Tag Archives: GBPEUR exchange rates

Sterling slides after BoE interest rate decision. Still best rates for buying the USD & Euro. (Ben Amrany)

The pound has weakened today after we learnt that the Bank of England kept their base rate of interest on hold at 0.5% for the month of April. It also left its Asset purchasing programme on hold too. We were not expecting any rate hike which would have strengthened the pound and GBP/EUR is now at 1.2076 GBP/USD 1.6780 GBP/AUD 1.7810.

Now until the bank of England look at hiking interest rates we will not see any real significant rises for the pound. We are expecting them to raise rates in 2015 and before other central banks providing economic activity continues to grow. The central bank does have an obligation not to raise the interest rates to quickly as this could hamper the UK economies growth. With low inflation and an unemployment rate that’s above 7% it seems not a great deal will happen this year.

In other news Greece have returned to debt markets for the first time since 2010. This is giving the single currency a boost and has risen on average by 0.35% today against the pound and US Dollar. It seems the European bond market has advanced after the Federal Reserve minutes (US) damped speculation that policy makers are moving toward raising interest rates anytime soon. One main reason why the USD is weakening at an alarming rate against the pound.

I feel going forward that GBP/EUR will rebound as the risk of inflation continuing to fall will have to be dealt with at some stage by the European Central Bank and i fully expect the rate to head back above 1.21 soon. For GBP/USD with the news from the latest minutes stating a rate hike is unlikely in teh next few months the pound will probably try to test 1.70 but i do think there will be a big resistance level and will then fall once getting close. Rates at the moment are around a 4 year high. If you are buying the Dollar why take the risk on this.

If you do require to buy or sell any of the major currencies then we are here to help you achieve a better rate of exchange than your bank. Savings can be up to 4% and we will give you our expert knowledge to help you time your transfer. if you feel you would like to know more about our service then please do email myself Ben Amrany at bma@currencies.co.uk with your contact details and requirement and we can then discuss the options available to you.

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at bma@currencies.co.uk

 

 

 

Two Important considerations forecasting Pound Sterling Exchange Rates

Good afternoon Readers! The pound is at some truly excellent levels currently, levels that should not be easily dismissed in the hope of much better rates. If you need to buy or sell currency there are a few pointers to note that will make your life easier and your wallet heavier!

Accept that you will not get the ‘top’ or the ‘bottom’ of the market. All too often I am managing one of my client’s currency exposure and they base all their calculations on a recent high. So for example selling Euros to buy pounds at 1.19 or buying Euros with pounds at 1.22. If you do this you are likely to be disappointed. Speak to me about what is a more realistic rate to achieve by calling 01494 787 478 or why not email me jmw@currencies.co.uk

Do your research! There can be major difference between the exchange rates offered by banks and currency brokers like us. But there can also be major differences between the rates offered by different brokers. Here at poundsterlingforecast.com we seek to undercut other brokers and on large volumes the differences can be significant.

GBPEUR is currently 1,2131, GBPUSD is 1.6751, GBPAUD is 1.7921 and GBPCAD is 1.8261

Getting the best exchange rate on a large volume currency transfer (£10,000 +) makes a big difference to the amount you receive. If you are transferring a sum of this size and want to learn the current forecast please contact me on jmw@currencies.co.uk for the very best rates and latest news on what will move your rate!

Jonathan

 

Markets await GDP data from Europe with GBP/EUR at 1.2050 (Ben Amrany)

The pound has been range bound against many of the majors so far this week with rates hovering around 1.2050 against the Euro, 1.6650 against the USD & 1.80 against the AUD. With very little data out during the early part pf the week for the UK eyes have been firmly set on data from Europe and the US to drive global markets. Having said this the UK did post some fairly poor manufacturing data yesterday and if we see the same trend for the construction sector today the pound could be in for another day of losses.

We are also expecting the GDP figures for the Euro zone out at 10.00 am this morning. We are not expecting any significant change in the number so GBP/EUR may be flat on the day. Tomorrow though the ECB will announce their latest interest rate decision for April. With the rate of inflation still falling within the single currency many analysts are calling for the central bank to cut interest rates to combat the fall in inflation. It has been a similar theme over the last 2-3 months and the ECB have stated in the past that they are not overly worried about the inflation rate and that things will settle down on its own accord over time. These comments in the past have gone to strengthen the Euro and if the same happens tomorrow we could see further EURO strength. Also keep an eye out for the retail figures which will be released before the interest rate decision tomorrow morning. This could bring a window of opportunity between the two releases.

