Category Archives: Sterling strength

The impact of Eurozone Quantitative Easing upon Sterling Euro Exchange Rates (Tom Holian)

The Pound has hit 8 year highs earlier this year against the Euro and is currently very close to those same levels hit during summer.

One of the main reasons behind the strength for Sterling could be attributed to the weakness of the single currency following the introduction of QE in March 2015, the ongoing Greek crisis and low inflation.

With the ECB struggling to battle against low inflation the ECB president Mario Draghi has stated on a number of occasions that the central bank will do whatever it takes to help inflation otherwise this will also have a big impact of future growth for the economic area.

There have been persistent rumours that QE will take place next Thursday and the risk to those looking to buy Euros is that if this does not occur we could see a dramatic fall for Sterling vs the Euro as the expectations are that the ECB will add to the current amount of EUR 1.1 trillion.

On Tuesday the Eurozone release unemployment data expected to hit 10.8% and inflation data out the following morning.

Although I think the jobs data will be positive for the Eurozone I think any signs that inflation is still struggling could prompt the ECB to act on Thursday and increase the amount of QE already in the system.

If this does happen we can expect Sterling to rise even further.

However, it is difficult to second guess the markets so if you need to buy Euros then it may be worth taking advantage of these currently high levels before Thursday’s key announcement.

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




Black Friday on Pound Sterling Forecast (Daniel Wright)

Good morning and I hope you are all enjoy black Friday and manage to get yourself plenty of bargains.

Here at Pound Sterling Forecast our rates of exchange are so good all the time that we do not need to make any offers of discounts just to lure clients in, we keep our levels of exchange consistently fantastic so that our clients know they are getting a great deal every day of the year.

If you have a currency exchange to carry out involving buying or selling Sterling in the coming days, weeks or months and you want to see if you can get a better rate than your bank or any other brokerage is offering you then it is well worth getting in contact with us directly.

All you need to get in contact is to email me (Daniel Wright) on or to call me on 01494 787 478 and I will be more than happy to assist you personally.

Revised UK GDP Figures and Impact on GBPEUR Exchange Rates (Tom Holian)

Sterling Euro exchange rates have remained range bound trading just above 1.42 for most of the day as market data remains thin on the ground.

Tomorrow the UK releases the second revision for GDP figures expected to show 2.3% year on year and any improvement in the data could signal further Sterling strength against both the US Dollar and the Euro.

The real problem for the Euro is that with the ECB due to meet next Thursday there is a big possibility that we could see further Quantitative Easing and this is part of the reason why the Pound has increased in recent times against the single currency.

However, a big risk is that if QE does not take place we could see a very quick strengthening for the Euro and the GBPEUR rate drop below 1.40 so if you need to buy Euros it may be worth protecting yourself by organising a forward contract prior to next Thursday’s announcement.

Eurozone consumer confidence is also due out in the morning and clearly there are big problems in Europe so we could also expect a bit of Euro weakness after this announcement.

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


UK Recovery Remains Firmly on Track! (Matthew Vassallo)

It’s been another positive week for Sterling exchange rates, with GBP/EUR spiking back towards the highs we saw in the summer. The Pound received a boost following investor concerns that the European Central Bank (ECB) is likely to increase its current Quantitative Easing (QE) programme in December. This news caused the EUR to weaken, which helped drive Sterling’s value up its current standing.

The good feeling was intensified yesterday following the latest Autumn Statement, where both UK Prime Minister David Cameron and Chancellor George Osborne were very bullish regarding the UK economic recovery. They felt we remained firmly on track for the growth targets they outlined and the UK remains the fastest growing economy inside the EU. This news helped to solidify the Pound’s position around the current levels and despite my feeling that we will not see the near 9 years highs of the summer breached, I do anticipate the Pound to find some protection around 1.40 in the short-term.

GBP/USD rates have remained fairly docile of late with the green-back threatening to make a decisive move under 1.50, only for GBP to find protection and move away from this key resistance level. It is now widely anticipated that the US FED will raise interest rates in December and I believe this has now been factored into the current exchange rates. We may see the USD gain further strength as and when this hike is confirmed but I don’t believe we will see a major spike, due to this reason. If for any reason we do not see a rate rise expect the USD to weaken against Sterling.

