Tag Archives: the best deal on euros against the pound
Ah yes the Greek debt saga, that good friend of anyone buying Euros. Sometimes it is helpful to look at where we have been in order to understand where we are going and this is true with the Greek crisis. My first post on this blog was May 13th 2010 and guess what one of the topics was? That’s right Greece. Please read the post here if you wish to step back in time. At the time the Greek debt crisis was unfolding and here we are six years later and the problem is continuing with worries coming back to the market. Since then billions of Euros have been pledged to support Greece through various clever ways to massage the finances and make it appear Greece will be able to pay back the debt. The growing reality is that they will not be able to pay it back and at some point confidence will evaporate. That date could be another six years away though as the Troika (IMF, EU and ECB) continues to kick the Greek issue around like a worn out school playground football.
The reality now is some sort of debt relief must be agreed for the IMF to continue their involvement. Germany will have to accept further measures to help Greece (despite their unpopularity) or face the alternative worst prospect that of a messy Greek default or the Eurozone entering deflation. I think the next important steps in this event will not arise in July when the next payments are due although this will be a period of Euro weakness for clients buying Euros to capitalise on.
The next big test will come once further blank cheques have been signed and the German, French or Dutch people elect a government who will no longer authorise the payments. At that time the economic problems become political and that dear reader is when Greece may be forced to leave the Eurozone. German elections are next year and despite Merkel’s recent unpopularity I expect her to remain Chancellor. It will be elections in 2021 that are the real test I feel as the gentle declines in goodwill which are clearly evaporating across Europe begin to manifest into a deeper more serious problem.
So happy 6th birthday to me on the blogs, I wonder dear reader where we shall be in another 6 years? Finally the 6th of May was the anniversary of the opening of the Channel Tunnel. Who would have thought that 22 years later from this significant date in 1994 British relations with the EU would have changed so much?
For any further information and to keep up to date with market insight please contact me email@example.com
Much is being made of the pound’s collapse should the UK leave the EU. But what would be the impact on the single currency once the UK decided to abandon ship?
The euro could suffer greatly from a Brexit as investors become fearful over the future of the EU. It is no secret that more nationalist parties are finding favour across, the National Front in France, UKIP in the UK and anti immigration parties in Germany and the Netherlands too. Eastern Europe has become very introverted following the large scale migration seen in the last 18 months. Should the UK leave the EU then this will act as a sign to other EU economies (with most using the Euro) that there is another way besides the Brussels way.
The UK is a key leader in the EU and the withdrawal of the UK from this arrangement would undoubtedly raise serious questions over the outlook for the rest of the EU, the principal currency of which is of course the Euro. Part of sterling’s strength is the large amount of confidence in the UK’s financial institutions and government. The transparency in our systems and strength of rule of law plus the independence of the Bank of England means for all the problems, the pound is a haven. Many pension funds, hedge funds and banks use the UK as a safe place to do business. The Euro by contrast is stronger but is held by many Asian investors and could be more susceptible to weakness in the event of major uncertainty.
If you need to buy Euros with pounds the next few weeks and month are going to be very tricky as we begin to understand just how the UK and the EU’s relationship will develop. Even a ‘Remain’ vote will see a turn in the UK’s relations with Europe and this will have consequences for both the pound and the Euro.
For more information on what to expect in the future on Euro exchange rates please speak to me Jonathan Watson by emailing firstname.lastname@example.org
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 email@example.com. 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 firstname.lastname@example.org
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.
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 email@example.com
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 firstname.lastname@example.org.
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.
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 email@example.com. 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.