I hope you enjoy our informative posts to help you judge when you should be looking at converting your funds. There is no set rule as to when is the best time but if you do have a requirement to buy or sell the pound then I will be delighted to help you try and judge when to look at your conversion. If you are reading the info here and were planning on using your bank why not let us give you a quote to show you what the savings can be over the high street banks. The savings can be significant as this is a volume driven business and due to the volumes we exchange we can normally beat the banks time and time again.

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at bma@currencies.co.uk 

 

 

How will the pound perform in April?

Well what a difference a year makes. A year ago sterling was trading at a low of 1.16 and economists were lining up to explain a possible triple dip recession. Most of the UK was also enjoying a nice thick blanket of snow too!  Since then the pound has made a solid recovery and we are predicted one of the hottest summers in years, although just like forecasting currency movements, forecasting weather can be unreliable.

The advantage of forecasting currency however is market knowledge and understanding of what is actually driving exchange rates. 80% of currency transactions and therefore 80% of the reasoning behind currency movements is speculative. That is investors buying and selling foreign exchange to make a profit. Once you understand some of the key things they are looking for, you can begin to understand and forecast what may happen in the future.

This week there are a range of data releases which could affect sterling and also the currency pairs it trades against. One important thing to point out at this stage is interest rates. Interest rates affect currency in a similar way to the way a higher or lower interest rate affects a bank account. So as a central bank (the Bank of England, European Central Bank, Federal Reserve) seek to raise or lower their base interest rate investors (remember most currency movements are speculative) move money around according to where they feel it will offer the best return. To learn what will affect your transaction this month email me jmw@currencies.co.uk. This may be of interest for anyone buying or selling an overseas property, anyone who needs to move a large volume of currency and wants to get the best deal.

The UK is looking at raising interest rates well ahead of other leading economies which is an underlying reason why sterling is stronger against a range of currencies. Having been set at 0.5% for close to 5 years now there is an expectation interest rates will rise in 2015. As we are slowly coming out of this abnormal period of low interest rates (and it will be slow and gradual) we will start to see sterling exchange rates rise.

Getting the best exchange rate involves looking at the timescales that you have and assessing the market in that period. This website has directly assisted 1000′s of clients and is also read by many more who I am sure appreciate our expert opinion and knowledge. If you are considering a currency exchange buying or selling the pound understanding what is likely to happen on the market is the best way to maximise your return. We offer a personal proactive service to maximise your exchange rate through careful monitoring and analysis of the market and your unique position.

As we buy direct into the currency market we would never have real trouble undercutting other sources of currency such as and including currency brokers and banks. Making a comparison on a large volume of currency could potentially save you hundreds if not thousands of pounds. If you would like to learn more please contact me Jonathan on jmw@currencies.co.uk or please call 01494 787 478

Will the pound weaken again?

Sterling has found favour today due to the impressive Retail Sales figures showing the UK is on the up. Sterling seems to have shaken off the more recent wobbles and is now looking like a safe bet to make further gains in the future. If you need to make a transaction involving the pound, I would strongly recommend speaking to us to find out the very best rates of exchange and allow us to explain the current forecast. Please feel free to drop me a line on jmw@currencies.co.uk

The outlook on the pound is positive and the recent euro gains against the pound look set to be on the back burner for the time being. If you need to sell euros to buy the pound then I would focus on making the transaction sooner rather than later as the longer term prediction would appear to favour GBP. The main driver in this situation will be the likelihood of any interest rate hike, tomorrow’s UK GDP data whilst old news, could act as a very interesting trigger for further GBP strength.

We are currency specialists, experts in forecasting and managing client risk to the foreign exchange market. If you need to make a transaction and want the very best rates and service please contact me Jonathan on jmw@currencies.co.uk. I am very confident of being able to undercut any other firms and save you money.

Sterling hits 1.20 against the Euro this morning. (Ben Amrany)

Following on from yesterdays data releases the pound has strengthened this morning after what was a very flat day for the pound against a host of majors yesterday. The key releases showed that unemployment did not fall a great deal, no members of the bank voted for interest rates to rise which led to not a great deal of movement in the end.

