Tag Archives: the best deal on euros against the pound

Next week is very important for the Euro

Greece was positively in the headlines yesterday as Greek bonds were 8 times oversubscribed by investors. Greek debt was one of the causes of Euro weakness which two years ago saw the Euro plummet. Yesterday’s news marks a turning point and could underline a renewed round of Euro strength depending on some other issues.

This morning’s German CPI Inflation data has shown no changes which has given the Euro a small lift. Spanish CPI just released has fallen slightly. With Inflation fast becoming a major headache for the ECB, this is the key topic. There have been numerous discussions of late about extra measures the ECB will take if the overall figures fall.

Next week on Wednesday we have the all-important CPI Inflation data for the Eurozone. This is a very important release and anyone with a Euro requirement ahead of this may wish to assess their position.

The ECB has forecast improvements in the Inflation outlook but if prices keep falling there is scope for some kind of monetary easing which would likely weaken the Euro. GBPEUR and EURUSD have been fairly flat and range bound in the last few months, this could be a trigger to higher or lower prices depending on the outcome.

To keep an eye on rates movements yourself, you can email me Jonathan on jmw@currencies.co.uk

Will the Euro weaken further?

The potential for the Euro to weaken seems rife in this market, I would not be surprised to see this happening very soon. For more information please contact me or read on to learn exactly why the Euro is again under pressure suffering losses against both the pound and Aussie.

The ECB (European Central Bank) has said it will consider looking at a range of stimulus measures if Inflation does not go higher and this is what could lead to Euro weakness. The ECB and some other sources have pointed to the forecast that Inflation will naturally rise in the future so this is something to keep an eye on.

If you have a transfer coming up and would like some expert information on the markets please get in touch with me directly on jmw@currencies.co.uk

As well as offer preferential exchange rates we also make sure all transfers go through smoothly due to our many years experience of navigating foreign banking systems.

We look forward to hearing from you!

Euro goes on the back foot…..

The Euro has struggled a little this afternoon as US Jobs data indicates the US is on the road to recovery and Draghi’s comments yesterday regarding the eurozone outlook come to be seen in a different light. All in all it looks like the Eurozone could be about to remain in a deflationary situation. Mario Draghi may have talked up the Eurozone’s outlook but his reference to measures to avoid catastrophe have probably carried more weight.

I cannot see how at some point in the future the Euro  won’t suffer as a result of the more recent news. If we can see some global improvements sentiments on the Euro may pick up but all in all the recovery is not looking particularly favourable.

If you need to buy or sell euros please speak to me to get the very best rates of exchange. I can be contacted on jmw@currencies.co.uk

 

Important News if you are Buying or Selling Euro!

This Thursday is the ECB Meeting where we learn about Mario Draghi’s take on recent Eurozone events. I personally would be forecasting Euro strength as it is highly unlikely the ECB will take any action. I think this because the Inflation figures are expected to rise next month and core price Inflation was unchanged.

All in all if you need to buy or sell the Euro this Thursday is the most important day this week. If you are looking for a little more from the market speak to us to be kept up to speed with the latest news and events. We are currency specialists who can assist in the safe transfer of currency at commercial exchange rates.

We aggressively undercut the bank and other sources of currency including currency brokers. If you wish to learn more please contact me Jonny directly on jmw@currencies.co.uk. I would be very interested to speak with you and explain the forecast for your currency transaction.

 

Will the Euro now retrace the recent gains?

The Euro has just lately weakened following some not so great economic data on the PMI (Purchasing Manager’s Index) Surveys. The overall data across the Eurozone fell and perhaps more alarmingly one of the worst drops was Germany which is supposed to be the real engine of Eurozone growth.

These PMI surveys are snapshots of current economic data and some of the most up to date data available to allow us to form an opinion on the future outlook. This slightly worse data does paint an interesting picture for next week’s ECB will do.

High Unemployment and possible Inflation problems in the Eurozone have not been solved and whilst I cannot see the Euro weakening majorly, the outlook is not quite as positive as for the last couple of weeks. If you need to sell Euros for GBP you are currently just a cent from the best rates for such a transaction in 2014. I think if you are selling euros moving sooner or selling on the dips is the wisest thing to avoid being caught out.

