Tag Archives: sterling exchange rates

Why is the Pound losing value at the moment, and will it continue? (Joseph Wright)

Brexit jitters are continuing to weigh on the Pounds value, with the currency losing a substantial amount of value over the past week across the board of major currency pairs.

Currency markets were already weary of the Pounds future price movements as we await the outcome of the Supreme Courts impending decision on whether or no the UK Government requires parliamentary approval before beginning the Brexit.

These fears were exacerbated over the past weekend as a much talked about interview offered the marketplace an insight into the UK PM’s plans for the Brexit. UK Prime Minister, Theresa May alluded to prioritising the control of immigration, as opposed to focusing on retaining the UK’s access to the single market.

Moreover, May commented that the UK cannot keep ‘bits’ of EU membership and this comment has fueled the fire of bearishness towards the Pound at the moment.

It’s for these reasons that we’ve seen the Pound soften over the week, and the sell-off accelerated this afternoon after May announced that she will be giving another major speech on her Brexit plans on Tuesday of next week.

I personally think that the Supreme Court decision will have been announced by then, so there’s a possibility we could see a lot of volatility between GBP exchange rates between now and then.

Until then, I think that anyone with a currency exchange requirement involving the Pound should pay close attention to the Supreme Court decision. The likelihood is that if the Government is successful in their appeal we can expect to see the Pound fall further, as the Government plans on invoking Article 50 at the end of March and there polices generally lean towards a ‘Hard Brexit’.

On the other hand if they’re unsuccessful the general consensus is that the Pound could get a lift. Feel free to get in touch if you wish to be kept up to date with the outcome of the Supreme Court’s decision, as of yet we have no definitive time as to when this announcement will be made.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

You can also speak to me directly on the phone by calling 01494 787 478 and asking reception to speak with Joe.

Sterling remains under pressure despite positive data release, is this a sign of things to come? (Joseph Wright)

The Pound has come under pressure today despite the UK economy posting some better than expected figures in an important sector of the UK economy.

After beginning the day negatively the Pound received a slight boost this morning as Services PMI data came out better than analysts had expected. The data showed that sentiment within the services sector is positive, which is important for the UK economy as the services sector amounts to more than two-thirds of the countries economic output.

In normal market conditions it wouldn’t be unusual to see the Pound spike upward off this news, and although it attempted to the currency is currency down against all major currency pairs with the exception of the US Dollar, which has dropped in value today also across the board.

Those concerned with the value of the Pound should pay close attention to the outcome of the Supreme Courts decision on whether or not the government needs parliamentary approval before beginning the Brexit process.

This topic appears to be the biggest mover of currency pairs involving the Pound and the Euro could also feel the effects of the decision. The outcome is scheduled to be released between the 12-17th of this month and I expect expectations of the decision to effect Sterling’s value between now and then.

Other than this, economic data could also weigh on Sterling’s value especially if it disappoints considering what happened today. Feel free to get in touch if you wish to discuss any upcoming news releases and how they could effect your upcoming currency exchange requirement.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in touch with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

You can also call in to speak with me on 01494 787 478, just ask reception for Joe. 

 

Sterling Exchange Rates Slide as Brexit Fast Approaches (James Lovick)

The pound as of this morning is firmly back under pressure against most of the major currencies with Brexit now fast approaching having started 2017. GBP EUR has slipped to below 1.17 this morning and this is most likely as a result of the new appointment of Sir Tim Barrow as the UK’s new Ambassador to the EU. The drop in sterling in my view is likely to be attributable to the perception that this change of Ambassador could help Theresa May push for the “hard” Brexit option which the markets generally perceive as high risk for sterling and hence the weakness in the pound.

Politics will be a central theme for sterling exchange rates as we approach 31st March, the date by which UK Prime Minister Theresa May will formally give notice that Britain is leaving the EU. Developments over Brexit are changing virtually by the day and this is having a real impact on the price of sterling. For up to date information and guidance with regards timing a currency exchange then feel free to make contact and we can try and assist.

