Tag Archives: GBPEUR exchange rates

1.43 on the markets! Two days to save the Euro!

GBPEUR has rocketed as Asian markets open and investors begin dumping the Euro in anticipation of the two most important days in the history of the Euro. What happens now will decide not just Greece’s fate but also the rest of the Eurozone. Sterling is benefitting rising against all currencies so far but to make a firm prediction on just what will happen is incredibly difficult.

There is a simple formula to follow here. As the uncertainty increases with no deal the Euro will weaken and the pound should rise. This will only be true up to a point where if Greece leaves the Euro the UK would suffer some financial losses. The USD will rise as it has done possibly significantly if Greece does leave. The commodity currencies like AUD, NZD and CAD are struggling with the uncertainty too!

If a deal is struck then the Euro should recover and sterling which had benefitted from safe haven funds, weaken. A deal is what I believe will happen because I don’t think the alternative is worth contmeplating! One thing is for sure the next couple of days are significant for anyone with a currency transfer to consider. If you wish to get the latest news and understand more about what is and will drive your exchange please contact me Jonathan on jmw@currencies.co.uk.

We are here to provide information but also offer a service for international money transfers at the best exchange rates. If you wish to learn more and check your exchange rates please contact me and I hope you see your rate!

Jonathan

jmw@currencies.co.uk

UK Business hours 00 44 1494 787 478

What is around the corner?

What is just around the corner on exchange rates? Well it would appear that sterling is in line for further improvements as investors frustrations with the lack of progress with Greece and the inconsistency of US economic data persist. Don’t get me wrong the UK is hardly setting the world on fire and there is still the mammoth debt mountain to overcome, but at least the UK has control over its economic policies and the economy is growing. As so often is the case on exchange rates it is not a case of which is the best but which isn’t the worst! Below is a light summary on our most heavily traded and reported currencies, I hope you find the information useful. My name is Jonathan and I work as a specialist foreign exchange dealer assisting private individuals and business with their foreign exchange exposure. If you are buying or selling a foreign currency and wish for some useful insight and finding out if a better rate is possible please email me on jmw@currencies.co.uk

STERLING The pound has been performing well as economic data continues to show improvements in the Unemployment rate and growth in the all important service sector which comprises 75% of the UK economy and therefore UK GDP (Gross Domestic Product). With the UK election out of the way and a stable business friendly government in power the UK and the pound should continue to benefit from uncertainty elsewhere. The hallowed path back to raising interest rates is still rocky but recent Bank of England comments have suggested a rate hike as early as August. Sterling is up at multi year highs against most currencies so there are strong arguments to lock in these levels to remove the risk. If you need to sell or buy the pound and wish to learn of important events that will affect your exchange rate please call me on 01494 787 478 and ask to speak to Jonathan. Alternatively email me on jmw@currencies.co.uk

EURO The Euro has come unstuck this year as years of inaction over Greek debt issues finally catch up. I believe a deal will be struck but the uncertainty is weighing heavily on investors confidence and the Euro will struggle to make too much of a comeback. Greece will remain in the Euro but we probably won’t know exactly if this ‘deal’ will go ahead until next week. The Euro will of course rise once the deal is agreed but all Greece’s creditors are doing is postponing the problems for another day. If you need to sell Euros I would suggest moving sooner to get into a more stable currency like sterling to avoid the risk of further losses. The next few days are going to be vital for the Euro so if you are looking to buy or sell Euros please contact me to discuss and be kept up to date with the latest news.

US DOLLAR US GDP has shown the US  is struggling and despite strong improvements in the US labour market the expectations the US would be raising interest rates in 2015 are looking ever more uncertain. Further improvements or deteriorations in the US economy will be the key determinant in whether or not we actually see a rate hike this year, the Federal Reserve have confirmed this. Don’t forget the US dollar reacts to global uncertainty, if investors are worried about what is happening in the future they will buy dollars to ‘hedge’ against the uncertainty. There is correlation between USD strength and increased Greek uncertainty. If you need to buy or sell the USD I think it more likely the the dollar will be weaker in the future, particularly against a rising pound.

AUSTRALIAN DOLLAR The Aussie is likely to strengthen in the near term as it has weakened significantly in recent months which will undoubtedly have helped boost Australian exports. China is performing well and I expect once a Greek deal is finalised the Australian dollar will rise. Longer term we might see the Aussie weaken if they cut their base interest rate but Glenn Stevens  Governor of the Reserve Bank of Australia has recently stated slack in the economy will not be picked up by cutting further their base rate. I would expect a further rate cut perhaps towards the end of the year but suggest buying Aussies sooner particularly since the rate is so good at over 2 AUD per GBP!

NEW ZEALAND DOLLAR The Kiwi has weakened any may yet have further to fall with the currency experiencing a major sell off owing to lower demand for the currency following the rate cut to 3.25% earlier this month. With further easing on the cards by the Reserve Bank of New Zealand further falls seem likely. If you need to sell Kiwis I would suggest moving sooner as painful as it might be. Please contact me for more information on the timing of such transfers.

