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Sterling in trouble, but does the Euro have bigger concerns (Daniel Johnson)

GBP/EUR Forecast – Underlying problems could surface and cause real problems for the Euro

Many analysts are predicting further declines for the pound as post-Brexit data filters through and this is a distinct possibility. I am not however overly pessimistic. I am not of the opinion GBP/EUR will hit 1.10. I think in order for Sterling to make a rally with strong momentum we will need to see Article 50 invoked, it is the economic uncertainty which is causing the pound’s weakness. Decisive action needs to be taken otherwise I can’t see GBP/EUR moving above 1.20, barring some catastrophic news from the Eurozone.

Theresa May has recently informed deputy First Minister, Martin McGuinness and President of the European Council, Donald Tusk that article 50 will be invoked in early 2017. I think if this is the case we will see an initial fall for Sterling and then it’s resurgence can begin. Short term euro buyers are going to have a very tough time choosing when to purchase I would strongly advise getting in touch with one of our brokers so they can assit you in making an informed decision..

Despite Sterling currently suffering from the fall out of the Brexit vote I think the Euro has bigger problems. Deutsche bank’s troubles have been widely publicised, the bank’s fraudulent mortgage practices have landed them with a fine of $14bn, which looking at their current assets they will be unable to meet. Uh oh! Lehman Brothers style collapse. I doubt it, expect another bailout. This situation will do no favours for the Euro.

There are also the small matters of the Italian banks bad loans to the tune of €360bn, Greece’s debt crisis, the constant threat from other EU countries holding a referendum and Draghi’s constantly losing battle with inflation. The proverbial could well hit the fan.

If you have a currency requirement I will be happy to assist. It is extremely difficult to predict which the market will move and it is important to be in touch with an experienced broker. I am glued to the markets for 10hrs a day and as such can help you make an informed decision as to when to perform your trade. If you would like to make the most of your money get in touch, I can be contacted at dcj@currencies.co.uk.

 

 

 

 

Sterling Euro exchange rates spike due to Deutsche bank concerns – Will the Euro get weaker? (Daniel Wright)

The Euro has had a fairly tough 24 hours following the growing concerns over the value of Deutsche bank share prices as they have continued to drop off for a period of time.

The latest on the share price is that it has climbed back a little in early morning trading today and personally I feel it will come back up however comments from Angela Merkel that she will not support a bailout if required will hold it back and lead to uncertainty for the coming weeks and months.

It would be a great surprise to see Deutsche bank actually hit huge trouble but after a flurry of large fines and problems it is no surprise that the bank is finding life tough at present.

There are so many problems around the Eurozone at the moment I am still rather surprised that the Pound is not stronger against the Euro however the uncertainty surrounding what will happen post referendum is of course holding Sterling back.

Mario Draghi (head of the European Central Bank) must have had to replace his broom many times the amount of ‘sweeping under the carpet’ he has to do and my opinion is that next year will be tough for Euro exchange rates.

If you have a currency exchange to carry out now or in the future involving Sterling and Euro then it is extremely important that you have an experienced broker on your side. I will be more than happy to help you for any future exchange, you can email me (Daniel Wright) on djw@currencies.co.uk with a brief description of your requirements and I will be more than happy to contact you personally.

GBP/EUR exchange rate hits 3 year low as the Pound’s slump continues (Joseph Wright)

The GBP/EUR exchange rate fluctuated around the 1.15 mark for most of yesterday, and even dipped down into the 1.14’s at one stage.

This drop extended the drop from last Friday as investors reacted after Boris Johnson suggested that the UK will begin the Brexit in the early months of next year. Much of the talks surrounding the UK’s exit are behind closed doors and with Theresa May not giving much away in the way of timescales etc, Boris Johnson’s comments impacted markets and not for the first time this year.

Those with a currency requirement involving the Pound should be aware of the negative sentiment surrounding it at the moment. As the UK gets closer to initiating the process investors are growing weary, and this is negatively impacting the Pound. At the current levels the GBP/EUR exchange rate is trading in the 1.15’s and despite the post-brexit drops, the pair are still 15 cents from unprecedented levels which is why I’m not ruling out further falls for the Pound.

This week economic data out of the UK is thin so I expect sentiment to continue to drive the Pounds value. Comments from EU officials suggesting the UK will not retain access to the EU’s single markets have weighed on Sterling’s value and once that becomes official I expect the Pound to witness a sharp sell-off.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk and I will be more than happy to contact you personally to discuss the various options we have available to you.