If you have an upcoming currency requirement 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 directly on

GBP/EUR and GBP/USD reverse the losses of yesterday thanks to strong UK spending review (Joshua Privett)

Yesterday’s losses, particularly on GBP/EUR and GBP/USD, were reversed this afternoon by George Osborne’s changes to his budget during the spending review. 

GBP/EUR fell by over a cent during yesterday’s trading with confidence in the UK economy falling following the dodging of hard questions about the UK’s inflation problems during hearings held by the UK’s treasury committee.

Political dodging gave way to political sensationalism today with Osborne speaking to Parliament about his continued objectives for the budget. While the speech has only just finished GBP/EUR is already back up to the mid 1.42’s and GBP/USD is on the sunny side of 1.51 for USD buyers. 

The speech dialed back from the pure focus on austerity over the past few years which showed greater confidence from the Government for the UK to continue on in its strong recovery relative to other countries. While cut-backs are still being announced, some areas such as the NHS will be receiving increased spending and tax credit cuts were now off the table all-together.

This shot-in the arm for those hoping to use Sterling as a purchasing currency is a welcome break following the strong moves in the favour of Euro or Dollar sellers yesterday. 

These gains will likely continue into the afternoon as North American markets open and trade on the news. We may even reach 1.43 for GBP/EUR by the end of the day’s trading, but it will be a stretch for 1.52 on GBP/USD.

Those with Euros to buy must remember that 1.43 has been reached twice in the past 2 weeks and rates have continually been pushed back from this mark. It is difficult for those GBP/EUR rates to be sustained as the demand for Euros rises dramatically in the commercial sector once buying rates become so cheap.

A popular option this afternoon for Euro and Dollar buyers have been ‘limit orders’. These allow you to secure your currency automatically at no additional cost, before any sharp snap-backs against your favour are expected.

I strongly recommend those with Euros or Dollars to buy should contact me on to discuss how to secure your target level automatically once it is achieved to maximise the value of the Sterling you hold. I have never had an issue beating the rates of exchange elsewhere, and by squeezing as much out of any positive movements you could save thousands on your transfer. 01494 787 478


GBP/EUR Autumn Statement could Cause Volatility. When should I move? (Daniel Johnson)

Today will see the release of the Autumn forecast statement. The HM Treasury will produce a statement to parliament upon publication of economic forecasts. It provides an update on economic outlook and gives an insight into the governments budget plans for the coming year. The Chancellor has indicated there will be some quite severe cuts in welfare and direct government expenses. If he strays to far from the expected budget expect a swing in GBP/EUR.

In Mark Carney’s testimony yesterday he stated there may be a drop in interest rates before a rise due to our low inflation currently at 0.1%, well below the 2% target. This does not bode well for Sterling.

With GBP/EUR currently sat above 1.42 very close to the 8yr high of 1.4407 I would seriously consider moving if I was a Euro buyer.

I am in a position to beat any rate of exchange from any competitor on nearly  all currency pairings. If you require a quote please do not hesitate to get in touch. I can be contacted on 01494 787 478 or .

Sterling weakness likely ahead, will you you need to make a GBP exchange in the coming months?

The likelihood of further GBP weakness is strong as it becomes less and less likely the Bank of England will be raising interest rates any time soon! The raising and lowering of interest rates is directly attributable to the strength and weakness of a currency. Most certainly in the case of sterling investors will be buying the currency in the hope of the interest rate going up in the future and the currency then being worth much more. Just like a higher interest rate at a bank will encourage investors to put money into that account, so will investors buy a currency if they see that central bank are planning to increase their interest rate since it makes it more likely that that the currency will be worth more in the future.

The pound’s strength is therefore very closely linked to the state of the UK economy and to attitudes to when the Bank of England is likely to raise interest rates. The upshot for anyone who is looking to buy or sell the pound is a a clear pathway as to the intent and expectations for the currency. The difficult part is predicting just how the economic data will turn out! On balance it seems the pound will remain strong but with the latest Inflation news making very clear the Bank will not be raising interest rates any time soon if you are holding on hoping sterling will just keep rising in value you might end up disappointed.

I strongly expect that the pound will lose value in the run up to Christmas as UK economic data shows us that the UK economy is not performing as well as many had expected. The dangerous thing that we cannot really plan for is what happens elsewhere! There is a strong likelihood that the Eurozone will revisit their QE programme and the US will raise their base interest rate. Expect this to cause further Euro weakness and some strengthening of the pound as investors move funds from the Euro to the pound. The key dates are 2nd December (ECB Meeting) and the 18th December (Fed decision).

