Tag Archives: buying euros

Why is the Pound losing value at the moment, and will it continue? (Joseph Wright)

Brexit jitters are continuing to weigh on the Pounds value, with the currency losing a substantial amount of value over the past week across the board of major currency pairs.

Currency markets were already weary of the Pounds future price movements as we await the outcome of the Supreme Courts impending decision on whether or no the UK Government requires parliamentary approval before beginning the Brexit.

These fears were exacerbated over the past weekend as a much talked about interview offered the marketplace an insight into the UK PM’s plans for the Brexit. UK Prime Minister, Theresa May alluded to prioritising the control of immigration, as opposed to focusing on retaining the UK’s access to the single market.

Moreover, May commented that the UK cannot keep ‘bits’ of EU membership and this comment has fueled the fire of bearishness towards the Pound at the moment.

It’s for these reasons that we’ve seen the Pound soften over the week, and the sell-off accelerated this afternoon after May announced that she will be giving another major speech on her Brexit plans on Tuesday of next week.

I personally think that the Supreme Court decision will have been announced by then, so there’s a possibility we could see a lot of volatility between GBP exchange rates between now and then.

Until then, I think that anyone with a currency exchange requirement involving the Pound should pay close attention to the Supreme Court decision. The likelihood is that if the Government is successful in their appeal we can expect to see the Pound fall further, as the Government plans on invoking Article 50 at the end of March and there polices generally lean towards a ‘Hard Brexit’.

On the other hand if they’re unsuccessful the general consensus is that the Pound could get a lift. Feel free to get in touch if you wish to be kept up to date with the outcome of the Supreme Court’s decision, as of yet we have no definitive time as to when this announcement will be made.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on 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.

You can also speak to me directly on the phone by calling 01494 787 478 and asking reception to speak with Joe.

Sterling continues to fall following Theresa May’s comments (Daniel Johnson)

Sterling has a rough start to the week

Following Theresa May’s comments this weekend, where she hinted toward a hard Brexit sterling has fallen heavily with GBP/EUR sitting in the 1.14s and GBP/USD in the 1.21s.  She stated during a Sky News interview that she would consider giving up free trade for control over immigration.

I think more important however will be the ruling in regards to the supreme court judgement on whether parliament will get to vote on the triggering of article 50. If parliament do get the vote it is probable there will be a soft brexit, with temporary trade deals in place while negotiations take place. This eventuality should cause the pound to rise.

If parliament do not get the vote a hard brexit becomes the probable outcome and this could result in trade negotiations being troublesome and elongated. Sir Ivan Rogers, the UK ambassador to the EU recently resigned  due to what he considers to be unrealistic estimations on how long brexit will take. The current target for a full exit from the EU is two years, Sir Ivan thinks it will be nearer ten.

I would expect the the supreme court ruling to come through between the 12th-17th January, keep your eyes on developments on the case as this could have major implications on the value of the pound.

UK data releases that could effect Sterling short term

Tomorrow will see the release of UK manufacturing data where I would expect to see an improvement which could cause some respite for the pound. GDP figures are also released on Wednesday and I would again expect a slight improvement. Please be aware however that any news from the supreme court judgement is likely to outweigh these data releases.

If you have a currency requirement I will happily assist. If you let me know the details of your trade I will provide a comparison against your current provider and also formulate a trading strategy to suit your individual needs. You can trade in safety knowing you are dealing with a broker from Foreign Currency Direct PLC, a company trading for over sixteen years with the highest credit rating and one which is also registered with the FCA. Please do get in touch by e-mailing me at dcj@currencies.co.uk. Thank you for reading our blogs.

Sterling remains under pressure despite positive data release, is this a sign of things to come? (Joseph Wright)

The Pound has come under pressure today despite the UK economy posting some better than expected figures in an important sector of the UK economy.

After beginning the day negatively the Pound received a slight boost this morning as Services PMI data came out better than analysts had expected. The data showed that sentiment within the services sector is positive, which is important for the UK economy as the services sector amounts to more than two-thirds of the countries economic output.

In normal market conditions it wouldn’t be unusual to see the Pound spike upward off this news, and although it attempted to the currency is currency down against all major currency pairs with the exception of the US Dollar, which has dropped in value today also across the board.

