Tag Archives: greece
GBPEUR rates continue to fall (Steve Eakins)
Even though the range of the markets is very small, (relating to the difference between the high and low each day,) the trend for GBPEUR exchange rates have been negative over the last few weeks. In fact buying euros is now close to the most expensive time for over 6 weeks. The reason why is simple, even though the Eurozone is in a very bad way, economic data is showing an improving picture. It is down to this reason and a consensus that Greece debt buy-back programs makes the Eurozone as a whole more secure from breaking down.
Unfortunately this trend is likely to continue this week. The busiest day this week is Thursday when we have Interest rate decisions from Europe and the UK, Eurozone GDP figures and the Autumn budget statement in the UK. EACH of these have the potential to surprise the market and move could move markets by over 1% costing anything from a property purchase to an invoice in Europe potentially £2,250 on a €200,000 purchase.
What is expected to happen is interest rates to stay the same both in Europe and the UK, both central banks rarely want to make any change in the run up to the festive period. The Autumn budget will probably be leaked beforehand so will be priced in making the event a none-event really. The only thing which is currently expected to change the markets is the release of European GDP figures, this is expected to improve slightly, helping euro sellers. However again euro buyers could find themselves in a worse position at the end of the week compared to the start.
If you have a currency transfer to make and would like to make sure you have the best price contact us to check. We offer a free service with no hidden commission that saves our clients’ money. Simply put if that was not the case we would not be in business. So to experience why we have won a number of awards for our service and exchange rates please either contact us on the normal number or via email at hse@currencies.co.uk
Thank you,
Steve Eakins
Elite trader
Pound Euro – Spanish news
Over the last week pound exchange rates have remained fairly flat with little movement however this changed yesterday when the Euro gained nearly a cent. This created the best time to sell Euros in nearly 2 months, trading at the high compared to the low yesterday would have made you over £500 more for every €100,000 sold back. This market movement was down to a sudden demand for Euros by city traders and again shows how quickly you need to be to take advantage. If you need to complete an exchange and would like to trade at the best price, register your interest via email hse@currencies.co.uk
Over the next week I agree with most specialists that Spain will become the main story;
- Their Stock markets are at a near 20 year low,
- Unemployment is at a record high
- Their banking system is failing
- Data showed yesterday their economy shrunk by 1.3% in the second quarter of 2012
- €72 billion was taken out of Spainish banks last month
It does not paint a great picture especially after the country’s most economically important region, Catalona, said it needed a €5 billion rescue package from Madrid. Even the Spanish deputy Financial Minister said that “the worst is yet to come.”
The Bank of Spain estimates it may have up to €180 billion in bad debt which many think may be more than can be raised. As a result I would expect GBPEUR to have a range of 3 cents from current levels over the next few weeks in either direction.
Please don’t just assume it will push GBPEUR up as we are unsure whether the UK will have to contribute to the bailout.
If you are exchanging currency contact us today and we can pro-actively help you try and catch your target rate. Either email me at hse@currencies.co.uk or contact me Steve Eakins on the normal number. Simply put if we could not help save you money we would not be in buisness so what have you got to lose? If you have a curerncy requirement please feel free to make contact.
What will happen if Greece leave the Euro – How will they create their new or even relaunch their old currency?
Many of my regular clients have been asking me of late just what will happen should Greece actually leave the Euro? How long will it potentially take? What would the process be?
I have found a cracking article on the BBC regarding this matter and it explains everything in great detail – http://www.bbc.co.uk/news/magazine-18279522
My thoughts are that now that Greece will end up leaving the Euro no matter what happens in the elections this weekend however I don’t think it will be a big loss for the Eurozone it may well be seen as one of the rotten parts of the apple being removed.
The bigger issue will be if one of the larger economies steps forward and needs to leave, that will more than likely lead to a lot more complications, we are seeing signs of the issues Greece first showed signs of a few years back from these economies which indeed is a worry… 2012 will in no doubt be a nig year in economic history and if you have a requirements to either buy or sell Euros then it is key you have a currency expert on your side.
If you carry out bank transfers of anything from £1000 up to multi million Pounds then I can assist you both with your timing and getting the best exchange rate when you do carry out your transfer, depending on volume for corporate clients we can get better rates than almost all banks and brokers and for private clients I will bend over backwards to win your business from the banks or your current broker if you do get in touch via the site. I work for one of the top foreign exchange brokerages in the U.K and have done for many years, we are authorised as a payments institute by the FSA and we are a Public Limited Company so you can have peace of mind you are dealing with one of the best. Please feel free to contact me djw@currencies.co.uk quoting PSF in your subject header and I will be more than happy to help.
