Tag Archives: GBPEUR exchange rates

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.

Sterling Euro Exchange Rate Forecast (Tom Holian)

GBPEUR exchange rates have had a very good week and are currently very close to their best levels seen all month.

The ECB press conference held on Wednesday did little to help the single currency and although we did see a large movement during the talks they finished with Sterling on a high.

The Greeks also had their credit rating downgraded again and there are risks to them continuing to meet their payment deadlines.

They did manage to organise the most recent one on time but there are still fears that they need to renegotiate their current package.

Last night’s televised election debates made quite an eventful watch with Ed Milliband and Nicola Sturgeon coming to blows.

Sturgeon suggested that she may be open to a coalition with Labour but Milliband quickly said no as he is firmly against another Scottish referendum.

The political situation in the UK is currently on a knife-edge and a hung parliament when the previous election took place saw a big fall for the Pound against the Euro.

If you have a requirement to buy Euros over the next few weeks you may wish to consider buying a forward contract which allows you to fix exchange rates for the future.

This provides peace of mind and certainty in what is otherwise a very uncertain period for the Pound.

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

 

 

 

How will the General Election impact Sterling Exchange rates?

How big an impact will the General Election be on sterling exchange rates? It could turn out to be quite a big issue as there is so much uncertainty as to the outcome. We generally expect the pound to fall in the run up to the election before rising after. Quite how much it will rise or fall is of course impossible to predict but I would not rule out movements of up to 5 cents in either direction.

You can protect yourself and capitalise from such volatility by utilising one of our many contract options:

  • Spot

Once the rate is fixed you need to get the money to us within a few working days. We arrange onward payment to the specified beneficiary oce all your funds have cleared. Internationally funds are sent via SWIFT – the fastest international payment method. Please contact me Jonathan on jmw@currencies.co.uk to learn more!

  • Forward

When you want a fixed exchange rate for up to 1 year.

You pay a small deposit to fix the exchange rate. Once the contract is agreed, regardless of market fluctuations, you know exactly how much currency you are buying. Perfect if you want to budget and protect yourself from market volatility.

  • Limit

When you have a target exchange rate and timing isn’t crucial

Placing a Limit Order means that when the market moves to your specified rate, our system automatically purchases your currency, letting us work as your eyes and ears in the market.

  • Stop

When you don’t want to trade below a certain exchange rate and timing is not crucial

You choose a lower limit on the price at which you are willing to buy. If the market drops to that level, you are guaranteed that you will get an exchange rate no lower than the one you specified.

I offer a personal service to highlight market movements and trends which might affect your rate as well. Even though you might not need to buy currency just yet please register so that we have a fully operational trading facility and I can quote live prices for you.

Making no plans and just hoping your rate will magically go up is one of the most common and costly mistakes clients make on foreign exchange payments. For more information on getting the best deals and making sure you know everything that  please contact Jonathan on jmw@currencies.co.uk.

‘Luck shines most on those who have made preparation to grasp their opportunities’

Do you know who is going to win the election in the UK? Nor do I. But I think a hung parliament is looking more and more likely, this is something anyone considering buying or selling sterling should be very aware of. The pound is likely to fall in the coming weeks as uncertainty rises as to who will take the reign of the UK public finances. This is not a time to be sitting on the fence waiting for something to happen!

Moody’s the ratings agency confirmed yesterday that they view a UK exit from the EU more damaging than any uncertainty over just how the election pans out. As a client pointed out to me recently any uncertainty in the UK parliament may pale into insignificance when compared with some of the uncertainty in the Eurozone at the moment!

Simply put no one can say exactly what will happen. But from my experience of past events (the 2010 election and the Scottish Referendum) sterling is likely to fall before the event before rising after. However with the Tories pledging a referendum on Europe and Labour pledging to increase spending neither outcome looks good from a market perspective. It may be that sterling could fall further after the election or around the result as the parties scramble to get in bed with one another over important issues.

If you are considering a sterling transfer in the future the coming weeks may present at opportunity that does not return. Making plans in advance is the only way to limit your risk and help maximise your currency exchange. We offer a specialist proactive service to help you get the most from the market when transferring money overseas. This blog is intended to highlight important events and information in the market so that you can help minimise your risk through an informed decision.

To really get the most from our service speaking to one of our team or myself is recommended. I Jonathan Watson have worked as a foreign exchange broker for the same company for 6 years and am here to assist in the planning and execution of any international money transfer you need to make. I cannot tell you exactly what to do but hope to provide useful insight and a platform for achieving the most for your money. Even if funds are not required at this stage with plenty of uncertainty around, utilising a forward contract or a stop loss or limit order might be a good idea.

