Tag Archives: the best deal on euros against the pound

Euro set for further strength overnight (Joshua Privett)

Today was an interesting day on the markets as multiple forces seemed to be acting on the Euro. 

GBP/EUR climbed for the first half of the day as it was announced the Eurozone will be stepping up the amount of quantitative easing into the European economy to €2.4 trillion.

Mario Draghi, the head of the European Central Bank, previously mentionned that it was no yet decided whether this emergency stimulus should be taken further. This marginal vote of confidence was enough to strengthen the Euro by more tha two cents against Sterling a few weeks ago. This sudden turnaround, however, only weakened the Euro by about a cent.

The reason the change in rates wasn’t like-for-like is because of data to be released overnight for the Chinese economy.

Since ‘Black Monday’ in August, everytime poor news emerges on the Chinese economy,the Euro gains an artificial boost. With China accounting for almost 40% of the world’s economic growth, any indications of a slowdown causes panic on the stock markets. The result is that investors sell-off shares, and repeatedly they have stored their capital in Euros due to its relative cheapness on the markets compared to safe-haven currencies such as Sterling and the USD.

Markets have been obsessed with this data release all week, and all commentators are taking a morbid view of the outcome. Should this data come in as expected, we will likely get a repeat of the short-term bouts of Euro strength we have seen almost twice a month since August.

Anyone with Euros to sell I strongly rcommend contacting me overnight on jjp@currencies.co.uk for a free quote on your transfer and my opinion on how to maximise the Sterling figure you acheive.

Anyone who has been waiting for the best rate to sell their Euros may well be seeing the best time to sell them for the rest of 2015, as rates will likely be creeping up following the data release. Alternatively, call me in the morning from 830am before UK trading opens on 01494 787 478 and ask the reception for Joshua – quote this article to recieve commercial rates of exchange on your transfer.


Euro set to weaken in the short-term (Joshua Privett)

The Euro has been the most volatile currency on the markets in recent weeks. Firstly, due to the scandal over at Volkswagen, which saw GBP/EUR rates push up to 1.39, we saw Euro weakness. This was then followed by Euro strength, where money was artificially pumped into the Euro as a safe-haven currency after more bad news coming from China came to light. This occurred in similar fashion to Black Monday in August when rates moved down to 1.35/6, this most recent release Chinese economic conditions and stock-market slides has moved the Euro further up in value and now 1.34 is seen in the markets.

Since Friday there has been little data out to change this trend. Hence the more than 3 cent movement against the favour of Euro buyers this week.  Today this changed.

Inflation data for Germany was released for the September period and the results were alarmingly poor. Prices contracted by -0.3% last month alone, and new forecasts now put Germany on the brink of deflation for this year. This caused the Euro to weaken and rates have just moved back above 1.35 as I write this article.

I believe we can expect more of the same tomorrow. The effect of criminal behavior coming to light at Volkswagen on the currency markets has already proved how much German performance accounts for Euro value. As such, the inflation data for the Eurozone tomorrow will likely cause similar Euro weakness to compound the trend established on the markets today.

However, I believe this spike for GBP/EUR will be short-lived. On Thursday, further Chinese data will be released which commentators have been obsessing about in news coverage over the past few days. The tone of the coverage has been morbid, and should this data confirm fears of a continued showdown in China, the Euro will be strengthening from investors seeking a safe-haven currency to purchase. This has happened time and time again over the past two months and I’m confident in predicting a re-occurrence.

As such, tomorrow could present a brief window of opportunity for Euro buyers before GBP/EUR rates fall down to their current resistance levels at 1.34/5 again.

I strongly recommend that anyone with Euros to buy should contact me by calling 01494 787 478 and asking the reception for Joshua. You’ll be put through to the trading floor and we can discuss a strategy on how to maximize any moves in your favour. Limit orders can be placed where any Euros you require can be bought automatically, even if your desired rate is hit even few a few seconds, which happens regularly during these data releases. Alternatively, email me overnight on jjp@currencies.co.uk for an immediate response.

It’s very rare that such a clear indication on currency market movements are given, I would not waste this opportunity to both limit risk and profit from positive market movements.

Those with Euros to sell, feel free to contact me on to receive a free quote on your transfer. If you can move ahead of tomorrow I would, If not I can still help you should the predicted movement in your favour occur again on Thursday. We do offer a rate-beating service here to guarantee you get the most out of your Euros should you wish to make an exchange.





GBP/EUR set for further falls today (Joshua Privett)

The Euro gained significantly against Sterling once more on Friday, with GBP/EUR rates almost hitting 1.34 once more.

A few triggers contributed to this slide which benefited Euro sellers.

