Pound to Euro rate hits 6-month high as Brexit text is agreed

Pound to Euro rate hits 6-month high as Brexit text is agreed, what could happen next to GBP/EUR

Yesterday the Pound to Euro exchange rate climbed to its best levels in 6 months. This level was within half a cent from the best Pound to Euro rate in 15 months, making it a good time for Sterling sellers when recent trade levels are considered.

Brexit news positive for Pound to Euro exchange rate

The reason for the spike in Sterling’s value is due to the announcement that a Brexit text has been agreed upon by Prime Minister Theresa May and her EU counterparts. The upside movement so far has been limited as the arrangements need to be agreed upon by May’s Cabinet before being passed through Parliament. This morning there is a lot of talk about whether there will be any further resignations by Cabinet members that are unhappy with the proposed deal. I think that if any members do step down the gains for Sterling over the past 24 hours would most likely be wiped out.

There is also a chance that the Cabinet will reject the proposed Brexit deal and this could be another reason for a drop in the Pound to Euro exchange rate.

Cabinet meeting set for 2pm today

At 14.00 GMT today the UK Cabinet is expected to meet to discuss the future relationship between the UK and EU along with the draft withdrawal agreement. If talks go well and progress is made there is talk of the previously cancelled November EU Summit being re-instated around the 25th of this month. This could be another potential market mover as it would signal positive strides being made by May in her quest to appease everyone in what seems like an impossible task at the moment.

Positive economic data for the UK

The Pound may have also been helped by the strong wage growth data released yesterday, which showed a further rise in regular pay growth to a decade high of 3.2%. Economic data is playing second fiddle to Brexit updates at the moment but it’s worth knowing that there is October’s inflation data being released later today which could impact the Pound to Euro rate depending on the release.

Another key topic at the moment that could impact the Pound to Euro exchange rate is the Italian Budget. The Italian coalition Government is in disagreement with the EU regarding its budget allowance, and the pair appear to be at loggerheads as this issue has been rumbling on for a while now.

If you wish to be updated in the event of a major Pound to Euro movement, do feel free to send me a message. You can send me a message directly using the form below, to ask me any questions you may have about the Pound to Euro rate. I will respond to you personally.

Pound vs Australian dollar: Will the GBP/AUD rate remain above 1.80?

Pound to Australian Dollar rates

The pound vs Australian dollar rate has found itself back over 1.80 as expectation for a Brexit deal have increased. In what is being billed as a crucial day ahead for Brexit and therefore the pound, sterling could very easily find itself the centre of attention as the market digests the news.

Pound vs Australian dollar forecast: Will a Brexit deal be agreed?

Clearly the mood is buoyant and expectation high but we have been here on a number of occasions in the past and very recently, only to find the good news and market expectations of a Brexit deal being reached do not go according to plan.

The pound will be a key driver on the GBP/AUD pair today with other economic news released relating to the latest Inflation data. For people wishing to buy or sell Australian dollars the path ahead is rather mixed, but it would appear sterling may well rise further if a deal is reached on the UK’s exit terms. This does seem the most likely outcome at this time, hence the rise in the pound’s value.

However, the possibility of a no-deal scenario remains, even if the exit terms are agreed we do still need to see the EU and Parliament agree to the deal and give the go ahead. Any sterling strength may therefore be limited as the move is already largely priced in now, and there are still many more steps ahead.

Expectations for the pound vs Australian dollar rate

The pound vs Australian dollar rate has moved above 1.80 at the time of writing but could very easily find itself back under this important level once the market has fully digested any news. Markets will generally move on news information and whilst there is definitely still some upside, the biggest move will be lower since that is not the current expectation, i.e. for today to not lead to a deal and Brexit progress to stall yet again.

The pound vs Australian dollar rate does appear poised to rise higher presenting some better opportunities for the buyers, but do be wary, any sudden changes in the Brexit outlook could have a dramatic effect on the market and the pound.

If you would like to talk about pound vs Australian dollar rates, or have any questions about currency exchange and the options available to you, do feel free to contact me using the form below and I will respond to you personally. Thank you for reading and I look forward to hearing from you.

