Pound/Euro forecast outlook October 2012

Monday 1st October 2012
Good morning everybody. It's the start of a new week and a new month. Today I'm going to have a look back over what has been happening with Pound/Euro rates in the last week. In short, we've seen a slight recovery in Pound/Euro rates, however during the next month there are some key decisions in both the UK and EU that could pull the rate in either direction. I will also touch on tools and strategies you can use to protect against the rate moving the wrong way.

In this week’s Report: 

• Sterling/Euro remains choppy due to debt crisis
• EU problems now spreading to Spain 
• What will October hold for GBP/EUR rates
• Round up of the week’s other data that may affect rates 

Sterling vs. Euro; 

After losing ground against the euro in recent weeks, the pound started last week strongly as worries over Spain once again took centre-stage. The pound subsequently rose to its highest level in two weeks against the euro over fears that Spain would become the latest member of the Eurozone to request a bailout. Renewed concerns over Greece and a weaker-than-expected German sentiment survey also weighed on the single currency.

The pound was also lifted by talk of a €3 billion injection of farm subsidy payments, which the Eurozone pays the UK once a year. All of the above resulted in Sterling/Euro rates making a slight recovery. "The thing that is dominating market sentiment is when Spain will apply for a bailout. And, until that happens, it is weighing on both the euro and sterling, but especially the euro," said currency strategist Adam Myers of Credit Agricole.

The euro weakened further mid-week with Spanish ten year bond yields rising to 6 % on Wednesday. There was no let-up on the Euro either, with the Bank of Spain warning that gross domestic product for the Eurozone’s fourth largest economy would keep falling at a "significant rate" in the third quarter of 2012.

The rise in GBP/EUR rates continued, with the pound hitting a three week high against the euro on Thursday, helped by news Britain's economy contracted less than expected in the second quarter and as worries grew about Spain's debt and economic problems.

However, the trend was reversed on Friday as the euro gained around 0.5% against the pound over the course of the day after investors gave a cautious welcome to Spain's 2013 draft budget. This demonstrates how quickly trends can change. Also last week, the troubled southern European nation of Spain unveiled a 2013 budget based on spending cuts that many saw as an effort to pre-empt the likely conditions of a bailout – which could be seen as a positive for the euro and other riskier currencies, as it would allow the European Central Bank to start buying the country's bonds to try and lower yields, effectively lowering borrowing costs.

So, what does all of this mean if you need to buy or sell euros in the near future? 

Is the rate likely to go up or down? With so much uncertainty in both the Eurozone and the UK, it is almost impossible to predict which way the markets will move. On the one hand, the talk of Quantitative Easing in the UK could potentially weigh heavily on the pound. QE effectively floods the market with Sterling, weakening the pound in the process and bringing exchange rates down.

On the other hand, with problems in Greece starting to resurface, and the fear Spain will soon be forced to seek a bailout, GBP/EUR rates could easily move in the opposite direction. When we had some negative news out of Greece back in October 2011, the euro lost 3 cents against the pound over the course of 10 days. Regardless which way the markets will move in the coming weeks, there are tools at your disposal to help protect yourself from adverse movements and wild swings in rates of exchange.

Forward Contracts, Limit and Stop Loss orders are all handy tools to help make the most of your currency. Using these to take control of your currency requirement is a wise strategy to consider, as simply hoping the market will move in your direction can often prove very costly indeed.

To find out more about how you can limit your exposure to fluctuating exchange rates, send me a free no obligation enquiry today.

Weekly Economic Data that may affect exchange rates 

Monday – Starting in the UK, today we will see the latest House Prices from the Halifax, following by mortgage approval numbers and measures of manufacturing and consumer Credit. Over in the Eurozone there are Spanish inflation numbers, and manufacturing data for Italy and France. We also see Italian unemployment numbers. Across the pond we have US Manufacturing and Construction figures, in addition to a Speech by one of the FED’s FOMC members. 

Tuesday – Further UK House prices are released today, this time from the Nationwide. We also have construction data and the shop price index from the British Retail Consortium. In the Eurozone we have some inflation numbers. Further afield there is an interest rate decision in Australia, and Vehicle sales numbers from the United States. 

