Tag Archives: Euro losses
Sterling continues to strengthen against the Euro and riskier currencies but declines against the safe havens like the USD & CHF
It has been a very mixed day for sterling exchange rates against a host of major currencies. While sterling has been strengthening to fresh highs against the riskier currencies (THREE AND A HALF YEAR HIGH AGAINST THE EURO, 2.0567 AGAINST THE KIWI DOLLAR, 1.6049 AGAINST THE AUSSIE DOLLAR, 12.9315 AGAINST THE RAND) it has weakened against some of the safer haven currencies(1.6066 AGAINST THE US DOLLAR, 1.4895 AGAINST THE SWISS FRANC)
Now for the pound, economic data seems to be making very little difference to how the exchange rate performs. Late last night retail sales data showed a decline over the course of the year. This had little effect on the excellent gains the pound has recently made. Most clients that have an imminent exchange are though capitalising on the improvement for sterling especially as we have another big announcement by the Bank of England tomorrow. We are not expecting much out of the interest rate decision but we must always be wary of the dreaded QE scenario. If more than 50% of the members do vote in favour of QE then sterling could weaken slightly. You may not want to take this risk with the excellent rates compared to a month ago and you are more than welcome to contact me at bma@currencies.co.uk before the decision so we can help you make a saving over your high street bank or any other broker that you may have used in the past. Just ask for Ben and I will make sure that I answer your enquiry as quickly as possible.
Looking forward there is always the chance that sterling could continue its trend of rising against the Euro and the southern hemisphere currencies but I feel it will be fairly range bound against the USD and CAD. If you need to SELL any major currency to buy sterling I would be very cautious and fairly worried. The way the pound has performed if the trend continues your losses really could add up. If you are sitting on Euros for instance hoping that the market will reverse and drop back below 1.20 I think it is extremely unlikely and you may be prudent to move sooner rather than later as the losses may continue.
If you would like to speak with me regarding any currency pair we can look at the options that are available to you to help you maximise your exchange. The authors on this site work for one of the largest currency brokers in the UK. We have been trading for over 12 years and have assisted thousands of clients make significant savings. If you have never used a broker and would like more information on the personal service that we provide please do feel free to email me. If you have used a broker in the past then challenge us to help beat their rate so you make an even bigger saving over the high street banks. You can contact me (Ben Amrany) at bma@currencies.co.uk and we can then look at the currency pair in question to help you decide when is a good time to convert your funds.
Ben Amrany
Sterling spiked to a 19 month high against the Euro as Fears for Spain persist.
Finally hard pressed UK Importers and British citizens looking to take a trip to Europe have something to cheer about. Yesterday sterling exchange rates strengthened to its highest level since September 2010. The volumes on buying Euros yesterday went through the roof and it was one of the busiest days that we have had on the trading floor recently.
The rise in the rate came on the back of renewed fears about the Eurozone debt crisis. The Bank of Spain indicated their economy fell back into recession with Q1 of this year following in the same path as Q4 of 2011. Spain also saw its borrowing costs jump above 6% again raising fears that it will be the next country in need of a bailout. The biggest concern though for Spain seems to be their struggling banks which are becoming more reliant on emergency loans from the ECB.
The loans that are lent by the ECB to national central banks, who is turn lend to commercial banks who would buy their country’s debts and bring borrowing costs down. While
this happened initially, the markets are afraid of just how much the Spanish banks are relying on cheap ECB loans to stay afloat.
How the story unfolds will be very interesting and there is sure to be peaks and troughs with Euro exchange rates over the coming months.
Be smart with your funds and don’t miss out on these fantastic levels to buy your Euros. Even if you require your Euros over the next few months and don’t have full funds available you can still secure your currency for a small deposit with a forward contract. We have seen all too often that when the pound spikes it has a nasty surprise waiting around the corner and you can see your gains be eradicated very quickly. So don’t delay and inform me on bma@currencies.co.uk what your requirement is and I will make sure that we beat your bank with their quotes on buying or selling Euros. If you wish you may even call me on 01494 787 478 to discuss things going forward. Just ask for Ben Amrany
Inflation figures out this morning for the UK
Today’s inflation figures could be key to how the pound performs today. If we see a rise in inflation from let’s say higher food and energy costs then sterling may be boosted as higher inflation could mean an interest rate hike in the future. We are however expecting to see inflation fall once more and if the fall is more than expected then the pound call weaken and sterling could be back down at around 1.20 against the Euro and 1.58 against the USD.
Please feel free to email me with any questions or queries that you may have in connection with moving money overseas. bma@currencies.co.uk The Authors of this site work for one of the largest currency brokers in the UK and we strive to help you make a saving on your currency exchange by undercutting the rates of exchange that banks offer. Please get in touch at bma@currencies.co.uk or you can now call me on 01494 787 478 and we can discuss your requirement and the options that are available to you. Please just ask for Ben Amrany
Euro In Free Fall
Over the last couple of weeks the Euro has been in free fall against a host of major currencies. With a loss of around 12% on a trade weighted basis we are wondering when the losses may be halted. Against the USD today the Euro hit a four year low amid fears that spending cuts and tax rises adopted by European governments would stifle their economies. The bailout package, which came on top of an earlier $146bn joint EU-IMF bailout of Greece, appears to have calmed fears of immediate disaster, but longer term issues remain.
The long term financial stability of the Euro zone is what is damaging the currency. With all time lows against the Swiss Franc and a host of other currencies how long do you think it may be before the Single currency recovers? Your views would be much appreciated.
If however that you are needing to purchase Euros now could be a great time to trade as the rates of exchange are extremely favourable. If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.