Mario Draghi, the head of the European Central Bank, restored a lot of confidence back to the single currency on Friday after a poor start to the week thanks to the scandal for mammoth German car manufacturer Volkswagen.

In a speech he stated that further Quantitative Easing for the Eurozone (essentially cash injections) was yet to be decided. Previously he had spoken of emergency financial stimulus in the future as a matter of ‘when’, not ‘if’. This change in tone injected a lot of confidence in the Eurozone economy, and the resulting Euro strength was was GBP/EUR rates fell so sharply in the afternoon.

The second reason for the fall in GBP/EUR was also Sterling weakness. This actually came from news in the US economy.

Janet Yellen, the head of the Federal Reserve Bank of America, gave guarantees of an interest rate hike in the US before Christmas.

Since the 2007/8 financial crisis, arguably the main determinant of any major currency’s value has been its timeline to raise interest rates once more. Now that Andy Haldane, one of the members of the Bank of England Monetary Policy Committee has come out saying that cuts could even be on the horizon for the UK economy, the USD became a more attractive currency to hold. As such, the mass Sterling sell-off into the USD has caused the Pound to weaken against most currency pairs.

This same trend could be set to continue today. The release of housing and private expenditure data for the US economy in the afternoon, regular strong performers, could cement the views expressed by Yellen should the data come in as expected. Any increase on the certainty of a rate hike in the US will likely continue the current sell-off of Sterling and lower GBP/EUR further.

With few data releases for the UK economy this week available to reverse this current slide, anyone with Euros to buy should be looking to move sooner rather than later. 

Get in touch with me by calling 01494 787 478 and asking the reception for Joshua to receive a free quote on your transfer and tailored advice on your situation. Quote this article to receive commercial rates of exchange on your transfer.

Rates can be pegged at their current levels for anyone who does not need to buy for a few months time to avoid further losses. Conversely, anyone with Euros to sell, email me on jjp@currencies.co.uk to discuss a strategy on how to ride this current move in your favour.



GBP/EUR incredibly volatile heading into the weekend (Joshua Privett)

GBP/EUR rates have been moving significantly this morning, with the final trend being a spike downwards towards the low-1.35’s as we enter the weekend and trading grinds to a halt.

The downward trend has been established for a sustained period now, with GBP/EUR being as high as 1.44 a few months ago. However, this particular spike may well be the bottom of the trend.

The reason for the spike is due to a return in confidence to the stock-markets following the disastrous effects of that the recent Volkswagen scandal has had on the European stock-market itself. The sell-off of European stocks this week and last were matched by a sell-off of Euros. Now that stocks have stabilized, with money flowing back into the market at the end of the week as investors look for cheap opportunities, the corollary is the opposite effect on the currency markets. The Euro is strengthening once more.

Rates are already moving back up as I type this, it is unlikely that we will know where rates will stabilize until Monday morning.

Those with Euros to sell and have had the ability to hold on over the past few months as rates eventually reached these lows may have just seen the peak and should be looking to move on this.

We have already hit this currency level this week and the rates have cannoned back up, we are already experiencing similar movements.

Those with Euros to buy should contact me over the weekend on jjp@currencies.co.uk to receive tailored advice on your situation on Monday as we receive more information on how high we can expect rates to move and discuss a strategy to avoid further losses.

Those with Euros to sell I strongly recommend that you do the same and I can provide a free quote on your transfer. Quote this article to receive commercial rates of exchange . I guarantee to beat any rates offered elsewhere to make sure you get the highest value for your Euros whilst the markets are favourable.

Major Volatility for GBP/EUR (Daniel Johnson)

It has been extremely hard to make predictions on GBP/EUR this week with the currency pair bobbing up and down like a cork in a bath. Volks Wagen’s share slump due to the emissions scandal could not have been foreseen and saw Sterling jumped to nearly 1.39 against the Euro. 1.40 was almost in sight, only for manufacturing figures to come out of China and push GBP/EUR back to the 1.36s. China is one of the world largest economies, if China catches a cold the rest of the planet follows suit.
We also saw LTOR predictions for the Eurozone released which caused a further drop for Sterling. GBP/EUR dropped to 1.3490 at the day low.  We are seeing Sterling fight back this morning now sitting in the mid 1.36s.

It is vital to stay in touch with your broker during such times of volatility if you wish to maximise your trade. If your buying Euros I would be looking to gauge buoyancy levels on Today’s and Monday’s trading and move on a spike in Sterling’s favour. We could see a buying opportunity with CPI Eurozone figures released on Wednesday and PPI figures ion Friday.

