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Could the Pound make further gains against the Euro before the end of the year? (Tom Holian)

The Pound has made gains during the week hitting close to a 4 month high at the start of the week owing to the Italian referendum news which saw Renzi lose the vote on constitutional reform.

The Pound then struggled following the Supreme Court hearing but made gains after the government voted in favour of the UK pursuing Article 50.

On Thursday afternoon the Pound then improved vs the single currency as the European Central Bank announced that although they may be reducing their monthly QE volume form EUR80bn to EUR60bn they did confirm that the current programme due to end in March 2017 will continue.

Yesterday morning UK Trade Balance figures published by the Office of National Statistics confirmed that the figure had reduced which is good news and this was reflected in GBPEUR exchange rates which went in an upwards direction breaking through 1.19 on the Interbank level.

I think there is further gains to be had for the Pound vs the Euro next week and we could possibly challenge 1.20 levels especially if the US Federal Reserve decide to increase interest rates at next Wednesday’s meeting.

If the US do raise rates then investors will likely plough into the Dollar causing Dollar strength and Euro weakness. Good new for anyone looking to buy Euros with Sterling.

Both UK and Eurozone inflation data is due out on Tuesday and I think if we see the figures high in the UK then this could see Sterling make gains possibly hitting 1.20 if the news is good.

Having worked in the foreign exchange markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also help you with the timing of your transfer of money.

If you need to buy or sell Euros and would like a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

 

Sterling gains on positive UK trade data, will the bullish trend continue? (Joseph Wright)

The latest set of UK economic data surprised investors today and as a result, the Pound has received a welcome boost across the board.

After a very good November the Pound fell off it’s highs against both the Euro and the US Dollar earlier this week, but the currency is regaining some of it’s lost value and approaching those highs once again which the GBP/EUR pair approaching 1.20 once again.

The Pound has recovered particularly well versus the Euro after the European Central Bank (ECB) announced yesterday that it will be extending its bond purchasing program as a form of quantitative easing.

The Pound gained off the back of this news mostly due to Euro weakness but today those gains have been boosted further. UK Trade is looking a lot healthier after data released today showed October’s visible trade balance dropped to -£9.7bn when many had expected to see it drop from -£13.8bn down to -£11.8bn.

This reduction is of course good news for the UK, and trade balance figures are often discussed in financial media after earlier this year it was announced that the pound had the highest deficit within the developed world.

Now that GBP/USD is trading above 1.25 and GBP/EUR is closing in on 1.20 once again it appears that the Pound is looking healthy around these levels after gaining a lot of ground in a short period of time.

If you’re planning on taking advantage of the recent gains by Sterling by converting the currency into another major currency, feel free to get in contact to discuss  exchange rates and timings.

You can contact me directly jxw@currencies.co.uk 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.

Supreme Court ruling devalues sterling (Dayle Littlejohn)

After 3 days of lawyers discussing if Theresa May has the power to invoke Article50 sterling exchange rates have begun to fall. Furthermore MPs in the Houses of Commons have been debating Labour’s call that the Brexit plan should be outlined to the public before Article50 is triggered. Tomorrow both sets of lawyers will give their closing statements and I expect this could cause further volatility for the pound and therefore sterling exchange rates could fall.

GBPEUR forecast 

With the pound falling across the board, I still think there is a good chance GBPEUR could rise tomorrow. The European Central Bank will inform the market of future monetary policy and in particular the quantitative easing program.

Many economists believe an extension will occur and therefore a rise in GBPEUR exchange rates could occur. Tomorrow is an important day for GBPEUR exchange rates for the remainder of the year, if you would like to be kept up to date due to an upcoming transfer please email me directly drl@currencies.co.uk.

If you are trading another currency pair that I have not covered, feel free to email me with the pair (GBPUSD, GBPAUD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

If you are buying or selling euros in the upcoming weeks and are looking to achieve competitive rates of exchange whilst receiving regular economic information feel free to email me with your requirements or call the trading floor on 0044 1494 787478 and ask for Dayle Littlejohn.

 

Supreme Court and Article 50 uncertainty causes Sterling weakness Tom Holian)

Sterling exchange rates have continued to fall since yesterday afternoon as the positive gains following the Italian referendum seem to have disappeared.

The focus will now turn to the ongoing discussions with the Brexit discussion and the current court case involving the Supreme Court.

