Sterling Euro Exchange Rates hit 1.21 (Tom Holian)

Tom Holian
Tom Holian

As we come to the end of the month data is often few and far between as markets tend to settle down. This has meant Sterling has hit close to 12 month highs again versus the Euro.

This means if you are looking to buy Euros today and want to achieve 1.21 then get in touch today by contacting me directly Tom Holian [email protected] Please write ‘FREE QUOTE’ in the subject header of the email.

Fourth quarter GDP for the UK showed that our economy is still growing which has helped Sterling this week. The data showed growth quarter on quarter of 0.7% which is good news for the British economy and therefore currently being reflected in Sterling exchange rates.

UK Unemployment is close to a 6 year low and Retail Sales have been the best since 2004 whilst in the Eurozone their main concern is with inflation currently measured at 0.7% which is concerning for single economic area.

Typically is inflation is low then the normal strategy is to cut interest rates and with the ECB’s interest rate at 0.25% there is a small chance of a rate cut at next Thursday’s meeting which is why the Euro has weakened over the last few trading sessions.

If the ECB does not cut then I would expect the Euro to strengthen and these current exchange rates to drop.

This morning’s house price data for the UK shows house prices at their highest level for four years, another reason for Sterling maintaining strength this morning.

***EUROZONE UNEMPLOYMENT JUST RELEASED SHOWING 12% BETTER THAN EXPECTED GIVING SOME SHORT TERM STRENGTH FOR THE EUROZONE***

If you would like to save money when buying Euros compared to using a bank then contact me directly Tom Holian [email protected]

 

Will the pound rise or fall on the UK interest rate decision?

The pound is having a much better time of late against most currencies following the increased likelihood of a UK interest rate hike. If you are looking to buy or sell the pound in the future then making plans ahead of next week’s data is vital, tomorrow and Thursday will also see some important news on the rates which could move sterling rates. If you have a transfer to make and wish to get the best rates and some assistance with the planning and execution of any deals please do contact me.

Tomorrow is UK GDP (Gross Domestic Product) data which is predicted to come in at 0.3% for Q3. This is in line with the previous month but puts the UK firmly at the bottom of the growth tables for leading economies. This is not the kind of news that I feel warrants consideration of an interest rate hike. A rate hike could stifle growth even further and lead to a recession, that would not be good news for anyone!

Thursday is the latest ECB (European Central Bank) interest rate decision meeting. Markets are predicting a change in the QE (Quantitative Easing) taper of up to €30bn which would represent a change in the attitudes to monetary policy by the Eurozone central bank. The Euro could see some volatility so any clients with a GBPEUR exchange could be in for a busy day. Rates movements on 1-2 cents would not be out of the question. If you have a transfer buying or selling Euros and wish to discuss strategy for maximising your deal please speak to me Jonathan Watson by emailing [email protected].

Next week is a huge week for the pound, personally I cannot see the Bank raising the interest rate. I just do not think it is a good decision to start raising mortgage payments for millions of households, jeopardising growth and unemployment in the future.

If you have a transfer to make and wish to be kept up to date with a volatile few weeks please speak to me Jonathan by emailing [email protected]. Thank you for reading and I look forward to hearing from you in the future.

Is there any chance of a Sterling rally in the near future? – Pound Forecast (Daniel Charles Johnson)

GBP USD Exchange Rate Falls Amid Murky Economic Backdrop

GBP Forecast

Many of my clients are hanging on to sell there Sterling at present. Having watched GBP/EUR fall from 1.40 at the beginning of the year to the now painful lows of the 1.15-1.16s. It is extremely hard to predict with high street banks throwing out contradictory forecasts. Lloyds predicting a Sterling rally and HSBC predicting parity on GBP/EUR. Personally I feel as UK data starts to filter through for July we will see further Sterling weakness. UK retail figures went against the grain and came in better than expected. we did see a small rally for GBP but it was not sustained.  I feel the positive data cab attributed to an increase in tourism due to the weak pound and the rarity that is good British weather.

It is important to note that Ian McCafferty a member of the monetary policy committee has indicated that if UK data continues to come in below expectations than further monetary easing will be initiated. If I was looking to sell Sterling short-medium term I would be taking advantage of current levels.

If  you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is vital during such a volatile  times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to assist with your trade I will be happy to help. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving in comparison to high street banks. Please do get in touch by contacting me at [email protected]. Thank you for reading my blog. The quickest method to get in touch is by filling in the form below and we will be in touch ASAP.

