Daily Archives: August 3, 2012
GBPEUR rates when to buy or sell
Over this week the GBPEUR exchange rates have been very volatile, moving by nearly 3 cents in 5 days. Regular readers will be aware that is has been down to speculation that the European Central Bank would change banking policy for the better, and help the Eurozone out of problems. However this seems to have been just a political ploy as nothing significant was announced and as a result the gains the euro had seen evaporated over a few minutes.
So what can we do can we do to help?
All the authors of www.eurorateforecast.com www.poundsterlingforecast.com and http://www.gbpeuroforecast.co.uk/ work alongside me at a company called Foreign Currency Direct PLC and we have been helping people move money internationally for over 12 years. We have won a number of awards for both our exchange rate and our service, quite simply put, if we could not save our clients’ money against the banks we would not be in business. If you need to move funds and want to make sure you are both getting the best exchange rates and want help to try and time your exchange, we can help.
Example
I have helps two clients that contacted me this week after reading my blog on Monday. In both occasions they were looking to sell euros and buying pounds. One of which had all the funds available and the other who didn’t was decided to use a Forward contract. In both situations it was decided to move on the expectation of change yesterday rather than waiting for the release which seems to have been the correct decision. Both saved over 2 cents compared to when they first contacted me, plus if we had waited any longer it could have cost them a lot more. At the time we worked out that one saved nearly £8,000 and the other £2,500, or 2%.
These are normal clients and situation, we are helping people do this every day of the week. If this sounds like something you might be interested in feel free to contact us with no obligation so we can introduce ourselves a little more formally. Either call us on 0044 (0) 1494 787 478 and ask for me Steve Eakins or email me at hse@currencies.co.uk
What will happen with sterling and Euro exchange rates in the next month or two
Europe kept their interest rates on hold but lack of comments from the ECB caused the Euro to weaken.
I am the first to admit that yesterday we all seemed to get our prediction wrong. We were expecting to see further Euro gains against the pound and a range of other currencies on the back of the ECB announcing their latest plan to help solve the Euro crisis. A week ago the president of the ECB announced that they will do everything to keep the Euro in existence.
In the lead up to the interest rate decision the pound lost over 2 cents against the Euro on the back of the comments. We believed that if their were strong comments to come from the ECB that markets would have been boosted further. We were all let down by the ECB as they stated that they would come up with ways to help struggling Euro zone countries ‘over the coming weeks’ The lack of an immediate announcement caused stock markets in Europe and the single currency to react badly and losses were witnessed.
Now going forward I feel that until we hear anything concrete from the ECB the Euro losses will continue. But at some point over the ‘coming weeks’ we will hear the ECB’s plans and it may bring that short term relief for clients looking at selling Euros. Over the last week we had many clients selling their Euros as we saw the Euro gain about 1.5%. There were numerous forward contracts taken out and limit orders filling. If you feel that one of these options may be suitable for you then please do contact me at bma@currencies.co.uk or you may call me on 01494 787 478 to see if our service may be suitable for your requirement. Just ask for Ben Amrnay for a one on one and we can discuss your requirement and the options that are available to you in detail.
Yesterday afternoon as the rate for GBP/EUR rose and all the Euro buyers re surfaced. If you are buying Euros the next week or two may enable you to still trade just of the high of the year. With rates at around a 4 year high you may feel that a forward contract could be ideal if you do not have full funds currently available and are concerned that the rate may move against you. After all we are expecting over the coming weeks some big comments from the ECB.
The Bank of England held rates too
While most eyes were on the ECB, the Bank of England also had their rate decision. They kept rates on hold at 0.5%. We were not expecting a movement on the rate although their has been calls for the BoE to cut interest rates as QE is starting to run its course.
Now in general I expect the latter part of the year to be a struggle for the pound. We have recently seen rates drop against the Aussie & Kiwi Dollar to the lowest levels this year and this seems to be the theme in general. We have seen a run of poor data to come out of the UK and this is really hampering the pound. If the next set of data releases next week continue to be negative then I would expect further losses for sterling exchange rates.
When deciding when to carry out your currency conversion you must make sure that you achieve the best rate possible. Not only do we here offer you a very personal service to help guide you through what is happening with the currency pair you need. We will also make sure that we will not be beaten in prices by the high street banks and other currency brokers. If you would like to compare our rates or just want to have an informal chat about your requirement you may contact me at bma@currencies.co.uk or you may call me on 01494 787 478 and just ask for Ben Amrany. We can then go over the options that are available to you to help you minimise your risk to volatile exchange rate fluctuations.
Ben Amrany