For more information email me Jonathan on jmw@currencies.co.uk

Big day ahead for Sterling and the US Dollar for buying the Euro (Ben Amrany)

The Euro has weakened against both the USD and GBP over night and I feel the trend today may continue. Eyes are firmly set on UK data releases with an extremely busy day ahead. UK unemployment and the bank of England minutes will be released at 9.30. Any move below the 7.2% for unemployment should cause the pound to gain on the Euro before we have the chancellor announce his plans for the UK budget. If I was buying Euros I would be targeting the 1.20 rate on the interbank to look at locking ion your trade.

Against the USD over in the states the FED will be announcing their interest rate decision for March. No change is expected but with rates for buying the Dollar close to a two and a half year high you may be wise to look at buying the Dollars you need before  rate goes against you. We expect the Dollar to recover once they step up their Taper which we may learn about this evening.

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at bma@currencies.co.uk

Tomorrow is a very important day for the Euro against the pound

The best rates to sell Euros in 2014 are currently upon us. They may not last long due to the prospect of the ECB looking to weaken the Euro later this year. Mario Draghi has said he would view the EURUSD rate at 1.40 as a problem in that it would be a possibility of weakening the Euro. The ECB do not want the Euro too strong as it will make growth in the Eurozone difficult as companies struggle to sell their goods and services.

The outlook does appear to favour the pound in as much as the UK’s economic position is improving. However having said that there is always the problem of the trade balance. The euro remains strong because there is more money coming into the Eurozone than going out. Compare this to the UK where we import more goods than we export. This is reflected in the balance of payments and means that despite the problems of the Eurozone the currency remain s very strong.

Further ahead I am sure we will see the pound strengthen against the Euro but it could take some time. In the meantime if you need to make a currency exchange selling Euros for the pound moving sooner is really the best course of action to lock in these best rates of 2014.

For more information on what to expect on the market and how to move money internationally at the very best exchange rates, please contact me Jonathan directly on jmw@currencies.co.uk

Key Issues on the Euro

There are some key topics which are likely to move exchange rates in the coming few days and weeks. If you know what to look for you can plan your exchange around these important factors.

Inflation has been a key topic moving the markets lately, just lately however we have seen the inflation rate rising which for the time being removes any immediate need for the ECB to act. However it is perfectly reasonable to expect the inflation rate to fall again due to low growth and low demand in the Eurozone.

The risk to me would appear to be on the downside for the Euro as economic growth remains subdued and Unemployment high. Today’s Eurozone data just goes to show how nothing should be taken for granted. For more information on what to expect on the Euro and other currencies you can speak to us.

Tomorrow is a very big day with the latest ECB and BoE Bank decisions to be scheduled. I expect the Euro could fall slightly in the afternoon, if you have pounds to buy with euros I think moving sooner is the best course of action to avoid disappointment.

To learn more about the current forecast and everything going on that could affect your exchange rate, please contact us for the latest news and updates. You can call 01494 787 478 or email me jmw@currencies.co.uk

 

Eurozone Inflation rises

Immediate fears of Eurozone Inflation falling have ben thwarted with the latest data showing an improvement in the Inflation picture. Just what can we exepect in the coming months to move this higher or lower?

This removes any immediate need for the Eurozone and ECB to act to inject monetary stimulus further into the economy and should mean rates for selling euros stall, with a chance of improving in the short term. The expectation is that the rates could tick up higher if the UK economic picture is shown to be positive, we will get this news early next week.

All in all the expectation is that we will continue to see the rates improve longer term for buying Euros as the economic picture in the UK outweighs that of the Eurozone. Today’s Inflation data just goes to show how the rates can move unexpectedly. For more information on getting the very best deals on your currency please contact me directly on jmw@currencies.co.uk

The Euro to remain weak for 2014? (Ben Amrany)

Ben Amrany

The Euro has remained fairly well balanced against many of its major counter parties with very little movement across the board. Against the pound sterling, the Euro is slightly down around 0.11% on a day where Germany released their GDP figures for Q4 of 2013 showing signs of slight growth of 0.4% for the quarter which is expected to be lower than many other economies. However the European commission have stated that they feel Germany will grow at a faster pace than that of France and Italy for 2014.