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Pound slide continues unabated – GBP/EUR and GBP/USD the worst affected (Joshua Privett)

GBP EUR Exchange Rate: Weekly Review July 16  

The Pound was hit on multiple fronts yesterday, with its most serious slide in value occurring later on in the afternoon. GBP/EUR rates tumbled by more than two cents and GBP/USD is now at its lowest buying level in years.

Sterling’s slide, particularly for buying Euros, has been so sustained since December that currency exchange rates are actually making the news headlines – http://www.bbc.co.uk/news/business-35343792

Recent comments by George Osborne about the serious pressures facing the UK economy during 2016, were compounded by the negative outlook expressed by a normally optimistic Governor of the Bank of England, Mark Carney, yesterday afternoon.

He mentioned there was ‘no need’ to address interest rake hikes at the moment, a far cry from his recent flexible stance, and mentioned the term ‘slowing economy’ to describe the UK.

With the man at the helm of the UK economy stating such remarks, it was understandable that Sterling’s recent fall continued into a further tail slide.

Unfortunately, this fall in buying rates for Euros and US Dollars is not a short-term trend.

The UK is in a slump due to its heavily reliance on a financial service industry which is seeing its biggest test since the financial crisis of 2007/8 – you only have to read the regularly articles in the news concerning Chinese stock-market crashes to get a general feel for current market sentiment.

The recent flooding isn’t helping either. Whilst winding down they are still on-going and its already telling on economic activity.

For example last week, data was released for retail sales growth in December. This was expected to give Sterling a bit of a boost after weeks of negative coverage.

Instead growth came in at a fifth of what was expected. Buying activity is being seriously hampered, and with similar results for our manufacturing and construction sectors, when data for January’s output is tallied in February, we’ll likely be seeing further Sterling weakness to come.

I strongly recommend that anyone with currency to purchase with Sterling in the coming months should contact me on 01494 787 478 and ask the reception team for Joshua. We discuss a strategy for your transfer in order to avoid the pitfalls in the markets expected over the coming weeks to maximise your Euro or Dollar return.

I have never had an issue beating the rates of exchange offered elsewhere, and these current levels can actually be fixed for six months or more to avoid your purchase becoming more expensive.

Similarly Euro and Dollar sellers can do the same, and we can discuss your options on how to ride any further movements in your favour to their peak within the timeframe you have to complete your exchange. [email protected]

 

 

What is happening to Sterling vs the Euro and will the Pound make gains? (Tom Holian)

Sterling Euro exchange rates have finished the week almost 3 cents higher than when the week first started.

Prime Minister Theresa May was rather bullish in her speech on Tuesday and claimed that she would seek parliamentary approval concerning Article 50.

With the Supreme Court decision originally due to take take place earlier this week this has now been delayed and the expectation is now for Tuesday morning. However, it appears as though the ‘horse’ has bolted with the PM already having spoken about the issue.

This shows that the power is still clearly with the government and it will be them who will ultimately decide when Article 50 will be triggered and this is what helped the Pound to make the gains.

However, I think investors and speculators will be looking closely at the announcement nonetheless and I think this is likely to cause volatility for Sterling exchange rates so if you’re considering buying or selling Sterling then keep a close eye on the currency markets on Tuesday.

Yesterday evening saw the inauguration of the new President of the United States Donald Trump and although this has yet been felt in the foreign exchange markets his rhetoric was extremely pro-US and bringing back manufacturing to the US.

However, this will clearly be very difficult to change in the short term so expect to see volatility for the US Dollar as next week commences and the US opens for business on Monday.

My prediction going into next week is for Sterling strength against the Euro but weakness vs the US Dollar.

My name is Tom Holian and I have been working in the foreign exchange markets for over 14 years for one of the UK’s leading currency brokers. 

Not only does the company I work for offer better rate of exchange than using your own bank but also I can help you with the timing and offer you various different types of contracts to suit your needs.

To find our more or for a free quote then contact me directly and I look forward to hearing from you.

Tom Holian [email protected]

Pound strength following King Speech (Steve Eakins)

Today, which is probably the busiest day this week has already provided a few surprises.  It was this morning confirmed that France has re-entered a recession creating euro weakness, UK Unemployment is improving and then currently the current Governor of the Bank of England, Mervyn King, in his last speech seems to be talking the value of the Pound up. In summary GBPEUR rates have now risen from the 2 week low at the beginning of the day towards a near 4 month high we last visited 4 weeks ago.

So what next for GBPEUR exchange rates?