Pound vs Canadian dollar forecast – When to trade?

GBP to CAD rates slide lower amidst Brexit uncertainty

Brexit continues to dominate pound to Canadian dollar rates

Brexit news is constantly effecting Sterling value with each statement in the process causing volatility on the market. We saw significant gains for the pound last week following news that the UK were on the cusp of a Brexit deal. News that the UK financial sector would have access to the customs union was one of the key points of contention, this bolstered the pound’s position. However, the Irish border deal remains unresolved.

Following a spike in the pound’s value last week, Jo Johnson announced his resignation which he cited was due to his unhappiness regarding the Brexit deal. Personally, I feel this is just another thinly veiled rouse to oust Theresa May rather than any genuine concern for Britain’s deal with Brussels. The Pound fell in value following his resignation.

Pound vs Canadian dollar forecast: The next 36 hours will be key to the Pound’s value

Michel Barnier has given until the end of play tomorrow to have a preliminary deal in place if we are to have an EU summit on the 23rd November. If this summit is announced expect the pound to gain strength against the Canadian dollar.

Do not expect the Pound to Canadian dollar rate to shoot up ten cents, it is important to remember that the deal will still have to go through Parliament in January. This is far from a foregone conclusion with many politicians up in arms over Theresa May’s current deal. If May makes compromises with Brussels the chances of the deal passing through Parliament will drop, which puts her position in negotiations extremely difficult.

Considering where Pound to Canadian dollar rate has been over the last few months, if I was buying Canadian dollars I would not be aiming for more than 1.7250 short term. Despite this if I was selling Canadian Dollars I would take advantage of current levels, simply by weighing up the risk versus the reward. If a Brexit deal is agreed we could see substantial Sterling gains, whereas if we see further problems in talks I think the gains will be limited.

If you have a currency requirement I will be happy to assist. If you let me know the details of your trade I will endeavour to produce a free trading strategy. During a period of such uncertainty it is important to be in touch with an experienced broker if you wish to maximise your return. We have tools at our disposal to make sure you do not miss out if there is a spike in your favour.

There are little releases of consequence from Canada this week so keep a close eye on Brexit news if you are hoping to maximise your return.

If you already have a currency provider in place. Drop me an email with what you are being offered and I am very confident I will be able to demonstrate a significant saving.

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Pound to Australian Dollar – Sterling Outlook Uncertain as Brexit Negotiations Reach Endgame

Will GBPAUD levels drop back below 1.80?

The pound has slipped lower against the Australian dollar this week with rates now sitting well below 1.80 for the pound to Australian dollar pair.

Brexit key for pound to Australian dollar rate

Brexit is likely to remain the biggest driver for the pound to Australian dollar rate this week after UK Prime Minister Theresa May made a speech last night which signalled optimism that a deal on Brexit could be reached whilst the talks continued overnight.

She said that talks were immensely difficult but were now in the endgame with 95% of the withdrawal agreement in place. A cabinet meeting will take place today where Theresa May will update her cabinet on the current state of Brexit negotiations and the main obstacles to reaching a deal. The biggest issue revolves around whether Britain can withdraw from the customs union in the future or whether the UK must be bound by the European Court of Justice with the Irish border causing the issue.

Will an EU Summit to agree a Brexit deal be called?

The markets are eagerly awaiting confirmation of whether or not a proposed emergency EU summit will go ahead later this month and the outcome will almost certainly redirect pound to Australian dollar exchange rates.

If the EU summit goes ahead then this should be seen as a sign of confidence and there would likely be gains for GBP to AUD. However if no agreement can be reached on the Irish border issue then the pound is likely to fall lower as the prospect of a no deal scenario begins to look more likely.

We are getting close to make or break time and this could present considerable opportunity for those with pending Australian dollar requirements whether buying or selling Australian dollars. Any more cabinet resignations following on from Jo Johnson’s departure on Friday could see further weakness for the pound to Australian dollar pair.

