Tag Archives: GBPEUR exchange rates

GBP/EUR, GBP/USD and GBP/AUD begin falling ahead of final month in 2015 (Joshua Privett)

GBP/EUR, GBP/USD and GBP/AUD all produced a negative trend heading into the weekend, with anyone hoping to use Sterling as a purchasing currency seeing their exchange getting slightly more expensive.

This was mainly due to underwhelming GDP figures released for the British economy summarising growth during the third quarter of this year.

Growth for the year had already been revised downwards during October and it seemed that November did nothing to turn this around, causing confidence in Sterling to dip ahead of the final trading day of the month on Monday.

There isn’t any data expected on Monday that could reverse this currently negative trend, so Sterling holders should expect similar falls produced on Friday which saw 1.41 hit on GBP/EUR, and 1.50 almost being breached on GBP/USD.

Another factor which has become a common feature since August this year has been irregular market movements on the last day of the month as ‘profit-taking’ occurs.

Currency traders at banks and other large financial groups who move hundreds of millions in capital speculating on the markets on daily basis are the main drivers of currency rates.

Common practice is for them to consolidate their profit at the end of the month and reform their positions and strategies ahead of the coming four weeks.

Traders would have already noticed that last time Sterling reached these highs on the markets in August, they gradually declined back by as much as 10 cents on some currency pairings such as GBP/EUR by the start of October. So it is unlikely they will choose to store their profits in Pounds.

Better performing currencies such as the US Dollar will likely be selected, particularly with an interest rate rise in the US expected at the start of December. Capital outflow to the Dollar will likely exaggerate this currently negative trend on Sterling moving into the start of December on Tuesday, with GBP/EUR likely being hit the hardest as it will be difficult for GBP/USD to break the resistance level at 1.50.

I strongly recommend that anyone hoping to use Sterling as a purchasing currency, particularly on GBP/EUR should contact me on 01494 787 478 and ask the reception for Joshua to discuss a strategy for your transfer in order to maximise the return on your currency of choice. These currently high levels can be fixed to avoid any harmful movements before 2016 comes around to make your purchase more expensive.

Those looking to purchase Sterling can also do the same, and I will explain the various options open to you to ride any movements in your favour to their peak within the time-period you have to complete your transfer. These include rate-alerts to let you know when your desired rate becomes available. jjp@currencies.co.uk

Unimpressive GDP figures see Sterling marginally losing value heading into the weekend (Joshua Privett)

GBP/EUR, GBP/USD and GBP/AUD are all at a net loss so far today following some lackluster GDP figures for the UK economy which caused confidence in the Pound to wither slightly ahead of the start of December next week. 

This data was to be a second revision of the GDP growth in the UK for the third quarter of 2015. Revisions are new calculations based on more information revealed to the UK’s office for National Statistics concerning business activity within that period.

The last revision in October showed that the initial figures were massively inflated for UK GDP, and the subsequent downgrade caused Sterling to fall dramatically against all major currencies – particularly on GBP/EUR.

In this case markets were hoping that the second and final revision would show some more positive figures, and that the announcement last month was an anomaly. However this was not the case as the poorer growth was confirmed and Sterling’s value fell gradually throughout the trading day as a result. GBP/EUR hit 1.41 again briefly and GBP/USD has hit their worst buying levels since April.

The last day of the month is quite quiet in terms of data to reverse this trend. In fact normal trading patterns of ‘profit-taking’ at the end of the month will likely exaggerate this trend on Monday.

The investors at banks and financial institutions who move hundreds of millions, and are the main drivers of currency market movements, change their positions and strategies ahead of the following month of trading. Due to the poor finish to Sterling its unlikely their profits will stored in Pounds compared to better performing currencies such as the Dollar, so Sterling should be set for further falls due to lack of demand at the end of the month.

I strongly recommend that anyone with Euros to buy with Sterling (GBP/EUR) should contact me on 01494 787 478 and ask the reception for Joshua to discuss a strategy for your transfer in order to avoid any expected pitfalls and secure these currently high rates of exchange. I will remind buyers that the last time a negative trend was established on the Euro from highs above 1.40, they careered down to 1.33 – so there is certainly room for sudden negative movement.