Near future – EURO buyers may want to hold off till tomorrow when we have the last big data release for GBPEUR this week when the Eurozone confirms their Consumer Confidence figures for April.  The expectation is for this data to show a contraction so rates may climb further for GBPEUR following this news which is released at 10 am BST. Euro sellers may want to move before hand as a result.

Medium term – Next week we have UK Production Price Index, UK Retail figures, Bank of England minutes, UK GDP figures and UK Mortgage approvals.  Expectations for these releases will be more concrete on Monday so keep reading here for the latest forecasts and updates on these releases.  This should help highlight potential buy and sell opportunities when it may be the best time to trade through next week.

Longer term – A lot hinders on the new Bank of England Governor Mark Carney that starts his post at the end of June.  He may want to come in with an instant impact changing interest rates or the current asset buying program.  It may the beginning of July when we see this and is already expected to be an interesting event that may give direction to exchange rates for the following few months.

If you are in the currency market and are interested in a more personal view on how the above events could affect you, feel free to contact us on the normal number (01494 787 478) or myself personally, Steve Eakins via email at [email protected]

Mario Draghi and the ECB send the markets into overdrive (Dayle Littlejohn)

Yesterday the European Central Bank and the President Mario Draghi sent the markets into overdrive. The European Central Bank confirmed at 12.45 they would be cutting the Interest Rate from 0.05 to 0% and the deposit rate from -0.3% to -0.4%. Further to this the ECB confirmed they would be adding an additional €20bn each month to the Quantitative Easing program.

This led to investors selling off their Euro positions to buy other currencies which would lead to higher returns on their investments.

Sterling made significant gains against the Euro however lost ground against safe haven currencies such as the USD and commodity currencies such as the Australian and New Zealand dollar.

45 minutes later President of the European Central bank surprisingly shocked the market with his bullish comments. Mr Draghi confirmed the ECB would not need to make further cuts and painted a positive picture in regards to the economy as a whole.

This led to speculative traders revering their trades and investing back into the Euro. The Pound therefore plummeted against the Euro however made gains against the USD and commodity currencies such as the Australian and New Zealand dollar.

It just shows how important it is to have a broker working on your behalf when buying currency for a property or to pay company invoices for example. If you had managed to purchase Euros at the high point compared to the levels we saw after Mr Draghi’s press conference, you would have saved just under £4,000 on a €200,000 purchase.

My area of expertise is for clients that are looking to purchase a foreign currency with the Pound for a property purchase. It’s important to analyse both currencies, for example GBPEUR / GBPUSD, therefore if you would like to be regularly updated and receive the best possible rate email me with the currency pair and your requirement and I will email you directly with my forecast and the process of using our company [email protected]. Alternatively if you would like to discuss your requirements over the phone call me on 01494-787478 and ask for Dayle Littlejohn.

Why Are Sterling Exchange Rates So Low? Why Is The Pound Dropping?

Sterling exchange rates have taken another huge hit overnight as the trend of weakness for the pound continued straight at the start of the open on the Asian markets last night.

The Pound dipped all the way down to the 1.02s against the Dollar and the 1.07s against Euro as investors and speculators rushed to drop the currency and this caused a great deal of weakness.

So why are Sterling exchange rates dropping?

Since the announcement of the mini-budget and Kwasi Kwarteng’s plans to cut taxes we have seen sterling exchange rates lose value quite significantly, the reason behind this is that investors do not fully back the plans and feel that the sheer level of Government borrowing required will cause damage in the future.

They believe that this approach isn’t sustainable and that we could find ourselves in some pretty hot water as an economy in the months and indeed years to come with the plans that have been out in place.

If you then couple this with the Bank of England being much slower and less aggressive regarding interest rates compared to other Central Banks around the world there is a feeling of fear that this time around the Government and Bank of England may have got their choices wrong.

Mr Kwarteng has added further comments over the weekend that this is not the end of the cuts and that he actually plans more, which has quite frankly spooked the markets further. Government bonds jumped by their highest increase on record on Friday, and with Sterling exchange rates dropping but Government bonds rising it presents quite a nasty recipe.

The lower the pound goes the larger the cost of living crisis for consumers in the UK too. We are great at services here in the UK and a large portion of our economy is made up from the service sector, financial services as an example, however, what that also means is we import a lot, with the pound now substantially lower than it was even a few weeks ago, the cost to buy in these goods and indeed a lot of our energy and fuel heading into the winter is spiraling out of control.

So we are faced with costs going up for business’s, consumers without that extra spare cash in their pockets and an expectation of a fairly long and challenging recession which is likely to last through 2023.

