Brexit vote

GBP Weakness – the time to sell euros?

Over the last few weeks regular readers will remember that we have been highlighting that even through GBPEUR reached a 4 year high, the UK Economy is not doing well.  We have seen nuggets of economic data  over the last few weeks that have lead us to this assumption and this was proven again by data that will be widely published by media today.  This the news that the UK GDP figures showed that the DOUBLE DIP  RECESSION is deeper than initially expected. It...

GBPEUR Falls on UK GDP data

The Pound has suffered on the GBPEUR rate in this morning's trade as UK GDP (Gross Domestic Product) came in much worse than expected. The data showed in the preliminary estimate of Q2 GDP a -0.7% contraction versus the 0.2% contraction from Q1. This was much worse than predicted and shows a worsening trend. This has caused the pound to lose about a cent against the Euro and is presenting a good opportunity for anyone selling Euros to buy sterling. The current longer term outlook is...

GermanTriple A Threat Weakens The Euro

The under fire Euro took more losses today after it was announced Moody's were switching the outlook on Germany's AAA credit rating to negative.  Whilst it doesn't affect Germany's actual credit rating at this stage, it is a warning shot across the bows of politicians and financiers if they expect Germany just to continue bankrolling the current Euro debt crisis. Sterling Euro rates of 1.28 were once again on the market and all eyes are on whether the ECB, IMF and EU can provide a...
GBPEUR rate remains steady as markets await the Autumn Budget

What will move GBPEUR today? Key data and news to beware of!

The GBPEUR rate yesterday fell back below 1.28 yesterday which could perhaps be a sign that the peak has been reached on this rate. Touching nearly 1.29 on Friday as investors left the Euro, this could just be some profit taking although the USD was strengthening on the back of Eurozone and global slowdown worries. French PMI came out slightly better than expected which has given the euro some support this morning. Shortly we have German PMI and then Eurozone PMI. PMI is a good indicator of...
Sterling fails to make any inroads against the Euro despite positive UK services data

Will the Euro gain strength?

Regular readers will be aware that the euro is falling significantly and the outlook show no signs of improving. As a result people with euros to sell are getting increasingly anxious. Many people that have euros are rushing to sell, cutting loses for the benefit of knowing that they can’t lose any more. Q. So what do you do it you don’t have the euros yet? A. Well the answer is a FORWARD CONTRACT. This option allows you to lock in the exchange rate even if you...

Will Spain need a bailout? If so what will happen to GBP/EUR exchange rates?

Worryingly for the single currency it looks like Spain may well be next in line to seek funds from the European Central Bank and the IMF. Spain's borrowing costs jumped to a Euro-era high this morning on reports that 6 more regions will follow in Valencia's footsteps and seek central government aid. If this is the case what is the likely outcome for pound/euro exchange rates? Normally you would expect the value of the Euro to weaken, however the money markets are a fickle...
Pound to Euro exchange rate Where next for GBPEUR exchange rates?

Some Spanish Banks May Be Allowed To Fail So How Will This Affect The...

Spain agreed today at a meeting of EU finance ministers that some smaller banks may be allowed to fail during the financial crisis- an outcome they had previously said would not be allowed to happen.  The news caused the Euro to weaken sharply again this afternoon, as creditors realised they may lose more money.  So far Spain has been practically bailed out in all but name with the recapitalisation of their banks being achieved from European money, however they have not had to contend...
Pound to Euro exchange rates: Could we be headed for a no deal Brexit?

GBPEUR rates hit 1.28! Will it continue?

The recent moves on GBPEUR have been quite exceptional and yesterday this run continued with the rate hitting over 1.28! Spanish borrowing costs rose one again above the 7% threshold seen as unsustainable and the outlook for the Euro which I suspect will remain together, looks to be further weakness. When the debt crisis was only concerning Portugal, Ireland and Greece it was manageable due to their relatively low contribution to Eurozone growth (about 10%). And we always said that the real troubles would start once...

Sterling Euro Rates Hit 1.28 With Sterling Still The Lesser Of Two Evils

Euro woes continued today as once again Spanish bonds stay above 7% whilst French yields actually dropped.  The stark difference in borrowing costs between the haves of northern Europe, and the have nots from southern Europe has been driving the Euro sharply in the wrong direction for the last few months and very noticeably within the last few weeks as the Euro has lost over four cents against the pound in that period. GBP EUR rates have broken through 1.28 and the move suggests a...

UK Retail – GBP change

GBPEUR rates have stayed steady over the last 36 hours as little surprises from the market have resulted in little change. The real news of note is from the conversations had by the head of the FED over the last two days, the general tone was negative which hit investor confidence resulting in GBP strength. Today we have the retail figures for the UK being released at 9:30. This is of big importance and will drive prices across the board today. Why? Well Retail in the...