I have never had an issue beating the rates of exchange offered elsewhere, and anyone looking to purchase Sterling should be seeing some more palatable rates appearing soon. Feel free to contact me as well to discuss the various options available to you to ride any movements in your favour between this afternoon and the close of play on Monday. jjp@currencies.co.uk



GBP/EUR and GBP/USD reverse the losses of yesterday thanks to strong UK spending review (Joshua Privett)

Yesterday’s losses, particularly on GBP/EUR and GBP/USD, were reversed this afternoon by George Osborne’s changes to his budget during the spending review. 

GBP/EUR fell by over a cent during yesterday’s trading with confidence in the UK economy falling following the dodging of hard questions about the UK’s inflation problems during hearings held by the UK’s treasury committee.

Political dodging gave way to political sensationalism today with Osborne speaking to Parliament about his continued objectives for the budget. While the speech has only just finished GBP/EUR is already back up to the mid 1.42’s and GBP/USD is on the sunny side of 1.51 for USD buyers. 

The speech dialed back from the pure focus on austerity over the past few years which showed greater confidence from the Government for the UK to continue on in its strong recovery relative to other countries. While cut-backs are still being announced, some areas such as the NHS will be receiving increased spending and tax credit cuts were now off the table all-together.

This shot-in the arm for those hoping to use Sterling as a purchasing currency is a welcome break following the strong moves in the favour of Euro or Dollar sellers yesterday. 

These gains will likely continue into the afternoon as North American markets open and trade on the news. We may even reach 1.43 for GBP/EUR by the end of the day’s trading, but it will be a stretch for 1.52 on GBP/USD.

Those with Euros to buy must remember that 1.43 has been reached twice in the past 2 weeks and rates have continually been pushed back from this mark. It is difficult for those GBP/EUR rates to be sustained as the demand for Euros rises dramatically in the commercial sector once buying rates become so cheap.

A popular option this afternoon for Euro and Dollar buyers have been ‘limit orders’. These allow you to secure your currency automatically at no additional cost, before any sharp snap-backs against your favour are expected.

I strongly recommend those with Euros or Dollars to buy should contact me on jjp@currencies.co.uk to discuss how to secure your target level automatically once it is achieved to maximise the value of the Sterling you hold. I have never had an issue beating the rates of exchange elsewhere, and by squeezing as much out of any positive movements you could save thousands on your transfer. 01494 787 478


GBP/EUR Autumn Statement could Cause Volatility. When should I move? (Daniel Johnson)

Today will see the release of the Autumn forecast statement. The HM Treasury will produce a statement to parliament upon publication of economic forecasts. It provides an update on economic outlook and gives an insight into the governments budget plans for the coming year. The Chancellor has indicated there will be some quite severe cuts in welfare and direct government expenses. If he strays to far from the expected budget expect a swing in GBP/EUR.

In Mark Carney’s testimony yesterday he stated there may be a drop in interest rates before a rise due to our low inflation currently at 0.1%, well below the 2% target. This does not bode well for Sterling.

With GBP/EUR currently sat above 1.42 very close to the 8yr high of 1.4407 I would seriously consider moving if I was a Euro buyer.

I am in a position to beat any rate of exchange from any competitor on nearly  all currency pairings. If you require a quote please do not hesitate to get in touch. I can be contacted on 01494 787 478 or dcj@currencies.co.uk .

GBP/EUR and GBP/USD at net loss so far today from UK inflation hearings (Joshua Privett)

The event which has been delayed for two weeks and has been a worry for those looking to exchange their Sterling for an alternative currency is taking place as I type this article. GBP/EUR and GBP/USD rates have already moved in a downward trajectory over the first 15 minutes of the UK’s inflation report hearings held by the Treasury Committee.

However, not by as much as initially expected. The reason I have decided to type out my expectations now is that it is all too clear that these hearings are lacking any substance.

Recently Mark Carney, the Governor of the Bank of England, noted that the previous estimates of an interest rate hike in the UK economy for Spring 2016 were now likely to be postponed for a year – his reasoning was that the UK’s already record low inflation levels were expected to get worse before they got better. Sterling weakened heavily on the news with GBP/EUR dropping over 2 cents as an example.

These hearings were called to ascertian how the UK has got itself into this position and what can be done at this point. Yet they were delayed over two consecutive weeks, heightening market anticipation as to what poor news may be revealed from the hearings.

