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Theresa May’s Speech causes Sterling rally (Daniel Johnson)

May’s speech steals the headlines

Theresa May caused a spike for Sterling against the Euro today with GBP/EUR now sat at 1.1562. She took some of the uncertainty away from trade negotiations and investors reacted causing the Spike.

During the speech she stated the UK cannot possibly stay in the EU as to remain within the single market would mean not leaving the EU at all.

She did however say she will attempt to get the freest possible trade deals in place which restored some confidence in Sterling. She went on to say any agreement with the European Union had to “allow for the freest possible trade in goods and services”.

EU leaders have stated that the freedom of goods, services and workers if there is restrictions on the free movement of people. They are not keen on the UK cherry picking their deals.

I think this could spur a Sterling rally, although it will be slow and steady. It is important to keep in mind how long trade negotiations can take. The US are very forthcoming in coming to the table to negotiate, but the quickest a trade deal has ever been negotiated between the US and another country is four years, well beyond current expectations. Sir Ivan Roger, the UK ambassador to the EU recently resigned due to the unrealistic and insufficient brexit strategies being put forward. the current target for a full exit from the EU is two years. Rogers thinks ten is more realistic.

The question on everyone’s lips is where next for GBP/EUR. If you want to maximise the return on your trade it is vital to be in touch with an experienced broker to pick the correct contract option to suit your needs and keep you aware of what is happening in the market.  If you already have a currency provider drop me an email with their quote and I am confident I can demonstrate a considerable saving. If you would like free, no obligation assistance feel free to contact me at dcj@currencies.co.uk. Thank you for reading.

Daniel Johnson

Sterling Euro rates at 2 month low to buy Euros (Tom Holian)

Sterling has hit its lowest level to buy Euros in over 2 months as the Pound continues to feel the effect of the fallout caused by the Brexit vote.

We are now over 6 months since the vote to leave the European Union and the Pound has shown little signs of improvement against the single currency during this period.

The latest problem facing the Pound is the uncertainty caused by whether the UK will opt for a soft or a hard Brexit.

In a recent interview Prime Minister Theresa May has suggested that the UK may look at opting for a hard Brexit which effectively means leaving the single market. Something which has caused huge worry for anyone holding Sterling to buy Euros.

With the Pound falling against both the Euro and the US Dollar this has seen the FTSE 100 rise to record levels as it means global investment in the UK is currently extremely cheap.

However, although this is supporting the UK economy the Pound is likely to remain under pressure for quite some time.

With Theresa May due to address the markets on Tuesday we may see some further clarity as to which way the UK will choose to go forward in its discussion surrounding the talks to leave the European Union but until the Supreme Court judgement is announced then we could see further problems for Sterling against the Euro in the short to medium term.

 

Having worked in the currency markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also able with my experience to help you with the timing of your transfer.

To find out more or if you’d like a free quote when buying or selling Euros then feel free to contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Sterling Exchange Rates before Brexit Statement (James Lovick)

Sterling exchange rates continue to fall lower as those Brexit concerns persist as the deadline for the end of March now fast approaches which will take us then to 9 months past the vote to leave the EU on 23rd June 2016.

The latest development is that UK Prime Minster Theresa May will be making a statement on Brexit next Tuesday and high volatility should be expected immediately after. Theresa May is widely expected to give some outline as to what Brexit will entail and should be the first real offering as to what is going to happen.

The other political factor which must be contended with is the Supreme Court ruling on whether the government must consult Parliament or not, before invoking Article 50. It is my understanding the government has requested early sigh of the verdict so it may even be possible the government already holds this information now. Considering that Supreme Court rulings are normally offered on Wednesday’s then it would be quite fitting if the ruling was made public the day after Theresa May’s speech on Tuesday. As such I am expecting a hugely volatile week with two major political statements to be made which will carry immense implications for the UK and the price of sterling.

GBP EUR ends the week in the 1.14’s whilst GBP USD remains week sitting just below 1.22. The exchange rates for these pair are likely to see considerable movement next week.

As far as GBP USD is concerned the secret dossier surround President-elect Donald Trump is still making the headlines and may create some headaches for the US dollar but potentially the pound. Considering the British government have been mentioned in some of these alleged reports then it is possible the British American relations may not get off to quite as good a start after all.

If you would like further information on sterling exchange rates 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

GBP/EUR Rates Drop Again! (Matthew Vassallo)

GBP/EUR rates have fallen again during Thursday afternoon’s trading, following a mini recovery yesterday.

Sterling is once again under pressure following the announcement that Theresa May will discuss the UK’s Brexit plans in more depth, in an interview next Tuesday.

Based on her comments over the weekend, where she stated the UK would look towards a “hard Brexit”, the markets have assumed she will continue with her hard-line stance, which ultimately means that we will be cutting nearly all ties with the EU.

This is likely to put further pressure on the Pound, which is struggling to gain any sustainable foothold against the EUR, despite the on-going economic and political problems facing the Eurozone.