If you are planning any currency exchange buying or selling the pound for the rest of 2015 or early 2016 making some careful plans now is a very good idea as there is a strong likelihood the rates on offer today will change for the reasons above. To receive updates or learn more about all of your options when transferring money overseas or back to the UK please email me Jonathan on, I am very sure I can offer some useful insight and an exchange rate that will save you money.

Sterling exchange rates remain flat today – What is due out in the coming days that may impact the Pound (Daniel Wright)

The Pound has not really given us a huge amount to feed off of today however there are still a couple of important data releases due in the coming days that may impact your rate of exchange.

Tomorrow morning we have German growth figures which will no doubt impact the Euro in early trading and shortly after this we have a speech from the Governor of the RBA Glenn Stevens speaking over in Australia which is key for those with an interest in either buying or selling Australian Dollars.

Later in the afternoon we have a flurry of figures from the States which will keep tongues wagging about the interest rate hike and then after a fairly quiet morning for economic data on Wednesday we have lots more data from America including durable goods orders which are expected to show a slight improvement.

Personally I feel that this week we may remain fairly range bound against the Euro, we may lose a little ground against the Dollar if U.S data is good and I feel we may gain back a little of our recently lost ground against the Australian Dollar.

If you have a currency exchange to carry out in the next few days (or even in the coming weeks and months) then it will be well worth you getting in contact with me (Daniel Wright) directly.

I can help you both in terms of getting you a better exchange rate than you are able to achieve elsewhere along with helping you time when you buy the currency as this can make an even bigger difference.

All you would need to do to make an enquiry with me is to email with a brief description of what sum you are looking to exchange and the timescales you are working to and I will be more than happy to assist you.

The Impact of a US Interest Rate Hike on Sterling Exchange Rates (Tom Holian)

Clearly as rumours increase of a rate hike for the US in December this had led to GBPUSD rates just about managing to remain above the 1.50 levels during the month of November.

However, with US non-farm payroll data showing 271,000 new jobs this month and with Jobless Claims data due out on Wednesday I think this could provide the catalyst for the rate hike next month.

Indeed, the FOMC minutes published last Wednesday suggested that the US economy is ready for a rate hike but when it does come it is likely to be gradual.

The impact for Sterling vs Euro exchange rates is that a rate hike in the US will likely cause Dollar strength, which in turn will see Euro weakness providing some excellent levels for those looking to buy Euros with Sterling in the near future.

As well as the persistent rumours of the European Central Bank adding to the current amount of QE standing at an amazing EUR1.1 trillion this has also cause huge Euro weakness.

German GDP is published on Tuesday morning and if we see signs of a struggle expect Sterling vs Euro to hit new highs on Tuesday.

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




Will the pound keep rising next week?

The last few weeks have seen a real rollercoaster on exchange rates with lots of uncertainty principally from the Federal Reserve and the European Central Bank as to whether these bodies will raise interest rates (the Fed) or launch more QE (the ECB). The foreign exchange market is a very fickle beat and unfortunately for anyone trying to second  guess the market to well time their buying or selling of currency,  there are no quick answers or guarantees. Exchange rate movements are a response to investor demand for said currency, with moves hinging on many wide ranging factors. Currently the pound is enjoying strength since the UK economy has made improvements versus many of its counterparts like for example the Eurozone. After many years of low economic growth and high unemployment the UK is now creating jobs and growing at a slow but reasonably consistent level. This has led to sterling rising as it becomes more and more likely the UK will raise its base rate.

The UK economy is on the right track but the big barrier to the Bank of England raising interest rates (which would strengthen sterling) is Inflation. With prices having actually fallen in the last few months Inflation is a big worry for the UK economy. Any interest rate hike is highly unlikely given the uncertainty about Inflation, time will tell to what extent this situation improves but with Inflation Hearings next week the pound could easily come unstuck if the wrong data comes out. Other important information will the Chancellor’s Autumn Statement which could easily upset the rates and provide a less buoyant picture of the UK economy. Actual raw data comes in the form of the latest GDP figures on Friday which is probably the big highlight. All in all the UK and the pound are doing well but lately events elsewhere have created some very favourable levels which may not last. If buying Euros with pounds we are at close to an 8 year high, this could easily be a very good time to buy Euros that should really be taken advantage of.

If you are planning a transfer and wish to get an overview of your position and the market please feel free to email me Jonathan on

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