So far I have heard discussions of bank regulations and capital restrictions which, while important, have been beaten to death since the financial crisis and have little to do with combatting negative inflation.

They are avoiding the issue, likely because they have few answers. Inflation is a reflection of price change, and falling prices are a result of low oil prices and reduced demand overseas for our goods, which are difficult for the Bank of Engand itself to control.

Sterling is weakening at this lack of confidence in the Bank of England. But many, including myself, were expecting worse should the details and forecasts of how poor inflation could possibly reach were to be discussed in the open. GBP/EUR has moved down a full cent from the day high and low, and GBP/USD by half a cent.

North American markets will open soon and we will likely see similar falls on GBP/EUR and GBP/USD continuing into the afternoon.

Events today have softened the blow to Euro buyers who could not secure their currency yesterday when rates were above 1.42. 

If you have Euros or US Dollars to buy I strongly suggest contacting me on 01494 787 478 and asking the reception for Joshua to discuss how these current buying rates can be fixed to avoid future falls this afternoon. I have never had an issue beating the rates of exchange offered elsewhere and a comparison could save you thousands depending on the volume of your transfer. jjp@currencies.co.uk

GBP/EUR rates to enjoy their last day before inflation hearings (Joshua Privett)

Euro weakness is the main determinant for why GBP/EUR rates of exchange have cannoned up to these recent highs. 

The announcement that quantitative easing will be necessary to stimulate growth in the Eurozone economy beyond the original September 2016 deadline, as well a looming interest rate hike in the US are what reduced the attractiveness of the Euro against its counterparts on the currency markets.

The ongoing terrorist threat concentrated in France and Belgium is what is inhibiting the snap-backs you normally witness on the currency markets when GBP/EUR rises so starkly in such a short-period of time.

This seems set to change tomorrow, and GBP/EUR has already fallen down to 1.42 as UK and European markets opened this morning.  

Inflation hearings are set to be held for the UK tomorrow morning, and with the event having been delayed for two consecutive weeks, markets are already beginning to price in the weak data expected to be released.

Mark Carney, the Governor of the Bank of England, shocked economists at the start of the month by stating an interest rate hike in the UK economy seems off the table for 2015. The reasoning for this is that the inflation crisis is set to get worse before any positive movements can be seen.

Levels are currently at their worst since records began. Inflation is kept healthy by strong spending habits, however, if interest rates rise then this increases the incentive to save rather than spend and invest.

Inflation hearings have been called as a result for the Bank of England to answer to the government’s Treasury Committee as to why the outlook has suddenly become so negative, or to ask why the public was not informed earlier.

GBP/EUR rates will come under significant pressure as the Pound weakens from the Bank of England’s dirty laundry being aired for the global markets to seen. 

The delays have heightened the anticipation of the event, which explains the sudden weakness Sterling has had to endure at the outset this week.

I strongly recommend that those with a GBP/EUR requirement in the coming months should contact me on jjp@currencies.co.uk to discuss a strategy for any single or multiple transfers you have in the coming months. You can avoid rates moving against your favour in the short-term and pegged these near multi-year highs as they are at no additional cost. 

Those with Euros to sell can do the same, and we can discuss how to ride the expected moves in your favour to their completion at a later date. 01494 787 478

When Should I make my GBP/EUR Transfer? (Daniel Johnson)

The Head of the European Central Bank, Mario Draghi spoke to day at the Frankfurt European Banking Congress and the the spoke a great deal without really saying anything. His stance is the same, he feels that current stimulus is working to encourage growth within the Eurozone but he could implement further measures to improve inflation.

In reality the Eurozone is in deep trouble, it is at the point of deflation. Quantitative Easing is not a proven method of boosting an economy. It has worked previously in other economies but is far from a 100% success rate, it is a last ditch attempt. Lets not also forget the amount of debt it will cause. The market has already factored in the ECB is willing to increase the amount of stimulus and lengthen the process so don’t excess massive movement when the QE program changes.

As such it is an extremely good time to buy Euros. The highest point for GBP/EUR in the last eight years is 1.4407. It currently sits at 1.4306. We have seen how quickly the markets can change after Black Monday when GBP/EUR shot down to 1.34. If I were buying Euros I would get it done now, hanging on for the extra buck could prove costly.