Market uncertainty is a currencies killer and this is why the Pound is fighting an uphill battle. Talk of Brexit and how we will facilitate this is likely to drive investor confidence and in turn the Pound’s value for months if not years to come.

The Pound did recover slightly yesterday following comments by UK Chancellor Philip Hammond who admitted no decision had yet been made as to whether the UK would stay in the single market post Brexit. It may be that the Prime Minister is trying to give herself a strong bargaining positron ahead of negotiations with the EU but wither way we just don’t have enough information to hand to make a firm decision either way.

The on-going uncertainty surrounding the entire situation is extremely unsettling and as such I would be looking to protect any short to medium-term Sterling positions and not gamble on this extremely unstable and fragile market.

If you have an upcoming currency exchange 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 please feel free to contact us on 0044 1494 787 478 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk

Supreme Court Judgement key to GBP/EUR levels (Daniel Johnson)

How will the Supreme Court Judgement effect GBP/EUR?

The supreme court judgement will be a major factor on GBP/EUR buoyancy levels. The case is on going throughout January, but I would expect the ruling to come through between now and the 17th January. If it is ruled that parliament will get the vote on the triggering of article 50, then a soft brexit becomes likely.  If temporary trade deals are in place while new deals are negotiated it will give investors faith that the UK economy is set to remain healthy and Sterling should benefit as a result.

A hard brexit would result in heavy losses for the pound. Trade negotiations would be prolonged and troublesome. Sir Ivan Rogers, the UK ambassador to the EU recently resigned stating current targets for a full exit are unrealistic. He thinks it could take as long ten years to leave with the current target set at two. Mark Carney the head of the Bank of England spoke yesterday and it was commendable that he admitted  he got it wrong and that Britain is not in the turmoil he expected following a Brexit vote. He did however say he felt the two year exit plan may be unrealistic.

Factors that could effect the Euro medium to long term

Although the pound has potential to fall against the Euro short term I think the Euro could be in for a rough year. There are serious problems in the Eurozone which if become more apparent could cause the euro to plummet. Inflation levels are shocking, bordering on deflation and pumping money into the economy is not having the desired effect, it is looking like a seemingly insurmountable task to boost inflation.

Italian bad loans are in excess of €360bn and some of their top banks are at the point where they require a bail out. This problem could have been lessened had there been action taken when the problem became apparent as the Irish did. The loans continued however and this now becomes a serious threat to the stability of the eurozone.

There is also the problem of Greek debt which will not go away and not to mention three elections within the Eurozone this year. The Netherlands, France and Germany will all hold elections and each could end with a far right party gaining power. Even if one of these far right parties gains power the Euro will suffer heavily as the chances of another referendum become far more likely.

If you have a currency requirement please do get in touch. I can be your eyes and ears in the market and notify you when the market has moved in your favour. If you already have a currency provider please let me know what they are offering and I am very confident I can show you a significant saving. I can be contacted at dcj@currencies.co.uk. Thank you for reading.

Pound Euro exchange rate remains volatile as Supreme Court decision looms (Daniel Wright)

Today the Supreme Court will get together again after their Christmas break and this means that a final ruling over article 50 and when/how it can be triggered is drawing ever closer.

The market has been particularly shaky on any comments surrounding Brexit and article 50 as we have seen this week already, seeing with the Pound losing ground against every major currency due to Theresa May hinting at plans for a hard brexit during an interview with Sky news over the weekend.

I am in no doubt that whatever the decision is we will have an extremely busy and volatile day of trading and I would be extremely surprised if we do not see a fairly large swing for Sterling exchange rates, which way depends on both the decision and the resulting comments after it.

The reason that it is so important is due to the fact that this decision will have a large impact on whether or not the U.K may aim for a hard or soft Brexit and access to the single market. All of this uncertainty is causing the Pound problems, so it will be good to have a clearer idea on what is happening, however if the signs are that we still may be heading for a harder Brexit then Sterling exchange rates may suffer further.

Personally I do not think this saga will go away anytime soon and I feel that we still have a lot more to come with Brexit, but you need to be wary if you have currency requirements in the coming months.

If you are in the position that you may need to carry out a currency exchange either soon or in the coming few months then it is imperative that you let your account manager here know about it, as we could see Sterling exchange rates move extremely quickly at any time when this ruling is released.

We have a variety of tools here that can help you maximise the rates and on top of this we are watching live levels move by the second all day, so we ware best placed to call you if the market suddenly moves sharply either in your favour or against you.

It costs nothing to register a requirement with us but it may save you thousands of Pounds as we are extremely proactive here and try to act as your eyes and ears on the market so that you can get on with your day. All you need to do is email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to contact you personally.

 

 

Theresa May sparks fear amongst investors (Daniel Johnson)

Theresa May causes Sterling to tumble

The pound has dropped heavily against the majority of major currencies.This weekend during a sky news interview Theresa May stated that she would give up free trade for complete control on immigration, leaning toward a hard brexit. A hard brexit would lead to elongated and troublesome trade negotiations. There would be further uncertainty in regards to the future of the UK economy and Sterling would suffer as a result. Sir Ivan Rogers, the UK ambassador tot he EU recently resigned due to the unrealistic estimates in regards to an exit from the EU. The target is two years for an exit to take place, Sir Ivan believes it could take as long as a decade.