There is little data releases of consequence coming out of the UK next week. The most important release will be Gross Domestic Product (GDP) figures coming in on Wednesday. GDP is released by National statistics and is a measure of all goods and services in the UK. It is a major barometer as to the health of the UK economy.
If you are looking to trade keep a close eye on the incoming figure as this is likely to cause a swing in Sterling value.
EURO Euro on the March

The European Central Bank’s (ECB) Long Term Refinancing Option (LTOR) prediction came in yesterday and caused a spike for the Euro against Sterling. LTOR is a process by which the ECB provides financing to Eurozone banks. The aim of the LTRO is to maintain a cushion of liquidity for banks holding liquid assets.
The cash buffer previously required was estimated at €73.8bn, the estimate has now dropped to €15.5bn. This is one of the main factors behind the Euros jump in value moving very briefly into the 1.34s.

Euro -The Week Ahead

Wednesday will see the release of Consumer Price Index (CPI) data. CPI is released by Eurostat and is a measure of price movements by the comparison between the retail prices of a shopping basket of goods and services. It is a key indicator as to the level of inflation within an economy.
With the Eurozone’s inflation dangerously close to deflation it could well move GBP/ EUR significantly. Although we have seen Euro strength of late I think the figure could come in worse than expected. I think the rumours circulating that Mario Draghi the head of the European Central Bank (ECB) is considering further Quantitative Easing indicates there could be a further drop. This could well create a window of opportunity for Euro buyers.
The other key data release for the week is the Producer Price Index (PPI). PPI is a measure of the change in prices received by domestic producers of commodities in all stages of processing. From the raw material to the finished article. I again think these could come in lower than anticipated and we could see further Euro weakness.
If I was selling Euros I would be looking to move ASAP and take advantage of current trading levels.

I am currently offering a free rate alert service, just drop a line or e-mail with your currency requirements including your time scale and the levels you are hoping to obtain and I will notify you of  any significant movement.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on  dcj@currencies.co.uk   or call on  01494 787 478 and ask for Daniel Johnson.


GBP/EUR best rates – Volkswagen scandal takes new turn (Joshua Privett)

The scandal from German car manufacturer Volkswagen is causing significant market fluctuations in both the currency and stock worlds.

The recent posts on the site have detailed how this scandal has weakened the Euro. With Germany commonly seen as the powerhouse of the Eurozone economies, and with 1 in 7 of their citizens employed in the automobile industry, the rumored €17bn fine coming for Volkswagen and the 20% loss in company stock value for two days consecutively have certainly lowered confidence in the Euro.

However, the situation has become more complex. The entire European stock market, as well as the UK’s has now lost value. Huge amounts of pension schemes and hedge funds invested in German car manufacturers as a ‘safe bet’, now value is being lost across the board. With the UK’s economy being dependent upon our financial services industry, the Pound has lost value against most major currencies as well, as confidence in the UK economy has flopped again.

We knew rates would come back down again but no-one predicted it would be this quickly. The Euro had already weakened with the news on Monday, which is why rates almost hit 1.39, but this news about the UK market is what has bought rates back down to the verge of 1.37 once more.

Again these rates were a gift from a scandal that no-one could predict. These are short term and artificial due to capital movements rather than long term economic forecasts so are not meant to be a long term feature on the markets.

The long term trend since July has seen GBP/EUR rates fall from 1.44 to where they were before the scandal this week at 1.36. These market forces have not gone away.

Tomorrow, the head of the European Central Bank will be giving a speech on the current state of the Eurozone. He regularly tries to downplay the positive data releases for the Eurozone and actually talks down the current state of the economy in a bid to lower confidence in Euro and keep it cheap. He has long seen this as essential for Eurozone economic recovery, as their exports become much more competitive. These movements usually benefit Euro buyers and they are always gone by the following day.

Those looking to buy Euros may see the best rates available for the rest of 2015 with what comes on offer. I strongly suggest that anyone with a Euro requirement should contact me on 01494 787 478 and ask our reception desk for Joshua for a free and competitive quote on your transfer, and we can discuss on a strategy on how to take advantage of any movements in your favour tomorrow. jjp@currencies.co.uk




Euro stable following Greek election (Joshua Privett)

The Syriza Party have held onto power after a weekend election which was expected to show a result which was too close to call. In the end, however, they gained 11% more of the vote than their closest rivals and with 35% in total, it was easy to gain a coalition and make the majority necessary for control.

This election was unlikely to cause much of a stir, with both parties having a pro-EU stance, markets were only concerned about an unknown factor of a new party who might fight the recent bailout deal. However, this was not the case. With a mandate firmly established for Tsipras and the Syriza Party any potential Grexit is now firmly off the table as the EU will continue to provide support to the Greek economy.