I am very confident I can show you a saving on the exchange rate versus other sources and also offer a friendly, knowledgeable service above any bank or foreign exchange broker. If you wish to learn more about the pound and just what to expect plus what you can do about the uncertainty up ahead please email me on jmw@currencies.co.uk

Other Currencies News

CAD – Unemployment data today at 13.30 has helped the current 2 month high the Loonie dollar is enjoying against sterling. In a nutshell the Canadian dollar is benefitting from an improved Oil price and overall improvements in their biggest trading partner America’s economy. The Loonie may well track further future projected improvements in the USD against sterling so anyone buying the Canadian dollar in the future might wish to make plans sooner than later.

AUD – The Reserve Bank of Australia decided not to cut their interest rate as expected helping the Aussie to strengthen against sterling. Expectations are for the RBA to make at least one more rate cut before the end of the year as they seek a weaker currency to help boost their exports.

ZAR – A general improvement in risk appetite and commodity prices has helped the Rand to rise against sterling, anyone selling Rand for the pound might want to move on any GBP weakness before the upcoming election.

No matter which currency you are buying or selling and when, please feel free to make contact to be kept up to date with the latest news and events which may alter your price. Whether a regular business buying currency or a private property investor looking at a one off international payment, I am sure I can offer you something of interest.

I look forward to hearing from you, please don’t forget to vote :)

Jonathan

Mixed week for Sterling Exchange Rates (Tom Holian)

Already this month Sterling has moved by over 4% from the high to low against the single currency as the Eurozone finally began their first round of Quantitative Easing.

This saw Sterling reach an 8 year high against the single currency and the highest level reached pre-credit crunch for GBPEUR exchange rates.

The Euro has also weakened to its lowest level against the US Dollar in over ten years which has caused global investors to sell Euros to buy Sterling hence the positive movements for Sterling during March.

However, over the last few days we have seen UK unemployment drop below expectations of 5.7% which although the figure is arguably very good for the British economy the markets will often move on expectation so a fall will often result in a bit of weakness for the currency involved.

The UK Budget did not really throw up many surprises so the exchanges rates remained static during the announcements.

On Friday Sterling saw a fall toward the end of the trading session as profit taking took place.

Next week the biggest day for Sterling Euro exchange rates will arguably be Tuesday as the UK releases inflation data. If UK inflation falls this typically results in weakness for Sterling as it puts off an argument for putting up interest rates.

I expect to see a fall in inflation owing to energy price falls so therefore expect to see Sterling fall against the single currency on Tuesday providing a good opportunity in the short term to sell Euros into Sterling.

On Thursday we could see Sterling recover against the Euro with the release of UK Retail Sales which have generally been on the rise.

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

 

 

 

Important News for GBPEUR buyers and sellers in the next 24 hours!

Tomorrow is the UK budget and some Unemployment data which could mean some volatility. Rates have already dropped due to comments by the Bank of England Governor the pound is overvalued. The ray of hope would be tomorrow night’s US Federal Reserve meeting where we will learn more about the prospect of the US raising their base interest rate. One driver of Euro weakness has been USD strength. As the USD strengthens much of the funds are arriving from the Euro (as EURUSD is the most heavily traded currency pairing) and this means further USD strength should mean more Euro weakness.

So if you are prepared to risk further losses holding on for later in the week is an option, if you are concerned and would be upset at it dropping further moving sooner is probably best. Longer term the UK election seems likely to cause GBP weakness and current levels are significantly improved from the last few weeks, months and years. In my opinion therefore representing an excellent buy opportunity.

Is this useful? I am very confident I can save you money over other brokers and the banks. Registering takes a minute online and we can be quoting you a live price to buy your currency within minutes of you contacting us. Even a small difference on the price you receive from your broker could be a big difference in the currency you receive. Please email me jmw@currencies.co.uk to learn more!

GBPEUR soars!

GBPEUR has been over 1.36 representing some excellent opportunities to buy Euros not seen for 7 years. If you need to buy or sell the pound taking stock of current levels could be the best way to maximise your deal. The outlook for the currency markets is rather uncertain with the Greek news and further uncertainty up ahead.

If you need to buy or sell the pound making plans is always sensible. Leaving everything until the last minute is not generally a very good option as you never know what will happen! For more information please contact me Jonathan on jmw@curencies.co.uk

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