Home Sterling strength

Sterling strength

Pound to Euro Exchange Rate Held back by the Key 1.1250 Pivot

A Rollarcoaster Week for GBP EUR - Weekly Review June 18th 

The pound experienced a positive swing this week in response to Monday’s announcement of successful trials of a COVID-19 vaccine. The pound to euro exchange rate hit a two month high of 1.1285 during yesterday’s trading but failed to maintain these gains throughout the day and once again closed below the key resistance level of 1.1250.

This resistance is key as these levels act like ‘ceilings’ keeping prices from rising higher and are often the level where rising prices stop, change direction or indeed begin to fall. GBPEUR levels need to breach this marker for any moves higher for the pound.

Unexpected Economic Growth Not Enough to Support the Pound

Pound to euro exchange rates fell back below 1.12 this morning despite the announcement of record growth in the UK economy of 15.5% for July to September. This figure showed growth in all sectors of the economy – services, manufacturing, and construction as the economy was reopened following the first coronavirus lockdown.

Unfortunately, was not a strong enough figure to make up losses from both Q1 & Q2 for the UK. Having dropped a jaw-dropping 19.8% in Q2 following a 2.5% in the first quarter of the year. This leaves the UK economy still almost 7% smaller than the start of the year. Looking forward the last quarter is unlikely to read so positively as we have returned to lockdown in November. Rishi Sunak, Chancellor of the Exchequer suggested that this is still cause for ‘cautious optimism’ for the future performance of the UK economy although currency markets obviously were not convinced.

Pound to Euro Forecast Still Dependent on Brexit Negotiation

It is only seven weeks from today that the UK will leave the European Union, and both sides are fast running out of time to form a trade deal. Having surpassed Boris Johnson’s deadline for negotiations to conclude one way or the other (deal or no deal) on 15th October it is now believed that the EU council meeting on 19th November is a significant date in the diary for Brexit. This will allow enough time for any necessary legal changes to be ratified, just.

With rumours this week that Michel Barnier arrived in London with a league of tariffs which could be imposed on UK exports to Europe, totalling up to £960million annually, negotiations at this stage are far from friendly. Irish Taioseach Michael Martin warned overnight that now is the time for the UK to “knuckle down” to get a trade deal with the EU. Highlighting the economic shock that COVID-19 has had on the global economy he points out that a second shock on departure date needs to be avoided.

Pound to euro exchange rates remain cautious as we head towards December 31st with the whole market waiting with baited breath for any indication on whether an agreement on a trade deal can be met. Get in touch using the form below to find out more about the impact of the above factors on your upcoming currency exchange.

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

GBPEUR Sees a Sharp Rebound with ECB Stimulus Plans

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.

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

GBPEUR Supported by Boris Johnson Reopening Update

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?

GBP EUR Exchange Rate: Weekly Review April 9th

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.

Are you aware we can also help you with your currency exchange as well as offering you award winning market information?! (Daniel Wright)

Just to make you aware we have now had over 3100 people contact us through the site and so far we have managed to get better rates of exchange and win business from numerous companies, if you are using one of the following it may be worth you getting in touch for a direct comparison:

Moneycorp, HIFX, World First, Smart Currency, UK Forex, Oz Forex, Foremost Currency, Foreign Currency Exchange, Currency Index, Currencies Direct, XE.com, Transferz, NZ Forex, Halo, Afex, Tor FX and Hargreaves Lansdowne.

Not to mention Barclays, Lloyds, Natwest, HSBC, Yorkshire Bank, Clydesdale Bank, RBS, Halifax, Nationwide and pretty much all major banks.

We don’t only pride ourselves on a great exchange rate but also a really high level of service too, which you may find you aren’t getting to a high enough standard at present.

We deal with bank to bank transfers ranging from one thousand Pounds to multi million Pound transactions for both private clients and corporate clients… We have a regular payments facility too which is free and can assist anyone with smaller payments to Europe.

The company we work for is FSA registered and Authorised as a payments institute and all funds are kept in client transaction accounts to give you peace of mind your funds are safe and secure, we have won awards both for our exchange rates and customer service and have now 47,500 clients under our wing.

If you feel we could be of assistance to you as well, feel free to get in contact with me directly by emailing me [email protected] or you can indeed take two minutes to register for free to get a no obligation comparison in advance of your next transaction by clicking here

We look forward to speaking with you!

GBP to CAD forecast: Cross-party talks likely to influence the Pound to Canadian Dollar rate this month

GBPCAD Rates: Lack of Faith in the Pound Highlighted by Oil Crisis?

Pound Sterling forecast: Brexit talks the main driver for GBP rates

Perhaps the main driver of Sterling value at the moment are the ongoing talks between the Conservatives and Labour regarding the Brexit plan. With UK Prime Minister May’s Brexit deal being rejected within Westminster three times so far, she now needs to gain the support of her political opponents in order to be able to carry out the Brexit before the next deadline date on the 31st of October.

There have been calls from Conservative leaders to end the talks as they aren’t progressing, according to reports. However, the Pound hasn’t been sold off dramatically so far, perhaps due to the fact that the talks remain ongoing. One of the main issues remains the customs union, and there are also a number of Labour members that aren’t prepared to agree on a deal that doesn’t include another referendum, which is another issue within the talks.

Brexit holding back Sterling exchange rates

The ongoing issues surrounding the Brexit plan are clearly holding Sterling exchange rates back, as the economy is actually performing quite resiliently despite the headwinds caused by Brexit. Wage growth has been increasing and the unemployment rate is just 3.9%, which is a 44-year low. If there is a breakthrough within the cross-party talks I personally believe that we will see a boost to the Pound’s value, similarly if there is another referendum announced I would also expect to see Sterling climb.

