Brexit talks continue to harm the pound

Since the UK public decided to vote out of the EU, GBPEUR exchange rates have dropped 18%. To put this into monetary value a €200,000 purchase is now £33,000 More expensive. Many of my clients that are purchasing euros are asking if rates will continue to get worse or recover towards the end of the year. Brexit negotiations are one of the reasons that GBPEUR exchange rate now sit at an 8 year low. The third round of negotiations took place earlier in the week...

Sterling flat despite positive words from a key Bank of England figure (Joseph Wright)

Sterling has failed to see a boost to it's value this morning despite a member of the Bank of England suggesting that its time for an interest rate hike in the UK. The member is Michael Saunders and his comments won't of come as a surprise to many after his votes to raise the rate in the last two voting meetings. The current Pound to Euro exchange rate is sitting at 1.0850 after hitting a new 8-year low earlier this week due to Brexit uncertainties. There...
Pound exchange rates up following positive Brexit news

Eurozone Inflation To Cause Volatility (Ben Fletcher)

This morning the latest Inflation data will be released for the Eurozone which should provide an indication as to what the European Central Bank will decide to do in the next few weeks. Many analysts at the moment believe the ECB will start to reduce the amount of economic stimulus as early as September however if the EU economic data is not strong then that's less likely to happen. The Euro has been putting significant pressure under Sterling with many investors choosing to back the...
Brexit vote

GBP/EUR Short Term Forecast – Will Sterling Strengthen? (Ben Fletcher)

Sterling has been under continuous pressure these past few months presenting the opportunity for people to sell Euros back at some of the best levels in 9 months. Each week the range in which the GBP/EUR rate resides at has fallen nearly a cent suggesting there is more potential for the rate to continue to fall. If you have been waiting to sell Euros back to Pounds and are still holding on, the next month might be the best time. German Election At the end of...

GBP/EUR, Calm Before the Storm? (Ben Fletcher)

Yesterday the GBP/EUR rate hardly moved half a cent across the whole of the day with very little changing in the market. Until the drop on Friday due to poor economic data for the UK, the rate had spent most of the week hovering around the 1.14 mark. This morning the rate is back above 1.13 and in my opinion there could be a opportunity for the rate to lift a little today. MPC Members Speak Today Two of the nine Monetary Policy Committee members will...
The Pound Continues Its Fightback

UK Inflation to set the tone for Pound Euro exchange rates (Tom Holian)

We begin the morning with UK construction data due out at 930am with expectations of a possible fall but the real movement for Pound vs the Euro exchange rate is likely to come with the latest set of Inflation Report Hearings due out this morning. UK inflation has been rising recently to the level of 2.9% compared to the target level of 2%. Bank of England Governor Mark Carney is likely to be questioned and any suggestion that interest rates may be coming back on the...
GBP/EUR exchange rates creep up over the course of the trading week

A stable government is needed for a Pound rally (Daniel Johnson)

Theresa May's position has now been brought into question following her call for a snap election and the aftermath. Her decision to call an election when the opposition seemed so weak back fired when the conservatives failed to win a majority victory. Attacking tory core voters was deemed a poor move by senior conservative members. The PM's stance on Brexit is causing much unrest, with the DUP now in place alongside the conservatives it has been rumored we could be moving towards a softer...
ECB interest rates and Brexit update

GBP/EUR Forecast – The Referendum Result a Year On (Matthew Vassallo)

A year ago today, the UK public voted to leave the European Union. The result of this historic vote has been dissected and discussed ever since but are we any clearer as to what it really means to be ‘OUT’ of the EU? What we do know is that since that day Sterling has struggled to gain sustained market support, with investors questioning how the UK economy will fare over the coming years. This uncertainty has sapped investor confidence in the UK economy and the Pound has...
Will Pound to Euro Rates Gain in September?

Sterling rises after Bank of England hints at a rate hike (Joseph Wright)

The Pound appears to have consolidated above 1.14 against the Euro, making the buying Euro rate cheaper for those holding Sterling. There are current 8 voting members of the BoE and yesterday almost half of them voted in favour of hiking rates, which caused the Pound to jump by over half a cent as soon as the news broke around lunchtime. The reason behind the Bank of England's voting members that would like to see a hike is most likely the rising rate of inflation in...
Pound exchange rates up following positive Brexit news

Sterling Under Pressure Ahead of BoE Interest Rate Decision (Matthew Vassallo)

Sterling remains under pressure, despite a slight upturn following yesterday’s positive inflation data. GBP/EUR rates hit a high of 1.1407, before retracting following some positive Eurozone employment data. The UK also had its official Unemployment rate released, with the figure of 4.6% coming out as expected. The markets focus will now turn to tomorrow’s key data releases. UK Retail Sales and the Bank of England (BoE) interest rate decision & subsequent minutes will take centre stage. Those clients holding Sterling will hoping for a marked improvement...