Buying Euro rates set to recoup Friday’s losses (Joshua Privett)

Buying Euro rates have repeated their severe drops this Friday as we saw the Friday before on what is becoming clockwork for Euro buyers.

Unfortunately it is not any piece of news in particular which are causing these movements, but actors at high street institutions engaging in speculative activity.

These are the players on the currency markets who move enough capital in order to change the average Euro buying levels. At the close fo the week they have to choose a stable currency with which to store their profits in for the weekend. Even though markets are closed, the paeriod from 6pm to 11pm on Friday’s when they are away from their desks, markets will continue to move.

Understandably the Pound is very low on the list of desired ‘safe-haven’ currency for this period, and its value plumetts alongside its demand.

However, the spotlight is expected to shift away from the Pound at the beginning of next week in any case, allowing some respite on GBP/EUR.

Mario Draghi  will be giving a deposition to the German Parliament on Monday. In his capacity of President of the ECB, he will be answering the regular concerns from the powerhouse of the Eurozone economy on whether his emergency stimulus program is justified.

Should he have to heavily justify why he has to take such drastic steps to support Eurozone economic growth, the Euro could weaken back towards the 1.16/1.17 level seen just a few short days ago.

I strongly recommend that anyone with a buying Euro requirement should contact me over the weekend whilst markets are closed on jjp@currencies.co.uk to discuss a strategy for your transfer in order to maximise your Euro return. I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels can be fixed in place for anyone planning a Euro purchase in the short-term.

Euro sellers can also get in contact to recieve an immediate quote as soon as markets open tomorrow morning to secure the gains made as we entered the weekend before the expected recovery for the Pound.

 

 

Could the Pound fall further against the Euro and the impact of Article 50 on exchange rates (Tom Holian)

The rates for buying Sterling with Euros has seen the best exchange rate in almost 4 years during the course of this week as rumours increase that the UK could be getting itself ready to trigger Article 5 by early 2017.

Foreign Minister Boris Johnson has said whilst on a trip that the UK will begin formal Brexit talks by ‘early next year’. This caused the Pound to plummet vs the single currency during Friday’s trading session providing some excellent opportunities to sell Euros to buy Sterling.

If you’ve recently sold your property in Europe or looking at selling shortly then this window of opportunity could be a good chance to take advantage of these lows.

The uncertainty caused by the original vote to leave the European Union caused huge losses for Sterling vs the Euro and until we get any assurances as to when the talks will begin this is likely to cause further problems for Sterling Euro exchange rates.

Many people have been saying what goes down must come up and yes that it true in currency as it’s a cyclical market. However, at the moment there is little positive news coming out from the British economy and the uncertainty surrounding the Pound could cause further weakness for GBPEUR rates.

Next week sees the release of UK GDP data for the second quarter which will cover the Brexit period and I would not be surprised to see the data come out negatively compared to the expectation. Clearly British businesses were uncertain as to the result so are likely to have been keeping their budgets to a minimum during this time so I am anticipating further problems for the Pound vs the Euro by late next week.

The company I work for is a specialist currency broker and we are aimed primarily at helping individuals with their currency transfers. This can be for property purchases, paying invoices, salaries or even living expenses. If you would like to find out how we can save you money on your exchange rates compared to using your own bank then contact me directly for a free quote. Having worked in the industry since 2003 I am confident that I can also help you with your timing.

Please contact me directly with a description of your requirement and I’m sure I can help. Tom Holian teh@currencies.co.uk

 

 

GBP/EUR trading just above a 4 year low, with further Pound weakness likely (Joseph Wright)

Market confidence in the Pound is continuing to decline as the likelihood of a soft Brexit begins to less and less likely.

There is speculation that the Brexit process will begin in the early months of next year and this has added pressure to the Pounds value, as many had hoped for a delay to the invocation of Article 50. It’s also looking like the UK won’t be given any special privileges during the Brexit process and will not retain access the EU’s single market which many have viewed as a negative, and this has weakened the Pounds value.

For those looking for GBP/EUR future forecasts it’s worth noting that this week major European lender, Danske Bank, has actually upgraded it’s long term forecast for the pair but the bad news for Sterling sellers is they expect the pair to hit 1.08 within the next 6 months.

GBP/EUR is currently trading just above a 4 year low so with many analysts expecting further falls it may be wise for those with a short term currency requirement to consider planning that conversion, in case there are further falls.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk and I will be more than happy to contact you personally to discuss the various options we have available to you.