Canadian Dollar exchange rates under pressure

The Canadian Dollar has been coming under pressure recently due to fears surrounding the global economy, as the talks to resolve the trade war between the US and China heat up.

Global stock markets as well as the currencies of economies that depend on global trade have weakened due to the escalation of trade war talks between the two economic powerhouses and CAD has paid the price, with the Canadian Dollar trading at its lowest levels against the US Dollar since the 3rd of January.

Economic data expected this week

Economic data out of the UK is light this week, but there will be a number of key releases out of Canada with Inflation data being released tomorrow at 1.30pm, and then a speech from the Bank of Canada’s Stephen Poloz on Thursday which could impact CAD exchange rates depending on the content of his speech.

If you have any questions about my GBP to CAD forecast, or would like to discuss Pound to Canadian Dollar rates, you can contact me directly using the form below.

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

GBP AUD Consolidates with UK Employment Due

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.

Will the pound rise or fall in December?

GBP USD Slips Ahead of BoE Rate Decision

The pound has had an amazing few weeks going from one of the world’s worst performing currencies to one of the world’s best performing currencies. Investors were bracing themselves for a dreadful finish to a bad year for the pound but now the outlook is a little rosier. Of course the performance of the pound will be interesting to you depending on which currency you are buying or selling against the pound. December has some very important global events alongside key news at home, all of which will shape sterling exchange rates. If you are looking to buy or sell the pound soon or in 2017 December is a key month to be making some plans ahead of!

EURO (GBPEUR) – The Italian Constitutional Referendum is on the 4th December and could easily see a big unwinding of Euro positions. This could give Euro buyers with pounds a nice early Christmas present! The Euro may weaken as political uncertainty in the region becomes a concern, the referendum is on constitutional reform but is turning into a vote on the popularity of Matteo Renzi the current Italian PM. On the 8th December the European Central Bank meet to discuss further QE (Quantitative Easing) measures which could also weaken the Euro.

December is shaping up to be a very volatile month for the Euro. The pound has just hit fresh 2 month highs against the Euro but will this last or could it go even go higher? For more information on this particularly uncertain pair please email me Jonathan Watson on [email protected]. We could hit over 1.20 so if you are looking to buy at 1.20 or more please let me know.

US Dollar (GBPUSD) – The fallout from Donald Trumps election victory continues mainly in emerging markets but the ascent of the US dollar seems almost unstoppable. One event that could easily half the strength of the US dollar is December 14th the US Federal Reserve interest rate decision. With markets pricing in over 90% probability of the US raising their interest rate to 0.75% global markets will be bracing themselves for this important wide reaching event. Expect further US dollar strength but this might lead to unexpected swings on GBPEUR and GBPUSD and investors move funds in and out of the US dollar.

GBPUSD exchange rates have been some of the most volatile in 2016 moving over 30 cents between the high and the low. If you are looking to buy or sell the pound and US dollar then please contact me to discuss the market in depth and all of your options. Please email [email protected] to get a further breakdown of the outlook and best available rates on this volatile pairing.

Jonathan Watson in action!
Jonathan Watson 

I Jonathan Watson have worked as a currency specialist for almost ten years helping business and private clients maximise their currency exchanges. I can offer a full overview of the market and highlight all the important events and your options to help limit your currency exposure. I would be delighted to hear from you and have a chat about our services and how we might help.

To contact Jonathan please email [email protected] or call 01494 787 478. Jonathan has appeared on BBC News discussing the EU Referendum and has been quoted in the FT, The Times The Telegraph and many more. 

Is the Pound overvalued or undervalued in the current market? (Joseph Wright)

Those planning on making currency exchanges involving the Pound and another major currency have a lot to consider in the current market, with the overall picture for the Pound being particularly mixed.

The headlines over the past week will highlight that the Pound is trading around it’s highest levels against the Euro this side of the new year, but in my opinion these headlines are creating almost a false sense of security regarding the Pounds value and the currency isn’t quite as strong as many may think.

When you compare the Pounds value with the ‘commodity currencies’ such as the Australian Dollar, the New Zealand Dollar and the Canadian Dollar you’ll see that the Pound is trading around multi-year lows.

The fact that the formal start to the ‘Brexit’ is now most likely less than one month away and all eyes are likely to be on the UK and how it’s economy is performing during this uncertain time, I personally think that there could be further falls to come for the Pound over the next few months and especially if there are breakdowns in trade negotiation talks.

GBP/EUR hitting new 2017 highs can be put down to Euro weakness as the Euro weakened across the board earlier this week. The Euro weakened as a opinion poll in France confirmed that far-right French Presidential hopeful Marine Le Pen is gaining popularity. Le Pen gaining traction could spell trouble for the Euro as she’s outlined plans for France to leave the Euro and start using the French Franc again along with leaving the Eurozone.

Those planning a currency exchange between this particular pair may wish to register their details with us in order to be kept up to date with how this topic unfolds.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from 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 to speak with Joe on 01494 787 478.

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)

GBP USD Exchange Rate Climbs Higher but Growth Fears Remain

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 [email protected] 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.

Recent Posts

None of the information contained in this website constitutes, nor should be construed as financial advice. It should not be interpreted as a solicitation to offer to buy or sell any currency or as a recommendation to trade.

Where interbank exchange rates are referenced within the website these should only be used as a guide on the performance of a market. These rates are not indicative of our exchange rates – please contact us for a quote.