Tag Archives: GBPEUR exchange rates
The Pound took a sudden and severe hit which continued as the morning wore on, as UK companies were already showing concerning results since the announcement of the Brexit.
Profit warnings came out from the likes of Shell, Rolls-Royce, BAT and the UK stock market took quite a serious hit as a result. With the UK’s dependence on its financial services this correlated into lower confidence in the Pound, seeing a sharp sting for anyone considering buying a foreign currency.
Even with higher profits for Lloyds the lowered confidence in the UK was apparent with their announcement today that they would be cutting a 3000 more jobs and 200 more branches on top of their previous commitment to cut 9000 jobs and another 200 branch closures.
Whilst some companies performed well, the overall tone was negative, as the first look at concrete performance figures since the announcement of the Brexit shows the UK economy is struggling. A survey was released last Friday showing business confidence down to similar levels seen during the financial crisis. But concrete figures such as what was seen today are inscrutable and is why we saw a more sustained fall on the likes of buying Euro and Dollar rates than last week.
Euro buyers however, may see a turnaround in the short-term before the more voluminous data sets from last month are released during the first few weeks of August.
Late on Friday the Eurozone will be releasing the results of their stress tests on European Banks. Normally this is not a big market mover but some of our regular readers will note the particular attention paid to Italian Banks since the beginning of the month.
They have alluded to their rapidly deteriorating debt crisis, with now 1 in 6 loans deemed ‘junk’. These stress tests, like the concrete figures for the UK economy today, will likely put an exact figure in front of markets to understand the sheer scale of the current problem.
With the spotlight back on the Euro we may see rates reach more attractive levels late on Friday and by early Monday. There is a reason why the news is being released so late – to mitigate market reaction.
I strongly recommend that anyone with a Euro or Dollar currency requirement, whether in the short or long-term should contact me overnight on firstname.lastname@example.org to discuss a strategy for you transfer in order to maximise your currency return.
In this current market there are many potential variables and ‘forks in the road’ to be wary of, and there are a number of options in using a currency exchange specialist to minimise the exposure of your transfer to these potentially violent currency movements.
I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels can be fixed in place for anyone buying a foreign currency in the future, and are worried where rates may journey to in the meantime. 01494 787 478
After a day of relative stability for buying Euro and Dollar rates before the close of play on Friday, they were sudden falls on the final part of the afternoon which created a concerning picture for some.
The devestating and tragic attacks in Nice understandably hit buying Euro rates the heaviest, with a full Cent drop in the value of the Euro early Friday morning until it was confirmed that the threat had been contained and the terrorist killed.
In total the Pound has had a net gain of around 3% for buying Euro and Dollar rates since the beginning of last week. The stability came from the sudden announcement of a new Prime Minister and Government to deal with the Brexit and the current shocks from the referendum reverberating through the economy.
Yet, with no new news, the Pound still struggled late Friday afternoon. This is down to speculative trading more than anything else.
On Friday afternoons you tend to see the phenomenon of profit-taking on currency markets. Speculators at high street institutions who move hundreds of millions each day are the true market movers, and many wish to consolidate their profits to end the week.
Whilst the Pound has recovered somewhat, it is only a week since the heavy slides of last week were last recorded. The Dollar seems to still be the currency of choice which is why we saw its value saw as the week ended, with serious capital flowing into the USD.
Yet this is not necessarily the end to the Pound’s strengthening trend. Junior Ministers were appointed in the UK over the weekend. The likes of Australia have called immediately for trade deals with the UK, the positive news to counteract the recent negative tirade hasn’t ended.
USD and Euro sellers are still seeing some fantastic opportunities, and may be wise to move sooner rather than later to secure those gains.
I can provide a live, competive quote for your exchange, and can describe the process of bringing funds back to the UK at more competitive rates than those offered by the high street banking world.
Simply email me on email@example.com, and I can also assist Euro and Dollar buyers to create a strategy for your transfer to maximise your currency return.
