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GBP to AUD Exchange Rate at New 41-Month High as Boris Wins an Election Majority

GBP to AUD Rate Weakens as the Aussie Strengthens on Positive Economic Data

On possibly one of the biggest days in the UK’s political history, the GBP slipped amidst jitters from the outcome the election. Fear and uncertainty has weighed on the GBP whilst the AUD continues its strong form, tipping the GBP/AUD exchange rate in its favour. However, with the results being announced that the Tory Party won a majority in government, the pound has sharply rose this morning as they held their power in the UK.

Pound Suffers Losses as Election Deadline Arrives but Sharply Claws Them Back With Tory Win

The pound suffered yesterday as the election arrived swift on the UK’s doorstep. The GBP was in a good position to start the day, up against all major rivals against the Japanese Yen. Thursday began the voting day with a large turnout, and this continued throughout the day. However, the GBP suffered losses to the AUD, which sharply rose in strength following President Trumps announcement that the US was very close to agreeing a deal with China.

The losses sustained by the Pound largely came due to the uncertainty surrounding the potential chance of a Labour comeback in the election. Investors were concerned that with recent opinion poll figures, that Labour may have a chance of closing the gap between the Conservative party and forcing a hung parliament. If this was to be the case then the ongoing instability of the UK market will likely continue which would spell disaster for investors.

With the announcement of a Tory win, the GBP sharply rose and made its way back to the top spot in the trading market. Worries of a hung parliament have been relieved and the likelihood of Brexit occurring is back on the cards for the start of 2020.

The AUD Continues its Good Run of Gains

For the AUD, it began Thursday enjoying its second straight day of solid gains over the USD. It was given a further boost later in the session upon President Trump announcing that a deal with China was imminent. With this news he also stated that the intended tariffs that were set to be imposed on China would be averted. This is positive news for the global economy as they were likely to upset the stability of the global market and would have impacted the AUD too.

The Australian Dollar is very China-sensitive as it is its main export trader, therefore the AUD has seen losses over the drawn-out process of the trade talks between China and the US. So, the news breaking that the deal is likely to be agreed upon brought only positivity and optimism upon the currency. For the GBP, the election news that the Conservatives won a majority will likely give the GBP an ongoing boost as Brexit deals are finalised.

If you have an upcoming currency transfer and would like to know more on the factors influencing CAD exchange rates, you can contact me directly using the form below.

Sterling forecasts – How to play the markets

EU summit to influence the Sterling to Euro rates this weekend

GBPEUR rates has returned back to a volatile trading pattern as the new month has started. This is due to the economic data cycle starting again with a lot of updates on the economic health of the countries around the world. We have already had PMI data sets for the UK’s manufacturing sector and Service sector. These were mixed with manufacturing worse than expected and the service sector exceeding what had been expected. This is one of the reasons why the GBPEUR rates have now moved by over 2 cents between the high and the low this week already.  It shows and highlights how quickly things can change making a dramatic difference to the cost of anything from a holiday to a holiday home. Here we provide a service helping our clients through the currency maze. Informing them of information pending, forecasts, and expectations for the market so they can make an educated decision on when to trade. PLUS with access to award winning exchange rates you can be sure to save money compared to your current provider; both bank or broker. Simply put if that was not the case we would not be in business!  Feel free to test our service by getting in contact with STEVE EAKINS via hse@currencies.co.uk

So what is expected for the rest of the week.  Well today we have potentially the largest data sets for the month with interest rate decisions being published by the banks on both sides of the channel.  Any change here could be hugely significant changing prices not just for this week but for the months ahead, so if you are readying this and don’t need to look at markets for a few weeks or months it is still worth following these releases. Personally I don’t expect any change in policy at a central level but we could quite happily see commentary from the Europeans this afternoon change market values. Mario Draghi, the head of the bank follows the release with a press conference which is when this could happen. With data missing expectation across the single currency, a large Portuguese bank needing a bail out along with 3 Greek banks in the last 30 days.

If you would like an update when this hits the press please register your interest by emailing hse@currencies.co.uk with a summary of your situation and contact details.

Happy trading!

GBP/EUR rates: Pound makes further gains against the Euro

Pound to Euro weekly summary – GBPEUR rates reach six-week interbank highs

GBP/EUR rates have crept up again during early morning trading, with the Pound trading close to its high of 1.1368.

The Pound has seen its value increase against the single currency over recent days, despite UK Prime Minister Theresa May losing her key Brexit vote last week in the House of Commons and only just surviving a vote of no confidence in her leadership.

The Pound is managing to withstand any further losses despite the continuing lack of clarity on Brexit. Euro sellers may be considering the possibility that the single currency has maxed out its potential value against the Pound, under the current market conditions.

