Tag Archives: the best deal on euros against the pound
The pound to Euro rate remains above 1.10 but this level could easily be compromised as it was on Friday. Despite the UK putting forward some excellent economic data the pound has struggled owing to the political and economic uncertainty of what Theresa May’s plan will entail. There are a number of options any clients looking to buy or sell Euros should be considering, usually it is only when exchange rates start costing people money they really start to pay attention.
With GBPEUR having slipped on sterling fears the rate has already broken 1.10 this month and could drop further. The UK economy is now in a very precarious position with UK politicians themselves very worried and concerned with what is lined up next. Theresa May has stated that the UK is seeking what is termed a ‘hard’ Brexit and this will cost UK businesses money through the loss of trade with the Eurozone.
It is worth stating nothing will happen quickly and nothing will change until 2019 or the date at which the new agreement comes into force. Sterling has suffered as big institutional investors previously backing the pound take refuge selling off their sterling positions. The lack of agreement or accord with the Eurozone and EU partners has dealt sterling a damaging blow as all the worst fears of Brexit slowly come to fruition.
Understanding your options is key to navigating this uncertainty. For a small free we can reserve current rates now for payment in the future. ‘Why reserve when rates are so low’ I hear you cry? Well most of the major banks are now all predicting rates between 1.08 and 0.95 for the coming months. Any buyers of Euros scoffing that this will not happen might be wise to consider how many forecasters did not predict rates this low when Brexit was first announced.
If you need to buy or sell currency we can fix rates for up to 18 months in the future for both buyers and sellers. whether rates go up or down is irrelevant, it is the certainty such a contract provides which should be the main reason to lock in. Indeed we are very popular with these deals for both buyers and sellers.
Making plans in advance will cost nothing but your time but may well save you thousands in your currency plus hours of pain and worry down the line. For more information please speak to me Jonathan on firstname.lastname@example.org or call 01494 787 478 in UK business hours.
The author is Chief Analyst and Associate Director at one of the UK’s largest, privately owned FX brokerages.
The Euro has strengthened against the pound as investors seek to sell off the pound and look to move their money into the Euro amongst others. Economic data for the Euro has not been great but with Mario Draghi and the European Central Bank (ECB) hinting they might be ‘tapering’ their Quantitative Easing (QE) purchases the Euro has found some support.
QE is the buying of bonds by a central bank and it causes a currency to weaken. The reduction or withdrawal in any program is however positive for a currency so QE can be a big market mover.
If in the future the ECB do scale back their QE then the Euro could rise further. This could cause more problems down the line for anyone looking to make a Euro purchase or sale since understanding the ECB’s actions is crucial to determining the next moves on GBPEUR and EURUSD. Some weeks ago investors speculated that the ECB would actually be expanding their QE program so what will it be?
If you need to buy or sell Euros we have many important data releases that will determine the likelihood of the next moves on the QE situation and therefore Euro rates. If you are looking to make a conversion why not get in touch with me so I can keep you updated on any news. Understanding the market is key to understanding what lies around the corner. If you would like to discuss anything please speak to me Jonathan on email@example.com or fill in the form below.
Many buyers of Euros are upset at the current level and are keenly waiting for rates to recover back to 1.20 or even higher. This prospect is not completely out of the question but I do feel it is more likely buying Euros will become more expensive not cheaper on a balance of probabilities over the course of the next few months. What we are waiting for if buying Euros is some Euro weakness but for now it is sterling weakness which is driving the GBPEUR exchange rate and taking investors attention.
There are two reasons that could see the Euro weaken at the moment. The first being a resurgence of the Euro debt crisis with Greece and co. Were we to suddenly see Greece hit the headlines again the Euro would certainly weaken but the outlook and likelihood of this happening is fairly limited. Last year the Euro was very weak which caused much volatility across many exchange rates, unfortunately for Euro buyers this is unlikely to quickly reverse. The Eurozone came up with a number of method to manage the risk of the Greek debt crisis which are doing very well so far. The second is that economic conditions in the Eurozone could deteriorate to the point where they might need more QE which would weaken the Euro. This is the more likely scenario to weaken the Euro but the expectation is this is more likely to not happen than to happen.
If you have any questions or currency transfers to consider the likelihood is for more GBP weakness, the challenges for the pound and the UK seem to me to outweigh those facing the Eurozone and the Euro. If you wish to learn or discuss more please speak to me Jonathan on firstname.lastname@example.org.
GBP/EUR trends upward after Construction Figures impress, but will the Pound lose these gains after Thursday’s Interest Rate decision (Joseph Wright)
The Pound trended upward today vs most other major currencies as the latest PMI Construction figures beat expectations, with the markets receiving this news well as they were for July, an important month considering they provide us with an overview of the UK’s construction figures for the first whole month since the ‘Brexit’.
The key date this week is Thursday, because at 12 pm a raft of news sensitive economic announcements will be made with the most important being the Interest Rate decision. There is an expectation within the marketplace that the base rate will be cut down to 0.25% from 0.5% as Mark Carney (the governor of the Bank of England) has alluded to this move previously.
Despite today’s slight gains for the Pound we have seen the Pound fall slightly over the past few trading sessions so I wouldn’t be surprised to see that same pattern re-emerge tomorrow and prior to lunchtime on Thursday. I’m not expecting a big drop for the Pound this Thursday as markets are anticipating the cut, allow if the rate isn’t cut we could see the Pound spike upward which is something Euro sellers should be aware of.
If you have an upcoming currency requirement involving the Pound, or the Euro, it’s worth getting in touch with me (Joe) on email@example.com in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.