Tag Archives: bailout
Sterling exchange rates – What has Cyprus meant for the Pound against the Euro, Dollar and other major currencies?
The trading floor here is absolutely manic today as it has been for the past week or so mainly thanks the the on-going tale of events over in Cyprus.
Quite simply how can you be comfortable now holding more than €100,000 in an account in a bank withing one of the more troubled economies – realistically you can’t!
The Sterling – Euro exchange rate has been up and down like a yo-yo of late and with news of a potential credit rating downgrade for the U.K by Fitch on Friday evening it did look like the week may start off on the back foot for Sterling unless something major came from Cyprus.
Sterling has indeed lost ground against a number of major currencies but has also gained against those linked to the Euro after events unfolding today.
The Cypriot issue has no doubt created a huge problem for banks all over Europe and in my view is absolutely ridiculous and personally I feel it will now hold the Euro back from gaining too much strength in the near term. For those of you looking to buy Euros in the near future there should be some great buying opportunities coming up however do not make the classic mistake of getting too greedy, in my experience it is always the clients that hold out for that little that seem to end up actually losing out.
If you would like to be informed of any spike in the market then feel free to email me directly for a spike alert djw@currencies.co.uk - just last week a client got in touch with me requesting this, I emailed and called him when the market shot up and then got him a much better rate than he was being offered by his current broker – We don’t only pride ourselves on a highly efficient service but also our rates of exchange too! You have absolutely nothing to lose by contacting me for a comparison just to make sure you are getting the best price around.
Now, what does the rest of the week bring? Personally I feel there will be an extremely volatile market throughout these next few days and it is very hard to put together a decent argument as to how the Euro will strengthen back so I feel (and this is merely an opinion) that the Pound may gain a little more ground against the Euro, especially with rumours that we may see an imminent Italian credit rating downgrade.
Against the Dollar and riskier currencies I see a much flatter market however if things really do kick off in Europe you may see a little Dollar strength as investors seek a safer haven to run to.
If you would like an up to date forecast regarding any currency pairing then feel free to email me directly or to fill in the enquiry form on this website and one of our highly knowledgeable traders will give you a call back to discuss your requirements. We deal with bank to bank transfers ranging from £1000 to help pay bills overseas to multi-million Pound corporate transactions – Just leave a brief description of what you are looking to do and we will make sure the right person gets straight in touch. Contact me (Daniel Wright) the main author and owner of this site by emailing me at djw@currencies.co.uk I look forward to speaking with you.
Will the Euro now be in for a damaging week? Sterling Euro prediction following bailout news from Cyprus (Daniel Wright)
Following a few months of the Euro zone once again being strangely quiet news that has been released this weekend may lead to the Euro seeing a little correction against the Pound this week due to news coming out surrounding the bailout in Cyprus.
Cyprus itself and the Cypriot economy is not the major concern, what does really matter for anyone looking to sell Euros in the near future is the implications that may result from the decision to tax savers at Cypriot banks 10% as part of the package.
What may happen is you could now see savers seeking to pull their funds out of banks in Spain, Italy, Ireland and every other economy that is having difficulty within Europe and this could really dent any chance of a recovery for the European banking sector as at present they really need as much money as they can get and essentially seeing a minor run on the banks in Spain can only damage both them and the Euro.
The more people that pull money out of the banks and back to accounts in the U.K or wherever they feel safer having funds the more trouble the banks will find themselves in and this snowball effect could easily lead to Europe being front page news in the coming weeks and months.
It would not surprise me to see Mario Draghi (Head of the European Central Bank) come out to calm markets and savers nerves this week which could lead to the Euro gaining back strength but I think the Euro is in for a headache of a week against all majors personally.
Sterling is still out of favour for investors however we did see a small recovery towards the end of last week as Governor of the Bank of England Sir Mervyn King finally muttered some positive words about the economy.