With no change from the previous situation the Euro simply retained its current value, rather than losing ground with a change in Government. Now that Greece is out of the spotlight,  there seems to be little on the horizon to boost GBP/EUR to levels seen previously above 1.40.

However, there may be some slight movement to favour Euro buyers on Wednesday.

Mario Draghi, the head of the European Central Bank will be giving his monthly speech surrounding the health of the Eurozone economy. There has regularly been significant market movement during this hour long period. It’s common knowledge that he believes a weak Euro is key to their economic growth to make exports more competitive and stimulate spending rather than saving. So most analysts are expecting some Euro weakness as he announces further Quantitative Easing to make inflation healthier and provide more credit to the economy. This is essentially printing money, and if more is in circulation then the worth of each individual Euro lowers.

With Greece swept under the rug, and no other big stumbling blocks on the horizon for the Eurozone, the opportunities presented leading up to Wednesday could be the best rates available for the rest of 2015 on GBP/EUR should Draghi announce further financial intervention.

I strongly recommend that anyone who has Euros to buy over the next few months should contact me on 01494 787 478 and ask the reception for Joshua to gain tailored advice on your requirements ahead of the event on Wednesday as well as a free quote on your transfer. If your requirements are not until later in the year current rates can be pegged at no additional cost. jjp@currencies.co.uk

Euro falls before Greek Vote (Joshua Privett)

Following the interest rate decision yesterday in the US to keep interest rates on hold, the Euro has been incredibly volatile as it was pulled in both a direction of strength and then weakness. For example GBP/EUR fell to a low of 1.35 and has since risen to hit 1.37 as the afternoon of trading comes to a close.

The initial bout of Euro strength was due to a sudden weakening of the USD as the FED chose to keep interest rates on hold rather than hike them. As the USD/EUR is the most heavily traded currency pairing in the world, when there is strength or weakness in one you generally find the opposite with the other. This is what happened this morning and the Euro gaining the upper hand against the USD and also secondary currency pairings such as GBP/EUR.

However, the elections in Greece are this weekend and regular readers of these articles may remember how much any Greek issues have affected the value of the Euro in the past. Potential ‘Grexits’ and defaults have cause regular spikes in GBP/EUR of over two cents since the start of this year. This occasion is no different.

What I will say is that this has not been a highly anticipated event. This has not been a regular pieces in the news and currency markets have not been focussed on the outcome. Last minute nerves are causing some investors to pull out of the Euro whilst they await the decision, but any outcome will have minimal affect on the bailout and Greece’s relationship with the EU. Both the front-runners are seeking to ‘renegotiate’ the bailout, but these are cheap political words to gain popularity when they know the agreement cannot viably be altered. The bailout itself is also set to last for years.

I was surprised to see rates move up this high ahead of the Greek election, markets must be more nervous than normal following the events of Black Monday. As such I see these GBP/EUR rates as a gift when the trend over the past month has been negative and that does not look like it is set to change. The Euro is continuing to strengthen following its crisis in January and the UK is repeatedly pushing back interest rate rises based on poor inflation.

I strongly recommend that anyone who has Euros to buy should get in touch on 01494 787 478 and ask for Joshua to receive a free quote on your transfer as well as some tailored advice on your situation. Quote this article to get commercial rates of exchange on your private transfer. jjp@currencies.co.uk

Anyone with Euros to buy, feel free to email me to discuss how to ride this recent move in your favour.






Bank of England keep interest rates at 0.5%. (Dayle Littlejohn)

This afternoon the Monetary Policy Committee of the Bank of England voted in favour to keep interest rates on hold at 0.5%. Like last month, Ian McCafferty was the only member to vote in favour for a rate hike. This gave some support for sterling as many investors where under the impression all 9 members would vote to keep rates at 0.5% due to the slowdown in global growth, in-particular China.

Where next for GBP/EUR exchange rates?

Short term (next 2 weeks) I expect GBP/EUR to float between 1.36 and 1.38 with economic data influencing small spikes. Medium term I expect sterling will make gains against the euro and the exchange rate will increase towards the 1.40s. My reasoning for this, firstly Mario Draghi cut inflation and growth forecasts last week and I think  he will continue to weaken  the euro later in the month. Secondly, Alexis Tsipras has indicated if he is voted back into power he is going to re negotiate the bailout terms his party set last month. Therefore I expect the Greek issue to reignited and a possible ‘Grexit’ back on the cards.