The Government have tried to stem this by putting more money into people’s pockets, but the expectation is that this could be like putting a plaster on a very deep cut, it likely needs a lot more care and attention than that, and just borrowing more and more is not going to be sustainable.

We have an extremely interesting week ahead and the markets could swing wildly just off the back of comments from members of the Bank of England, Politicians or anyone with direct involvement in this crisis, so you need to be fully prepared to act swiftly if you have an exchange to carry out.

Strangely, and to add a positive to this report we have had news that house prices are still rising in the UK with a 0.7% month on month increase reported by Rightmove today, the strongest pace in four months, so one area is still performing ok.

Later today we have Christine Lagarde testifying to lawmakers and being the Head of the European Central Bank we may see further indications on their plans to tackle inflation and what their next move will be on interest rates, so for anyone with an interest in Euro do expect some movement of the back on this.

If you are looking to make a large currency exchange in the coming hours, days, weeks or months and you would like to talk through the current sell off and what it means for you/what your options are, feel free to contact us here at Pound Sterling Forecast today.

You can email me (Daniel Wright) directly on [email protected] or you can click  this link and one of our team will get in touch in due course. Should you prefer to set up daily rate updates or to set a rate alert then feel free to do that within this site too.

I hope you have a great day, its going to be a volatile week!

Sterling exchange rates receive another boost, but will the Pound hold onto its recent gains? (Joseph Wright)

GBP USD Exchange Rate Falls Amid Murky Economic Backdrop

Sterling is the best performing currency in the G10 so far this week, after it was boosted yesterday off the back of some Brexit positive news from the UK’s Prime Minister Theresa May.

Whilst addressing the CBI conference (a gathering of the leading names from the world of business, politics and media) May gave a number of hints that the government will be looking to create new opportunities through ‘new and dynamic’ trade deals. She implied that she would be looking for a transitional deal for business after the Brexit which suggests that she’s open to the UK retaining access to the single market for as long as possible.

Readers hoping for a stronger Pound should continue to pay close attention to comments by leading figures within the UK surrounding the Brexit.

The Brexit is the biggest driver of currency movement involving the Pound, with any talk of the UK retaining access to the single market, the Brexit initiation process being delayed or extensions to the 2 year separation process being met well by the markets.

The Pound is at it’s highest level vs the Euro in 2 months after gaining around 6 cents in a short period of time, mostly due to the High Courts recent ruling, Trumps election victory and May’s comments yesterday at the CBI conference.

There are a number of major financial institutions that despite Sterling’s recent gains, are still expecting the Pound to decline to levels not seen for 5 years during 2017.

HSBC remains particularly bearish regarding Sterling’s projected value next year, and DNB Markets have specifically given the GBP/EUR pair a 12 month price target of 1.0869 which is almost 10 cents weaker than its current level.

If you would like to be kept up to date with the latest Sterling news, and would like to discuss the timing of an upcoming currency exchange you’re planning on making involving the Pound, feel free to get in touch with me (Joe) directly on [email protected] for a free overview. 

We’re here to help you make a well informed decision on when to make your currency transfer, and to help you benefit from highly competitive exchange rates as we’re one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible. You can also call in and ask reception for Joe on 01494 787 478. 

Pound still finding it a struggle despite positive Retail Sales (Daniel Wright)

GBP EUR Exchange Rate: Weekly Review July 16  

The Pound has had a tough day again on the markets barely gaining any ground against most major currencies and virtually trading sideways against the Euro.

Despite a fairly good economic data release with Retail Sales looking up, nothing seems to be able to kick-start the Pound back into a period of strength again.

Tomorrow we see Public Sector Net Borrowing figures for the U.K which is again expected to be slightly better than we have seen of late and should lead to a little Sterling strength but do not expect a major spike on what seems like a fairly comfortable and quiet market awaiting the next big news from Europe.

Those with a pending currency transfer either buying or selling the Pound should still however ensure that they keep a very close eye on the market as although quiet and fairly stable at present there is a lot going on behind the scenes at Central Banks and Governments and we could quite easily see a large movement happen some point soon – More than likely surrounding what happens regarding Europe which may effect all major currencies as attitude to risk changes globally.

If you want to be kept up to date with the very latest market movements and then to get the best exchange rate as and when you do decide to carry out your transfer then I can help you with both. Do feel free to contact me directly and I will deal with you personally, with years of experience on the market and dealing with currency transfers large and small you will certainly be in the right hands – You can email me directly on [email protected]

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