Wednesday – Fairly quiet in the UK today with only PMI data being released. In Europe we also have PMI in addition to the latest Retail Sales which is a good barometer of overall economic health. In the USA there are mortgage approval numbers and the latest unemployment measures. 

Thursday – As always for the first Thursday in the month we have the latest interest rate decisions for the UK and EU, in addition to possible change in the UK’s Quantitative Easing plan. It’s likely to be quite important as any changes could make a big difference to the GBP/EUR rate. In the USA we will see the latest FOMC minutes, in addition to the most recent Jobless Claims numbers. 

Friday – We end the week on a quiet note, with no releases for the UK. We will see some Factory order numbers from the Eurozone but they don’t usually have much of an impact on rates. In the USA we have various measures of unemployment, and as we touched on in the USD report, the all-important Non-Farm Payrolls.  

Getting the best exchange rates

You want the best exchange rates, of course you do. That's why you're reading this blog to try and gauge your timing. Take the next step and send us a free enquiry and have a consultation on all the options available to you.

It's free, it doesn't obligate you, and you may be surprised how much you can save by using us to get exchange rates that are up to 5% better than offered by banks. Click below to send your free enquiry now, and get a response the same day.  

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Getting the best GBP/EUR exchange rates

Monday 24th September 2012
Good morning. It's the start of a new week, so as usual I will look at what has happened with Pound/Euro rates over the last week, where rates may head based on what we know about the current economic situation, and also a round up of the most important data releases this week that I think could have an impact on exchange rates.

In this week’s Report:

• Pound/Euro rates recover from 3 month low
• More QE could be on the way from the Bank of England
• Sterling/Dollar at near 13 month high
• Round up of the week’s other data that may affect rates

 Sterling vs. Euro;

 

So what's been happening?

 

Over the last few weeks the Pound vs. Euro rate has been steadily dropping as investors become more confident about the Eurozone tackling its debt problems. During this time we have seen the exchange rate drop from a 4 year high of €1.2860 down to the lowest in 3 months when we touched €1.2350. This demonstrates not only how volatile the market is at present, but also the affect fluctuating exchange rates can have on any currency requirement. In just a few weeks the cost of a €200,000 property has fluctuated by nearly £7000.00.

 

So what is causing the volatility and what can we expect to see in the coming weeks?

 

It’s really all down to confidence in the Eurozone. When we hit the highs, there were significant concerns over the Eurozone’s debt issues which had weakened the Euro significantly. In the last few weeks however, we have seen Germany give the go ahead for the regions new rescue fund and the European Central Bank laying down bold plans to lower the borrowing costs for struggling countries. This is what has caused GBP/EUR rates to fall as confidence returned to the single currency.

 

In the last week however, poor euro zone business activity data fanned concerns about a deepening recession in the region, helping the Pound /Euro rate rise back to around the €1.25 level. The Euro has fallen in value as gloomy euro zone purchasing managers' surveys suggested the European Central Bank's plan to buy the bonds of indebted euro zone countries has yet to bolster business confidence.

 

So will rates now continue rising or is this just a short lived spike?

 

Any significant gains are probably unlikely, due to the impact of the fragile Eurozone economy on the UK, which has strong trade links with Europe. We have actually seen better UK data recently, including signs of falling unemployment and a strong rise in industrial production, which suggest the economy may have recovered in the third quarter. However, Bank of England minutes released last week showed that some policymakers felt the UK economy may need more stimulus, keeping alive speculation the central bank may extend its £375 billion QE programme in November.

 

Weak fiscal numbers (such as Friday’s data showing UK borrowing is more than 25% over target) will keep the pressure on the BoE to ease monetary policy further to support growth, and more QE may well weaken Sterling as it has in the past. Governor Mervyn King gave a downbeat assessment of the British and world economy last week, and warned the euro zone could yet fall apart.

 

Summary 

 

So in a nutshell, GBP/EUR rates are being pulled in both directions; renewed concerns over the Eurozone are weakening the Euro, however concerns over more QE in the UK and how the EU debt crisis may affect our economy are holding Sterling back from making significant gains. Where rates will move in the coming weeks comes down which way this currency tug of war goes, which in turn depends on confidence in the Eurozone. Forecasts from the major players differ wildly from as high as €1.29 to as low as €1.18 by year end, illustrating how uncertain things really are.

