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Timing a GBPEUR transfer (Dayle Littlejohn

For clients that are converting pounds into euros or euros into pounds short term, economic data will continue to have an impact on the exchange rate the client receives however more importantly I expect the French election on May 7th to dictate exchange rates at least until the UK’s snap election on June 8th.

Last weekend was the first round of the French election and Macron (Pro EU) and Marine Le Pen (Anti EU) were the two top candidates that made their way through to the head to head. As Macron received 24.01% compared to Le Pen 21.3% the euro has strengthened against the pound. The consensus on the market was that Le Pen had more chance of winning the first round compared to the second.

Fast forward to May 7th, if Macron wins and becomes the next President I expect the euro to strengthen further against sterling, and my opinion I believe this will occur. However if Le Pen pulls through and shocks the world I wouldn’t be surprised to see GBPEUR break through 1.20s and even reach 1.23.

For clients that are buying properties in the Eurozone or have sold a property and repatriating back to sterling its important to understand within the last 4 weeks exchange rates have fluctuated 5 cents and I expect the market to be just as volatile within the next 30 days. If a client purchased €200,000 at the top end of the market compared to the bottom they would have saved themselves £7,250. Therefore it just shows how important it is to speak to an expert within the field before making any decisions.

If you are buying or selling Euros in the upcoming months and are looking to achieve competitive rates of exchange whilst receiving regular economic information feel free to email me the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with the options available to you along with the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

Will GBPEUR rates rise above 1.20?

The GBPEUR rate has been improving greatly in the last few weeks as the mood improves surrounding sterling. A weakness in the Euro as a result of the French election is gently subsiding but there is a possibility we could see the Euro weaker should Le Pen win the election second round on May 7th. If the rates continue to remain this high between now and May I would be surprised! The only event I can see that would strengthen sterling to hit 1.20 is the UK’s General Election result in June.

1.20 is a real target for clients buying Euros but with the likelihood of a Macron victory in the French elections, this is looking less and less likely. The overall position for clients looking to buy Euros is still very favourable but we could easily see this deteriorate as we get closer to the final result on the 7th May. Couple all of this with the expectation sterling will weaken owing to economic uncertainty in the UK and we could easily see GBPEUR rates slipping down to say 1.15 or 1.16 int he next week or so.

Clients buying Euros are faced with the prospect of a lengthy wait to see big improvements or a steady decline as the Euro retains strength and attention shifts back to the UK and the Brexit problems. This is a trend we have witnessed many times since June 2016 and is not a trend I expect to be broken in the coming weeks.

If you have a transfer to consider buying or selling Euros then lease feel free to get in touch to discuss the market and your options as the expectation is for a weaker pound and strong Euros. For more information please feel free to email jmw@currencies.co.uk.

 

Pound to Euro exchange rates recovering after difficult start to the week (Joshua Privett)

Pound to Euro exchange rates had flourished last week with the UK’s election announcement, but have deteriorated with developments in French elections just across the Channel.

Marine Le Pen is a divisive character, and markets were worried that if she managed to reach the second round of voting, that her opponent would be someone who could mount a minute challenge and struggle to take away much of the vote percentage from her.

Whilst Le Pen did make it through, making it possible for her to become the next President, the dream candidate for currency markets awaited her, Macron.

Unlike the other two candidates Macron is a much more palatable option. He is not a far leftist like Melenchon which will allow for competition from Le Pen over central voters, and nor is he a candidate marred by scandal like Fillon, who had been caught paying his wife hundreds of thousands of Euros.

This likelihood drove the Euro rally yesterday, but this is already beginning to recover on markets this morning, with the first credible polls of the election released in the UK over the next 24 hours. Will this support expectations of a 20+point lead in the polls for the Conservatives? This will be the turning point for GBP/EUR rates this week.

If you are planning to make a currency exchange involving the Pound and the Euro, it’s well worth your time getting in contact with me on  jjp@currencies.co.uk  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.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

French Election on the horizon (Dayle Littlejohn)

Purchasing euros with sterling has become more attractive this week for two main reasons. Firstly Theresa May’s shock announcement that the UK will be holding a snap election on the 8th June has provided strength for the pound. The reason for this is that the market feels that Theresa May will win a majority and therefore will have more power when negotiation the final Brexit deal.

Secondly the French election is now on the horizon and anti EU Marine Le Pen is performing well in the polls and is likely to get through to the head to head vote with one other candidate. Le Pen has made it clear a referendum in regards to EU membership will occur if she gets into power and this is lowering investor confidence within the Eurozone.