 

 

Will GBP/EUR Rates Hit 1.20 This Year? (Matthew Vassallo)

GBP/EUR rates have dropped this week, ending Sterling’s mini recovery. The Pound had put pressure on 1.20 only a week or two ago, only to find huge resistance at this level and subsequently the pair has dropped. With the current rates floating just above 1.16 on the exchange, many clients are questioning whether or not the Pound will recover up to, or above 1.20 over the coming months.

Whilst I would never rule anything in the current market, my personal opinion is and remains that sustainable Sterling strength is unlikely. Whilst rates do not move in a straight line the huge amount of uncertainty created by our Breixt decision, is likely to handicap the Pound for the foreseeable future and as such an aggressive move above 1.20 is unlikely.

With poor inflation data and some bleak minutes from the Bank of England (BoE) following their interest rate decision last week, an interest rate cut this side of 2017 is now far more likely and I believe this is being factored in to the current rates. Due to this overriding factor, alongside an extremely fragile UK economy, I would be looking to protect any Sterling position I had and not gamble on an extremely unpredictable market.

If you have an upcoming GBP/EUR currency requirement and would like to be kept up to date with all the latest market movement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

Sterling Euro exchange rates remain steady post Fed Decision (Daniel Wright)

Sterling has remained steady against the Euro following the Federal reserve interest rate decision, where rates over in America were held at 0.5% for the sixth consecutive occasion.

There had been a slight chance of a rate hike in the U.S however Janet Yellen confirmed that rates would indeed remain as they are for the time being.

The reason this can impact the Pound and the Euro is because it has an effect on global attitude to risk. On top of the EUR/USD is the most traded currency pairing in the world so any changes to demand in Dollars can lead to a flow of money leaving the Euro and going into the Dollar, making the Euro weaker.

Tomorrow morning we have a great deal of economic data out for Europe – Inclusive of manufacturing and services data and French growth figures. The whole week has been fairly thin on the ground for the U.K so general sentiment will be the main driver for rates which can lead to unexpected swings and volatility.

If you have Euros to buy or indeed sell and you would like to be kept fully up to date with the action then feel free to get in contact with me directly as not only can I save you money but I can also keep you aware of market movements too.

I can be contacted by email on djw@currencies.co.uk or you can fill in the enquiry form on the right hand side of this page.

Will GBPEUR hit 1.10 before 1.20?

The outlook for GBPEUR is unclear but at the moment it would not be surprising to see the pound drop further against the Euro owing to the uncertainty over the Brexit. The vote happened over 3 months ago but still we are no closer to learning anything concrete surrounding what the Brexit means. Most clients looking to buy euros should be concerned over just what is happening in the future and I think the currency rate is likely to fall closer to 1.10 before it hits 1.20. The biggest challenge for anyone at the moment is to work out to what extent the rates will be improving in the coming weeks.

If you have a transfer to consider in the future than making some plans in advance is the way to ensure you do not suffer unnecessarily. Most clients looking to move funds internationally should be prepared for further deterioration’s in the  value of the pound. Most clients I am speaking to have not properly manage their FX exposure so need to really consider what they really expect to happen next. As of yet we know nothing about what Brexit means, when Article 50 will be invoked and also what the deal will be.

For more information at no cost or obligation I would suggest a quick email to me at jmw@currencies.co.uk. I will do everything in my power to keep my clients up to date with the latest news.

Sterling Euro Rates Feel the Pressure as Brexit Concerns Persist (James Lovick)

Sterling exchange rates have stabilised this morning have fallen to a one month low against the Euro. Brexit concerns remain and the pound has declined in value across all of the major currencies over the last 10 days. There has been strong talk from many European figures stating clearly that Britain will not get a good deal. The Maltese Prime Minister who will be chairing Brexit negotiations in the New Year made it abundantly clear that he wanted to see Britain get a bad deal. He stated that a Brexit deal “must be inferior”. Negative talk like this is bad news as far as the pound is concerned.

Following on from Theresa May’s address at the United Nations last night some American banks have yet again raised concerns over Brexit. It all points to a protracted period with the markets being driven by uncertainty. For the moment there is an excellent opportunity for selling Euros.

This morning sees the release of official Public Sector Net Borrowing figures from National Statistics. Expectation is for a substantial jump higher in government debt following Brexit from £-1.5 billion to £10.3 billion.

This has the potential to be a big market mover this morning with considerable volatility to be expected and added pressure on the pound if the numbers are poor.

 

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me James Lovick directly on jll@currencies.co.uk  and I will be more than happy to contact you personally to discuss the various options we have available to you.