Economic events that could affect the pound to Australian dollar rate this week

UK unemployment data this morning is expected to remain at impressive levels and at the lowest since the 1970’s at 4% which could also lend support to sterling. With a quieter economic calendar down under the Australian dollar is likely to see movement on any developments on any future trade deal between the US and China. There have been rumours that both sides are exploring ways to move forward to agree a trade deal which could prove beneficial for the Australian dollar if and when it materialises.

For information on how to make the most of any opportunities and timing your exchange for either buying or selling Australian dollars then please feel free to contact me by using the form below:

US Midterm results could cause US Dollar weakness

Volatile times ahead on GBP/USD exchange rates - will the US dollar get stronger against the pound?

The recent US midterm results will come as a blow to Donald Trump despite his response to the press. The Republicans lost control of the House of Representatives to the Democrats and this will give them the ability to severely limit any new legislation being passed. The Republicans formerly had power over the senate and the House of Representatives.

Another concern for the Republicans is that the Democrats will now have control of the Intelligence Committee, this will enable them to probe deeper into allegations of collusion between those involved in the Trump Presidential campaign and the Russian Government during the election.

Is US Dollar weakness on the horizon

Despite some of Donald Trump’s controversial views, in terms of the US economy he has proved to be very beneficial. With possible limitations on policy change moving forward, this does have the potential to limit growth and in turn weaken the US Dollar.

If the Democrats do find some dirt on Trump and it leads to questions over his position this could also cause US Dollar weakness, if he were ousted I would expect to see a steep fall in Dollar value due to the political uncertainty.

Federal Reserve US interest rate decision

Yesterday saw the US interest rate decision by the Federal Reserve and rates were kept on hold at 2.25%. There is still the strong possibility of a rate hike in December which could benefit the greenback.

Brexit latest news – Pound Sterling strength

Brexit continues to have major influence over GBP/USD exchange rates. Rumours have circulated that the UK financial services sector will have access to the customs union post-Brexit and an Irish Border deal is on the cards. This did cause Sterling strength. Be wary of thinking a deal is all but sewn up however. We have seen positive Brexit news regarding the Irish Border in the past, only to be quashed by chief EU negotiator, Michel Barnier stating that Brexit negotiations have reached a complete impasse.

If you have a currency requirement I would be happy to assist. If you wish to maximise your return it is important to be in touch with an experienced broker. If you let me know the details of your trade I will endeavour to produce a trading strategy to suit your needs. If you have a currency provider in place I am willing to perform a live comparison and I am confident I will be able to demonstrate a considerable saving. It will only take  a couple of minutes and could be well worth your while.

If you would like my help I can be contacted using the form below:

Pound vs Euro: Will the GBP/EUR exchange rate reach 1.15?

Pound to Canadian Dollar Forecast: Impact of the EU Summit Deal

GBP/EUR exchange rates are by some measures already at 1.15. Many sources of the headline ‘interbank’ exchange rate are rounded up, and with GBP/EUR trading in the mid to high 1.14’s for most of this week. Technically, the level has not actually breached 1.15 yet but it does seem highly likely.

GBP/EUR exchange rates: Brexit the key driver

Positive Brexit news is clearly the main driver for the pound with the market becoming excited that yes, finally, a deal on the UK’s exit terms from the EU is in sight. This week remains pivotal in delivering on this expectation and all the indicators are that we should have something more concrete soon.

Sterling should advance further on an actual confirmation this is to be the case, but it is not a straightforward yes or no answer. The pound will be driven by the news but much of the positivity does seem to be priced in to current rates. I think it is well worth pointing out it was only at the end of August when GBP/EUR exchange rates were below 1.10.

Whilst Brexit news is more positive, there is a growing concern over the UK economy with the all-important Services data for October posting a 7-month low. Services is the largest component of UK GDP (Gross Domestic Product) so this is rather worrying.

Nevertheless, sterling was unfazed by this news earlier this week and this just highlights the importance of the Brexit news in determining the strength of sterling.