During the budget the chancellor announced upgrades to the official forecasts for the UK economy to 2.7%  but also stated that the UK still has to tighten their belts to reduce our deficit. Apparently the revision for our growth to 2.7% is the biggest upward revision for growth between budgets for 30 years.  As the budget contained no real surprises for the UK economy sterling exchange rates were flat on the day.

Today though we have seen the pound rise against the Euro spiking back up at 1.2006. The rise represents an attractive level once again considering how low the rate was  just a few days ago. Against the USD sterling has declined back below 1.65. I have stated for a while if you need to purchase Dollars you should look at your position before we see the Dollar strengthen and this has now occurs. The gain for the Dollar was due to comments from the FED at their interest rate decision. They kept rates on hold but gave an insight into their thoughts on future rate decisions. They also continued with their Taper of $10 billion a month which has strengthened the dollar against a host of majors.

Looking forward I feel that the pound should rise above 1.20 soon against the Euro and continue to weaken against the Dollar potentially testing the 1.63′s in the near future.

If you require an exchange then I can help you beat the rates of exchanges that your banks offer you by sometimes up to 4%. As well as offering a very personal service to give you the information needed to help you judge when you should do your exchange there are not many services out there like ours. If you wish to discuss your requirement in more detail feel free to call the number on this page and ask for myself  Ben Amrany. Alternatively you may email me at bma@currencies.co.uk

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at bma@currencies.co.uk

 

 

 

 

 

 

Sterling Continues to fall creating excellent opportunities to sell Euros into Pounds (Tom Holian)

Sterling has fallen against the Euro for the fifth day in a row fuelled by the comments last week that the Eurozone growth forecast has been upgraded for 2014, 2015 and 2016. Yesterday comments from Bank of England deputy governor Charlie Bean made it rather clear that there is little urgency for interest rates to be raised any time soon and it is mainly dependent how the economy will perform over the next few months. The tone is very different from the recent rhetoric provide by Mark Carney who has generally provided the economy with stability.

Yesterday EU Industrial production data released showed a higher figure at 2.1% which provide the Euro with further strength. However, it is clear that the EU has some time to go before things dramatically improve. This morning Mario Draghi will provide us with the ECB Monthly Report and this will be key for short term movement for GBPEUR exchange rates. If you’re looking to sell Euros soon it’s worth getting in contact with me to discuss your options and the process of how we can save you money compared to using a bank to exchange Euros. Send me an email directly Tom Holian teh@currencies.co.uk

 Having helped thousands of individuals save money on exchange rates over the last eleven years I’m confident I can help you too.

With inflation running rather low in the Eurozone recently there was a very small change that interest rates were going to be cut at this month’s meeting. However, there was no change and the ECB have confirmed that inflation will be not a catalyst in changing interest rate policy which has led to the Euro gaining against the Pound this month. Already since the start of March we have seen rates move by 2% from the high to low.

With the European industrial sector showing signs of improvement and the ECB Monthly Report due out this morning I think we could see rates challenge 1.19 this morning on Interbank levels.

If you have a currency requirement to make and want to save money on exchange rates then contact me directly Tom Holian teh@currencies.co.uk

GBP/EUR below 1.20. Selling Euros best exchange rates now available. (Ben Amrany)

Sterling exchange rates had a very non eventful day against many of the major currencies with GBP/EUR hovering below 1.20 for most of the day. Against the US Dollar sterling dipped into the 1.65′s at one stage. With pressure on the pound after last weeks comments in Europe it will be interesting to see if we get a reversal for GBP/EUR by the end of the week.

If you are concerned how the pound has lost 2 cents against the Euro in a few days then feel free to email me at bma@currencies.co.uk and I can discuss the options available to you. On a £200K sale you would now be achieving 4000 Euros less. This is certainly significant if you have an imminent Euro purchase.

The biggest release of the day for the UK was the GDP estimate which came out in line with consensus at 0.8% and did not give the pound the boost it so desperately needed. I expect the next couple of days to be just as dull for sterling with no major economic releases being released until Friday so eyes will be on other major economies in the meantime. For those with an eye on the Euro the ECB monthly report will be the key release. If the ECB go some way to continue to talk up the economy as they did during last weeks interest rate decision a move for GBP/EUR  could dip into the 1.18′s if sterling is not careful. This would be one of the biggest one week losses for the pound for sometime. If you are selling your Euros then this would be a welcome gain after the Euro has been hit very hard throughout the start of 2014.

