Euro Suffers Losses to a Strong US Dollar and a Resilient Pound Sterling

Don’t get caught out gambling on exchange rates!

As a specialist currency broker for one of the UK's leading currency brokerages I am very experienced in dealing with both private and corporate client's currency requirements. What I am often asked is 'what is going to happen?' and in working with the client I am always keen to point out they should be realistic about their expectations and not get too carried away gambling that things will move in their favour. By letting me know what you need to do I can then keep...
The Pound Continues Its Fightback

Swiss set minimal rate for Euro – What does this mean for the Swiss...

Yesterday saw the largest movement for the Swiss Franc in its history as the Swiss National Bank decided to set a minimal level for the Franc against the Euro. Within ten minutes the CHF weakened by roughly 8% against everything as CHF was sold off rapidly by the SNB to get from 1.10 to 1.20 against the Euro, also against the Pound we saw similar movements as GBP-CHF went to 1.38 from 1.25! Lets see what has actually happened here and what effect this may...
GBP EUR Slumps with Lower GDP Print

Non Farm Payroll data this afternoon – Big release in the States that will...

Good morning all and heres to a busy Friday afternoon ahead! At 13:30pm we see the release of non farm payroll data for the U.S and this can be a large market mover, not only for the Dollar but also for many other currencies too. Non Farm Payroll data covers the amount of U.S citizens in Non Agricultural employment, it is Non Agriculural due to the farming sector employment being seasonal which would effect the figures quite dramatically. The data can be a large mover because of...
GBP EUR Starts the Week with 1.1800 Test

Pound Euro rate stuck in 1.12 – 1.16 range…. but for how long? Sterling...

My clients continue to ask me just what will happen to the Pound against the Euro and in truth, like major analysts worldwide and the majority of people if I am completely honest you just cannot be completely sure. What you shoud be doing in this current market is looking at it from an investors point of view, why would you look to invest in either? The Euro Zone has plenty of problems, and I am still of the opinion that at some point (could be...
Pound to Dollar Rate Pushed Higher by Falling Covid Cases and Weak Dollar

Bad releases yesterday for GBP but gains still made against EUR

You would have expected Sterling to suffer against most majors including the Euro yesterday if you looked at it at face value. The BofE minutes were released showing even hawks Spencer Dale and Martin Weale retracted calls for a rate hike as rates were kept on hold, 9-0 against. Furthermore we saw a rise in unemployment to 7.9%. Although Sterling lost in early morning before bouncing back in the afternoon, performing particularly well against the Dollar (due to a downgrade of US growth forecasts) and...
GBP EUR Exchange Rate: Weekly Review July 16  

The Eurozone bond, German GDP and UK Inflation – GBP/EUR rate

The Euro has gained over half a percent against Sterling today following statements from German businesses backing the development of a joined Euro zone bond. This has heaped pressure on Chancellor Merkel who has up until now defended her position against this bond. Germany posted encouraging GDP figures in Q1 of 1.5% and these are expected to slow to a 0.5% growth in Q2 released tomorrow morning at 07.00. Do not be surprised if they outperform this expectation again and we see Germany lead the...
GBP EUR Exchange Rate: Weekly Review July 16  

Domino effect of UK riots on economy and the Pound

Riots spread throughout the UK yesterday from North London to areas in South London, Bristol, Birmingham and Liverpool following the shooting of a notorious gangster in Tottenham. Even from my house in the home counties I left a lingering thought to the front door before falling asleep last night, was it locked? Definitely?? With these riots spreading to areas entirely anonymous to the North London shooting it suggests that there is an undercurrent of unrest in the UK with many pointing to a pent up...
GBP EUR Exchange Rate: Weekly Review July 16  

Pound Euro forecast – Volatile markets at present just what will happen in the...

The currency markets over the past few weeks have been unbelievably volatile and we have seen the stronger performers (JPY,CHF) over the past few days moving up to 4% in a day as central banks attempt to devalue their currency as the pure strength is really causing them high troubles. Japan for instance is having a horrible time with exports now as the price against the USD has gone so far that the states are no longer buying in anywhere near as much as previously...
GBP EUR Exchange Rate: Weekly Review July 16  

BofE and ECB interest rate decisions tomorrow – non event?

Personally I think both interest rate decisions tomorrow are likely to be a relative non event - the ECB (European Central Bank) are very unlikely to raise rates (although admittedly there is a small outside chance) and the BofE (Bank of England) even less so. However this doesn't mean to say that the markets will be flat tomorrow - in fact far from it! The rates are particularly volatile at the moment considering the debt issues in Europe and the recently resolved issues in the...
GBP EUR Exchange Rate: Weekly Review July 16  

GBPEUR breeches 1.15

GBPEUR has weakened again today as investors continue to baulk at the state of Eurozone debt levels. As discussed last week, it was not even a week and the wheels were falling off the recent 'resolution' in the crisis. I cannot see how this will not continue to remain as a pressure on the exchange rate, particularly with the US debt ceiling issue now resolved. This has caused the dollar to gain about 2 cents, much of which will be investors returning to the dollar...