CANADIAN DOLLAR All the commodity currencies have been under pressure in the last few weeks, the CAD is no exception. On balance further CAD weakness seems probable as economic activity of their main trading partner the US slows and we also see Oil prices much lower in 2015 than previous years.

SOUTH AFRICAN RAND The Rand has weakened significantly as commodities suffer and political uncertainty continues to put pressure on the South African currency. Unfortunately any path back to strength for the Rand will be shortlived and if buying or selling this volatile currency I suggest making plans in advance.

What next? The pound is likely to rise further against most currencies as the scenarios above play out. Unfortunately there are never any guarantees on exchange rates and the only way to really know your price is to buy. The timing of when to do that is critical however and arming yourself with information is the best way to make an informed decision.

My name is Jonathan and as well as writing the blogs, have been quoted in national newspapers and helped thousands of clients with their foreign exchange payments. Whether moving overseas and making a one off payment or moving back to the UK making plans with your foreign exchange payments is key to getting the most for your money and making your life less stressful.

I am very confident I can offer some expertise and information to make your life easier plus save you some money in the process. For further information please contact me directly on jmw@currencies.co.uk

 

The Greece Situation will be a major influence on any GBP/EUR Trade (Daniel Johnson)

Greece’s woes continue, there is still no sign of any agreement being reached. I do feel eventually there will be a repayment deal put in place, as there is simply too much to lose on both sides. If Greece were to default their ability to borrow money in the future would be extremely difficult, the interest would be extortionate and the last thing the Eurozone need is for the Greek’s to set a precedent and exit the Eurozone which others may consider following. If Greece or Spain were to leave it would be catastrophic for confidence in the Euro.

Current trading levels are exceptional for Euro buyers, when rates are close to some of the highest buying levels of the last 8 years hanging on for an extra buck could prove costly.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me at dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

Could there be a Resolution to Greece’s Debt Problems? (Daniel Johnson)

Crucial to any GBP/EUR trade is the situation in Greece. 

Greece are due to pay €300m to their creditors on Friday. The latest news  is that the IMF and the ECB have put a deal together to present to Athens. Tsipiras representing the Greeks is also set to produce his proposal. The Currency market does move on rumor, and news a deal is probable has seen the Euro strengthen considerably over Sterling already.

I feel the Greeks will make their payment. However trouble looms later this month with a further €600m to be paid. My view is Greece will remain in the Eurozone. It is in both sides interest to come to an arrangement.  As if Greece were to leave it would be catastrophic for their economy and the IMF and ECB want their money back. What also has to be taken into account is if Greece were to leave the Eurozone it will set a precedent.  Would Italy or other nations follow suit? If other members were to leave, Euro confidence would take a severe hit.

Current market conditions for Euro buyers are still very favorable, sitting close to the eight year high of late. I have witnessed many trying to hang on for that extra buck and get caught out.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me at dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

 

GBP/ EUR exchange rates fall off the back of Greek PM Alexis Tsipras new debt proposal. Dayle Littlejohn

Today Alexis Tsipras confirmed to the press he has issued a realistic proposal to eurozone ministers, in order for Greece to exit their current crisis. With a deal potentially now on the cards this Friday GBP/EUR exchange rates have dropped by over a cent.  Going forward the Greeks owe €300mn this Friday, €300mn on the 12th, €600mn on the 16th and €300mn on the 19th. If a deal is reached regarding the next 4 payments I believe the euro will make further inroads against the pound and exchange rates will drop towards the mid 1.30s. If you are buying or selling euros and are looking for the ‘best’ exchange rate feel free to get in touch drl@currencies.co.uk and ask for a quote.

USD News

Today at 2pm factory orders (MoM) came in at -0.4%, which was 0.4% beneath the consensus and 2.6% beneath previous. The data has therefore weakened the dollar and GBP/ USD (also known as cable exchange rates) has risen back into the 1.53s from the 1.51s. This means clients that purchased USD today at the low compared to the high would have paid an extra £2,000. Therefore its crucial to have an understanding of the upcoming economic data releases when purchasing a currency. If you are looking to buy a foreign currency with sterling feel free to get in touch and ask for upcoming data releases and a forecast.  Please call 0044 1494 787 478 or email me drl@currencies.co.uk.

What next for sterling euro exchange rates? (Dayle Littlejohn)

Over the last 24 hours GBP/ EUR exchange rates have climbed into the 1.41s. This comes off the back of comments from Nikos Voutsis who exclaimed there is no money to give over to the IMF. Since then Yanis Varoufakis (Greek finance minister) had indicated Greece has made enormous strides at reaching a deal however the markets have not bounced back.

So where next for GBP/ EUR exchange rate?

I personally think GBP/ EUR will fall back into the high 1.30’s once Greece repay their next debt repayment. The reason for this, its in Greece’s best interest to find a solution and with a solution found i’m in no doubt this will strengthen the Euro.  Also I don’t believe eurozone ministers want Greece to leave because a ‘grexit’ could lead to a domino effect were other countries such as Portugal, Spain and Ireland end up following suit and leaving the Euro.

When would I buy €s?