GBP/EUR exchange rate outlook

GBP/EUR exchange rates do seem very likely to reach higher but we have had numerous false dawns on Brexit. Plus, agreement this week will lead to an EU Summit where the matters must be approved by the EU before a parliamentary vote in the UK.

Brexit is not going to be magically solved in one day and clients expecting a smooth path ahead on GBP/EUR rates should be very aware of all manner of possible outcomes, which do remain on the table.

Thank you for reading and I would be delighted to hear from you and share some of my thoughts and insights on the direction the GBP/EUR exchange rate could now take.

US dollar weakness on Mid-term election uncertainties

Bank of England to speak later today, could GBP/USD be affected?

The US dollar has weakened today following the results of the US Mid-term election. The Democratic Party won in the House of Representatives but suffered some losses in the Senate. The net impact from this is that Donald Trump will not be able to pass legislation as easily as he would have previously.

One of the reasons for the strength of the US dollar in the last couple of years has been the expectation that President Trump’s policies will fuel further economic growth, and lead to higher interest rates which make the currency more attractive to hold.

Is now the best time to buy US dollars with pounds?

Those buying US dollars with pounds are now looking at some of the most attractive rates in a few weeks. This is also down to Pound strength following the latest Brexit news, with there now being quite a high expectation a deal on the UK’s exit terms will be finalised soon.

Whilst there is potential further upside in the pound to dollar exchange rate, it does feel much of the good news may now be priced in. Expecting a huge jump higher might now be quite difficult in the absence of anything specifically new to drive the rates. The shock would be if Brexit talks now fail, that could easily see the pound dropping by 2-3 cents if confidence falls.

Will the Federal Reserve raise US interest rates?

For the rest of the week we have the US interest rate decision, being held tomorrow because of the election results today. The US Federal Reserve will make a decision on whether or not to raise interest rates, it does seem they are very likely to confirm a December rate hike, the 4th this year.

Despite the renewed optimism on sterling boosting GBP/USD rates, I still feel the US dollar will remain strong. The election is not completely bad news for Donald Trump and the US economy should carry on performing very well, attracting investment.

If you have a GBP/USD transfer and wish to discuss the exchange rate please do get in touch, I would be happy to discuss the outlook with you. Fill in the form below to send me a message.

Sterling hits highest buying level against Swiss Franc since August

Sterling hits highest buying level against Swiss Franc since August

The Pound has made good gains against the Swiss Franc over the course of November. The GBP/CHF rate has hit the highest level since August, smashing through the 1.30 level.

Sterling strength: Rumours of Brexit deal agreement lead to Sterling boost

The main reason behind the rise in value of Sterling is the positive vibes surrounding Brexit. It now appears that a Brexit deal for the UK is edging closer. However, anyone looking to buy Swiss Francs with Sterling still needs to be cautious. The rug could still be pulled from underneath their feet as a Brexit deal is still far from agreed.

Sterling strength is fragile

It would only take a little negative news to come out regarding the latest Brexit negotiations for the current Sterling strength to disappear. We have been close to a Brexit deal on a number of occasions before only to find out that it does not happen, so the current Sterling strength looks fairly attractive.

Of course, should a provisional deal be agreed then we may see further Sterling strength, but do be wary that this deal would then still have to be approved by Parliament and uncertainty would likely kick in again before we know it.

Economic data for the week ahead

In terms of economic data from Switzerland, unemployment figures are due to be released tomorrow at 07:45am and expectations are for unemployment levels in Switzerland to remain at 2.5%. Should the figure come out lower the Swiss Franc should strengthen, a higher figure would likely lead to further Swiss Franc weakness to kick off the trading day.

We have a whole host of UK economic data on Friday morning, with growth figures, manufacturing and industrial production and trade balance figures too. Growth in the UK is expected to have risen from 0.4% to 0.6% for the third quarter of the year. This may lead to some Sterling strength in trading on Friday morning.

If you have the need to carry out an exchange involving the Pound or the Swiss Franc, or indeed any other major currency then you are more than welcome to get in touch with me for a free, no obligation discussion about current rates and potential market movements for or against you.

