Tag Archives: sterling
Euro rate Forecast – Will the Euro remain this quiet for long?
The Euro is enjoying a period of relative calm at present which is surely not going to last. Attention is currently focussing on the United States and whether or not we will witness further QE in the future. Whilst domestic demand in the US is improving it may be the decreasing demand from Europe and China which ultimately will lead to the injection of more QE.
The outlook in Europe is very much negative and the main reason the rates have not majorly trailed off is the belief and confidence Mario Draghi and the ECB will do ‘whatever it takes’ to ensure stability. The bad news is firmly out in the market and this is preventing further losses. I think however you would struggle to find many who expect the euro would not weaken again at some point in the future.
If you are selling a property overseas or are a business who will be receiving payments in euros in the coming months, it may make sense to book your currency rates in advance. Current Euro to GBP and Euro to USD exchange rates are very attractive based on historical levels.
If you have a currency transaction to consider involving the Euro or indeed any other currency why not make a free enquiry with us? As a firm of specialist currency brokers we seek to achieve the very best rates in the market and ensure you don’t miss out if markets move against you.
For a free, no obligation discussion of everything involved which may affect your rates, even if your trade is just a one off or well in the future, please contact me Jonny on jmw@currencies.co.uk
I look forward to hearing from you and assisting you soon,
Jonny
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
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
Euro rates rally against the Pound. Bank of England minutes tomorrow may cause further GBP/EUR volatility
Following a dip in the UK’s inflation rate the pound has fallen against a host of currencies including the Euro dropping rates into the mid 1.17s. With the Bank of England minutes released at 09:30 tomorrow morning tomorrow could also prove a busy day for GBP/EUR. For me I am not expecting to much from the minutes and indeed you may find very little impact on the market. In fact I feel the Bank of England may adopt a relatively neutral stance over the next 6 weeks as Sir Mervyn King hands over the reigns to Mark Carney in July. It is at this point that you may find more radical policies to be implemented by the central bank. Many expect Mr Carney to impose of self from the word go and give a nod to further Quantitative Easing, or even a surprise interest rate hike – of course he does not have the final say and will need to see a majority vote from the 9 members of the MPC (Monetary Policy Committee) but he may begin to influence his peers.
Also at 09:30 tomorrow watch out for Retail Sales figures from the UK (expected to show a strong improvement that could lead to GBP strength as a result). Should you have an interest in Euro exchange rates then also watch out for a speech from Mario Draghi Thursday morning, positive sentiment from Mr Draghi the Euro may continue its strong start to the trading week.
As you can see we have plenty of data released for the rest of the week. To be kept up to date with the impact these data sets may have for your individual requirement then please contact me and I will happily run though my forecasts and run through the various contracts we can offer to help maximise your currency exchange. I am very confident I can help achieve a better rate than your current provider. Please call the office on 01494 787478 or email me (Mike) with a brief overview of your requirement and I will gladly contact you to help with your money exchange. I can be reached at mgv@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.
Bank of England Minutes and Euro Exchange Rates (Tom Holian)
The Bank of England Minutes are due later this morning at 930am which will announce how many members of the MPC voted for and against further Quantitative Easing. Recently the vote has been a 6-3 split in favour of keeping QE on hold. If another policy member voted in early April and the split was 5-4 we could see some volatility for the currency markets later today.
The Pound has dropped quite heavily this week following the IMF announcement that they have cut the UK growth forecast. Although other nations have also seen their own growth forecast cut by the IMF it seems as though the UK has felt the most pressure and we have seen Euro strength.
UK CPI figures published yesterday morning has seen inflation running at 2.8% the highest in almost twelve months and expected to hit 3% soon. In theory if inflation runs high it makes it difficult for the UK to increase QE so if QE comes to an end it could help to strengthen the Pound. In the IMF comments this week they also mentioned that the Bank of England could find it tough to remove the large amount of stimulus provided by the Bank over the last four years.
The UK’s private sector is struggling to grow as bank lending is limited and with unemployment levels slowing rising in the UK we could see a mixed period ahead. On the 25th April the first quarter UK GDP figures are published and if they are negative we could see Sterling have some negative effects. If you’re considering a currency transfer to either buy Euros or sell Euros feel free to contact me directly Tom Holian teh@currencies.co.uk Also, if you have a property purchase coming up you may wish to secure a forward contract so you know how much you’re paying for early on.
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