Although European politics will have a major part to play for Euro exchange rates, the first major election in the Netherlands won’t be held until March. My view is that these European elections could be very damaging for the Euro although for the next three months it is Brexit which is likely to be the major driving force and which steals the headlines.

As such those clients needing to buy Euros are more likely to be hindered by the nervousness and uncertainty over Brexit over these next few months. Those clients holding pounds needing to buy Euros or US dollars for example are unlikely to see major improvements but there will be some opportunities in these markets. For those clients that need to buy sterling and are selling Euros then there could be some sizeable gains to be taken advantage of as we approach 31st March,.

On a more upbeat note the pound has received some small positive releases from the manufacturing and construction sectors following very strong Purchasing Managers Index surveys for these sectors. The numbers arrived better than expected in both cases which highlights optimism for the British economy.

However UK household borrowing has now risen to the highest levels since the financial crisis of 2008. This is a worrying development especially at a time when interest rate policy by central banks is at a turning point. News like this is not going to help drive the pound higher when debt levels are at such high levels.

If you would like further information on any of the major currencies to include GBP, EUR USD, AUD and NZD and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

GBP Exchange Rates Slip Before Christmas (James Lovick)

The pound has just started to slip back across all of the major currencies as we approach the festive break. UK GDP numbers are released tomorrow which could make for an interesting day to end the week before Christmas.

The Supreme Court ruling on whether Theresa May must consult Parliament before invoking Article 50 should give new direction for sterling exchange rates depending on the outcome. If Theresa May does with the appeal which cannot be ruled out then this is likely to see the pound weaken very quickly in the short term.

This would signal a hard Brexit as the Prime Minister could effectively bypass all those Members of Parliament who wish to remain as close to Europe as possible. So much rides on this outcome that this in my view will be the most important driver for the pound in January 2017. The other risk of course is that if Theresa May loses the appeal there is a chance that a general election could be called so the government can demonstrate a clear mandate to proceed with the Brexit.

As such I see more risk for the pound in early 2017 considering the higher levels the pound has been trading at with rates for GBP EUR currently sitting just above 1.18. Article 50 still needs to be invoked in the next three months and there is likely to be considerable volatility as we approach the end of March. Those clients looking to buy Euros may be wise to consider taking advantage of the current higher levels for this pair.

If you have an upcoming currency requirement either buying or selling currency and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Supreme Court and Article 50 uncertainty causes Sterling weakness Tom Holian)

Sterling exchange rates have continued to fall since yesterday afternoon as the positive gains following the Italian referendum seem to have disappeared.

The focus will now turn to the ongoing discussions with the Brexit discussion and the current court case involving the Supreme Court.

Prime Minister Theresa May agreed yesterday that she will publish her plan about how the UK will leave the European Union but the timing of the release is as of yet unclear.

It appears as though Theresa May has had her hand forced by Labour who wanted to see what the plan is in order to proceed with Article 50.

Labour would like the plan to be published by January which may coincide with the judgment made by the Supreme Court.

The next potential for volatility for Sterling vs the Euro will come on Thursday when the European Central Bank meet to discuss their latest interest rate decision.

The ECB have been really struggling to control falling inflation recently and their current Quantitative Easing programme does not appear to have had the desired effect.

Therefore, I think even if the central bank does not change the current QE programme any hints that more easing could come could potentially see Sterling make some gains vs the Euro.

The NIESR publishes it latest set of GDP data for the three months up until November at 3pm today and although this data is not the official release it is usually fairly accurate and therefore often has a big impact on exchange rates.

Having worked in the currency markets since 2003 I am confident that not only can I offer you better exchange rates than by using your bank but also help you with the timing of your transfer of funds. 

If you have a currency requirement and would like to save money when buying currency then contact me directly for a free quote and I look forward to hearing from you. Tom Holian teh@currencies.co.uk

 

 

Will the pound rise higher or fall before the end of 2016?