If you have a currency requirement I would be happy to assist, I have access to the best rates of exchange in the market. I can guarantee to beat any other brokerages exchange rates. You can contact me on 01494 787 478 or e-mail me at dcj@currencies.co.uk . Thank you for reading my blog, I really appreciate it.

GBP/EUR Above 1.4250 (Daniel Johnson)

After the atrocities in Paris on Friday, I had expected to see more movement on GBP/EUR. Today however has seen the inflation figures and there has been an improvement from last months -0.1% which was  only the second time in the last 60 yrs that we have been in deflation. Figures came in at 0.1% and we have seen GBP/EUR climb into the high 1.42s.

I think this provides an exceptional opportunity for Euro buyers, we are currently sitting at some of the best levels in the last 8yrs. I think GBP is currently overvalued and hanging on could prove costly.

At present I am putting through consistent large GBP – EUR trades as clients try to take advantage of  current market conditions. I will be happy to tag new clients on to these trades in order to provide a very competitive rate. I can guarantee to beat any Competitors exchange rate.

Thank you for reading our blogs I really appreciate it. I would be more than happy to assist with any of your currency requirements and I take pleasure in replying personally. Please don’t hesitate to get in touch, I can be contacted on 01494 7874787 or alternatively by e-mail on dcj@currencies.co.uk .

GBP/EUR exchange rates cannon upwards to three month highs following Draghi’s speech (Joshua Privett)

GBP/EUR exchange rates have moved up to three month highs this morning as a result of the speech given by Mario Draghi, the President of the European Central Bank, at 10am GMT.

He gave further hints to continued financial stimulus being required for the Eurozone recovery to move forward more confidently. Originally the deadline for this ending was September 2016, which now seems likely to be extended.

This allowed GBP/EUR to hit 1.42 very briefly as confidence fell and the Euro lost around half a Cent’s value.

Then markets corrected backwards quite violently. GBP/EUR is now lower than it first started today.

With no data released this afternoon to account for this sudden Sterling weakness or Euro strength, then standard market forces must be the cause for such rapid GBP/EUR rate movements.

Market participants have jumped at the opportunity to purchase Euros at while they are so cheap, particularly with GBP/EUR being at 1.33 less than a month ago.

Inflation hearings on Tuesday next week will also explain why the market has shifted so rapidly as many expect further Sterling weakness beginning in earnest during the third week of November.

The inflation hearings themselves are set to be held by the Treasury Committee with members of the Bank of England being grilled for answers as to why the UK economy has gotten into such dire straits in terms of inflation and what, if any, solutions can be supplied.

The fall in inflation to their lowest levels since records began was the reason why the Bank of England were recently forced to announce there would be no rise on UK interest rates until 2017 at the earliest.

This resulted in GBP/EUR falling by 3 cents off the back of the news last Thursday, so the followup-hearings as a result should echo that same Sterling weakness.

Markets have effectively signaled what the consensus is for what exchange rates may do on Tuesday by the sheer volume of those looking to use Sterling as a purchasing currency while rates are still favourable. The large purchases were clearly seen on Euros, Dollars and Australian Dollars – all of which the Pound has had a net loss against today.

Those with currency to buy should be looking to follow suit before rates take their expected tumble on Tuesday.

I strongly suggest that anyone with a GBP/EUR, GBP/USD or GBP/AUD requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your upcoming transfer in order to maximise your Euro or Dollar return.

These currently favourable rates of exchange can be pegged to avoid harmful movements against your favour on a future transfer occurring. 

Those looking to purchase Sterling can also contact me to discuss how to ride any positive movements in your favour next week to their conclusion within the time-frame you have to complete your transfer.

*Breaking News* Inflation hearings put off until next week (Steve Eakins)

The inflation hearings have been put off until next week now. This is likely to spread the fallout from the news last week and the delay itself has released a lot of pressure off the Pound in the short- term. GBP/EUR is back above 1.41 and GBP/USD is at 1.51.

My post from earlier outline the expectations once these hearings do take place. So in the meantime this is a further gift for those looking to use Sterling as a purchasing currency in the short-term.

As the post below explains, feel free to contact me for a free and competitive quote on your transfer by calling 01494 787 478 and asking the reception for Steve. We can also discuss a strategy for your transfer if your requirement is not until later in the year or in 2016. hse@currencies.co.uk

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