Tag Archives: the best deal on euros against the pound

Best time to buy Euros with Pounds in 7 weeks!

If you need to buy Euros with pounds we currently have the best rates since the beginning of March on offer thanks to some uncertainty over Eurozone economic policy and a much stronger pound. After two months of the Leave camp appearing to have swung sentiment, the Remain camp is now firmly in the running with a raft of arguments to support their cause. This all goes to show how unpredictable the markets can be and how sensible it is to make plans in advance as things can change very quickly. It seemed only very recently that the rates were going to drop below 1.20 and now we are looking at a rise to 1.30!

Euro rates up to the Referendum 

Between now and June I think there could be some further big unexpected swings on sterling to euro exchange rates and at the very extreme would predict swings of between 1.20 and 1.35. This is taking into account the very worst and best expectations of sterling performance. Such big movements will have a big impact on financial markets and the amount of currency you receive. Whilst it might be tempting to look on this as a great opportunity and of course it is and could be, you should also look at the downside too. Assuming a Remain vote and hanging on for the rate to go above 1.31 for your European house purchase is great but if it is a Leave vote and rates drop to 1.15 will you be able to afford the house?

Two key orders in such a market are the Stop Loss order which guarantees you won’t get a worse rate if rates start to plummet. So for example you might set a Stop Loss at 1.22 buying Euros currently. A Limit is the other which guarantees you a higher price if rates rise above a certain level. So a popular GBPEUR Limit order to buy Euros is 1.30.

If you are looking to buy or sell Euros at a better rate than is currently achievable you really should be plans on how you will achieve this. Understanding the market and all of your options in advance gives you the best possible chance to trade at a better level. If you wish to discuss your situation please email me Jonathan Watson on jmw@currencies.co.uk. There is no cost or charge for my services, any introductory information is provided completely free of charge and at no obligation so you have nothing to lose from getting in touch.

Euro rates after the Referendum 

Of course how Euro rates perform post the Referendum will come down to the outcome of the Referendum. Most assessments focus on sterling weakness on a Leave vote which might see GBPEUR slip to 1.20 and below. I wouldn’t rule out a continued slide on the pound with some forecasts predicting sub 1.20 even in the teens. A Remain vote should see the pound rise with GBPEUR above 1.30 with a possible move over the days and weeks to 1.40 not out of the question.

My experience on exchange rates tells me to expect and highlight the unexpected. It might be that the Euro is actually weakened from a Leave vote. The Euro has relied on lots of overseas investment in recent years which might easily be unwound as we have seen in recent years on the back of the Greek crisis. Could the result of a Leave vote trigger a constitutional crisis in the EU which would expose other wounds? The problems with Greece are far from resolved and it might be that a Leave vote is actually very damaging for the Eurozone and the Euro.

Conversely a Remain vote might not be all sunshine and smiles for the GBPEUR rate. The UK economy has been confirmed to be growing at a very slow pace this year because of the uncertainty over the Referendum. Businesses and private clients are refraining from big decisions such as hiring new workers and investing in their business or property until after the Referendum. This has dented economic activity and is putting further pressure on the economy. A Remain vote is also an implicit agreement to carry on with the (amended) EU relationship which may not be in the UK’s best interests. Perhaps the Leave camp are right and the EU is no longer fit for purpose and the UK being entwined will suffer longer term.

As you can see there are lots of ifs, buts and maybes. I can speak from experience looking after both private client and business transfers for the last 8 years that big events such as this move markets. The Scottish Referendum and the last two General Elections all saw big swings in the weeks leading up to the events. This Referendum is much more important and none of the predictions above could be completely ruled out.

For more information on how to protect yourself and plan a currency purchase in this clearly volatile period please email me Jonathan Watson on jmw@currencies.co.uk

Jonathan Watson is Associate Director at one of the UK’s leading foreign exchange brokers and offers a wealth of knowledge on the currency markets having worked as a currency broker for over 8 years – offering his expertise to both individual and corporate clients on a daily basis. Jonathan’s comments have recently featured in The Telegraph and he has also appeared on BBC News discussing the EU Referendum.

 

Will the Euro recover or fall now?