The pound has entered a fresh period of buoyancy finding favour against all currencies in November. October was a month of tremendous uncertainty but sterling has now recovered and this is presenting some very good news opportunities to buy a foreign currency. December is already looking extremely interesting with some very important events in the Eurozone and the United States which you can read more about in my post from this morning here. Otherwise let us have a look at some of the key decisions which will shape sterling exchange rates for the end of 2016.

The Supreme Court decision is one of the biggest factors for the pound in my opinion since it highlights the path to Brexit. The decision as to whether or not the UK will have to seek parliamentary approval to trigger Article 50 is of major consequence to the pound. If the Supreme Court rule Parliament does then we will surely see sterling rise since it makes the ‘hard’ Brexit Theresa May is apparently pursuing less likely. Parliamentary approval will undoubtedly hinge on severe watering down of the terms and even raises the possibility Brexit may not happen. The court decision may not be known until January but the story will be big news for December and early January.

If you are planning a currency exchange involving sterling I would be making plans around this information, it looks likely the vote will be upheld so sterling could rise further. If you need to buy or sell the pound then making some plans sooner rather than later is best to avoid the uncertainty this event presents to financial markets. For more information on this event and how to take advantage please speak to me Jonathan by calling 01494 787 478 or emailing jmw@currencies.co.uk

Sterling exchange rates receive another boost, but will the Pound hold onto its recent gains? (Joseph Wright)

Sterling is the best performing currency in the G10 so far this week, after it was boosted yesterday off the back of some Brexit positive news from the UK’s Prime Minister Theresa May.

Whilst addressing the CBI conference (a gathering of the leading names from the world of business, politics and media) May gave a number of hints that the government will be looking to create new opportunities through ‘new and dynamic’ trade deals. She implied that she would be looking for a transitional deal for business after the Brexit which suggests that she’s open to the UK retaining access to the single market for as long as possible.

Readers hoping for a stronger Pound should continue to pay close attention to comments by leading figures within the UK surrounding the Brexit.

The Brexit is the biggest driver of currency movement involving the Pound, with any talk of the UK retaining access to the single market, the Brexit initiation process being delayed or extensions to the 2 year separation process being met well by the markets.

The Pound is at it’s highest level vs the Euro in 2 months after gaining around 6 cents in a short period of time, mostly due to the High Courts recent ruling, Trumps election victory and May’s comments yesterday at the CBI conference.

There are a number of major financial institutions that despite Sterling’s recent gains, are still expecting the Pound to decline to levels not seen for 5 years during 2017.

HSBC remains particularly bearish regarding Sterling’s projected value next year, and DNB Markets have specifically given the GBP/EUR pair a 12 month price target of 1.0869 which is almost 10 cents weaker than its current level.

If you would like to be kept up to date with the latest Sterling news, and would like to discuss the timing of an upcoming currency exchange you’re planning on making involving the Pound, feel free to get in touch with me (Joe) directly on jxw@currencies.co.uk for a free overview. 

We’re here to help you make a well informed decision on when to make your currency transfer, and to help you benefit from highly competitive exchange rates as we’re one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible. You can also call in and ask reception for Joe on 01494 787 478. 

How will the Autumn Statement impact pound sterling exchange rates?

Philip Hammond has no easy task ahead this week as he sets out his plans for the UK economy moving forward. With Brexit still dominating politics and economics there is lots of pressure on the Chancellor to outline an economic plan of Britain that will match the commitments of the new Prime Minister and her colleagues. As always there have been a few leaks in the press over the weekend so let us look at these and work out how it will affect the economy and the pound moving forward.

You don’t have to travel too far in the UK to be reminded of the problems with UK roads. Report suggest over £1bn worth of investment in UK roads with a new expressway between Oxford and Cambridge. Infrastructure spending is to be much welcomed as it will increase efficiency of travel around the UK which will only help business. This should be good for the pound in many respects since it will help the UK economy longer term.