I have said over and over that every time the pound has tried to breach that difficult 1.22 level against the Euro, something occurs which causes sterling to weaken. My recommendations from here on is to act on any spike that may occur and don’t take to much of a risk if your exchange and transfer has to be done in the very near future. If you have time on your side I can discuss the best options that suit your individual circumstances.

If you require an exchange then I can help you beat the rates of exchanges that your banks offer you by sometimes up to 4%. As well as offering a very personal service to give you the information needed to help you judge when you should do your exchange there are not many services out there like ours. If you wish to discuss your requirement in more detail feel free to call the number on this page and ask for myself  Ben Amrany. Alternatively you may email me at bma@currencies.co.uk

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at bma@currencies.co.uk

 

 

Best rates for selling Euros are now back for a few weeks. (Ben Amrany)

Yesterday we witnessed the pound take a hit against the Euro after two key interest rate decisions assisted the Euro to significantly strengthen against the pound. Both central banks decided to keep their base rate of interest on hold but it was the press conference after the release that assisted the Euro to strengthen. President of the ECB Mario Draghi stated that the Euro is an island of stability and he was talking up the growth forecasts and recovery for the region.  All this went some way to cause GBP/EUR to drop down to a low of 1.2055 and we have not seen a recovery as of yet today.

I have been stating for a while that when GBP/EUR tends to move towards 1.22 which it did yesterday morning before the rate decisions something comes out which hammers the pound and causes it to lose 1/2 cents over the coming days. We have seen this exact movement occur once again and we are now back down hovering just above 1.20. Should the ECB continue to talk up growth within the single currency then we could easily see a dip back below 1.20 in the next few days.

If you are selling Euros then this is a good gain in 24 hours and you should be in a position to act on selling if you see a further gain that is attractive to you. If you are looking at buying you may be wise to see what occurs in the next month but as stated if you see the rate head towards 1.22 you should act as we do not tend to push through this level.

Please do email or call myself Ben Amrany at bma@currencies.co.uk with your requirement and I will explain the options available to you.

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at bma@currencies.co.uk

 

 

 

 

Sterling weakness up ahead? Why now is a good time to buy the pound

Jonathan Watson

Jonathan Watson

Currently sterling is well supported largely due to the strong likelihood of the UK raising interest rates next year. Investors are taking up positions on sterling in anticipation of better returns in the future. 80% of currency transactions are speculative and whilst this is not a topic we deal in for clients , it is a topic that is extremely relevant in determining future market movements for our clients.

Longer term sterling appears bound to increase significantly as the prospect of ultra low interest rates becomes the past. The pound has been flirting with 5 year highs on a trade weighted basis which when you consider interest rates have been at rock bottom for 5 years makes sense.

Since we won’t actually see any actual hike for some time there is certainly a good chance of more GBP weakness but it will be in pockets and not reflective of a greater downward trend. If you are going to need to purchase the pound in the future moving sooner is I believe the best course of action. Please contact me directly for assistance in sourcing the best rates and the optimum peaks to trade on. I assure you of being able to beat the banks and currency brokerages.

Many of my clients selling say Euros and Dollars after a property sale are quibbling over the fact they are trading at multi year lows. I wholly sympathise with these clients because when you do the calculation on the losses selling six figure sums in the last year they are substantial. But if you look further back say at the 10 year and 5 year figures you will see current rates are not so bad.

Take Mr Smith in France for example, who may have purchased there when rates were say 1.50. Imagine buying a 200,000 Euro property at 1.50. This would have cost you 133333.33 GBP. Fast forward ten years and unfortunately he has had to sell to come back to the UK and had to take a hit on the price. He had to sell for 175,000 Euros and was not happy at having lost 25,000 on the price. However he managed to get 1.20 on the rate which means his 175,000 Euros are actually worth 145833.33 GBP. Suddenly it is not such a bad deal and when he considers all the fun times he had there, the whole experience has actually not been too bad!

This just shows the importance of exchange rates when considering overseas transactions. Sterling is at a very good level now which may yet improve. Understanding what is driving exchange rates is critical to getting the best deal. For more information on the forecast for your particular situation please don’t hesitate to contact me directly on jmw@currencies.co.uk

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