We are just over a month away from finding out about the well covered ‘triple dip recession’ and whether or not we find ourselves in it however hopefully this latest news from Cyprus may take the spotlight off of the U.K and indeed the Pound for the time being.
Do you have a transfer to make involving buying or selling the Euro? We have many free tools that you can use to protect yourself against adverse market movements – There will no doubt be some great buying and selling opportunities throughout the week and with the market moving every two seconds it is key to make sure you have a proactive currency broker on your side.
If you would like to be alerted about any spikes in the market then feel free to email me directly explaining what your requirements are along with a contact number and I will be straight on the phone to let you know should an opportunity arise.
You can register your interest with me by emailing djw@currencies.co.uk I work for one of the top foreign exchange companies in the U.K and quite simply we exist to get clients better exchange rates than the banks along with beating any other brokerage at any opportunity we can. Why not get in touch for a free comparison, you have nothing to lose.
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GBPEUR rates falling – 3 month LOW (Steve Eakins)
As mentioned in the last few blogs the story in Europe is creating a change in forecasts and costs for people looking at buying euros or selling euros. A majority of this change has come from Spain, the thorn in Europe’s side as a bailout looms. Europe holds yet another meeting in Brussels over the next 2 days and the speculation that Spain is edging closer to some form of bailout has again changed rates.
I appreciate it may sound beware that Europe need a bailout and as a result they are strengthening. The simply reason behind this that the market estimates that without a bailout Europe could really have problems and theoretically split up. Now that a bailout is closer and on the assumption it goes through it makes it a lot more likely that Europe with continue as we know it.
So GBPEUR rates have fallen back to 1.23, over 2.5% in the last month and an additional cost for euro buyers of £4,125 when needing to buy €200,000. This just goes to show again that “more is lost through in-decision than the wrong decision.” So the next question:
What do I buy euros? and, When do I sell euros?
This is a difficult question to ask as no one has a crystal ball but I am sure that rates will move by 1% in the next 3 days due to the meeting Brussels and China GDP figures on Thursday morning. (Each cent on a £200,000 purchase of euros gives you €2,500 more or less to your
purchase.) It will come down to your risk appetite and as everyone has different amounts to move, time frames when they have to move by and risk appetite, I would suggest getting in contact as I can easily create a suggested strategy for you in your own situation. hse@currencies.co.uk)
Generally however I would suggest making you mind up rather quickly if you need to move before the end of the month as the movement over the next few days could easily become the trend until next month.
If I was a buyer I would limit exposure and buy asap, if I was a seller I would be ready to move very quickly.
Here we have been helping people move funds internationally for over 12 years. You can open an account in a few minutes and have traded normally within 20 minutes. So if you are readying this with interest or want to check your exchange rates from your current provider, please contact us today. Simply put if we could not save you money compared to your bank we would not be in business!
Thank you,
Steve Eakins
Pound Euro – Spanish news
Over the last week pound exchange rates have remained fairly flat with little movement however this changed yesterday when the Euro gained nearly a cent. This created the best time to sell Euros in nearly 2 months, trading at the high compared to the low yesterday would have made you over £500 more for every €100,000 sold back. This market movement was down to a sudden demand for Euros by city traders and again shows how quickly you need to be to take advantage. If you need to complete an exchange and would like to trade at the best price, register your interest via email hse@currencies.co.uk
Over the next week I agree with most specialists that Spain will become the main story;
- Their Stock markets are at a near 20 year low,
- Unemployment is at a record high
- Their banking system is failing
- Data showed yesterday their economy shrunk by 1.3% in the second quarter of 2012
- €72 billion was taken out of Spainish banks last month
It does not paint a great picture especially after the country’s most economically important region, Catalona, said it needed a €5 billion rescue package from Madrid. Even the Spanish deputy Financial Minister said that “the worst is yet to come.”
The Bank of Spain estimates it may have up to €180 billion in bad debt which many think may be more than can be raised. As a result I would expect GBPEUR to have a range of 3 cents from current levels over the next few weeks in either direction.