What now for the pound? Forecast GBP/EUR, GBP/USD, AUD, NZD and ZAR
Sterling exchange rates fell yesterday to a 3 week low against the greenback falling back into the 1.59 territory. This is a something that I personally feel could continue, particularly with the continuing unrest in Europe. With the US dollar still very much the global currency of choice (mainly as so many commodities are priced in dollars) during times of unrest the dollar will normally outperform most majors. I for one feel this trend is close to happening as investors digest the problems facing Spain (their bond prices reached a record high for 2012 on Monday at 6.218%). This is creeping ever closer to the 7% levels at which Greece, Portugal and Ireland had to seek bailouts and with Spain potentially a much larger problem, I really feel this will weigh on the Euro (I would expect levels to remain above 1.25 heading towards 1.26 and beyond in the short term).
For this reason I too think the US dollar will begin to find support as investor’s look to move their money to the relative safety of the dollar and we could easily see a move back towards 1.58 in the coming days. For the best exchange rates on your transfer and to discuss the various contracts we can offer in an attempt to maximise your currency exchange then please email Mike at mgv@currencies.co.uk
Greece heads back to the polls as Hollande officially takes over from Sarkozy
Greece is set to go to the polls again after days of coalition talks failed to produce an agreement on a new government, on the day the new French president Francois Hollande was officially sworn into office. Mr Hollande said he was aware of the challenges ahead, including the debt crisis, and vowed to “open a new path in Europe”.
Mr Hollande called for “a compromise” over the German-led focus on austerity as the way out of the Eurozone, however in on goings in Greece still appear to be dominating the Eurozone and the Euro.
At the elections on 6th May, the results showed a majority of Greek voters backing parties opposed to austerity plans demanded by the EU and IMF in return for two bailouts. Polls suggest the leftist Syriza bloc, which came second in the 6th
May vote and rejects all further cutbacks, could become the largest party after a new election. Syriza wants to renegotiate the bailout package but also wants to keep Greece in the euro.
However European leaders say they will cut funding for Greece if it rejects the bailout agreed in March. This would effectively mean bankruptcy for Greece and German Finance Minister Wolfgang Schaueble again ruled out amending the agreement. The Greek president Karolos Papoulias will meet all political leaders at 13:00 local time (10:00 GMT) on Wednesday to put in place an interim government until the new vote, which is expected to take
place on 10th or 17th June.
I feel this will continue to heap pressure on the Euro and any Euro sellers, certainly if funds are not liquid, may wish to consider a forward contract to guarantee their rate in advance. For Euro buyers this is potentially good news, however for anyone with an interest in GBP/EUR look out for the unemployment figures and Bank of England Inflation report at 09:30 and 10:30 respectiveley.
What now for the Aussie, Kiwi and Rand?
Recent moves against these three currencies have been dramatic to say the least. Since the year lows in February we have seen the pound gain 9.5% against the Aussie, 9.7% against the Kiwi and 10.8% against the Rand. On a transfer of £200k between the high and low during this time this makes a respective difference of AUD 29,400, NZD 41,400 and ZAR 288,000. Is it time to take advantage?
This recent trend must be somewhat of a relief to the many clients and individuals emigrating to that part of world. I personally feel with the volatility in Greece this trend could continue in theshort term. But to use the analogy of an elastic band, I do feel these currencies could snap back at any point. However until a degree of stability is restored in Greece (Christine Legarde head of the IMF was quick to rule out a breakup of the Euro) this run may continue, just make sure you are in a position to take advantage.
To dicuss the this report and my views or to run through yoru individual exchange requirement then please email Mike at mgv@currencies.co.uk or call 01494 787 478
Elections do lead to Euro weakness as predicted before the weekend – Euro troubles to spiral now?
Both France and Greece are the talking point this morning following election results that may now weigh heavilly on the Euro in the coming weeks and months.
France’s new socialist Presidente Francois Hollande and his anti austerity agenda may now lead to huge disruption for progress in this European debt crisis as he appears to be against Angela Merkel and previous President Sarkozy’s measures and this may cause political troubles throughout Europe. political instability is one of the main factors that can effect a currency and it would not surprise me to see the Euro continue to struggle (not crash but struggle).
This will cause jitters for the ‘riskier’ currencies such as the Australian Dollar, New Zealand Dollar and South African Rand and may lead to further weakness for these particular currencies this week. once again actual economic data appears to be in the background and political problems are not only front page news on currency websites but front page news accross the world.