Me personal opinion is that Le Pen will get through the first round but fall at the last fence and Pro EU candidate Macron will be the next President. However I also thought the UK would remain part of the EU and Donald Trump would not become President of the US. Therefore if I were selling euros to buy pounds in the upcoming weeks I would not gamble on this election and would consequently convert my currency sooner rather than later.

The currency company I work for helps clients repatriate euros from property sales abroad. If you fit into this category and want to make as much sterling as possible feel free to email me with a brief description and I will respond with the process.

For Euro buyers we are sitting close to a 6 month high and I still believe there could be further opportunities in the upcoming weeks. I would recommend again emailing with your requirements and using limit orders to achieve certain rates of exchange that you have set drl@currencies.co.uk.

If you are already using a brokerage I would recommend comparing rates. An email which will take you 30 seconds could make or save you thousands in the future.

How high will GBPEUR rise in the next week?

The pound to Euro rate has risen higher as investors brace for the French election this weekend and the currency market backs Theresa May to win a significant majority in the snap election that she has called. There is clearly a building pressure on the GBPEUR rate and the potential for this to rise higher now is in my opinion high. There is a very strong chance Marine Le Pen will make it into the second round of the French election next week which should see the Euro under pressure, this will help any clients looking to buy Euros.

The overall expectations for GBPEUR are now that we will easily rise above 1.20, we are currently at 1.1950 and did hit 1.1994 yesterday so calling 1.20 does not take much insight. A move above 1.20 will be significant although more interesting will be how the market performs from there on in. Ultimately the previous attempts to this level have all been unsuccessful and clients waiting to buy at 1.20 will, without doubt carry some risk as to the likelihood of a sustained move.

If you are looking to buy Euros at 1.20 or higher than making some plans around the important news this weekend is vital to try and protect yourself from future volatility on the markets. The pound is never far from bad news and whilst this recent strength is most welcome for Euro buyers, waiting around and hoping that it will just keep on rising could be a very risky strategy.

If you wish to get the latest news on the rates and the markets please do feel free to get in touch by emailing me Jonathan directly on jmw@currencies.co.uk.

Sterling Rockets after Election Date is set for 8th June (James Lovick)

The pound has seen incredible gains across all of the major currencies following the surprise announcement from UK Prime Minister Theresa May yesterday that she will seek to hold a general election 8th June 2017. The markets took this news very well and the pound rallied across the board taking GBP EUR up to a high 1.1979 and GBP USD up to 1.2826. Sterling this morning continues to look supported although rates have tailed off from the highs seen earlier this morning. The Bank of England governor Mark Carney will also be making a speech today and this could create additional volatility for sterling exchange rates.

The House of Commons will meet at 12:30 today to discuss whether the election will go ahead although it is widely expected that Labour will support the motion. Any confirmation could lend further support for the pound today and could present slightly better opportunities for those clients needing to sell pounds. The markets generally believe that the Conservative party could win this election handsomely and this outlook is providing additional support for the pound.

Those clients looking to buy Euros with pounds could see a further boost after this weekend. The first round of voting in the French election will be held on Sunday and any suggestion that Marine Le Pen could do well in the final round in May could see the Euro weaken considerably. Rates are almost at 1.20 for GBP EUR but a big win from Le Pen could see those rates move higher to 1.22 with relative ease in my opinion.

If you would like further information on sterling exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Inflation data gives Sterling a boost (Daniel Johnson)

Inflation crucial to the value of the pound

Following the triggering of article 50 inflation is being watched very closely by investors. There is the possibility that a there could be a rapid rise in inflation due to the weak value of the pound. With the pound so cheap, imports become more expensive. Retailers looking to claw back the losses pass the short fall on to consumers by raising prices. If the average wage does not increase at the same rate as inflation the UK economy will suffer. Although we have seen a rise in inflation, the rise has not been rapid and could be seen as positive for the UK economy. Inflation currently sitting at 2.3%, above the Bank of England’s target of 2%. This caused a substantial spike against the Euro. GBP/EUR currently sitting above 1.1780.

French Election could cause significant Euro weakness

The French election takes place on April 23rd. Macron is currently in the lead in the polls with Marine Le Pen biting at his heals. Le Pen is the leader of the National Front. She has made her intentions clear to ditch the Euro and call for a referendum. If she gains power expect the Euro to fall sharply in value. Despite the voting commencing on 23rd April it is highly unlikely we will see a victor at this stage. There has never been a majority victory in the first round. It is highly probable it will go to a second vote between the top two candidates on 7th May. It is important to take into account the silent vote. We only have to look at Brexit and the US election to realise polls should not be taken as gospel.