Those concerned with the value of the Pound should pay close attention to the outcome of the Supreme Courts decision on whether or not the government needs parliamentary approval before beginning the Brexit process.

This topic appears to be the biggest mover of currency pairs involving the Pound and the Euro could also feel the effects of the decision. The outcome is scheduled to be released between the 12-17th of this month and I expect expectations of the decision to effect Sterling’s value between now and then.

Other than this, economic data could also weigh on Sterling’s value especially if it disappoints considering what happened today. Feel free to get in touch if you wish to discuss any upcoming news releases and how they could effect your upcoming currency exchange requirement.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in touch with me on 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.

You can also call in to speak with me on 01494 787 478, just ask reception for Joe. 

 

Exchange rates for buying Euros and Dollars showing mixed results to begin the New Year (Joshua Privett)

The Pound has begun the year without much clear direction following what had been quite a difficult festive period for buying Euro and Dollar exchange rates.

GBP/EUR and GBP/USD have shown some gains whilst anyone with an Australian Dollar interest has suffered the most so far in 2017, with a loss of 3 cents on GBP/AUD recorded within the past 48 hours.

Frankly, this is a return to some normality on currency markets. With the Brexit dominating headlines for the final 6 months of last year, markets were remaining flat until any little piece or morsel of news came our regarding the mechanics of the Leave process, and many other events were largely ignored.

Some are now arguing that markets have adjusted to this new ‘reality’ of a long and pro-longed Brexit negotiation and are beginning to return to some semblance of normality. Rates to buy Euros, US Dollars and Australian Dollars now seem to be paying attention to daily releases in economic performance data which had largely been ignored for the last 6 months when determining the value of each major currency.

For example Sterling enjoyed strength to begin the year when performance figures for our manufacturing sector were through the roof (as a cheaper Pound encourages buyers to come to the UK’s shores), and the Euro benefited from similarly positive inflation figures released at 10:00 this morning. This explains the roller-coaster on GBP/EUR over the past few days as both have gained value against the other.

A medium-term look at Sterling exchange rates still sees potential opportunity between the 12-17 January when it is expected the Supreme Court decision on Parliament’s role in leaving the EU will be decided.

The heavy expectation is for the Supreme Court to uphold the Judicial Court’s decision in November to allow Parliament the vote on triggering Article 50, which contributed to the strong Sterling boost that month – and is why most major financial institutions expect a mirroring of this Sterling strength in January.

In the short-term, we can look to economic data for clues on forecasts for Sterling Euro, Sterling US Dollar and Sterling Australian Dollar exchange rates.

The key piece of data this week will be Friday’s unemployment figures in the US, which will send ripples throughout the financial markets, and if last month’s was anything to go by, will likely present further opportunities for Euro and Australian Dollar buyers alike.

With a positive short-term view for anyone buying a foreign currency, and the anticipation of medium term gains, anyone looking to sell Euros, US Dollars or Australian Dollars will be wise to look at their options to protect an upcoming transfer into Sterling from becoming more expensive.

Anyone with a foreign currency purchase later on in the year would be best placed to monitor the markets over the next few weeks, and if you do not wish to leave yourself exposed in the run up to the triggering of Article 50, can secure an exchange rate there and then if any tempting opportunities emerge, whether for an immediate transfer or one planned for the future – it is a simple process to pre-book your currency using the exchange rates available that day.

I strongly recommend that if you have a planned transfer either to buy or sell Euros or Dollars before April this year, you should contact me overnight whilst markets are quiet on jjp@currencies.co.uk. I will respond as soon as I am able to discuss a strategy for your transfer to ensure tempting levels are seized quickly, and that your upcoming transfer is protected from any prospective dips in the marketplace.

Furthermore, I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation should save you thousands on an upcoming transfer. I am happy to provide a quote for your transfer to demonstrate this.

I have had quite a few new clients recently who said their previous broker suggested they had to move immediately with the formal Brexit proceedings looming, but in this market, as has been proven in recent months, there are still heavy opportunities for foreign currency buyers even in the next few weeks.