 

In times like these, simply leaving things to chance is a very risky strategy, and you could end up with a rate much worse than necessary. You can take some control over the market by knowing what tools are available such as Stop Loss, Limit Orders and Forward contracts. Having a free consultation with us will allow you to employ a strategy that is right for you, and having a framework in place means you can budget effectively and not be caught out by unexpected swings in the rate such as we have seen recently.

 

If you need the best exchange rates send me a free enquiry now. 

 

Weekly Economic Data that may affect exchange rates

  

Monday – In the UK today we will see the latest House Prices which reflect overall economic health. In the Eurozone there are Italian Trade Balance figures, German economic assessments and Import prices. There is nothing of note from the USA other than some minor manufacturing numbers.

 

Tuesday – There are no UK releases at all today. There is a meeting between ECB president Mario Draghi and German Chancellor Angela Merkel, which could throw up some surprises and affect the value of the Euro. Staying in Europe, we have Consumer Confidence measures from Germany and Italy. Elsewhere, the USA has some consumer confidence and house price measures, and New Zealand releases its latest Trade Balance figures.

 

Wednesday – A big day for Germany today, with the latest Inflation data and Retail Sales numbers being released. We will also see the UK CBI trade survey, although it doesn’t usually affect GBP very heavily. Across the pond we have the latest US Mortgage Applications and home sales numbers.

 

Thursday – It’s likely to be a choppy day for Sterling/Euro. Starting in the UK we have the latest GDP numbers in addition to confidence and Business investment measures. In the Eurozone we see Consumer Confidence, Industrial Confidence, Money Supply and Germany unemployment. In the United States there are measures of Jobless Claims, Home Sales and Durable Goods orders.

 

Friday – There are no significant UK releases today. In Europe we have French GDP and Consumer Spending, Italian & Greek Inflation Data. In the United States there are various measures of personal Spending and inflation.

 

Getting the best exchange rates

 

You want the best exchange rates, of course you do. That's why you're reading this blog to try and gauge your timing. Take the next step and send us a free enquiry and have a consultation on all the options available to you.

It's free, it doesn't obligate you, and you may be surprised how much you can save by using us to get exchange rates that are up to 5% better than offered by banks. Click below to send your free enquiry now, and get a response the same day.

Click here to send me a free enquiry

Pound/Euro & Pound/Dollar forecast outlook

Wednesday 29th September 2012
Good morning everybody. Today I’m posting a quick mid-week update on what’s been happening with exchange rates, and what may happen in the coming days and weeks. The Pound has recovered a little against the Euro, but is not likely to continue gaining much. Against the US Dollar the Pound remains at a 5 month high. Let’s have a more detailed look at each currency pair in turn.

Pound/Euro

Sterling has risen a little against the Euro into the mid €1.24’s following uncertainty about Spain. The concerns encouraged investors to take profit on some of the single currency's recent strong gains, and this helped the GBP/EUR rate recover slightly. Concerns are growing about whether and when Spain will seek a bailout, while a German investor survey highlighted concerns about Europe's largest economy.

The results of a financial stress test on Spain's banks are due to be published on 28 September, and will provide a basis for calculations as to which banks should receive European Union funds and how much they should get. This may weaken the Euro slightly, however I think events in the UK over the coming days will take precedent which I’ll look at in a moment. All in all I think the Pound/Euro rate may fall further due to the weak UK economy.

Pound/Dollar

The Sterling/Dollar rate has not moved much this week, but has risen slightly and remains near a 5 month high. It’s due to weakness in the US Dollar after the announcement of open ended Quantitative Easing in the USA.

If we don’t get any negative UK data in the coming days, I think GBP/USD could rise a little further. If you need US Dollars, while it may rise further this is no guarantee. Given rates are at their best for many months, if I needed USD I would place a Stop Loss order a rate a little below the current level. In this way I can continue to take advantage of any gains, but if things go the wrong way and move against me, I have a worst case scenario.

Find out more about Stop Loss Orders.

UK Data

Yesterday we saw that UK inflation dipped slightly in August despite a rise in oil and fuel costs. This kept alive prospects of the Bank of England injecting more cash into the economy later this year which might weaken the Pound.