If i was looking to buy euros I would simply buy now or at a push take a small gamble and wait until UK GDP figures on Thursday. For clients looking to buy euros for the first time, it is important to realize in order to maximize the amount of euros you receive from your sterling, you need to achieve the best exchange rate possible and you can do this by using our service.

We undercut high street banks by 2-5%. For example, clients looking to buy €200K they would save around £7K. For more information on us as a brokerage and the options available to you feel free to email me drl@currencies.co.uk or alternatively call 01494 787 478 and quote Dayle Littlejohn.

GBPEUR could well drop 6 cents! Are you buying or selling?

‘Sterling loses significant ground as election uncertainty heats up’ could be a headline next week as the most uncertain election in years takes place. Sterling lost 5 cents in the weeks leading up to the election in 2010. The same was true of the Scottish Referendum. Can you really afford to take risks with so much at stake? Many people buying a foreign currency with the pound have been locking in on forward contracts lately to guarantee they won’t get a worse rate in the future.

If you are transferring currency in the coming weeks or months please don’t take the current rates of exchange for granted, it could end up very costly. The election is such a rare unique event trying to make firm predictions could be a big mistake. Having said that it seems reasonable to expect the exchange rate will drop as it has done in the past at such times.

If you need to buy or sell it might be a good idea to make some plans as major uncertainty is due. For more information on just what to expect and how to benefit from the uncertainty please contact me Jonathan on jmw@currencies.co.uk

GBP/ EUR 1 month Forecast

Sterling made gains against the Euro during yesterdays trading session after members of the Bank of England (BoE) indicated they are now sitting on the fence whether to vote yes or no for an interest rate hike. With interest rates being the single most important driver of a currency, if the BoE raised the interest rate this would give strength for sterling (more €s for the £). However an interest rate hike is not on the cards until 2016 therefore I believe Euro buyers should take advantage of the recent comments and therefore the current levels we are seeing.

What will affect GBP/EUR over the next month?

The two main drivers that will effect GBP/ EUR exchange rates within the next month are the UK General Election (Weakening Sterling) and a possible ‘Grexit’ (Weakening the Euro). Over the last month the ‘Grexit’ has been outweighing the UK Election, however as of Monday I believe the tides will turn. In the lead up to the last election, GBP/ EUR dropped by over 3 cents and I don’t think this election will be any different. Therefore my prediction is GBP/EUR will be around the 1.36 mark come the 7th of May.

Depending on the outcome of the election  will depend on what happens to GBP/ EUR exchange rate. Please click here for a full report on the possible election outcomes. If you are looking to buy or sell Euros within the upcoming months feel free to get in touch by emailing me on drl@currencies.co.uk or alternatively call 01494 787 478 and quote Dayle Littlejohn.

 

Sterling falls after UK Retail Sales (Tom Holian)

GBPEUR exchange rates fell from the highs of 1.40 at the start of the day’s trading session to touching the lower end of 1.39 as UK Retail Sales came out lower than expected.

Excluding fuel sales retail sales were up but fuel purchases saw a 6.2% fall.

To me this could just be a short term blip as in the run up to the election I would not be surprised to see positive economic data to spur on voters at the election due two weeks today.

However, with the ongoing uncertainty surrounding who will lead the country I think we could see falls for the Pound as this happened five years ago when we witnessed a hung parliament.

The Eurogroup meeting due to held tomorrow will focus on Greece and as they are currently struggling with their debt arrangements any announcements surrounding this topic could have a big impact on Sterling Euro exchange rates.

In order to avoid the uncertain period ahead it may be worth considering a forward contract as this allows you to fix your exchange rates based on current levels.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

GBP/ EUR Forecast. UK Election Vs Greece! (Dayle Littlejohn)

For many financial experts GBP/ EUR current exchange rates are a surprise. In recent elections around the globe the currency in question normally weakens months before. This is because of the uncertainty created. Therefore GBP/ EUR exchange rate in my opinion should be around the 1.35/1.36 mark. However in recent weeks GBP/ EUR has floated around the 1.38/ 1.39 level as Greece is counteracting any political uncertainty as they are still indicating a ‘Grexit’ could occur.

Ministers within the Eurozone including Angela Merkel from Germany, understand the importance of keeping Greece within the Euro. The reason being if Greece did decide to leave we could see a ‘domino effect’ where countries like Portugal, Spain and Ireland following suit and then in my opinion the start of the end for the Euro. Therefore this is the reason I believe Greece will stay.

Prediction

Going forward I still believe Sterling will weaken before the Election and by May the 7th GBP/ EUR exchange rate will be between the 1.3550 and 1.3650. Depending on which parties form a coalition (as its fair to say no party will gain the majority) GBP/ EUR could strengthen or weaken. For further information into the possible outcomes to who could form the government and the effects this could have on the currency markets please click here.

Going forward if I was looking to buy Euros I would be buying as soon as possible taking no risks. Where as if i was selling Euros I would be following the Greece story closely, however I would look to trade just before the election. For further information and a quote to receive award winning exchange rates feel free to email me on drl@currencies.co.uk or alternatively call 01494 787 478 and quote Dayle Littlejohn.

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