If the Euro failed to make any further inroads last week, is unlikely to see its value significantly increase against the Pound unless the UK is left in the unenviable position of exiting the single bloc without a deal in place.

Despite this remaining a potential outcome I do not feel it is the most likely scenario. Despite reports to the contrary regarding political jostling and scaremongering amongst senior politicians, neither the UK nor the EU want to leave on irreversibly bad terms. It will not be economically beneficial for either side and as such, I expect a deal to be struck ahead of the March 29th deadline.

How this deal will be achieved, or the parameters of it are yet to be fully divulged but any deal is likely to help cement Sterling’s position and could help boost its value, which remains marooned around the current levels for the most part, due to the on-going uncertainty surrounding the whole saga.

I would be very tempted to lock in any EUR sell positions ahead of the coming weeks, thus removing the potential risk of a downturn form the current highs. Longer-term I feel the Euro is likely to see its value start to decrease, as an economic slowdown and political uncertainty in many key Eurozone regions, could hamper any advancement for Euro exchange rates.

For further news on GBP/EUR exchange rates please feel free to use the form below to ask me a question. I’ll be happy to respond personally and answer your query.


Will the Pound rise or fall versus the Euro in May?

Pound to Euro Outlook Are GBPEUR exchange rates likely to fall further?

The Pound to Euro exchange rate has risen on the back of loose expectations that the UK might be able to strike a deal between the Labour Party and the Conservative Party. There is now a feeling that with both parties doing so badly in the local elections, there is added impetus to try and form an agreement to deliver a Brexit of some description.

Will the Euro weaken in May?

The Euro has also suffered of late with the market sceptical of some of the plans by the European Central Bank to restore confidence in the Eurozone. With the European elections scheduled for the 23rd May, there is added pressure and focus over the outlook both politically and economically for the single bloc.

The Euro could now well face increased pressures as investors try to gauge which direction events will take. It is likely more populist parties will find support from the elections with an increase in dissatisfaction of Government noted across the EU.

If there is a belief that an agreement between the Conservatives and Labour can be found, the Pound may well find some strength against a possibly weaker Euro.

Sterling might now appear more fragile however, since there are still some major gaps between the two sides to come to agreement over. The uncertainty is the key piece of news in my opinion which is holding back the Pound, this could see the Pound to Euro exchange rate losing value.

Pound to Euro forecast: Will the Pound rise or fall in May?

I predict that the GBP/EUR rate will now remain in a precarious position as the market awaits further news on how the Brexit talks are going and the likelihood of any further progress. Speculation too, around the outcome of the European elections will also I believe keep the pair in a rather volatile state.

GBP/EUR rates have improved for buyers, but could quickly lose value. If you are looking to buy or sell Euros against the Pound, please feel free to contact me to discuss the latest strategy and forecast to help maximise the position. You can send me a message directly using the form below. I will respond personally.

Will the Pound to Euro rate go up or down?

Will the pound or Euro go up or down in the coming weeks or months is a very valid question as there are so many upcoming events to move the rates. I would predict a range of 1.13-1.20 in the coming weeks as we get answers to some very important questions over Brexit and European affairs. If there is one thing the currency markets are not fond of it is political uncertainty. Markets can just about digest economic uncertainty as investors are used to assessing economic data on a daily basis. However political events, particularly the unique nature of current affairs make for some much more interesting outcomes for the pound to euro exchange rate.

The pound to euro rate could fall and easily retest the lower levels of 1.1298 seen in 2017 as well as the 1.1068 seen back in October. These big falls in sterling were all due to worry over the Brexit and as such these levels could easily be revisited. The actual triggering of Article 50 could be anytime in the next month, if you have a transfer to consider with pounds or euros making a decision or some plans before this happens seems very sensible to me. For my clients I am currently drawing up strategies to help cope with such volatility for the pound, if you would like information on a strategy to suit you please email me Jonathan Watson at jmw@currencies.co.uk.

What kind of deal will the UK actually get with the EU? Will this have a large detrimental effect on the UK economy? Will Theresa May’s determination to put immigration and sovereignty above economic certainty harm the UK? These are just some of the questions looming which could well lead to the pound coming under some serious selling pressures again in the not so distant future.

Euro buyers with pounds need not jump out of the window quite yet. Whilst sterling may well fall the recent trend has been more positive for sterling as investors finally get some clarity over the Brexit. Of course this is just one step on a long journey but it might be that markets do not view Brexit so badly now? Only time will tell, personally this is not a risk I would be wholly advocating. Considering GBPEUR is currently at some of the best deals in 2017 some 4% higher than the lows, now is clearly not a bad time to be considering your Euro purchase.