Sterling gains modestly for a second day, but will next weeks interest rate decision push the Pound down to new lows? (Joseph Wright)
It’s now a full second week since the UK’s ‘Brexit’ vote shocked the world, particularly the financial world, and GBP exchange rates are struggling to rebound although looking at GBP exchange rates at the time of writing, we are seeing very modest gains for the Pound, offering Pound sellers some rest-bite after seeing the value of the currency drop on almost a daily basis for 2 weeks.
Sterling appears to be surrounded by uncertainty as people struggle to define whether the current levels are favourable or not when we consider the bigger picture, and whilst the Pound has dropped down to it’s lowest levels against the US Dollar since 1985, into the late 1.20’s, some analysts are expecting Sterling to continue to decline from it’s current levels, meaning that although the Pound has lost so much value we may be looking at some of the most attractive levels available for Sterling sellers between now and the end of the year (or next year if some analysts predictions are correct).
I think anyone with a GBP/EUR currency exchange to make imminently or in future should be aware of some of the predictions of major analysts, in order to gain a realistic price target moving forward.
JP Morgan’s FX strategist John Normand has outlined a price target of 1.1236 for GBP/EUR by March 2017, which is a further 5 cents below the current level of 1.1725.
Should analysts such as Mr Normand be correct, it may be an idea for anyone looking to convert Sterling into Euros to consider making that conversion sooner as opposed to later as there’s a chance the rate could become less favourable, and for those looking to convert GBP into other currencies, using the GBP/EUR exchange rate as a benchmark wouldn’t be a bad idea as if the Pound is predicted to fall against the Euro, and the fallout from the ‘Brexit’ is affecting the Euro negatively as well, it may be that other major currencies perform even better than the Euro when compared with the Pound.
Those with an upcoming currency requirement involving the Pound may wish to get in contact with me (Joe) regarding strategies and how best to time the trade, or trades should you be open to the approach of a staggered entry. Our specialist currency exchange brokerage doesn’t offer financial advice but we do assist our clients with the timing of their trades based on price targets and historical data such as annual and daily highs and lows.
If you would like to discuss your currency exchange with me, and would like to consider taking advantage of award winning exchange rates from one of the UK’s leading regulated currency brokerages, feel free to email me directly ideally with a telephone number firstname.lastname@example.org with an outline of your requirement. You can also call me directly on 01494 787 478, just ask one of the reception team for Joe.
The pound has sunk to fresh lows this week in response to uncertainty over the Brexit impact and fears the Bank of England will embark on fresh Interest Rate cuts and even Quantitative Easing in the coming weeks and months. The potential for the pound to slip by a further 4-5% should not be underestimated. I would be very surprised to hear if anyone would be calling the recent lows we have reached a bottom, particularly if we see the movements the markets have been expecting.
The biggest problem in the last few years is low interest rates globally, could the Bank of England be in to cause some shock and awe on financial markets. These events should not be personal but with Mark Carney being singled out by the Leave camp for being too noisy about the potential downsides for the UK economy, he might surely now have a bit of an axe to grind. Of course it would be crazy to suggest the Governor of the Bank of England would act without firm reasons but he must have been annoyed at the suggestions he was interfering with the Referendum.
If you have a transfer to consider making some firm plans in advance is vital in this market. Sterling slipped down to almost parity with the Euro when the Bank of England last cut interest rates. If you need to buy or sell pounds it is vital you understand the full implications of what is happening at present. For more information at no cost or obligation please contact me Jonathan on email@example.com.
Sterling has in my opinion got further to fall so please speak to me about getting some helpful information and an exchange rate I am sure will save you money.
Unfortunately for anyone considering purchasing a foreign currency, be it buying Euros or buying Dollars, the Pound had a further tumble on financial markets across the trading day today, and is continuing as I type this article.
The main cause behind GBP/USD reaching new 31 year lows, breaching into the 1.29’s briefly, and GBP/EUR fell even lower into the rates available in 2013 was a dramatic Q and A session with Mark Carney, the Governor of the Bank of England, following the UK’s financial stability report.
In this Carney detailed a serious swing away from traditional policy of trying to control bank lending in the wake of the financial crisis, and instead lifted the ceiling on how they were operating. Essentially he’s trying to keep the economy growing by getting the banks to lend more.