 

 

US Interest Rates up by 0.25% (Daniel Johnson)

Last night saw the US interest rate decision. Janet Yellen the Head of the Federal Reserve indicated at the end of last year there would be as many as four rate hikes during 2016. None of which materialised, she has been branded with a very  cautious reputation. Although the FED is meant to act as a separate entity, I can’t help but think the FED’s caution was due to the uncertainty surrounding the presidential election.

Trump has been very vocal about his wish to raise rates and has gone as far as to threaten Yellen’s position. Rates went up by 0.25% as anticipated so there was little movement on the GBP/EUR. Yellen stated after the hike that there would be up to three hikes this year, this can be taken with a pinch of salt as with most forward guidance.

Many investors left the Euro for US dollar due to safety and of course an increase in return. The dollar rallied against the Euro, but as mentioned earlier there was no great shakes on GBP/EUR.

With all the uncertainty surrounding Brexit trade negotiations and 1.20 seeming to be a resistance barrier if I was buying Euros I would be tempted to take advantage of current levels.

The timing of your trade is vital during such volatile  times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. If  you would like me to assist with your trade 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.

 

 

Sterling Exchange Rates after US Rate Hike (James Lovick)

The US raised interest rates last night by 0.25% as widely expected which marks a one year anniversary since that last 0.25% interest rate hike. The pound has seen little market reaction from the news so far but going forward the decision by the Fed to hike does show its will to steer the rest of the world in this direction and away from Quantitative Easing.

This morning sees UK retail sales numbers for November which could create volatility for the pound. My view is that November may actually see a weaker number on the high street which could see the pound fall this morning. The milder winter in my opinion is likely to have meant less shoppers on the high street although Black Friday may have bumped up the numbers.

However it could mean a bumper December figure when the figures are released in the New Year.

At lunchtime the Bank of England will be meeting to announce and changes to monetary policy. A change in the form of a rate cut or rate hike is highly unlikely although any comments from Bank of England Governor Mark Carney are likely to direct the price of the pound. The announcement is always one to be aware of as his comments can create high volatility!

Rates for GBP EUR are still trading almost 10 cents higher than one month ago which has presented a good opportunity for those clients needing to buy Euros. Similarly rates fro GBP USD are almost 7 cents higher but struggling to climb much higher for this pair.

If you have an upcoming currency requirement either buying or selling pounds and would like to be kept up to date with all the latest market movements, 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 James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Buying Euro rates soar whilst GBP/USD and GBP/AUD remain relatively stagnant (Joshua Privett)

Buying Euro rates of exchange have enjoyed a further boost following the long (to say the least) awaited announcement of further emergency stimulus in the Eurozone to keep growth on track. However, GBP/USD and GBP/AUD have remained relatively stagnant following the Pound’s losses earlier this week.

The Pound has come under renewed pressure this week as the Supreme Court decision over Parliament’s involvement in the Brexit negotiation was debated and fleshed out in what was, on occasion, quite gripping television.

Previously the Judicial Court had ruled in the favour of Parliament being involved in the invoking of Article 50 as a voting process. The frenzy of investors flowing into Sterling, which raised its value through increased demand. was attributed to the high expectation that Parliament’s involvement would yield a longer time-frame for the UK to enact a Brexit, alongside the likelihood that MP’s would push to retain close economic ties with the EU.

This has now been called into question on two fronts. Firstly, MP’s have cut a deal with Theresa May to push through a mandate that Parliament will support the Government’s deadline to enact Article 50 by the previously agreed date of March 2017. In return, May will be more forthright about her plans for her upcoming negotiations with the EU which were announced on Wednesday.

Secondly, the appeal with the Supreme Court is not simply a re-hashing of the previous court case. The Government is using more complicated lines of argument, including precedent from Parliament’s actions, to suggest that the Government can act unilaterally without heavy Parliamentary oversight.

Whilst it is debatable how much this is landing with the judges, markets have certainly been made nervous that even though the Government is appealing, they have a chance of winning. Whilst this is not a murder trail with sudden new evidence coming to light, with little precedence for such a decision in the past, the uncertainty about which way the Supreme Court may swing is high.

