Wednesday, 18 January 2017

The pound holds its ground after Theresa May's speech

Good afternoon,

After the volatility we witnessed yesterday, today has been much more subdued for the GBP/EUR cross, with the currency pair spending the majority of the day bouncing between €1.15 and €1.1550.

GBP/EUR graph




The pound seems to have stabilised following Prime Minister Theresa Mays speech yesterday afternoon, as her comments have provided some much need clarity over how the government plan to tackle the UK's exit from the European Union.

Despite stating in her speech on Tuesday that Britain will give up access to the single market, May's twelve point plan seems to have gone down well with investors, and for the time being at least, has removed some of the uncertainty from within the FX markets.

Does this mean the pound will continue to rise?

Although the move we witnessed yesterday has given the pound some much needed breathing space, I still think it is too early to say that this is the start of a full blown recovery. We are still waiting to hear the Supreme Court ruling and the government still need to trigger Article 50 before official negotiations can begin.

The negotiations to leave the European Union could rumble on for years and although markets responded well to Theresa May yesterday, her European counterparts might not be as easy to convince.

We already know we will not get a running commentary about how the negotiations are going, and until a deal is struck and we know exactly where we stand, I believe the pound will struggle to make any major advances against the euro for the foreseeable future.

Looking to buy or sell euros? 


If you have a requirement to buy or sell euros and are concerned about how the upcoming Brexit negotiations will impact your transfer, contract us today for a free, no-obligation consultation. We don't deal in cash or holiday money, but if you need to have currency wired to a bank account to purchase property overseas for example, our rates could be up to 3% or 4% better than your bank may offer, potentially saving you thousands. To get a free quote simply click here or complete the form below.


Monday, 16 January 2017

Pound/Euro exchange rate falls again

Good afternoon,

Since my last post the pound has been losing ground against the euro, with the GBP/EUR cross currently sitting at its lowest level since the start of November.

This morning saw the currency pair fall to a low of €1.1298, meaning the pound has fallen over three per cent since this time last week and almost six per cent since the beginning of December.

GBP/EUR graph




Why has the pound been falling?


Over the past few weeks talk of Brexit has been dominating the headlines and concerns are mounting over the short-term future of the UK economy.

In an interview with Sky News last week, UK Prime Minister Theresa May hinted that she will look to cut all ties with the European Union and that we could not keep "bits of membership".

Those comments have continued to weigh on the value of the pound into this week, and with May set to deliver a speech tomorrow, investors are preparing themselves for the PM to announce that she will be pushing ahead with a "hard Brexit" by giving up the UK's access to the single market.

Looking to buy or sell euros? 


If you have a requirement to buy or sell euros and are concerned about how the upcoming Brexit negotiations will impact your transfer, contract us today for a free, no-obligation consultation. We don't deal in cash or holiday money, but if you need to have currency wired to a bank account to purchase property overseas for example, our rates could be up to 3% or 4% better than your bank may offer, potentially saving you thousands. To get a free quote simply click here or complete the form below.

Wednesday, 11 January 2017

Pound Euro Still Affected by Brexit Uncertainty

Good Afternoon,

The pound has been having a turbulent time of it over the last couple of trading sessions, as the uncertainty surrounding the current political climate continues to dominate the news, and markets accordingly.

GBP/EUR is currently trading at 1.1520 (mid-market), and todays rollercoaster movement is a reflection of the fragility of the pound.

Why have rates moved so suddenly?


As has been the trend recently, it is not numerical economic data that has been the driving force, but rather news surrounding our relationship with Europe, and rhetoric from governor of the Bank of England  Mark Carneys’ views on how that relationship will affect the UK economy.
Because this is the case, the market is moving off subjective data, and therefore sentiment can change quickly, as can rates.

How does this affect you?


Just the first half of this week we have seen rates move from a high of 1.1660, to a low of 1.1433, and a lot of movement in between. This movement would have resulted in a cost difference of over £5000 for a common purchase of €300,000.

GBP/EUR The week so far 



How to navigate the market?


As a specialist in currency exchange we have a variety of contracts available to you, designed to assist in this exact scenario. Of note are Stop Loss and Limit orders.

Both are tools that place automatic triggers in the market which will purchase your currency if the pre-agreed rate becomes available, regardless of the time of day.
The Stop Loss is designed to protect the bottom end of your desired rate, and will trigger if the ‘worst case scenario’ becomes a reality, and the Limit Order is there to try and catch a rate that is currently unachievable.