Feel free to fill in the form below for a free, no obligation discussion.

Pound to euro forecast: GBP/EUR rate hits 5 month high

Pound to Euro Forecast: Brexit Uncertainty Continues Following PM's House of Commons Defeat

In today’s pound to euro forecast James Lovick discusses the recent rise in the GBP/EUR rate. The pound has rallied to a 5 month high against the euro creating a good buy opportunity for those looking to purchase euros. Much of the recent strength continues to stem from the optimism that a Brexit deal will be reached and that progress continues to be made.

Brexit latest news: Irish border issue still unresolved

There are some risks associated with these final stages though and whilst the pound is trading at better levels the issue of the Irish border continues to give both sides a headache in trying to find a solution. It has been reported that a number of Cabinet ministers are seeking to have an exit clause in any withdrawal agreement, but this has not been received well by the Irish.

The lack of agreement on this major issue could still force a no deal Brexit scenario, which although might be looking less likely at this point in time still cannot be ruled out. If the Brexit negotiations stop for any reason in these coming weeks or if for example the emergency EU summit in November does not take place then the pound is likely to slide versus the euro. We should know by the end of this week whether the EU summit will be taking place or not and there should be pound to euro volatility on the back of that.

Italian Budget concerns are causing to euro weakness

It’s not just a more buoyant pound that has helped to lift sterling higher but also a weaker euro. The European Commission rejected Italy’s Budget plans yesterday and has asked for them to be reviewed and updated by 13th November. Italy has been very forceful with the EU Commission to try and deliver on promises that were made during an election campaign but which are at odds with EU spending guidelines. It does leave yet another period of uncertainty for euro exchange rates as this latest issue gives concern in the markets especially considering the amount of debt.

For more information on how to make the most of any opportunities and timing your exchange for either buying or selling euros then please get in touch with me James at by using the form below:

Pound to Euro rates: Will GBP/EUR test the 1.15 level?

Sterling hits highest level against the Euro since May 2017 - Great time to buy Euros

The Pound to Euro exchange rate has edged higher this morning and broken through the 1.1450 level at its highest point of the day so far. The Pound to Euro rate has continued to climb despite poor data. This is due to hopes of a Brexit deal being agreed soon.

Pound to Euro exchange rate unaffected by poor UK Service data

I find the rise in the Pound to Euro exchange rate interesting and perhaps a sign of the Pound’s future price movements, as just yesterday there was a release of disappointing data out of the UK’s most important area of its economy. The services sector now covers around 80% of the UK economy so data released covering the health of the sector usually holds the potential to move the currency markets. Yesterday the October figure for Services PMI was released lower than expected. Sterling remained resilient and this morning its value has seen a boost from the levels it closed at yesterday.

The reason for the boost can be put down to renewed optimism surrounding a Brexit deal. Last week the Brexit Secretary, Dominic Raab suggested a deal could be in place by the 21st of November. There has also been talk of the previously cancelled November EU Summit being reinstated, which has also buoyed the Pound. Today British Prime Minister, Theresa May will hold a Cabinet meeting where Brexit will be in focus, especially the Northern Irish border and I expect this to continue to fuel rumours of Brexit progress.

Economic data that could affect Pound to Euro exchange rate

There are no major economic data releases out of the UK today, and there won’t be until the release of 3rd quarter GDP data on Friday. During this time Brexit news will most likely be the main driver but it’s also worth paying attention to the issues surrounding the Italian Budget and its Government’s disagreements with the EU regarding their Budget plans. At the moment the country is in a stalemate with the EU and if Italy doesn’t amend its plan it could be required to pay a fine of 0.2% of its GDP to the EU. Should this issue continue there is a chance of seeing the Euro weaken as Italy is a key constituent of the European Union. These issues would be coming at a bad time for the trading bloc as they already have the UK’s Brexit to content with.

If you would like to be kept updated in the event of a major market move in Pound to Euro exchange rates, do feel free to get in touch. You can use the form below to send me a message directly:

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