This uncertainty is what has caused Sterling to lose some of its recent strength, it is simply a gift for anyone with a GBP/EUR interest that this has coincided with news of further financial stimulus in the Eurozone to reverse some of these losses. US Dollar and Australian Dollar buyers are unfortunately not so lucky.

Moving forward the US interest rate decision on Wednesday next week will likely provide a further boon for Euro buyers (due to the special relationship between USD/EUR) and additional woes for US Dollar buyers.

In the medium term however, the Pound is expected to have its rally against all major currencies dampened further by year-end profit taking which is set to take place in the latter part of December, so whilst US Dollar and AUD buyers may need to move with greater urgency, Euro buyers may see a ‘sweet spot’ emerging on GBP/EUR over the next week or so.

In these instances it is best to be in a position to move fairly quickly in case any tempting opportunities emerge, and the well informed purchaser will certainly have an advantage to avoid being ‘last to the party’ and being forced to accept a rate of exchange below any premium which is reached.

I am in a position to offer a proactive service to help my customers in timing their transfers, particularly during these volatile periods, in order to secure desirable exchange rates. I work for one of the UK’s leading brokerages with the average tenure of our dealer’s being in excess of 8 years in this job – longer than most companies in their entirety – so I am ideally placed to secure the most competitive rates and have never had an issue beating the rates of exchange on offer elsewhere for GBP/EUR, GBP/USD, and GBP/AUD. Simply contact me on jjp@currencies.co.uk and I will respond as soon as I am able.

Similarly if you are looking to be buying Sterling, as my article points out there are likely to be further opportunities for you later in the month with a cheaper Pound, so you can contact me to discuss the options open to you to monitor the markets and secure a desired exchange rate.

 

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.

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.

 

 

Buying Euro and Dollar rates soar from Boris and David’s comments (Joshua Privett)

Fresh two and a half month highs were reached earlier today on buying Euro and Dollar exchange rates following surprising and contentious comments made by the men spearheading the Brexit project.

David Davis and Boris Johnson, the Brexit Secretary and the Foreign Secretary respectively, have come out this morning seemingly having taken a U-turn on key positions which financial markets pounced on immediately. At its peak GBP/EUR bridged 1.1950, GBP/USD breached 1.2690 and GBP/AUD just pipped over 1.7150.

Financial markets have made no secret that they want the UK to remain part of the single market. Collectively there is greater appetite for investment in the Pound if they know the transition away from the EU is expected to be gentler – hence the term ‘soft Brexit’.

Johnson, as was shown all over major newspapers today, has stated privately to ambassadors that he was ‘all for’ free movement of people. And David Davis has stated that the UK will likely continue to pay for preferential access to the single market today in a statement in the House of Commons.

An utter reversal on both Government and Boris’s own public opinions stated recently, and the greater likelihood of a softer Brexit suggested in the comments saw the Pound soar against all major pairings, with buying Euros and US Dollar buyers being the key winners.

However, as the day waned on the ‘run’ on the Pound began to lose its momentum and eventually fell back heavily. Speculators taking profit from such serious movements today are seen as the root cause.

Moving forward, GBP/EUR, GBP/USD and GBP/AUD exchange rates will need to navigate the upcoming Italian Referendum and US non-farm payroll figures.

The US figures are to be released tomorrow lunchtime and the Italian Referendum results are expected on Monday.

The referendum will be key for buying Euro rates as a NO result will likely mean the rise of the far right over in Italy, and create further questions marks regarding the Eurozone’s future. Polls are currently neck and neck, but heavy movement is expected on Monday either way. As such a premium will be put on being able to move quickly on Monday to secure tempting levels or protect yourself from any sudden downturns.

I strongly recommend that anyone with a foreign currency requirement using Sterling should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer to safeguard it from any adverse movements and to discuss how best to seize any particularly tempting levels which emerge in the short term.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

I will also remind our regular readers that if you are looking to be securing an exchange rate for a future purchase based on the recent improvements in the Pound, this is easily done using a forward contract, whereby the rate is pre-booked at today’s levels to be utilized for a later date. Again simply email me on jjp@currencies.co.uk to discuss this further.