Tag Archives: GBPEUR exchange rates
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 firstname.lastname@example.org
Mark Carney and the Bank of England have raised UK growth forecasts helping sterling to gain against a number of currencies. At the same time they have underlined interest rates will be on hold for a long period of time which limits just how much higher we can expect sterling to rise in the coming weeks and months.
If you have a sterling transfer to consider in the coming weeks and months making some plans now at these levels may be a sensible move.
In other news the new Federal Reserve Chairmen Janet Yellen underlined Quantitative Easing in the US is likely to continue until there are significant improvements in the jobs market. And overnight Chinese economic data was much stronger than expected presenting what I believe is a very good opportunity for anyone selling Australian dollars or South African Rand to buy GBP.
I am available to assist in the planning and execution of any international money transfers you need to make (including bringing funds back to the UK or Europe). Unfortunately no one can tell you exactly what will happen on exchange rates but having won awards for our service and rates, we are extremely well placed to offer expertise in managing your currency exposure.
For a breakdown of strategies and options on your particular exchange please call me Jonathan in UK office hours on 01494 787 478 or if you prefer email a quick outline of your position to email@example.com
Next Wednesday is a key date for anyone with an interest in sterling. The Bank of England will announce its QIR or Quarterly Inflation Report which will provide insight into just how the pound will perform for the next few sessions. Whether you are buying or selling sterling this release is likely to create some movement on the markets which will alter the value of your currency purchase.
I am of the opinion some sterling weakness is likely and it is for a reason I have been highlighting for much of 2014. That is the gulf between what the Bank of England is saying about interest rates and what the market has priced in.
80% of currency transactions are speculative. The reason we see movement on exchange rates is indicative of what the market thinks or feels may happen. Since Mark Carney took office the pound has performed very well as the UK economy has improved. By tying Unemployment to the raising of interest rates focus has been very much on a UK interest rate hike. And perfectly legitimately the market has over bought sterling in anticipation of UK interest rates being raised sooner. If you look at the language of Mark Carney and the Bank of England however any possible rate hike is much further ahead than the market speculators are guessing.
Therefore I think despite the improvements in the UK economy warranting increased confidence, these high expectations surrounding sterling may now be misplaced and the risk to the downside has increased. Tomorrow we have some Industrial and Manufacturing data which last month caused sterling to weaken. We also have Trade Balance data tomorrow which we know is one of the major negatives surrounding sterling and the UK economy.
The outlook therefore for sterling has changed and just like the market has been subtly amending its positions anyone considering an international money transfer involving sterling too, should take note.
We are specialist currency brokers who offer market insight and commentary alongside award winning exchange rates. if you have a transaction to consider, small differences in your rate can make a huge impact on the amount of currency you receive.
For further information please contact the author directly on firstname.lastname@example.org or call 01494 787 478 and ask to speak with Jonathan.
Sterling weakens on poor data. best rates for buying the pound against the NZD, AUD, USD & EUR (Ben Amrany)
Sterling exchange rates are significantly lower against all of the major currencies this afternoon after services PMI data showed a decline for the month of January. This has reaped pressure on the pound and the losses are causing GBP/EUR to dip t 1.2012 while against the USD now down at 1.6262. We have even seen a big loss against the antipodean currencies where GBP/NZD has fallen from a high last week at 2.04 now at 1.9750 and the AUD has dropped from 1.90 down to 1.8230 in a matter of days.
We have been stating for while that if you are looking ta selling the pound to secure any of the major currencies you would have been wise to have traded while the pound was spiking and achieve very attractive levels. If you have not secured your funds you may be wise to sit tight to see if the pound rebounds slightly but be cautious as you do not want to get caught out with e significant decline for sterling.
The current movements are welcomed for those looking at selling Euros & Dollars and should the economic data out of your region be positive then you should secure the sterling you need by acting on the spike. Looking forward the interest rate decision in the UK should be a non event but it is the minutes two weeks later that will be key for the pound. If the bank of England give any updates on interest rate rises or indicate that this will not happen in the near future then expect a further sell off of sterling and the rate to fall further.
After the interest rate decision on Friday there is a host of economic data out across the globe but key for sterling in the UK are the manufacturing and trade balance figures. Should manufacturing be similar to the construction data at the beginning of the week then we could see the pound spike back up.
Regardless of if you are buying or selling the pound we try here to help you time your exchange. I offer a very persona
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 email@example.com
Sterling has dropped against many currencies following improvements in risk appetite. Partly evidenced lately in the lack of any EM sell-off, rates on the more risky currencies have fallen back into line and I think this is a good time to be purchasing sterling since their is a strong likelihood the pound will strengthen again against these currencies.
Tomorrow we have UK Services data which is expected to show a small improvement in the rate of growth in the Services sector. However with most UK data lately not being quite up to scratch there is a potential for a slight correction and sterling dip.
The fundamental reasons for GBP strength should see this through and this is why if you have a foreign currency to sell for the pound I suggest moving sooner.
For more information on the market or your options please contact me Jonathan on firstname.lastname@example.org or call 01494 787 478