Prime Minister Theresa May agreed yesterday that she will publish her plan about how the UK will leave the European Union but the timing of the release is as of yet unclear.

It appears as though Theresa May has had her hand forced by Labour who wanted to see what the plan is in order to proceed with Article 50.

Labour would like the plan to be published by January which may coincide with the judgment made by the Supreme Court.

The next potential for volatility for Sterling vs the Euro will come on Thursday when the European Central Bank meet to discuss their latest interest rate decision.

The ECB have been really struggling to control falling inflation recently and their current Quantitative Easing programme does not appear to have had the desired effect.

Therefore, I think even if the central bank does not change the current QE programme any hints that more easing could come could potentially see Sterling make some gains vs the Euro.

The NIESR publishes it latest set of GDP data for the three months up until November at 3pm today and although this data is not the official release it is usually fairly accurate and therefore often has a big impact on exchange rates.

Having worked in the currency markets since 2003 I am confident that not only can I offer you better exchange rates than by using your bank but also help you with the timing of your transfer of funds. 

If you have a currency requirement and would like to save money when buying currency then contact me directly for a free quote and I look forward to hearing from you. Tom Holian teh@currencies.co.uk

 

 

Sterling gathers pace against the majority of major Currencies. (Daniel Johnson)

Italian Referendum causes the Pound to strengthen

On Sunday we saw Sterling gain strength following the result of the Italian referendum. Matteo Renzi has made the decision to resign following much needed reform failing to be passed. With Italian bad bank loans in excess of €360bn, Renzi was prepared to provide support. With Italian politics in limbo and the new government not necessarily sharing Renzi’s willingness to help the potential for pressure on these banks has caused investors to lose faith in the Euro and move elsewhere. GBP/EUR briefly broke 1.20 providing the best levels for selling Sterling in several months.

Despite the pound falling slightly since these highs it may still be wise to take advantage of current levels. With trade negotiations post Brexit still shrouded in uncertainty the pound could be headed for sharp falls. The Supreme Court Judgement relating to whether the government will get a vote on the triggering of article 50 will be being broadcast live, traders could be ready to move in an instant news is released and could cause volatility on the market.

Data Releases of Consequence

European Central Bank Interest Rate Decision 8th December

On Thursday we will see the ECB interest rate decision, although I expect to see no movement in interest rates. Draghi will be under pressure to divulge his plans on Quantitative Easing (QE). QE is essentially pumping money into an economy in order to stimulate growth. The ECB are currently injecting €80bn a month into the Eurozone in a bid to stave off deflation. The current program is due to end in March. The program is currently not having the desired affect, but were it to be removed deflation becomes a very real possibility which could be catastrophic for the Euro. Draghi will surely lengthen the program and could possibly increase monthly increments which could create an opportunity for Euro buyers.

US Interest Rate Decision 14th December

The 14th December brings the US interest decision. We have recently seen very positive figures from manufacturing and unemployment. Janet Yellen’s position as FED Chair is also being threatened by Trump for her lack of rate hikes so I would be surprised not to see a raise in rates. This will largely have filtered into GBP/USD rates, but once it is confirmed I would still expect Dollar strength. If you are buying dollars I would be tempted to move at current levels.

UK Consumer Inflation Expectations Friday 9th December

Although only an estimate, with the value of Sterling so low, manufacturers and retailers alike will be hiking their prices due to the increased costs of goods bought abroad, which will be passed on to the consumer. There is expected to be a significant rise in inflation so this release could move Sterling value.

If  you have a currency requirement it is vital to be in touch with an experienced broker. The timing of your trade will make  a huge difference to your return during such volatile  times, If you have an experienced broker on board they can keep you up to date with what is happening in the market to help you make an informed decision.  I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.

Italian referendum and the impact for Sterling vs the Euro (Tom Holian)

Sterling Euro exchange rates broke briefly past 1.20 overnight on the Interbank level as predicted in some of my previous articles. Italian Prime Minister Matteo Renzi announced that he will be resigning following the ‘no’ vote in the Italian referendum aimed at reforming the constitution.

In the same way as David Cameron allowed the Brexit vote to happen Renzi authorised this vote to take place and it has ended up going against him forcing him to resign.

