UK GDP figures came out better than expected this morning but the gains for Sterling vs the Euro were very short-lived. The Pound gained by up to a cent against the single currency but shortly after the data release the market has fallen again.
This highlights the problems that the Pound is facing against the Euro as even with positive economic data this is doing little to help Sterling exchange rates.
Indeed, GBPEUR rates are still very close to their lowest point since 2011 and until the political landscape changes we could see further falls for the Pound vs the Euro.
This has presented some excellent opportunities to sell Euros to buy Sterling and I think we could see further problems ahead for the Pound.
My reasoning is that Bank of England governor Mark Carney recently spoke about the value of Sterling as did deputy governor Ben Broadbent and both didn’t appear to be too concerned about the Pound’s demise and I think this could end up leading to a potential interest rate cut at next week’s meeting.
Typically an interest rate cut leads to a weakening of the currency involved so we could see GBPEUR rates fall if the Bank of England decides to cut interest rates.
If you’re buying a property in Europe before the end of the year then it may be worth buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the industry since 2003 not only can I offer you better exchange rates than using your own bank but also help you with the timing of your transfer.
If you have a currency transfer to make and would like further information or for a free quote when buying or selling Euros then contact me directly and I look forward to hearing from you.
Tom Holian email@example.com
Sterling Euro exchange rates drop off a little following comments from Carney that he may leave (Daniel Wright)
The Pound lost a little ground over Euro exchange rates during trading yesterday afternoon, following comments from Governor of the Bank of England Mark Carney suggesting that he may step down in 2018 when his contract comes up for extension.
This may have been seen as the captain jumping from a sinking ship to the markets which may be why we saw Sterling drop off immediately, only to see a slight recovery later on in the afternoon once head of the European Central Bank had also commented about his plans for the economy in the Eurozone.
Draghi mentioned that he felt that the recovery had been moving along well and that he did not feel the need to announce any sweeping changes to this, but I personally feel that it would be a surprise not to see the QE program extended which may weaken Euro exchange rates in the coming months.
We are fairly light on economic data for today however I would keep a keen eye on Gross Domestic Product (Growth) figures for the U.K due out tomorrow morning at 09:30am.
If you have the need to exchange Pounds into Euros or indeed Euros back into Pounds in the coming days, weeks or months then it is imperative that you use an established, efficient and proactive broker for your exchange. I can help you with this personally, I have been working for one of the largest brokerages in the U.K for almost 10 years now and will be happy to help you. Feel free to email me (Daniel Wright) on firstname.lastname@example.org and I will be on contact in due course.
Sterling Euro exchange rates fell by over a cent during today’s trading session as European Central Bank president signalled that the central bank would be looking to end its current QE programme in December.
The current plan is to end QE in March but suggestions that it may finish earlier caused the Pound to fall dramatically against the Euro during this afternoon’s trading session.
After seeing the Pound make gains vs the Euro earlier this week as UK inflation data came out higher than expected this announcement by the European Central Bank has caused another problem for GBPEUR rates.
Rather than economic data it is clear that political data that is causing Sterling Euro exchange rates to move and today’s announcement by the ECB is another influential factor.
Today UK Prime Minister Theresa May arrived in Brussels for her first EU summit since taking over from David Cameron and over the next few days I’m sure this will cause further movements for Sterling Euro exchange rates.
Theresa May went on to say ‘I’m here with a very clear message…the UK is leaving the EU but we will continue to play a full role until we leave…it’s in the interests of both the UK and the EU that we continue to work closely together, including at this summit.’
Since May has taken over office often when she comments this often causes the Pound to fall and I would not be surprised to see further negative news for the Pound vs the Euro during this summit.
Sterling Euro is clearly under a lot of pressure at the moment mainly caused by political factors and this is unlikely to change before the end of this year so if you need to buy Euros during this period it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the foreign exchange industry since 2003 I am able to offer you bank beating exchange rates and also help you with the timing of your transfer.
If you have a currency transfer to make and want to save money when buying or selling Euros compared to using your own bank then contact me directly for further information or a free quote and I look forward to hearing from you.
Tom Holian email@example.com
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With the ECB set to release their latest interest rate decision tomorrow at 12:45 tomorrow I expect a volatile trading session for GBPEUR exchange rates. The interest rate decision itself, I expect will be a non event as rates are sitting at record lows (0%). However it’s President Mario Draghi’s speech shortly after which should cause peaks and troughs in the market.
The major talking point will know doubt be the quantitative easing program that is set to run until March 2017. It’s been reported that the Q.E. program has had a positive impact on the economy therefore I wouldn’t be surprised to see an extension at some point. This is bad news for Euro sellers as an extension should provide euro weakness.
However its looking unlikely that Mr Draghi will extend the program and time soon therefore I expect the pound to continue to fall against the euro until the end of 2016.
If you are buying euros in the short term many clients do not realise that they can lock into exchange rates now and pay later if they do not have all of their sterling available. This contract is known as a forward contract.
For more information in regards to the currency market, forward contracts or how I can achieve you the best exchange rates, feel free to email me with your requirements, timescales, the best number to reach you on and I will give you a call to discuss your options firstname.lastname@example.org.
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