Further good news for Euro buyers is the political uncertainty emanating from events in the Eurozone. 20th February sees the Eurogroup meeting to discuss the problems of Greek debt. Then 15th March sees Dutch Elections which could well weigh on the Euro. Moving into April on the 23rd we have the French elections. With plenty of fresh headlines around such events likely to weigh on the Euro we could see some better opportunities for Euro buyers. I would not rule out rates over 1.20, we are not far from that now. If you wish to buy Euros at 1.20 please email me on jmw@currencies.co.uk and I can monitor developments for you.

It might be that the pound to Euro rate rises on Greek fears in the next week before dipping once Article 50 is triggered and then rising again around the Dutch election. I would honestly be predicting swings of up to 2-3 cents on certain days as markets get wrong-footed and we see surprises trigger volatility on the markets.

Whilst it is impossible to accurately predict the outcome of the events above it is possible to make plans and preparations. As part of my personal strategies for personal clients and businesses who need to conduct pound to euro exchanges I can explain all of the options available and offer my personal proactive service to monitor the market.

For more information at no cost or obligation please do feel free to get in touch with Jonathan Watson by emailing jmw@currencies.co.uk. I have appeared on BBC News discussing the Brexit and have been quoted in numerous online articles and newspapers. I cannot tell you exactly what to do but I am very confident I can offer some useful insight and information to help you get the most from the market.

 

 

Pound Sterling Strength: Sterling Making Impressive Gains Against the Euro

Was the Pound’s Sell-Off “Overdone”?

Pound Sterling forecast: Sterling has continued where it left off last week, with further gains against all the major currencies. The Pound had its strongest week of the year, making impressive gains against the Euro in particular.

GBP/EUR rates reached a two year high

GBP/EUR rates hit a fresh two year high, moving through 1.17, providing those clients holding the Pound with some much needed respite after months of stagnation.

The catalyst for this upturn was largely down to a reduced chance of a no-deal Brexit and a delay to the planned exit date of March 29th. With the current deadline fast approaching, action and not words is certainly required.

I will remain cautiously optimistic at this point, due to the fact this is not the first time we have heard that progress is being made. However, despite the previous false dawn, it does finally seem as though UK Prime Minister is making headway in her talks with the EU regarding a softening of their current stance on the Irish backstop. This is key to persuading MPs to vote in favour of her Brexit deal, when the next “meaningful” vote takes place on March 12th.

The Euro did find some support above 1.17 but only managed minimal gains and with the current GBP/EUR levels trading just under this threshold, any further progress this week is likely to drive Sterling value back up.

Those selling Euros will be disappointed at last week’s developments but may in time still look back on the current levels as offering fair value, especially when they consider the history on the GBP/EUR pair.

Any major realignment for the single currency is likely to dependent on a no-deal Brexit and with this scenario now looking less likely, I do not anticipate a move back towards the post-referendum highs.

As such, Euro sellers may wish to consider their positions ahead of what could be a period of relative downturn, assuming that Brexit talks do finally yield a positive outcome.

For up-to-date news on what is impacting GBP/EUR rates, or to discuss anything you have read in today’s Pound to Euro forecast, please feel free to complete the form below to get in touch. I’ll be happy to respond personally and discuss your questions.


RBS and Natwest to close foreign currency accounts – Will this affect you? We can help you exchange your currency into Sterling at much better rates than the bank! (Daniel Wright)

The US launch a significant stimulus package to stem the economic impact of the Coronavirus pandemic

We have heard recently from a number of existing clients that RBS and Natwest are to close all foreign currency accounts in the very near future.

If this is to affect you and you would like to discuss it in further detail then feel free to contact me directly as the company I work for specialise in getting much better rates of exchange than the banks and we can also hold funds in a foreign currency in a client account on your behalf, so if you do not wish to exchange the currency immediately due to where the markets are currently sat then you do not have to straight away.

I can personally keep you fully up to date with market movements and although I cannot directly advise you I can help you with the timing of your exchange to try and maximise your money.

An important day on the markets tomorrow for those looking to carry out any exchanges involving Euros as we have the European Central Bank interest rate decision and press conference at 12:45pm and 13:30pm respectively which could lead to an extremely volatile afternoon for the Euro.

If you feel I can help you with any aspect of currency exchange then do feel feel to contact me directly. You can email me (Daniel Wright) directly on djw@currencies.co.uk with a brief description of your requirements and a contact number and I will be more than happy to get in contact with you personally.

Pound to Euro exchange rate ends the week on a high – GBP/EUR over 1.17

GBP to EUR Outlook: Pound making gains against EUR

The Pound to Euro exchange rate had a great end to the week, rising above 1.17, as investors and speculators rushed to back the Pound in Friday afternoon’s trading session.

Why has the Pound risen against the Euro?

It is thought that the reason behind the spike in the market is that many now believe that due to the poor performance for both the Conservative and Labour Parties in local elections Theresa May and Jeremy Corbyn could well move a little faster to reach a compromise to get Brexit moving along with a little more pace than the current sluggish one we have been dealing with.

