday the Euro gained against the pound possibly on the back of the fund or more so because Euro zone finance ministers also delivered a united defence of Spain, saying the country is taking steps to overhaul its economy, funding itself successfully in the financial markets and does not need a bailout, at least for now.
My view is that over the coming days the Euros gains will start to level off as it weakened against the USD for the first time in 5 days yesterday. I feel the pound will slightly rebound against the Euro as many limit orders will fill.
However should Spain request that formal bailout then the potential 500 billion Euros that could be available by the ESM could be wiped away very quickly? As we will be in unprecedented territory it is very difficult to predict long term but I feel the story of the debt crisis in Europe has a long way to go.
If you are holding Euros the uncertainty as to what may occur come the end of this year can be very concerning. The spike for Euro exchange rates that we have recently witnessed has caused many of my clients to carry out forward contracts if they have not had full funds available immediately. If you would like information on this please feel free to email me at bma@currencies.co.uk I can then explain all the options that are available to you.
All of my clients that have found me through this website started reading our posts purely because they wanted more information regarding exchange rates and how to get a better deal than what their bank would offer them. Myself and my fellow authors at www.eurorateforecast.com work for one of the largest currency brokers in the UK. We have been in the industry for a culmination of 39 years so our extensive knowledge is second to none. We strive to make you a saving over all the banks and the savings can be up to 4%. If you are reading this site and you have a requirement to buy or sell the Euro against any major currency you must get in contact to see if we can make you a decent saving on your hard earned money. Surely a quick comparison can do you no harm.
If you would like to compare our rates with that of your bank for international transfers please do email me with your details at bma@currencies.co.uk Just address it to Ben.
I look forward to hearing from you.
Ben Amrany
Exchange Rates for Euro Sterling look to break 1.19
Exchange rates for Euro sterling are looking to break below the 1.19 mark which could be significant for the currency pair and signal more losses for the pound if Greece can get sign off on its next bailout and UK unemployment is weak next week. The move for the Euro came as the ECB left rates on hold as expected, and the Bank of England injected another whopping £50bn of funds into the Quantitative Easing Program- a clear sign the UK economy is in trouble. The next couple of weeks are going to be key as we find out whether the UK economy is continuing to deteriorate , and if Greece finally gets it’s house in order (either themselves, or imposed from other European states). If you are buying or selling euros let us know what you need to do and what rates you would like to achieve in the near term and we will see what we can do to help- email Colm at cmg@currencies.co.uk and quote ERF in the subject matter. We have UK Producer Price Inflation out in the next couple of minutes so let’s see what that does to sterling euro rates!
Reserve Bank of Australia leave rates on hold – AUD strength against the Euro
Unfortunately for clients with Euros looking to move to Australia the RBA did not cut interest rates as had been expected and the Aussie remains very strong as a result. Chinese data later this week will show if demand for Aussie raw materials will continue but given global confidence is up on the back of strong jobs data in the US the Aussie should be pretty robust in the short term. Unfortunately Greece’s inability/refusal to get the private creditor agreement in place is leaving the Euro hamstrung and the longer it runs the less confidence investors have in the Euro- it seems clear something will need to be done before Greece risks default in March, but at the moment the horse trading and brinkmanship between the various parties looks set to continue.
This has also been one that has kept GBP EUR rates fairly rangebound over the last week or two. I expect a deal to be done over Greece but the timing keeps throwing things off and as a result sterling has retained its gains against the single currency. The interest rate decisions on Thursday will be one to watch with a very outside chance of a rate cut in Europe that could provide Euro weakness, and in my view an even more remote chance that the Bank of England will extend the Quantitative Easing program (all 9 members voted to keep it at current levels last month).
If you do have a currency transfer requirement then by all means feel free to contact Colm at cmg@currencies.co.uk quoting ERF in the subject matter and a quick explanation of your requirement- I would be happy to explain how our services work and go through some figures showing what we could save you on your transfer.