With all the austerity cuts affecting confidence within France the French citizens have become disillusioned by the tax changes and I feel this will cause the country to continue to struggle in the near term unless something drastically changes.

Germany is now expected to grow at a rate of 1.8% for the course of this year which is good news for the region and the single currency but it highlights how the entire economic area of Europe will be bought down by the smaller countries.

Looking forward I feel that the Euro will continue to struggle as other leading economies start to grow at a faster pace then Europe. With the Euro showing signs of deflation there is very little chance we will see an interest rate hike so this will continue to weigh on the currency and cause it to remain weaker than over the last few years. If you are selling the Euro then I would not be holding off to long. If you look at events in 2012 the GBP/EUR rate went as high as 1.29 and if we see just a 3% decrease in the Euro then we will b as high as 1.25 and this is a significant loss compared to where we are currently trading at.

If you are looking at buying the Euro in the near term I would be looking to see if we get another spike for sterling and then capitalise if we breach the high of the year. If you do not wish to take any risks then you can forward buy the currency you need to give you the peace of mind in knowing how far your funds will go. If you would like to speak with myself regarding a requirement that you have I can explain the options available to you to help you make a saving over your bank with your exchange. Please feel free to email myself Ben Amrany at bma@currencies.co.uk

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at bma@currencies.co.uk

 

Euro under pressure but next week may bring relief. (Ben Amrany)

The Euro has had a mixed start to the day but has continued to weaken against the pound sterling. In the UK the data releases showed that retail figures for January dropped to -1.5% when we were expecting a decline of  -1.0%. There was also a dip for the year to 4.3% when we were expecting growth of 5%. When the release was released the pound did weaken but it bounced back very quickly.

Looking into next week there may be some relief for Euro sellers as on Tuesday Germany will be posting their GDP figures for Q4 of last year. Recently the GDP figures for some of the European countries have been a little more favorable. If there is a healthy number from Germany I would expect to see the Euro strengthen and on the same day the UK will have their Inflation report hearings. As inflation has been falling this could put pressure on the pound so those of you looking at buying Euros may be wise to look at your transfer before Tuesday to make sure you still achieve a very attractive rate.

If you are leaving your GBP/EUR exchange to mid next week then on the Wednesday the UK will release their GDP figures. We are expecting growth for the UK economy for Q4 of last year but will it be as strong as expected. This is what makes deciding when to do your exchange so difficult. A poor number should put pressure on the pound and if sterling falls after the inflation report hearing we may just well dip below 1.20 on the exchange.

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at bma@currencies.co.uk

 

 

Why is the Euro strong?

Jonathan Watson

The Euro continues to hold its own and fend off attack from the pound and the dollar. This is despite political uncertainty in Italy and fears of deflation among other more common worries in the Eurozone like low growth and high unemployment. Why is this and what can we expect up ahead?

Balancing the books

In 2013 as a whole, the seasonally adjusted surplus for the euro area current account amounted to €221.3 billion (around 2.3% of GDP), compared with a surplus of €128.6 billion in 2012. This is a quote straight from the European Central Bank website which you can view here.

There is still huge net flows of capital coming into the Euro area and what currency do they need to be in? Euros of course. This is an often overlooked yet highly significant reason for Euro strength. Compare and contrast this impressive increase in their surplus with the UK’s position; The United Kingdom’s (UK) current account deficit was £20.7 billion in Quarter 3 2013 (drawn from the ONS website here).

As the Eurozone continues in this vein it makes it a more attractive currency than the pound from an investor point of view. An investor buying Euros for speculative purposes would be far more interested in the Balance of Payments (whether the country and currency operate trade surpluses or deficits) than headlines about one countries political problems (which they would have know or expected anyway).

With the UK tacking a course to raise interest rates in 2015 there is a good chance of the pound making further gains on the Euro in the future but this is by no means certain and it could be many months, maybe even next year before this manifests itself in the actual exchange rate.

If you need to buy euros with pounds or USD and are expecting rates to go higher based solely on the headlines you may be disappointed. ..

The author is Jonathan Watson, a currency strategist and trader at www.currencies.co.uk, please feel free to contact him on jmw@currencies.co.uk for more information