This may be the window of opportunity that euro sellers have been waiting for. If you have euros in the bank and looking to trade into sterling I strongly recommend contacting me overnight on drl@currencies.co.uk for a free quote, some tailored advice on your own requirement and to put a strategy in place. I look forward to receiving your email. Dayle Littlejohn.


Euro strength expected (Joshua Privett)

At the back end of last week Mario Draghi, the head of the European Central Bank, tried avidly to weaken the Euro in a televised monetary policy speech.

It worked. Almost 1.38 was reached on the markets. However, this was not enough to halt the Euro’s recent strengthening it has enjoyed as a safe haven currency. At the opening of trading this morning we are already back at 1.36.

Financial Markets are still reeling from China, but they are beginning to stabilize, in the near term we can expect the Euro to begin to weaken once more.

Tomorrow, however, may present a ‘sweet spot’ for Euro sellers before the inevitable deflation of the Euro begins. Tuesday morning will see the release of Eurozone GDP data for the second quarter of this year.

Due to the financial stimulus introduced in January, its been much cheaper to make goods to export, and those in the Eurozone will be looking to the domestic market as a weak Euro has meant domestic goods are more attractive. Strong GDP growth is thus likely and with that Euro strength. GBP/EUR rates will likely fall slightly and present tempting selling opportunities for those looking to relieve themselves of their Euros

Those with Euros to sell I strongly recommend calling me on 01494 787 478 and asking for Joshua ahead of this event to make sure you are in a position to take advantage of it. Those with Euros to buy in the very short-term should do the same. While rates have been higher, at the start of the year many would have jumped at the current rate son offer, so I would be looking to move while they are still there. jjp@currencies.co.uk

ECB monetary policy meeting a key focus for markets today (Joshua Privett)

The Euro has enjoyed a two week run of artificial strength against the Pound. As the safe-haven currency of choice due to its relative cheapness and increased stability now that the Greek issues have been ‘swept under the rug’ for the long term, the Euro has made some impressive gains against most major currencies during the recent market turmoil. Capital has flocked there, increasing demand and therefore value.

However, the Euro’s recent strength is not only artificial. Recent inroads have seen the Eurozone unemployment rate fall to its lowest level in 3 years, and the cost of producing retail goods for exports has fallen sharply in data release yesterday. Essentially the quantitative easing program introduced in January has been working, causing markets to rejoice. The European Central Bank monetary policy statement this morning following its interest rate decision (expect no change) will likely reiterate this positive view. While the speech is likely a volatile period, with markets reacting instantly as Mario Draghi talks about various sectors of the economy in a positive or negative light, overall I would be expecting Euro strength from the event.

Those with Euros to buy should be looking to move ahead of this speech. GBP/EUR rates were being marveled as 7 year highs at the current levels we are seeing when they were first reached at the start of the year, and it seems that the tide is moving in favour of the Euro once more.

I strongly recommend calling me on 01494 787 478 and asking for Joshua for a free quote on your transfer ahead of the meeting at midday. If you quote this article I can guarantee beating any quote offered elsewhere for your transfer. Rates can also be pegged at no additional cost.

Another course of action is to email me on jjp@currencies.co.uk for my personal opinion on your transfer.

GBP/EUR rates spike up following positive inflation (Joshua Privett)

GBP/EUR rates made significant inroads back into the 1.40’s this morning with the release of UK inflation data.

Last month, for the first time since records began in 1960, inflation came in as a negative figure. This caused Sterling to crash last month and GBP/EUR rates fell back below 1.40. Usually deflation takes a while to combat, which is why this modest move of 0.1% into positive territory was recieved particularly well, with GBP/EUR rates rising from 1.405 to 1.423 throughout the course of the day.

This effect on the markets may seem like an overreaction for such a small increase, but it was predicted that such a small rise would have a disproportionate affect on GBP/EUR rates. Previously it seemed like the Bank of England would not raise rates until inflation hit the target set at 2%. Some members are starting to change their tune.

Forbes and Miles believe that raising rates wont have any real affect on the economy for at least a year or two after their introduction. As such, rates can be raised responsibily if they believe the target rate of inflation will be met within a two year period of that rise. So even a small move back into positive territory spelled GBP strength as some believed the UK’s timeline for raising rates was moved forward.

However, I would take these words with a pinch of salt. The modest increase of 0.1% could easily turn negative once more, and due to the recent downgrade in global growth with China’ slowing economy, I would not rely on any smooth road towards higher rates.

I would recommend that anyone looking to buy Euros should move whilst the rates have artificially been moved in your favour. Email me overnight on jjp@currencies.co.uk for tailoured advice to your situation and a free quote on your transfer. I guarantee to make you a saving against your current provider.