Tag Archives: currency news
European forecasts improving? (Steve Eakins)
Over the last few weeks the euro has continually gained against the pound. Many of my clients question how this is possible with problems in Greece and a majority of the Eurozone
The simple answer is that compared to last year when Europe almost collapsed the picture is very much improved. This is also reflected in the bond markets where the 7% threshold that saw the PIIGS seek a bailout is now a distant memory; Spain is currently down at 5%. Even the European Central Bank last week said that their aim is no longer to keep the Eurozone together but to create growth in 2013.
This growth is yet to be seen but initial economic data releases have shown some improvement. In the short term, EU Consumer Price Index is released at 10 am today and is expected to increase potentially creating more Euro strength.
Over the next 3 months I think that GBPEUR will remain range bound between 1.185-1.215. There are however a two stories that could move the market wildly; either news from Italy regarding their election and any new French polies. Both potentially could swing the markets as wildly as we saw last week when markets moved 2 cents in a matter of a few hours. This cost euro buyers £2,600 when buying €200,000. Any news on either topic could affect the strength of the Euro and is a story anyone with exposure to the Euro should watch out for. (To register for updates email hse@currencies.co.uk.)
Here we have been helping people do this for over 12 years, we have a number of awards for both our service and rate of exchange, so I am very comfortable we will be able to help. Otherwise we would not be in business! Contact us on the normal number or via email at hse@currencies.co.uk
Thank you,
Steve Eakins
Elite Trader
Will The Pound Breach 1.60 Against the Canadian Dollar?
The pound has once again made good gains today although still lies slightly below the 1.60 benchmark against the Loonie. Retail figures tomorrow for the UK will be important as if these are weak you may see the pound slip back but the key data is likely to be Canadian inflation tomorrow afternoon. Expectations are for a level of 2% although a very high figure may suggest more CAD strength. If you are looking at buying Canadian Dollars then it would be well worth geting in touch to see what we can do for you. Potentially a limit order might be useful in the current climate to maximise your rate. Simply e-mail Colm at cmg@currencies.co.uk quoting psf in the subject matter and a brief overview of your needs.
In other currency news the pound remains very robust against the Euro with the single currency surviving any further pressure from the Spanish bond auction today but this is unlikely to be the end of the story for this currency pair. In my view anything north of 1.20 represents a very decent buying level given the risk that UK GDP data could pose next week. Also sterling Dollar rates are over 1.60; another good target level so if you are looking to buy Euros or buy Dollars then forward contracts may be a suitable option depending on your exact requirements. If you would like to talk through them in more detail with no obligation or cost then call +44 1494 787 478 and ask for Colm.