I can see this really causing big problems (not quite world war three) but not a million miles away. If you are selling a property in Europe and are worried about rate movements then perhaps you are right, I still somehow have clients holding off and waiting for rates to improve and if you look at the facts and figures then it would not surprise me to see rates stay like this or get worse for a period of time.
If you are concerned about the current market conditions and want to have an experienced and friendly currency broker on your side throughout this crisis then feel free to contact me directly djw@currencies.co.uk and i will be more than happy to assist you in timing (however I cannot directly advise) and getting you the best rate when you do book out your currency. I reguarly better clients rates by enough to make it worthwhile changing over and will be happy to add you to my ever growing list of clients.
Important weekend for the Euro and its a miserable world at the moment!
Good morning all,
This weekend could well be key for the strength of the Euro as top European members are meeting in Brussels to attempt to find a solution for Greek debt and the general problems within the Euro Zone (haven’t we heard this one before?) It has been commented on this morning that we may now have to wait until Wednesday before we see any real results from this meeting, it wouldn’t surprise me to see this delayed again next week however what this does mean is that investors may well be a little cagey surrounding the Euro in the coming week, so expect some market volatility and some great buying and selling opportunites.
If you have an upcoming requirement, it may be prudent to look at placing a limit order or indeed a stop loss, this is where you can set a target rate, or a worst case scenario and should this rate be achieved at any point day or night your currency will be bought out automatically. There is no cost for this tool and it comes in extremely handy for those with hectic lifestyle and busy schedules that do not have the time to look at rates 24 hours a day, believe me… it can take over your life!
This morning we saw fairly positive news for the Pound as Public Sector Net Borrowing figures were slightly lower than expected, meaning the Government isn’t going mad on spending at present however this hasn’t really had too much of an impact in the market so far.
The misery index (calculated by adding inflation and unemployment) is atthe highest point in the U.K in 19 years and the U.S for 28 years! This just goes to show worldwide there is a rocky road ahead and a lot of money to be made and lost in upcoming currency transfers so make sure you are one step ahead at all times and protect yourself from adverse market movements.
On an seperate note, Pound Sterling Forecast has just been named in the top 25 Corporate Finance Blogs in the country and my twitter (@currencyinfo) has just been named number 8 in the country for corporate finance (Joint place with David Smith of the Sunday Times) so do feel free to follow me and indeed to tell all of your friends about this site and I will continue to update it with unbiased and simple updates on the markets that will hopefully help you make the most of your money.
I am actually a currency broker as well at http://www.currencies.co.uk/ – If you want me to assist you personally with any currency requirement be it Corporate or Personal then contact me directly djw@currencies.co.uk and I will be happy to deal with you for any requirement from £1000 – £10,000,000 as long as it is a bank to bank transfer and I can assure you that I shall get a great rate of exchange and the customer service will be second to none.
I look forward to hearing from you.
Eurozone crisis explained – Great article on the BBC explaining what has happened and why with the European debt crisis and Greece
Good morning to our regular readers, I just found a great article on the BBC regarding the European debt crisis and what effects it may have going forward… feel free to take a look:
http://www.bbc.co.uk/news/business-13798000
If you or your company have a requirement to buy or sell foreign currency then please feel free to email me djw@currencies.co.uk and I will be happy to explain how I can help – I am looking to increase my book of corporate clients so if you want a personal service inclusive of risk management by me then I look forward to hearing from you.
I’m off to watch the rest of the rugby, have a great weekend!
Greece default… What could happen?
An interesting article on the BBC website surrounding Greece…. Do take a look!
Euro has a weak few days – start of things to come? Issues with greece are a concern
The Euro has weakened over the past few working days against both Sterling and the Dollar, leading to great buying opportunities for those buying that dream home in France, Spain or Portugal and a hairy short term for those who have sold up overseas and will be looking to bring their money back to the U.K
There are heavy rumours Greece wish to remove themselves from the euro in a bid to try and combat their well known debt issues – should this be the case I would not be surprised to see genereal investor confidence in the Euro drop away, the mere uncertainty over this matter is causing a shaky period for the single currency and there may well be more to come.
Should you be selling up overseas and worried about the exchange rate moving against you then there are many options available inclusive of a forward contract, you can secure the rate on your full amount of funds for a small depoist,we can even accept a Sterling deposit if you have no availablity of Euros.
Feel free to fill in the contact form on the right hand side of this page and a dedicated trader from an FSA regulated company shall get in touch straight away.