The Five Star movement who are aiming to hold their own referendum on EU membership are now likely to gain a bit of momentum and this could see a shift in the political feeling in France, Holland and Germany as they go to the polls next year.

Today, the Supreme Court will be looking at the government’s challenge to overrule the High Court in an attempt to ensure Article 50 will be triggered in March 2017 as planned by Prime Minister Theresa May.

However, the announcement about the ruling is not likely to come out until January 2017 so we could be in for a very uncertain December.

The European Central Bank are due to meet on Thursday and with inflation still running extremely low on the continent the ECB are struggling to combat this problem and could end up with the central bank announcing further Quantitative Easing measures on Thursday and if this happens this could also help push Sterling in an upwards direction against the Euro.

Generally speaking economic data in the UK has been relatively strong during 2016 and it is really only the uncertainty caused by the Brexit vote which continues to keep the pressure on Sterling exchange rates. However, as Europe appears to be destabilising politically recently then I think we may see further gains for the Pound towards the end of the year.

Having worked in the currency markets since 2003 I am confident that not only can I offer you better exchange rates than using your own bank but also help you with the timing of your transfer of funds.

If you have a currency transfer to make and want to save money on exchange rates then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

The impact of the Italian Referendum on GBPEUR exchange rates (Dayle Littlejohn)

GBPEUR exchange rates finished the week at a 3 month high, due to investors selling off their euros in anticipation of the Italian referendum decision tomorrow morning.

Prime Minister Matteo Renzi wants to streamline parliament and take power away from the senate. His plans are to cut senate members from 315 to 100 which would in turn speed up the law making process. It’s important to note that Matteo Renzi has said he will resign if he loses.

The no campaign is being headed by anti-establishment party Five Star Movement, who want to hold a referendum in regards to keeping the euro, as many Italians are fed up that the economy is stagnant,

If the Prime Minister loses the vote then the Five Star Movement party led by Beppe Grillo would receive a boost from the prime minister’s defeat and I think there would be another referendum in the near future in regards to EU membership.

With polls suggesting there is a good chance the Prime Minister will lose the vote I expect the Euro will continue to lose value tomorrow and therefore GBPEUR exchange rates will break through 1.20.

For Euro buyers exchange rates have improved 10 cents in 4 weeks, which means a €200,000 purchase is now £15,000 cheaper!

If GBPEUR exchange rates improve further off the back of the Italian Referendum, euro buyers within the next 0-6 months should seriously consider taking advantage as I believe its only a matter of time until we know more about what Brexit will look like and therefore the pound will lose value.

If you are trading another currency pair that I have not covered, feel free to email me with the pair (GBPUSD, GBPAUD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

If you are buying or selling euros in the upcoming weeks and are looking to achieve competitive rates of exchange whilst receiving regular economic information feel free to email me with your requirements or call the trading floor on 0044 1494 787478 and ask for Dayle Littlejohn.

 

 

The impact of the Italian referendum on Sterling Euro exchange rates (Tom Holian)

The Pound vs the Euro has hit its best level to buy Euros with Sterling since September with the Pound making huge gains against all major currencies during the course of this week

On Thursday the Brexit secretary David Davis made claims that the UK could look to pay money to the European Union even after we have left the EU in an attempt to keep rights with the single market. This is one the main concerns for the UK’s negotiations and sets the tone that the UK may opt for s ‘soft’ Brexit. This helped the Pound to make some very big gains towards the end of this week.

On Sunday the Italians hold their own referendum on constitutional reform with Italian Prime Minster suggesting previously that he may resign if he is unable to get what he wants. Part of the reform is to centralise the banking system which is currently under huge pressure with large amounts of bad debt. If the vote goes the wrong way for Renzi and he does resign this could see Sterling Euro arguably challenge 1.20 during the early part of next week.

During 2016 we have seen many political upsets first with the Brexit vote back in June and then last month’s US election with Trump becoming the next President. Therefore, I would not be surprised to see a ‘protest’ vote with Renzi possibly resigning. Currency does not react well to political uncertainty and this is why I think we could see GBPEUR rates go in an upwards direction next week.

 

Next week the Supreme Court challenge concerning Article 50 is due to take place so I personally expect next week to be volatile to say the least. If you’re either buying or selling Euros in the weeks and months ahead and are worried about what may happen to exchange rates then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.