The recent Eurozone economic data was actually better than expected with Inflation rising to 0.0% which is much better than previous deflationary figure of -0.1%. Does this means that the single currency is out of the woods? Well for the time being the pressure is absolutely off the European Central Bank who had been the target of the markets owing to poor economic data and worries over deflation. The ECB has made some major moves to weaken the Euro which have actually ended up strengthening the Euro conversely! The idea was that extra Quantitative Easing and a reduction in interest rates would increase economic activity and boost Inflation, the economic measures were also designed to weaken the Euro which would also help boost economic growth and increase inflation.

Expectations now focus on the ECB Meeting next week which I would suspect will provide Euro sellers with better news, if you are looking to buy or sell the pound with Euros then Wednesday is also the release of UK Unemployment data which should provide some movement as this is a very important release. If you need to buy or sell the Euro then making some plans in advance of any decision is in my opinion the best way forward.

For the latest news and information on securing the best exchange rates please speak to me Jonathan by emailing jmw@currencies.co.uk

IMF Warns of Global Economic Impact should a “Brexit” Occur (Daniel Johnson)

The International Monetary Fund gave a stark warning to those in favour of the UK exiting the EU. It was stated if there was a “Brexit” it “could do severe regional and global damage by disrupting established trading relationships.” Current polls suggest the leave camp is now in front at 52% which is very worrying for the UK economy. HSBC have recently predicted that GBP/EUR could hit parity if there is a UK exit. If you are a Euro buyer the current Interbank level of 1.25 now seems very attractive.

George Osbourne also had his say, stating “For the first time we are seeing the direct impact on our economy of the risks of leaving the EU. If the British economy is hit by the mere risk of leaving the EU, can you imagine the hit to people’s income and jobs if we did actually leave?”

The IMF has acut the UK economic growth forecast from 2.2% to 1.9%, the weakest forecasts for several years and one of the biggest cuts to any leading global economy.

If you have a currency requirement I will be happy to help. I will happily provide an individual trading strategy. Please do get in touch if you would like a free, no obligation quote. We can often beat Bank’s rates by as much as 5%. You can e-mail me on dcj@currencies.co.uk. Thank you for reading my blog and I look forward to hearing from you.

Will GBPEUR continue to fall next week? (Dayle Littlejohn)

Its now clear that the ‘Brexit’ has started to weigh down on the Pound as GBPEUR exchange rates have dropped over 6 cents since David Cameron announced the UK would hold a referendum in regards to EU membership.

This trend is set to continue up until June 23rd therefore if you have euros to buy trading sooner rather than later may be wise, where as if you are selling Euros to buy Sterling holding off for an extra cent or two could pay off.

If you are looking to buy or sell Euros this year (especially before June 23rd), the currency company I work for enables me to achieve clients up to 5% better exchange rates than the high street banks and other brokerages. I specialise in property purchases and sales. Therefore if you are buying or selling a property this year and want to save money by achieving the best possible exchange rates but also want help in timing your transfer, get in touch by emailing me on drl@currencies.co.uk.

The more information you provide me, the more information I can provide you. Below is a list of what I require: your name, currency pair, brief description of requirement, amount, budget, timescales, telephone number and convenient time to call.

 

 

GBPEUR forecast (Dayle Littlejohn)

If you are buying or selling Euros this year or especially before June 23rd I would seriously be considering your position.

The UK’s referendum is now in full swing and therefore we expect GBPEUR exchange rates to continue to slide up until June 23rd. My prediction is for GBPEUR to be fluctuating between 1.18 and 1.22 come June 23rd.

If the UK were to leave the EU many of the leading banks such as Lloyds and HSBC have predicted rates will fall to parity however I believe 1.10 is more likely. Where as if the UK were to remain a part of the European Union I predict rates will increase back towards 1.30.

Many of my clients want to buy Euros now however do not have all of their funds available, we can still help. A forward contract allows clients to lock into todays exchange rates however they pay later for it. All we require is a small deposit.

Data releases to look out for this week are:

  • German Inflation numbers Wednesday morning
  • UK GDP numbers Thursday morning
  • German Unemployment rate Thursday morning

The currency company I work for enables me to achieve clients up to 5% better exchange rates than the high street banks and other brokerages. I specialise in property purchases and sales within the Eurozone. Therefore if you are buying or selling a property in Europe this year and want to save money by achieving the best possible exchange rates but also want help in timing your transfer, get in touch by emailing me on drl@currencies.co.uk. The more information you provide me, the more information I can provide you, below is a list of what I require: your name, brief description of requirement (buying a house in France), amount in Euros, budgets, timescales, telephone number and convenient time to call.

PLEASE NOTE DUE TO THE MARKETS BEING CLOSED FOR THE BANK HOLIDAY I AM NOT IN THE OFFICE UNTIL TUESDAY MORNING. HAVE A GREAT EASTER BREAK AND I LOOK FORWARD TO SPEAKING WITH YOU THEN.

GBP/EUR rates set to fall this week (Joshua Privett)

Buying Euro rates have begun the early morning trading session with relative stability.

Most of the correspondance I answered over the weekend were enquiries as to where GBP/EUR rates of exchange are expected to go following the roller coaster of movements on Thursday and Friday last week.

The consensus among analysts is that GBP/EUR will likely be seeing central levels closer to the 1.26 mark which was almost hit on Thursday last week, and there are a few reasons why:

  1. The recovery on Friday for GBP/EUR was not due to any positive news for the Pound, nor any negative news to make the Euro cheaper to buy. In fact no relative economic or political information came out on Friday which would have any bearing on the currency markets. So in this instance, the gradual rise of buying Euro rates on Friday following the near 3 cent drop of Thursday, can be seen a standard currency market correction following any severe slide. Thursday’s movement made the temptation for companies and individuals with a short-term Euro selling requirement to move too high. The mass Euro sell-off which ensued explains the gradual gains gifted back to Euro buyers on the currency markets as Friday continued. This suggests these are thus short-term gains rather than a new trend being established.
  2. Wednesday is expected to be a key feature for Euro weakness. Strangely, events in the US are set to be the culprit. USD/EUR is the most heavily traded currency pair in the world, so when either the USD or the Euro weakens, the general rule of thumb will see the other gain signficant strength. USD weakness is expected on Wednesday, as they announce a delay in their second interest rate hike which has been hinted at over the past two weeks. In this instance, a huge amount of capital should flow into the Euro and make the single currency more expensive to buy through increased demand.

However, as the start of the article suggests, this morning has started with relative stability. I believe only on Tuesday will we see markets begin to price in the falls on GBP/EUR buying rates expected on Wednesday. So opportunities may still present themselves today.

I strongly recommend that anyone with a Euro buying requirement should contact me on 01494 787 478 and ask the reception team for Joshua in order to discuss a strategy for your transfer in order to maximise your Euro return.

I have never had an issue beating the rates of exchange offered elsewhere. Should we speak this morning, or even in the middle of the afternoon, we can discuss a plan of action to make sure opportunities are seized rather than missed.

These current buying levels can also be fixed in place for up to a year if you are worried about the upcoming referendum making your exchange more expensive. jjp@currencies.co.uk

GBP/EUR rates dip ahead of UK growth figures tomorrow (Joshua Privett)

GBP/EUR buying rates took a further dip today following lower than expected retail sales figures for the UK economy.

Falling by over a Cent between the high and the low of the day, before recovering later, many Euro buyers were worried that the gains they had made recently were being reversed rapidly.

UK Retail sales were expected to finally show an improvement following months of stagnation, particularly with underwhelming sales during the holiday season. Instead of 2.6% growth in February, they grew only 0.1%.

Markets reacted severely to the news because one of the big events of the month, UK growth figures, which are to be released tomorrow, was suddenly seen with a greater degree of anxiety. 

Many Euro buyers have been looking towards Thursday as a potentially important date to aim for the with expectation of improvements in buying rates. It’s something this website has covered extensively in recent days.

The European Central Bank are expected to announce further financial intervention in the economy. But with the Eurozone’s own positive growth figures released this morning this intervention is expected to be downscaled.

The crystal ball question is now whether the gains on Thursday will outweight the losses expected tomorrow? With this question in the head of many Euro buyers, Thursday no longer seems like the opportunity it once was.

I strongly recommend that anyone with Euros to buy should contact me on jjp@currencies.co.uk and I will respond personally to discuss a strategy for your transfer in order to maximise your Euro return.

Should you wish to secure these recent gains ahead of any expected losses tomorrow then please note that I have never had an issue beating the rates of exchange offered elsewhere. These current buying levels can also be fixed to avoid rates of exchange to avoid expensive movements affecting your transfer.

Euro sellers can also do the same, and I can explain how to make the most of the expected movements in your favour over the coming days. 01494 787 478.

Will GBPEUR exchange rates break through 1.30 by the end of the week? (Dayle Littlejohn)

Last week the Pound gained over 3 cents against the Euro and I put this movement down to investors selling off their Euros for the cheaper Pound we are presently seeing, and the anticipation that Mario Draghi could increase the Quantitative Easing program on Thursday.

Inflation has been a worry for the European Central Bank for many years and the ECB intervened last year (March 2015) by implementing quantitative easing (Q.E). Q.E is where the central bank increases the money supply entering the economy.

If Draghi increases Q.E I believe GBEUR will break through 1.30 and will finish the week in the 1.32s. However its more likely that Draghi will keep his cards close to his chest and this leads to Euro strength and GBPEUR finishes the week in the 1.27.

If you are buying or selling Euros this year, I can give you economic information to help you time your transfer and can also offer you a better exchange rate than what you would receive with your bank and other brokerages. This can be anywhere between 1-5%. My direct email is drl@currencies.co.uk Dayle Littlejohn. Alternatively call me Monday morning on 0044 1494 787 478 and ask to be put through to Dayle Littlejohn.

If you are already using a brokerage I recommend emailing me with the exact figures and I will give you our live price so you can make a comparison. This will take you 2 minutes but could save you a considerable amount of money.

The Pound Gains Ground against the Euro (Daniel Johnson)

Sterling briefly hit 1.30 today against the Euro, this can be attributed to it now being known that public finances in many Euro Zone countries are in a fragile condition, few have fiscal space. I however would not expect the Pound’s rally continue with the Budget on 16th March and the pending EU referendum. George Osborne could make some quite severe cuts when he delivers the Budget due the growing concern around global economic uncertainty. The EU referendum however is the major elephant in the room, with current polls so tight and Boris backing a Brexit for what I think is his own political agenda I feel it will halt any significant Sterling advance.

If you have a Euro requirement I would be looking to take advantage of current levels.

Euro sellers , although you are in a good spot there is the outside chance Quantitative Easing (QE) could come into play at the European Central Bank’ (ECB) interest rate decision on 10th March. The Eurozone has just entered deflation and there is a possibility the ECB could pump more money into the economy to counter it. This would be a shock, but with current levels a mile away from the 1.40s of December it may be wise to play it safe and move before 10th March.

If you have a currency requirement I would be happy to help. I will provide a trading strategy to suit your needs to try and maximise your trade. I am prepared to beat any competitors rate of exchange. Please do get in touch if I can be of assistance. dcj@currencies.co.uk

Sterling continuing its rally to start the week (Joshua Privett)

Yesterday a curve-ball was thrown into a currency market which was allowed buying Euro rates to have their first two-day consecutive gain in 3 weeks. 

The news was that the Eurozone is in deflation. This has put further pressure for further financial stimulus to be introduced, which is what markets have been pricing in ahead of time yesterday and this morning, with the Euro weakening as a result.

The only reason rates didn’t cannon up more with the surprise news (the Euro had been doing well to avoid deflation until this point), is that the UK financial services sector posted some low figures this morning for their performance in February. This caused Sterling to weaken and was wholly expected due to the recent financial crashes recorded globally.

There is still an unexpected net gain for Euro buyers in a market which still points towards further slides on Euro purchasing prices to come. The net movement through my desk today has been people buying Euros or fixing rates to buy Euros with these current gains in mind as a result. 

There are still massive question marks over the UK economy. The Referendum is the key issue which had been caused GBP/EUR rates to slide until yesterday. Many investors will be unwilling to touch the UK until the financial and economic future is set in stone, which means Sterling’s value should fall through lack of demand.

Furthermore the British economy itself is slowing. This was what caused the initial falls on Euro buying rates between December and the end of January. Growth forecasts have been cut, and the recent service sector news above suggests that data will continue to reflect a British economy which is not as vibrant as it was in 2015.

I strongly recommend that anyone hoping to buy Euros should contact me on 01494 787 478 and ask the reception team here for Joshua, in order to discuss how to secure the most competitive rates of exchange in a more buoyant market. 

I can outline a personal strategy for your transfer in order to maximize your Euro return. I have never had an issue beating the rates of exchange offered elsewhere and these current levels for buying Euros can be fixed until you need to make your purchase later in the year to avoid markets moving against you. jjp@currencies.co.uk

 

GBPEUR weekly round up and the week ahead (Dayle Littlejohn)

It was a terrible week for the Pound against the Euro. For 4 consecutive days the Pound dropped against the euro until Friday’s trading period when the market found a steady level in the 1.26s. a €200,000 purchase is now £3,000 more expensive compared to this time last week.

The reason for the Pounds tumble is the volatility surrounding the upcoming EU referendum on June 23rd. The more the press cover this story a ‘Brexit’ seems more likely. Key names within the UK such as Mayor of London Boris Johnson and Justice Secretary Michael Gove have announced they will not be backing David Cameron and instead will back the out campaign.

At the recent G20 meeting in China, finance ministers including George Osborne have warned the UK public how a ‘Brexit’ could have a major negative impact on UK jobs and the economy. In addition a recent HSBC report backs up the finance ministers theory as the bank are predicted Sterling could lose 20% if the UK left the European Union.

The week ahead

The ‘Brexit’ I expect will continue to remain in the spotlight this week and any negative commentary will lead to sterling weakness.

However the next round of Eurozone Consumer Price Index (inflation) numbers are set to be released on Monday at 10am. Januarys figure showed a drop from 0.4% to 0.3% and February figure is set to show a decline from 0.3% to 0.1%.

If this is the case there’s a strong case for the ECB to intervene later this month and up the money supply (quantitative easing) entering the Eurozone each month.

The closer we get to the referendum the more I believe sterling will lose value, therefore if you need to buy euros before 23rd June trading sooner rather than later may be wise. If you do not have all of the sterling available to you right now, we can still help. An option available to you is a forward contract which allows you to lock into today’s trading levels and you pay later for it. All we require is a small deposit. For more information email me directly drl@currencies.co.uk.

Going forward I can give you economic information to help you time your transfer and can also offer you a better exchange rate than what you would receive with your bank and other brokerages. This can be anywhere between 1-5%. My direct email is drl@currencies.co.uk Dayle Littlejohn. Alternatively call me Monday morning on 0044 1494 787 478 and ask to be put through to Dayle Littlejohn.

If you are already using a brokerage I recommend emailing me with the exact figures and I will give you our live price so you can make a comparison. This will take you 2 minutes but could save you a considerable amount of money.

Will Euro buying rates finally see a correction? (Joshua Privett)

There was meant to be an announcement in the morning on Friday concerning the EU deal, but currency markets had to wait impatiently to hear the news, which was not released until gone 9pm, with the uncertainty causing buying Euro rates to drop in the meantime.

The news of a deal being reached seemed to imbue some further confidence in the Pound, yet it only moved GBP/EUR rates by just over half a cent. This was because the news came out only for the last half an hour of trading on North American markets, the last of the world markets to close before the weekend. We will see a delayed reaction until Monday morning, but there will not necessarily be more of the same.

Steps to make sure Britain stays in the EU are what Euro buyers need to see rates move further in their favour, as financial markets traditionally hate changes to the status quo. The news which bolstered the Pound was that a provisional deal had been reached. But the aftermath in the British political scene is still yet to be weighed and measured on the currency markets on Monday.

Five of Cameron’s Cabinet members have already moved against him, and the ‘Leave Camp’ have begun campaigning in earnest.

Furthermore, polls are still incredibly tight between the two factions, so the prospect of a referendum will continue to leave a cloud of anxiety surrounding the UK and the Pound until the referendum on June 23rd.

To give Euro buyers a better idea of what is at stake, the consensus in the City of London is to expect an eventual 20% drop in Sterling’s value should the ‘Leave’ camp come out on top. A completely reasonable expectation given that in September 2014 close polls for the Scottish Referendum saw rates for buying Euros crash by 8%.

I believe the confidence from Cameron to call an early Referendum will be enough to secure some improvements for Pound to Euro exchange rates, but with so much set to take place between now and June, this will likely be a short-term bump rather than the beginning of a long-term trend for Euro buyers to enjoy.

I strongly recommend that anyone with a Euro buying requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer in order to maximise your Euro return. 

If you detail your requirements and the time-scales you have to work with to complete your transfer, I can reply on Monday morning following the initial market reaction, and revised forecasts for GBP/EUR exchange rates over the coming days, allowing you to make an informed decision on your transfer.

I have never had an issue beating the rates of exchange offered elsewhere, and any improvements on rates to buy Euros seen at the start of next week can be fixed to avoid any corrections as we approach closer to June making your purchase more expensive. 01494 787 478 – Joshua Privett