Pound vs Euro: Brexit has been holding back the GBP/EUR rate

The uncertainty surrounding Brexit has no doubt been holding back the Pound against all major currencies and should this uncertainty lift or even speculation start to rise over an agreement potentially getting closer in the cross party talks then Sterling exchange rates could have a further lift to come.

Is now the best time to buy Euros?

Current interbank Pound to Euro rates are up over 1.17 following a long period of being stuck in the 1.15s which makes a huge difference for those looking to buy an overseas holiday home in France, Spain, Portugal or any other region involving Euros. Even the movement in rates from the high to low point today would make a difference in cost of over £1800 so it once again shows how important it is to buy your currency at the right time.

The currency markets have been unusually quiet in terms of volatility for a few months now and this could be the start of seeing pairings such as GBP/EUR moving a lot more again. In situations such as these it is crucial that you have an experienced and proactive currency broker on your side.

Should you wish to find out more about how I can help you with a potential currency exchange then you are more than welcome to contact me directly. You can fill in the form below and I will be happy to get in touch.

Having worked in foreign exchange for almost 12 years now I have helped thousands of clients with their currency transfers and I always welcome a chat about the exchange rates. Should you wish to have a discussion about Pound / Euro exchange rates then fill in the form below and I will be more than happy to contact you personally.

Why is the Pound Losing Value?

GBP Holds Firm as UK Delivers 2020 Budget After Emergency Rate Cut

The Pound has come under increasing pressure over the past few weeks and despite a slight realignment today, the general trend for the start of 2016 is certainly a negative one. The Pound has so far struggled to replicate the positive sentiment it had for much of last year and this is down to a number of factors.

GBP/EUR rates have dropped by approximately 9 cents from the highs of last summer and even over the past month, we have seen a drop from 1.40. Personally I feel we are now seeing a much fairer value on the pair, which was in my opinion, overvalued above 1.40.

One of the main catalysts for the improvement was the removal of much of the uncertainty that had handicapped any sustainable spike for the single currency. This came in the form of Greece and Cyprus amongst others and despite on-going concerns over current Eurozone inflation levels, the European Central Bank (ECB) have decided it is not necessary to increase their current Quantitative Easing (QE) programme to counter this. This led to improved investor confidence and I now feel the EUR will continue to find support around the current levels.

GBP/USD rates have headed South at an alarming rate and provided something of a conundrum for those clients holding GBP. The catalyst for this move was the US Fed’s decision to raise their base interest rate in December, which despite being widely anticipated, gave the USD an immediate boost. It was taken as a sign of economic strength by the markets and following further positive data from the US (including today’s Non-Farm Payrolls figure) and a downturn in UK data, it is easier to see why the Pound has lost so much value, relatively quickly.

Under current market conditions I do not expect it to rebound to the high’s we saw in 2015, against either the EUR, USD or AUD.

If you would like to compare our award winning exchange rates with your current provider, or require any market updates or analysis ahead of a future transfer, then please feel free to call us on 0044 1494 787 478. Alternatively, you can email me directly on mtv@currencies.co.uk

Should I buy my euros now, if I need to buy before March 29th?

Pound to Euro Exchange Rates: UK GDP Released this Morning

With March 29th fast approaching, clients that are looking to buy euros before the UK leaves the EU have a decision to make. The two options they have are to hold off hoping UK Prime Minister Theresa May reaches a deal with the EU and MPs within the House of Commons, or trade now as a ‘crash out’ no deal Brexit looks more likely.

Will Article 50 be extended?

Yesterday Theresa May gave MPs an update in regards to the state of the Brexit negotiations and the leader of the opposition went on the attack. Jeremy Corbyn continued to state that Theresa May is running down the clock in order to force MPs to back a deal in the final hour of negotiations.

My personal opinion is that I believe it’s unlikely the UK will crash out of the EU with no deal. However, I also don’t believe a deal will be reached by the 29th of March and an extension of Article 50 is the most likely outcome.

Therefore for clients buying euros, recent history tells us when we approach this kind of event, the pound is sold off due to the uncertainty. Sterling exchange rates fall making euros more expensive to buy. In addition, recent UK economic data has also raised concerns.

The Bank of England announced that they expect 2019 to be the slowest year of growth since 2009. This was supported by the Office for National Statistics (ONS) figures which were released at 0.4% lower than expected.

Couple the Brexit negotiations with the poor UK economic data, and I believe clients that are buying euros before March 29th should buy there euros now.

If you are planning a transfer and would like a free quote feel free to fill the form in below. If you want to buy euros but unfortunately don’t have all of your sterling available today, we have an option where clients can buy euros today and pay later by using a forward contract. For more information, again feel free to fill out the form below and I will personally give you a call to discuss your currency requirements.


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