Having worked in the currency markets since 2003 I am confident that with my experience I can help you with the timing of your transfer as well as save you money when buying or selling Euros compared to using your own bank.

For a free quote please email me directly with details about the volume you’re looking to convert and the timescale involved and I look forward to hearing from you. If I haven’t covered your currency pair and you would like further information again please get in touch.

teh@currencies.co.uk

 

 

 

Italian referendum this weekend to be key for exchange rates early next week (Daniel Wright)

So another referendum is due to happen this weekend, this time over in Italy. Unlike the recent one in the U.K this is not a vote to leave the EU but a vote on constitutional reform.

This is extremely key as it may result in another heavy bout of uncertainty for Italy should the vote got the wrong way for Prime Minister Matteo Renzi, who has already warned that should the vote go against him and stop him from making certain changes that he feels he need to make then he would be looking to step down.

We already have various economic issues for Italy, most notably the banks who appear to be struggling and walking a bit of a tightrope, so should we then see huge political uncertainty added to Italian woes then the Euro may have a bad start to next week and you may potentially see GBP/EUR exchange rates go above 1.20 again in trading early next week.

Considering exchange rates against the Euro were lingering around the 1.10 mark merely a few weeks ago, anyone looking to buy Euros must be looking at the markets with a small smirk on their face as their pending purchase has got a lot cheaper recently.

Sunday night/Monday morning will be the next point of interest for anyone with a Euro interest and with so many other large decisions pending within Europe over the next few months I firmly believe the next 12 months are going to be extremely testing for the Euro.

We cannot forget there is also an election in Austria this weekend too with the far right party holding a great chance of success, causing more issues politically within the area.

All of these referendums and elections will impact all major currencies as we will see alterations in global attitude to risk, so the perceived ‘riskier’ currencies such as the AUD, NZD and ZAR may lose strength and those that are perceived as safer havens may gain ground if results cause uncertainty.

If you have any currency to exchange, no matter where you are based then we can help you out here. Should you wish to have a friendly, proactive and experienced broker on your side then we always welcome new clients to get in touch. I have personally been assisting clients moving money overseas and bringing money back for nearly 10 years so you can be confident that your transaction will be dealt with smoothly, securely and at the best rate of exchange.

Feel free to email me (Daniel Wright) on djw@currencies.co.uk should you be in this position and I will be more than happy to contact you personally. I look forward to speaking with you.

Another Volatile Day for Sterling! (Matthew Vassallo)

It was another volatile day for Sterling yesterday, with the Pound spiking up to a high of 1.1956, before retracting back towards 1.18 by close of European trading.

The Pound received another welcome boost following apparent comments made by Boris Johnson, regarding the free movement of people within the UK following our upcoming Brexit. This immediately gave the Pound market support, with GBP/EUR rates spiking off the back of it. Johnson was quick to speak out against this and claimed he had in fact never made the statement and the Pound lost value as quickly as it had gained it.

There were further comments made by Brexit secretary who clarified the government’s stance to some extent, by claiming the UK would consider contributing to the EU budget in order to guarantee the best possible access for goods and services to Europe. This more official statement is likely to help support the Pound over the coming days but whether it is enough to push GBP/EUR rates back towards the 1.20 mark is unclear.

Yesterday’s rates were the best in over three months for those clients holding GBP and I’m still of the opinion that clients should be looking at these short-term improvements as a window of opportunity. I’m still not convinced that any further Sterling strength will be sustainable under current market conditions, with so much uncertainty still engulfing the UK economy. We still have no clear picture of how we will facilitate our Brexit and with the high court ruling in regards to the triggering of Article 50 still to be ratified by the Supreme Court, who knows what the state of play will be, come the start of 2017.

Sterling has gained over 4 cents in the past few weeks, which on a £100,000 GBP/EUR exchange would be the equivalent of an additional 4000 EUR and considering how fragile the UK economy remains in the eyes of investors, this could the opportunity clients have been waiting for.

For the more risk adverse this month’s Italian referendum could put additional pressure of the Eurozone economy. If the Italian public vote NO to the reforms then current Italian Prime Minister Matteo Renzi is likely to step down, which could pave the way for the far right party to gain support. This would increase the likelihood of a another referendum on Italy’s future participation in the EU and the EUR could come under pressure as a result.

If you have an upcoming GBP currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk