Pound to Euro exchange rates will be beginning to move late this evening UK time as Asian markets begin to start trading as the week begins, and with Article 50 being enacted on Wednesday, I am not imagining a gentle start to the week.
What kind of currency movement is expected in this climate? Everyone has there opinion, but really it is a judge of probability, since this is such a terrifically subjective event to explain in a positive or negative manner, it is impossible to accurately gauge where mass psychology is leaning in the currency markets.
Theresa May’s speech at midday, following the letter she will have sent to the European Council earlier in the day officially instigating the talks for the UK to exit the European Union will be largely where most of the Pound’s value changes will be concentrated that day. So contact me on email@example.com to discuss how to monitor it effectively if you are planning an upcoming Euro purchase or sale.
In the run up to the event however, you may see a jumpy market beginning to lose some faith in the Pound. Not necessarily based on a logical look at the situation, but more the memorable panic that the initial vote caused in the market and the stark depreciation in its value last June.
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 firstname.lastname@example.org 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.
Yesterday we were informed that Article 50 will be triggered on Wednesday 29th March – a huge moment in history for the U.K to say the least. The triggering of Article 50 means the process of leaving the EU is officially in motion and unless all 27 EU states agree to extend it then we have a two year deadline to negotiate a deal.
For those with any currency requirements, buying or selling this is also extremely important news and the markets are poised for a sharp move in the next week or so.
We are likely to receive more information on exactly what route we are going take with these negotiations, and we will also see just what the market will do as soon as there is no turning back.
The issue is, you cannot look back historically and see what happened last time we had an event such as this as it has never happened before. In my view we may see one of three reactions, which really goes to show, if you have a requirement coming up even in the next few months you need to let us know about it and be prepared to move.
1) We may see the Pound fall sharply – Sterling exchange rates saw a huge drop when the original referendum vote results were released and now that things are officially moving forward, we may see the same reaction too. The Pound may also drop if the Government goes down the route of a harder Brexit.
2) The Pound may rise – There is the argument that the Pound may have a really solid gain after article 50 is triggered, due to finally having some certainty on what is happening. After months of arguments, challenges and potential hiccups at least the markets now know what the general plan is. Certainty is very important for a currency so you cannot rule out the chance of a Sterling spike.
3) Exchange rates remain in this range with not a lot of movement – We cannot rule this out as the market may have already priced in the triggering of Article 50 and the route the Government will go down. This is possibly the most unlikely of the three however there is always the chance that we will be at the end of next week without any large market movements.
In my opinion I would be surprised not to see a big move in the next week or so, this is a huge moment in history and the markets will have to readjust depending on plans for a hard or soft Brexit, and there will no doubt be a huge number of people poised to move money around the World as and when this actually moves ahead, leading to a great deal of market volatility.
If you have a large currency exchange to make involving buying or selling the Euro then feel free to contact me, Daniel Wright by emailing email@example.com and I will be more than happy to get in touch with you personally.
At 9.30 this morning the UK are set to release their latest Consumer Price Index (inflation) numbers. The Bank of England’s 2% target could be exceeded which could cause a small spike in the market for euro buyers. The consensus is for inflation to rise to 2.1%,
Inflation numbers have a major influence on interest rates. If inflation continues to rise the Bank of England will be forced to raise interest rates which will in turn strengthen the pounds value. It was only last Thursday when Kristin Forbes voted in favour of raising rates and the latest minutes stated other members were sitting on the fence.
In other news Theresa May is set to trigger Article 50 next week and forecasters are split to whether this will strengthen the pound as the triggering will bring certainty to the market or if the pound will fall as there is no going back. Personally I wouldn’t be surprised to see the pound fall which will make purchasing euros become more expensive.
For euro buyers if the market spikes in your favour this morning this may be the best time to buy euros for the next couple of weeks and therefore is seriously worth taking advantage of. If you are purchasing euros short term there is still time to speak to me to outline your options and the process of using the brokerage I work. By doing this I will be able to save you a considerable amount of money on your transfer. Call the trading floor on 01494 787478 and ask for Dayle Littlejohn.
For euro sellers you have come this far, I personally would wait to see how the triggering of Article 50 impacts the pound and then asses your position their after. To outline your position feel free to email me and I will respond with the process firstname.lastname@example.org.
The Pound has risen against the Euro during the end of this week after the Bank of England announced that one of its 9 members has voted to raise interest rates.
MPC member Kristin Forbes has expressed concerns over rising inflation levels and this was her main reason for the vote to raise interest rates.
Since last July this is the first time that the Bank of England has disagreed in its voting pattern and this has given Sterling a brief respite after a difficult start to the week vs the Euro.
Unemployment in the UK has shown the best levels in over 30 years but at the same time UK Average Earnings fell so although there are more people in work in the UK their spending power has been reduced and this is likely to cause problems for the Pound in time.
The Dutch elections did little to affect exchange rates as the front runner Mark Rutte’s party ending up winning despite the potential threat of Geert Wilders and his far-Right party. This could persuade voters in France to reject the idea of populism and I think the impact of the French elections will not be noticed until late April.
In the meantime the problem that the Pound is facing is that of uncertainty as to what will happen once Article 50 is triggered.
The likelihood is that we’ll see huge volatility once it has been officially triggered and I think if we reflect back to what happened last June with the Brexit vote the precedent has already been set with large swings on the foreign exchange markets.
The current expectation is that this will happen towards the end of the month so it is extremely important to get yourself organised in preparation for what may happen.
Once Brexit vote was announced GBPEUR rates fell by 9% or the difference of £7,200 on a currency transfer of €100,000 which can make the difference as to whether or not you can afford to buy a property overseas highlighting the fact of using a currency broker.
If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote.
Having worked in the fx industry since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you make the process simple and stress free.
I look forward to hearing from you.
Tom Holian email@example.com
Sterling Euro spikes ahead of elections in Holland – Important day for Euro exchange rates (Daniel Wright)
The GBP/EUR exchange rate has spiked in early morning trading, starting the day off almost one cent ahead of where exchange rates were in trading yesterday morning.
We have the Dutch elections over the course of today and any hints on the result may lead to sharpe market movements for Euro exchange rates.
Personally, I feel that the Euro may be in for a tough time in the coming months but for anyone looking to buy Euros with Sterling you must still be very wary of the few banana skins that lie ahead for the Pound too.
With Article 50 on the brink of being triggered there is the chance that Sterling may suffer a little upon its announcement. Due to this having not ever happened before it is hard to look back over history to see what impact this had on the markets previously so to make a real solid prediction is hard, as it may even lead to Sterling spiking up due to finally having some certainty at least as to what may be happening in the U.K.
For anyone with a requirement involving wither buying or selling the Euro the next 24 hours will be key as it is the first of a number of highly important political votes we have in and around Europe over the next few months.
Markets move on economic data and political stability so should we see the far-right party perform well then the Euro may suffer.
If you have a requirement involving either buying of selling the Euro and you would like my personal assistance both with the timing of your exchange and getting the best deal when you come to buy your currency then do feel free to email me (Daniel Wright) directly on firstname.lastname@example.org with a description of your needs and I will be happy to contact you personally.
The Dutch elections are due to take place today with the result expected to come out later on tonight. One of the front runners is Geert Wilders who has plans to call a referendum for the Netherlands to leave the European Union.
Wilders at this moment is expected to win but it is likely that he will fail to win with a majority and although he may be able to form a coalition it will be difficult for him to carry out his plans for calling a referendum.
The Pound has made some gains this morning against the Euro and the uncertainty of the vote has caused the single currency to weaken against Sterling.
Once this is out of the way the focus will return back to the issue of when Article 50 will be triggered. Brexit secretary David Davis has claimed it will happen at the end of the month but no formal date has yet been announced.
On Saturday the Scottish National Party conference will take place and the likelihood is that Nicola Sturgeon will campaign for another Scottish referendum as the Scots did not want to leave the European Union when the Brexit vote took place.
With the Brexit bill now having been approved it is just a matter of time before Article 50 is triggered and when it finally happens we are likely to see big movement for Sterling vs Euro exchange rates.
If you have an upcoming currency transfer to make and would like a free quote when buying or selling Euros then contact me directly and I look forward to hearing from you.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers i am confident of being able to offer you bank beating exchange rates and also help you with the timing of your trade.
I look forward to hearing from you.
Tom Holian email@example.com