There is a flipside in that government borrowing is at record highs and further borrowing goes against the grain of what previous Tory administrations worked hard to (unsuccessfully) establish. If you look to the last election the Tories gained power on economic prowess promising not to tip the country into massive debts which of course they still did. If the current administration now spends lots it could risk upsetting the financial markets that so strongly backed the Tories last year.

Times have of course changed and given the backdrop of Brexit and a mood that tough austerity just isn’t necessary we could see more leeway from markets. On the whole I would expect the Autumn statement to be cautiously seen as sterling positive but any clients looking to buy or sell this week should be preparing their exchange today to limit their exposure and be preparing for the date.

If you are considering an exchange and wish to talk to a specialist about the relevant issues and ins and outs of transferring money at the very best rates of exchange please speak to me Jonathan Watson by emailing jmw@currencies.co.uk or please fill in the form below.

 

Sterling Exchange Rates Strong ahead of Retail Sales Data (James Lovick)

Despite some sizeable wobbles at the top the pound continues to maintain the higher ground against most of the major currencies. GBP EUR is back over 1.16 and has recovered from Tuesdays sharp decline following a leaked report surrounding Brexit which turned out to not be credible. GBP USD is struggling to climb much higher but is safely over 1.24 for the time being.

UK retail sales data are released this morning and could create some volatility for the pound. Often in the Christmas run up there can be big spike higher in retail sales but I don’t think we are at that time yet.

EU inflation data is also released today and should give the European Central Bank (ECB) some new direction. The ECB has been fighting a losing battle against persistent low inflation and weak growth for years. With the Trump election victory expected to cause uncertainty for the Eurozone then it is likely that ECB President Mario Draghi will look to extend its Quantitative Easing scheme sooner rather than later. An extension of 6 months is on the cards and such action would likely see the Euro weaken. A weak inflation number this morning could be the signal that Mario Draghi will take action at the next ECB meeting in December. There may be a jump higher for GBP EUR on the back of a weak number. Clients looking to buy Euros should be aware of the December ECB meeting as it could provide a very good opportunity to buy Euros.

Clients who are holding sterling are finally seeing some better times after all the Brexit uncertainty. There may be a little bit further to go for the pound although there will inevitably be more problems to come for the pound in the form of Brexit. Clients who are selling Euros or selling Australian dollars for example would be wise to consider taking advantage of the excellent levels which are currently still available.

If you have an upcoming currency requirement either buying or selling and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Will Sterling increase against the Euro and the US Dollar? (Tom Holian

After a brief fall for Sterling vs the Euro and US Dollar during yesterday’s trading session the Pound has already recovered this morning. After a leaked memo which showed the UK has little idea about its Brexit plan Downing Street has ‘wholeheartedly’ rejected the comments.

Prime Minister Theresa May is still insistent that Article 50 will be triggered by the end of March but owing to the recent High Court ruling this has stalled at least for the time being. The appeal is due to take place in December but the answer as to whether Article 50 can go ahead without parliamentary approval may not happen until January.

However, the good news for the UK and therefore Sterling exchange rates is that Angela Merkel has hinted at a key concession on free movement of people and that Britain could potentially retain access to the single market.

This has helped the Pound gain against all major currencies this morning and is seen as a sign that Europe is warming to potential negotiations between the UK.

Theresa May will be meeting with Angela Merkel in Germany on Friday and depending on how the talks go this could cause further volatility for Sterling Euro and US Dollar exchange rates. If they go well I expect to see Sterling make some gains against the Euro and the US Dollar.

Previously EU leader Jean-Claude Juncker has previously stated that access to the single market would be impossible but Merkel’s potential change of heart is clearly a good sign for the UK.

Having worked in the currency markets since 2003 I am confident that not only can I offer you bank beating exchange rates when buying or selling currency but also help you with the timing of your transfer.

If you need to make a currency transfer and would like further information about the process or a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

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