If you have a currency requirement I will be happy to assist. I t is crucial to be in touch with an experienced broker in order to maximise the return on your trade. If you let me know the details of your requirement I will produce an individual trading strategy to suit your needs. If you already have a currency provider I will perform a comparison and I very confident I will be able to demonstrate a considerable saving. I work for Foreign Currency Direct, we have been in business for over sixteen years and are registered with the FCA.  Please do get in touch by contacting me at dcj@currencies.co.uk if you would like my help. Thank you for reading.

 

Pound to Euro rate rises as UK Inflation figure hits its highest level since September 2013 (Joseph Wright)

The Pound to Euro exchange rate is trading around a 5-week high at the moment, as Sterling has received another boost this time in the form of Inflation data.

The Office for National Statistics this morning reported that the UK Inflation rate is sitting at 2.3% (for March) and this is the highest level since September 2013. This inflation figure is above the 2% target outlined by the Bank of England and should the trend continue there is scope for an interest rate hike from the Bank of England in order to counter the rising costs of living within the UK.

This would likely result in Sterling strength as demand for the Pound would increase which is why Sterling has received a boost today.

Now that the Brexit is underway economic data is being watched closely as it gauges the health of the UK economy, and moving forward I expect news releases to create a lot more volatility between GBP/EUR exchange rates so do feel free to get in touch if you wish to be kept up to date with key releases.

Another key mover between the Pound and the Euro is likely to be this months French Presidency Election. A strong performance for Marine Le Pen is likely to create further weakness for the Euro, and basing any large currency exchanges between GBP/EUR around this event may be advantageous.

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 jxw@currencies.co.uk 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.

UK inflation to dictate exchange rates today (Dayle Littlejohn)

This morning at 9.30 the UK are set to release their latest inflation numbers. The numbers are set to show a small decline to 1.9% which is 0.1% below the Bank of England’s target. I wouldn’t be surprised if the consensus if wrong for this one and inflation meets the 2% target which leads to sterling strength. This release is within the next 20 minutes therefore new readers will not be able to trade before the release however you would be able to convert currency and take advantage of our bank beating exchange rates later today.

Longer term the French election towards the end of this month and next could devalue the Euro as there are now four candidates that could actually win. Furthermore Marine Le Pen is ahead on the polls to win the first round. She has an anti EU stance and plans to pull France from the Euro if she wins.

It’s not all good news for euro buyers at any point Brexit negotiations could come to a halt when negotiators do not come to an agreement. I believe Sterling exchange rates will have a direct correlation to Brexit negotiations therefore unexpected falls could occur at any point.

If you reading this website for the first time as you need to convert GBPEUR, feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

If you are already using a brokerage and would like to a free quote email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands.

Common clients I help on a daily basis are Sole traders, MD or FD of a company, property buyers and sellers. If you are one of the three and are currently using the bank to transfer your currency you need to be made aware that you could be saving money!

GBPEUR rates rise but for how long?

Sterling to Euro exchange rates have risen in the last two weeks as markets shrug off the uncertainty and worry regarding Brexit Confidence surrounding the UK’s future position has risen and the expectation is now that sterling could rise in the future. If you have a transfer to make involving the pound and the Euro making some plans is a very smart move since the jury is still out over what direction rates will take next. Expectations remain for rates to go as high as 1.20 but plans for a drop below 1.13 must also be made.

The pound is performing much better in recent weeks but there is no sign this will keep up with what could easily be plenty of uncertainty up ahead. Most investors will now be keenly waiting for the latest news over the economy in the UK as well as some direction from the Euro itself as we wait to learn more about the French election too.

If you need to buy Euros then you are looking at some of the better rates we have had on offer in 2017, markets are still a bit sore from some of the issues the pound has experienced so nothing should be taken too much for granted. The expectation for sterling is now a little more positive but the potential for shocks and surprises remains. Whilst the Euro may weaken as we approach the French elections, any sign Marine Le Pen will not win should see the Euro much stronger.

If you need to buy Euros you are looking at a very good window of opportunity that might not last. GBPEUR rates are up at some of the highest we have had since the Referendum and might not last. If you wish to make a transfer in the future please speak to me about all of your options and the best way forward in such turbulent times. Please email jmw@currencies.co.uk to learn more.