Whether Theresa gets her way or not is largely dependent on the ruling from the supreme court judgement on whether parliament get to vote on the  triggering of article 50. If parliament do get the vote there is the strong possibility of a soft brexit, this would bode well for the pound, with temporary trade deals in place why new trade deals were negotiated. I would expect the decision to come through between the 12-17th of January.

GDP and Manufacturing could influence GBP/EUR short term

Tomorrow we will see the release of both UK GDP data and UK manufacturing data. I would expect to see a slight rise in both and Sterling could benefit as a result. Be aware however that if news from the supreme court ruling begins to filter through it could well outweigh these data releases.

During such times of heightened volatility it it is wise to be in touch with an experienced broker. I will be happy to assist with your currency requirements. I am prepared to provide a quote against your current provider to demonstrate the rates we can achieve and I will also put together a trading strategy to suit your individual requirement. Please do get in touch for  free, no obligation assistance by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.

 

 

Pound continues to tumble against the euro (Dayle Littlejohn)

When UK economic data impressed last week and the pound did not make gains against the euro, I was under the impression s slide in the pounds value was on the horizon.

UK Prime Minister Theresa May, addressed the British public on Sunday and insinuated that a ‘Hard Brexit’ is the only option, which means the UK will leave the single market which in turn has devalued the pound.

Mrs May, has commented on the drop in sterling value and is blaming the media she stated “I’m tempted to say that the people who are getting it wrong are those who print things saying I’m talking about a hard Brexit” she then went on to say “it is absolutely inevitable there’s a hard Brexit. I don’t accept the terms hard and soft Brexit,”

Regardless of who you blame the pound is falling against the euro and it’s no surprise. Whether you believe the UK should or should not stay part of the single market the fact is the pound is falling and looks like it will continue to fall for a period due to the PMs stance.

For euro buyers within the next 1-3 months purchasing your currency up front is the safe option. If not all of your sterling is available an option you can take advantage of is a forward contract. This allows you to secure exchange rates and you pay later for it.

For short term euro sellers, I would recommend getting in touch to outline your requirements and then let me do the hard work for. With regular updates this will keep you well informed and you will be in the best position to make an informed decision when to make the conversion.

For further information in regards to converting 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.

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!

** 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! **

UK PM’s comments cause GBP/EUR to sell off heavily, will the pair now consolidate below 1.15? (Joseph Wright)

The GBP/EUR pair has plummeted to over a two-month low during today’s trading session, and this is in the wake of comments made by the UK Prime Minister, Theresa May this weekend.

In an interview on Sunday May commented that she is not interested in keeping ‘bits of EU membership’ with many within the market place interpreting these comments as a reference to the UK losing access to the EU’s single market.

With May also alluding to her plans of controlling EU immigration being her main priority, it’s looking as though the ‘Hard Brexit’ is now the more likely option which is likely to continue to weigh on the Pounds value.

May comments have come at a bad time for those hoping the Pound will gain value in the short to medium term, as investors eagerly await the outcome of the Supreme Courts ruling on whether or not the government requires parliamentary approval before initiating the actual Brexit process.

If the government is successful in their appeal and therefore, Theresa May can invoke Article 50 at the end of March, I’m expecting to see the Pound fall even further especially after May’s comments this weekend.

For those monitoring the rate, it’s likely that the outcome of the supreme courts ruling will be announced around the middle of this month. Feel free to get in touch if you wish to be kept updated on the outcome as soon as it’s released.

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 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.

Early week jitters on GBP/EUR possible tomorrow (Joshua Privett)

Most analysts were expected a net positive week for the Pound coming up, yet we have just had a reminder that such expectations can change rapidly. This is a symptom of a market hinging on recieving further political news about a Brexit.

Theresa May made some strong comments in a Sky News interview that the UK would not be able to hold onto ‘bits’ of EU membership as we left. Potentially, this could be argued to contradict earlier comments that we may pay for preferential access to the single market.

Whilst this is still fairly vague, this currently hypersensitive market the Pound can suddenly come under fire from a collective market worried that such comments are pointing towards a hard Brexit.

Such language has adversely affected the Pound in the past – and severely. The Flash Crash in October was caused by similar rhetoric from the Heads of State of France and Germany, GBP/EUR fell by over 5 cents in a single day as a result. Should this occur, you can contact me directly by calling 01494 787 478 and asking the reception team for Joshua to recieve a free and no obligation quote for your transfer.

Should we manage to avoid any hysteria in the marketplace, then we can approach the rest of the week with some degree of normalcy.

Wednesday will see the release of UK manufacturing, industrial production, and growth data which should benefit anyone holding Sterling based on the trends of previous releases.

I strongly recommend that anyone with a buying Euro requirement should contact me on jjp@currencies.co.uk. In this fluid situation I am in a position to relay news and changing expectations to you immediately in order that you remain an informed purchaser.

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