Looking to buy or sell euros? 


If you have a requirement to buy or sell euros and are concerned about how the upcoming Brexit negotaitions will impact your transfer, contract us today for a free, no-obligation consultation. We don't deal in cash or holiday money, but if you need to have currency wired to a bank account to purchase property overseas for example, our rates could be up to 3% or 4% better than your bank may offer, potentially saving you thousands. To get a free quote simply click here or complete the form below.

Monday, 9 January 2017

GBP/EUR exchange rate falling after latest Brexit comments

Good afternoon,

Today has seen the pound fall across the board, with the pound/euro exchange rate sitting at its lowest level since 15th November.

For the best GBP/EUR rate click here. 


The GBP/EUR cross is currently trading at 1.1534 (mid-market), and today's move means the currency pair has fallen 2.5 per cent since last Tuesday (3rd Jan) and nearly 4 per cent since the middle of December.

GBP/EUR graph. 

 


Why has the pound/euro rate fallen? 


The pounds value has dropped following comments made by UK Prime Minister Theresa May yesterday. Speaking to Sky News, May hinted she will push ahead with a "hard Brexit" by giving up Britain's access to the single market in order to focus on the country's immigration controls.

During her first interview of 2017, Theresa May said the UK could not hold on to "bits of EU membership", and added that the UK will not be a member of the EU any longer.

Her comments have left investors worrying about the future of the UK economy, and if their fears mount we could easily see GBP/EUR hit the kind of levels we witnessed back in October.

What does the recent move for pound/euro mean for you? 


If we look at the pounds decline in monetary terms, converting £300,000 into euros today will see you receive around €8500 less than seven days ago.

Although it does not make great reading for those of you looking to purchase euros, it suddenly represents an excellent opportunity for those looking at converting euros back into pounds.

Looking to buy or sell euros? 


If you have a requirement to buy or sell euros and are concerned about how the upcoming Brexit negotaitions will impact your transfer, contract us today for a free, no-obligation consultation. We don't deal in cash or holiday money, but if you need to have currency wired to a bank account to purchase property overseas for example, our rates could be up to 3% or 4% better than your bank may offer, potentially saving you thousands. To get a free quote simply click here or complete the form below.




Thursday, 5 January 2017

Pound/Euro exchange rate update

Good afternoon,

It has been a fairly choppy day for the GBP/EUR cross with the currency pair bouncing between €1.1650 and €1.1750 as you can see from the graph below.

GBP/EUR graph





For the third consecutive day the UK economy published a stronger than predicted PMI reading, with this morning's Services PMI survey adding to the positive Construction and Manufacturing readings we saw earlier in the week.

Today's data is yet another example of how the UK economy is still growing and performing above expectations following Britain's decision to leave the European Union in June.

However, the positive economic numbers are having very little impact on the value of sterling, as concerns over Brexit continue to weigh heavily on the pound.

Under normal conditions three consecutive days of strong data would usually strengthen a currency, but with political events still driving the currency markets and talk of Brexit set to dominate the headlines for the next couple of years, it could be sometime until we see the pound really benefit from positive eco-stats.

So what will drive the value of the pound in the short-term? 


If the UK economy can continue on its current path then it will provide the pound with a solid base, however, the biggest move is likely to come from the government triggering Article 50 in order to start official divorce proceedings from the European Union.

At the moment it is still unclear as to what stance Theresa May and her party are going to take when negotiating with their European counterparts.

The main question that needs answering is will they opt for a "Hard" of "Soft" Brexit? A "Hard" approach could see the UK give up access to the single market in order to focus on immigration issues the country voted for, and is likely to cause the pound to fall across the board.

A "Soft" Brexit would give investors some much needed confidence as it will probably see the UK keep some kind trade deal with the EU. The soft approach could see the pounds value rise, and coupled with the uncertainty surrounding the upcoming elections in Europe we could witness a positive move for the GBP/EUR cross.

Get in today for a free quote


We not only provide market commentary to keep you up to date with why exchange rates are moving, we can also help you achieve exceptional rates of exchange. We don't deal in cash or holiday money, but if you need to have currency wired to a bank account to purchase property overseas for example, our rates could be up to 3% or 4% better than your bank may offer, potentially saving you thousands. To get a free quote simply click here or complete the form below.