Please don’t just assume it will push GBPEUR up as we are unsure whether the UK will have to contribute to the bailout.
If you are exchanging currency contact us today and we can pro-actively help you try and catch your target rate. Either email me at hse@currencies.co.uk or contact me Steve Eakins on the normal number. Simply put if we could not help save you money we would not be in buisness so what have you got to lose? If you have a curerncy requirement please feel free to make contact.
The week ahead of economic data – Pound Sterling forecast against Euro, U.S Dollar, Australian Dollar, New Zealand Dollar, Canadian Dollar, South African Rand and all majors – What will happen next with the Euro?
Euro Forecast and latest news from Europe
The Euro will remain the main talking point for weeks and months to come. Bond markets are showing extreme stress which is usually the first sign of a major crisis and the Euro has hit record lows against the Australian Dollar, New Zealand Dollar and Canadian Dollar recently.
The real question everyone is asking is just how much further will it go? Personally I feel there is more weakness to come. Bond markets in Spain are now at Euro era highs and well over 7% (usually the unofficial trigger point for a bailout) Spain is the headline concern at present and on Friday Valencia, Spain’s most indebted region asked for assistance and an 18 Billion Euro assistance program aimed to assist regional finances.
Should Spain require a bailout then we will see a much different kettle of fish to the bailouts we have seen of late, personally I feel it will trigger the beginning of the end of the Euro for numerous economies and global markets worldwide will become extremely fragile to say the least. If you have Euros to sell or indeed are in the process of selling a property overseas a forward contract may be sensible. With a forward contract you can lock into a rate of exchange for anything up to two years for just a small deposit (which can be taken in Sterling) taking away the stress of continuing Euro weakness and leaving you in the peace of mind you know how much money you will actually receive for your property. Feel free to get in touch today on 01494 787 478 or email me directly djw@currencies.co.uk for more information on this contract type.
Pound Sterling Forecast The week ahead
Tomorrow gives us a fairly quiet start to the week with European Consumer Confidence the most notable data release due out in the afternoon, however personally I feel the markets will be fixated on what is happening with European bond levels I feel the Sterling – Euro rate will edge closer to 1.30 throughout the day.
Tuesday we have mortgage approvals data for the U.K which was fairly poor last time around, and retail sales figures for Canada later on in the afternoon. One thing that may throw up some volatility at any point in the day is the fact that Troika (lenders from the European Central Bank, International Monetary Fund and the European Union are due to visit Greece.
Wednesday we have inflationary data from Australia very early in the morning so anyone with AUD interest may wish to put protection in place by means of a stop loss or limit order overnight. U.K GDP data is also out at 09:30am on Tuesday morning and after a fairly poor performance from the U.K of late any sign of things looking up and the Pound may have a good day. Lastly on Wednesday later on in the evening those with an interest in New Zealand Dollars should be aware we have the interest rate decision for New Zealand at 10:00pm. No major changes are expected however a sudden cut in rates could lead to a sharp weakening of the NZD overnight.
Thursday is fairly quiet data wise however like with Monday bond markets will no doubt be key and by Thursday I expect the pace of speculation about the troubles with Spain to be at a maximum leading to very volatile rates of exchange.
U.S annualized GDP figures are due on Friday afternoon along with a host of other data. In times of uncertainty you do tend to see the Dollar gain strength as investors pull of riskier assets and look for a ‘safer haven’. The reason this effects the AUD, NZD and ZAR and pretty much most majors is because as I am sure you can imagine it will affect attitude to risk and will lead to rapid movements of large amounts of money globally in what generally presents a volatile end to the week.
Should you have a bank to bank currency transaction to carry out either imminently or in the future then I can personally help you. I deal with private and corporate clients and offer not only award winning rates of exchange but an award winning level of customer service to match. Email me today djw@currencies.co.uk if you would like assistance and I shall be more than happy to call you back, If you just want updates for now then feel free to join our mailing list by filling in the form at the top right hand side of this page.
