GBP EUR Slumps with Lower GDP Print

The Slide of the Single Currency

As the week draws to a close the markets are left to reflect on what has been described by many as the beginning of the end for the Eurozone and its single currency. As financial Armageddon bears down on the Spanish economy and investors run for cover, I have to ask myself which twist this Greek tragedy will take next. In fact, it is now probably better described as the sinking of the Spanish armada and any default by Spain would not only cripple the country’s economy but ensure contagion...

UK in recession…..a reaction?

After the initial shock following yesterday’s announcement from the Office of National Statistics that the UK is officially back in recession, where we saw the Pound quickly lose around 0.5% against most major currencies, Sterling seems to have recovered quite pretty well starting the day only half a cent away from the recent 20 month high against the Euro and just touching 1.62 ( a 6 month high) against the US Dollar. In my mind the reason for the Pounds continued strength could be one...
GBP EUR Slumps After Stronger Euro Growth

GBPEUR at 20 month high

The Pound hit a 20 month high against the Euro yesterday following the Bank of England's minutes which suggested that the likelihood of further Quantitative Easing being used to stimulate economic growth in the UK is diminishing. This, combined with an unexpected drop in unemployment numbers led to the Pound spiking to within a cent of the highest levels seen since the Summer of 2010 (now doesn’t that seem like a lifetime ago!!). At times like this human nature often gets the better of us and...
GBP EUR Slumps Despite Higher UK Employment

1.22 on the markets!!!

GBP/EUR levels have today pushed through the 1.22 barrier, which up until now had provided huge market resistance. We are currently trading near the dizzy heights of a 20 month high, with the Interbank rate touching 1.2233 at its highest point today. This seemed be triggered after this morning’s UK unemployment figures were released and came in better than expected (unemployment fell by 35,000 to 8.3%). This represents the lowest figure since the summer of 2011 and provide further evidence that the UK is...

Buying Euros At 1.21?

If you are looking to buy Euros at 1.21 then the last 2 days have provided the perfect buying opportunity with many trades going through at 1.21 (dependant on volume).  Higher then expected UK inflation figures and the continued problems in Spain have meant the pound has remained relatively robust whereas the Euro has been under increasing pressure.  Current levels represent the best buying levels in nearly 20 months and have only been about 1.5 cents higher since 2008! Whilst I cannot see the situation...
Brexit vote

GBPEURO.. Which way will it go?!

The GBPEUR exchange rate is knocking on the door of the best levels we have seen all year for anyone buying Euros and in my opinion well worth taking advantage of. You see the problem with the pound over the last few years is confidence. With much of the UK's industry and manufacturing having been moved offshore, the last decades growth was fuelled by global demand for UK services. Banking and Insurance were the real big hitters and with these areas still licking their wounds,...
GBP EUR Lower Despite Weaker Euro Data 

Where next for GBP/EUR rates / Greek debt swap deal reaches pivotal point /...

GBP/EUR rates have been hovering just below 1.20, as markets wait for confirmation that Thursday’s deadline for the Greek debt swap with its private creditors will be met without any further surprises. This debt swap will enable Greece to immediately wipe over 100 billion Euros off its national debt and is essential if the country realistically wants to remain part of the eurozone and its single currency. If this deal goes through we could well see some initial Euro strength, although I do not...
GBP EUR Exchange Rate: Weekly Review July 16  

EUR Recovery / GBP/EUR Forecast / Greek Solution?

Monday has seen some positive movement for GBP/EUR, although not enough to erode the recent declines against the single currency. Levels have pushed back up to a high of 1.1844, after starting the day at 1.1780. Markets had reacted positively to news that the Greek bailout package had finally been agreed and subsequently we saw the Euro gainover two cents against Sterling, with the single currency trading at its highest level since November of last year. Whether this was a false dawn or not only time will...
GBP EUR Exchange Rate: Weekly Review July 16  

Quantitative easing weighing on the Pound

GBPEUR rates fell to a 10 week low yesterday as markets began to accept that the Bank of England may have to resort to further phases of Quantitative Easing to boost the UK's ailing economic recovery. Rather than the £50bn injection seen earlier this month being "just" approved it appears that 2 of the MPC's 9 members voted for a larger, £75bn investment, fuelling speculation of further intervention later this year. With recent inflation figures showing a fall to 3.6% and with the Bank of England...
Euro Suffers Losses to a Strong US Dollar and a Resilient Pound Sterling

Greek Deal Finalised,Euro push,GBP/EUR Forecast

Greek Deal Finally Pushed Through Last night after marathon talks in Brussels, Eurozone Finance Ministers finally thrashed out a deal that will see Greece receive its second bailout package of 130 billion Euros. Greece will now receive the loan payments but more importantly have approximately 107 billion Euros of the debt written off. In return for this bailout package the Greek government must cut its debt dramatically from 160% to 120.5% of GDP within eight years and accept a permanent EU economic monitoring system, to ensure...