Markets reacted poorly that only a week and a half after a Brexit result the Bank is already resorting to such policies, and it makes the Bank of England interest rate decision next Thursday seem like a daunting day.
Carney has already hinted that he would use all the tools available to him to protect the UK economy, which in the Central Banking world normally translates into Quantitative Easing and interest rate cuts.
This is what the Eurozone were doing last year when they were struggling heavily, and regular readers will remember just how much such policies affected the value of the Euro. At least in short-term, this rout on Euro and Dollar buying rates seems set to continue.
Following this, exchange rates will purely depend on whether a new Conservative Prime Minister can provide a firm timeline on when the UK economy will be implementing the formalities to leave the EU, allowing markets to know the parameters they can operate within. With stability, value can be expected to return to the Pound.
I strongly recommend that anyone with a Euro or Dollar buying requirement in the short or medium term should contact me overnight on firstname.lastname@example.org to discuss the options open to you to maximise your rate of exchange in the current market and limit your exposure to any further falls.
I have never had an issue beating the rates of exchange offered elsewhere, so a brief discussion could save you thousands surrounding your transfer. These current buying levels can also be fixed in place for any upcoming transfers to avoid having to accept what the rate may be on that day.
Euro and Dollar sellers can also get in contact to discuss how to ride these expected movements in your favour safely, and to make sure any improvements in your favour are not missed.
The pound has actually made some very small gains today but the outlook remains grim in my opinion. Despite the markets bouncing off the bottom today I do not think there is going to be a huge amount to be cheerful about and the rally of this morning quickly halted. The UK has no Prime Minister, the EU say there will be no special deal for the UK and business confidence and investment is down. There is a harsh choice for the next PM will it be abandoning free movement of people or retaining access to the single markets. According to the EU we cannot have both! If you are considering a currency exchange (£10,000 over only bank to bank exchanges please) please email me Jonathan on email@example.com to keep up with the latest news on how the pound is performing.
How much lower will GBPUSD drop?
The problem on this pair is the US Election is not far away which is bound to lead to uncertainty on the exchange rate. The prospect of a Trump Presidency has in my mind not been properly factored into the dollar. The Brexit vote also makes a US Interest rate hike less likely which I feel is not being reflected on the pair. I expect this rate to trade between 1.30 – 1.40 until August before moving back to 1.40-1.50 August to September. From there the picture is less clear but a move back above 1.50 could not be ruled out. If you have any USD transfers to consider the USD is almost at a 30 year high against the pound. To understand the latest movements please email me Jonathan on firstname.lastname@example.org
Will GBPEUR hit 1.25?
For Euro buyers this is the question I am being asked most. Well I think Greek concerns and worries may resurface in the next few months and a top of 1.25 is possible, the negative impact of Brexit is also hurting the Euro. But I think sterling will be the main loser and would call lows in the 1.10-1.15 range up to September. From there much will depend on how Brexit negotiations but I think the pound will remain weak until we have certainty. If you have any Euro transfers on amounts above £10,000 (eg property sale of business transfer) please email me Jonathan Watson on email@example.com for more information on securing the best GBPEUR and EURGBP exchange rates.
Brexit may well not prove to be too bad in the long run but it is clear to me the impact on sterling exchange rates still has much further to run, we still know very little about what to expect next. Any signs of an interest rate cut or further Quantitative Easing could easily send the pound lower and I would be most worried about this prospect towards the end of this year or early next.
Sterling is at multi year lows against GBPAUD, GBPCAD, GBPNZD, GBPCHF and GBPZAR.. Make sure you don’t miss out..
This aware winning blog has enabled tens of thousands of people globally to save money on their currency exchanges through helpful, friendly knowledgeable information from experienced currency brokers. As one of the Chief contributors here I would be delighted to hear from any of you wish for information at this important historic time for the pounds. An email will only take you a minute and the savings on offer could be thousands, what have you to lose. If you have a currency exchange to consider and would like to learn the latest exchange rate forecast please email me Jonathan Watson on firstname.lastname@example.org.