GBP Rates at 11 months high against the Euro
Sterling rallied this morning to hit an 11 month high against the Euro following a greater than expected take up at the European Central Bank’s first ever three-year lending operation did little to remove concerns about the scale of the Euro zones debt as a whole. For those buying Euros I feel this certainly could be seen as somewhat of an early Christmas present as earlier in the day the Bank of England’s minutes from Decembers interest meeting indicated little chance of short-term interest rate movement but worryingly, from the pounds point of view, alluded to a possible extension of the bank’s asset purchasing programme (Quantitative Easing) as early as February 2012. In the past this has caused a significant decrease in the value of Sterling, not only against the Euro but all majors.
Currently Sterling is looking a slightly more attractive bet than the Euro, and the overriding problems in Europe are still of major concern to investors. I personally feel this trend of Euro weakness may continue short term, but feel heading into the New Year Sterling too will come under some pressure. For those buying Euros at the moment I would strongly look at your position and consider your options to take advantage of these current highs. In contrast anyone selling Euros, particularly short term, may wish to take stock and realistically assess how long you can wait. I would not be surprised to see GBP/EUR back to 1.15 but would not expect to see this until the Euro zone can come to a concrete resolution to their debt problems (if this is possible). I also feel the poor UK economic forecast, rising UK unemployment, and the potential for future QE will weigh on the pound, but this may take months, not weeks to affect the market.
To discuss this post or your future currency requirements please email me directly to mgv@currencies.co.uk
Euro rates against GBP and USD this morning
Euro rates have begun the morning on a positive note, gaining against both the USD and GBP to the tune of 0.2 and 0.25% respectively. For those currently selling Euros I personally still feel the levels are attractive, and we are currently only 6 cents away from the year low against the dollar and trading at approximately the year average against the pound. Should you have an interest in the Euro we have a busy end to the week with next emergency EU summit scheduled to begin today and the European Central Bank releasing their next interest rate decision tomorrow at 12:45. Rumours are rife that the ECB will cut interest rates by 0.25% and should this occur we may see short term losses for Euro rates. Longer term should we see an outcome following the Euro summit I personally would expect to see Euro rates strengthen not only against Sterling but also the dollar and will explain the reasons below:
EUR/USD – the USD in times on uncertainty will, as a rule, always remain the currency of choice for investors. With many major commodities priced in dollars the dollar benefits from its ‘safe haven’ tag. Following the EU summit should an agreement be made (I am still a little sceptical anything will come from it as we have been down this road many times before) then I would expect Euro strength and dollar weakness as investors become less risk averse and seek currencies offering a greater short term return.
EUR/GBP – following the Chancellor’s Autumn budget last week, the UK is bracing itself for a very rocky road ahead. With rising unemployment, low growth forecasts and increased government borrowing I firmly believe this will have a negative effect on sterling heading into 2012. For this reason anyone buying Euros should keep a close eye on any short term spikes (an opportunity could be available tomorrow should the ECB cut rates) as I personally feel the could be few and far between.
To keep up to date with current market movements then please email me direct mgv@currencies.co.uk
Euro Rates Rally in Afternoon Session
Euro exchange rates have rallied this afternoon following a successful bond auction in Spain. There was relief after Spain sold the maximum amount of debt targeted and yields stayed below the critical 7% level, although borrowing costs at the auction were still the highest in 14 years. There had been concern earlier in the week following a similar auction in Italy when yields reached nearly 8%. This has created a degree of confidence in the market and investors looked to move funds from the ‘safe haven’ of the US dollar onto the Euro, creating Euro strength in the process.
Current market conditions are very difficult to predict. With the bleak outlook for the UK economy following the Budget statement on Tuesday, we could see GBP rates struggle against the Euro in weeks to come. However with the ongoing debt crisis in Europe never far from rearing its ugly head (we have another emergency European Summit scheduled for the 8th December) it really is an almost impossible task to predict this and the Euro’s short term movements as a whole. Should you have an upcoming Euro transfer and would like to discuss the options available to safeguard your exchange rate then please email me direct at mgv@currencies.co.uk quoting ERF.