Sterling has been quite well supported by better UK data in recent weeks, which has eased concerns about the growth outlook. The inflation data didn’t really have any effect on exchange rates, as it does not change the balance of expectations over whether the Bank of England will increase its asset-buying programme later this year.

Bank of England minutes – more QE on the cards?

I expect more QE in November, but of course today's BoE minutes may give us a cleared idea of what to expect. Today at 09:30am the minutes are published, and they will show what was discussed and differences of view during their last meeting on QE and interest rates.

Analysts suggested that the falling inflation rate eased concerns that the Bank's policy of pumping money into the economy to stimulate demand - known as quantitative easing (QE) - could lead to inflation picking up. The UK economy has contracted for the past three quarters and the Bank announced another £50bn of QE in July, taking the total amount of money it has injected into the economy under this programme to £375bn.

Some analysts suggested this total could rise again later this year, as the economy struggles to exit recession. If there is any hint of QE any time soon, the Pound may take a little dip against other currencies.

Are you looking for the best exchange rates?

Whether you need to buy or sell foreign currency, the rates I can source through my firm are significantly better than you can achieve at the bank, sometimes by as much as 5%. This represents a significant saving.

We can also give you a free consultation on what is happening with the markets, and run through the different options you have to protect you against unnecessary losses due to exchange rate fluctuations. Mention 'BLOG' when you get in touch.

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I can then get in touch to discuss your requirements, explain how we can help and the mechanics of how our service works. I look forward to hearing from you.

Pound/Euro declines due to US QE - Full Market Report

Good morning everybody. Last week was a very volatile one that saw a big drop in the GBP/EUR rate, but in contrast the GBP/USD rate rose to a 5 month high. Today I'll take a detailed looks as to why this happened, and what it means going forwards.

In this week’s Report:

• Pound/Euro rates in dramatic decline
• US QE announcement main cause of volatility
• Pound/Dollar soars to 5 month high as dollar weakens
• Round up of the week’s other data that may affect rates

Sterling vs. Euro;

Last week the Pound continued its downward trend against the Euro, sliding away from the 4 year high of 1.2865 we saw at the end of July back down to the mid 1.23s. The main reason for the drop in the rates was actually due to news from the US after the Fed said it would pump $40 billion into the economy each month until it saw signs of improvement in its struggling jobs market (which will be discussed in further detail in the dollar report) and growing confidence in the euro zone rather than any data from the UK.













The confidence in the single currency mainly came from the news that the German Constitutional Court gave the go ahead for the regions new rescue fund and the European Central Bank laying down bold plans to lower the borrowing costs for struggling countries. This gives investors greater confidence that the euro zone will be able to withstand continued financial storms as they pulled money out of the dollar and back into the riskier single currency.

This week, the most important mover of the GBP/EUR cross is likely to come of the back of continued discussions with the ECB around Spanish, Italian bailouts as well as minutes from the Bank of England MPC meeting released mid-week. The minutes will give a full account of policy discussions including any conflicts of opinions. They will also show which way the individual committee members voted. This will give a good indication of whether the BoE has a dovish or hawkish stance on the outlook of the UK economy. Any indication of a positive outlook or talks of an increase in interest rates would be very beneficial to the pound and would push the sterling/Euro rates up.


What does this mean if I need to buy Euros?

With such a dramatic fall in Sterling/Euro exchange rates in recent times, anyone looking to buy Euros in the near future would be wise to consider locking in today’s rates with the use of a forward contract to protect themselves against any further falls in the market. On the other hand, anyone looking to sell Euros can take advantage of any spikes with stops and limits contracts allowing you to target rates not yet available in the market. To discuss these type of contracts, send me a free enquiry now.

With a property purchase of €200,000 costing you just over £6000 more than it would have done a couple of months ago, it outlines the importance of getting the right information to make an informed choice of what to do.

Sterling vs. US Dollar;

In this section I will have a look at what events have dominated the GBP/USD cross and how they have affected the markets. Last week the single focus of cable was the run up to the Federal Reserve interest rate and Quantitative Easing meeting on Thursday.













Even as early as Monday the market was pricing in some sort of stimulus intervention as Cable reached a 4 month high. The trend of sterling strength against the dollar was maintained on Tuesday as markets continued to price in movement coupled with a threat by ‘Moody’s Investors Service’ that the US was in danger of losing its triple A debt rating, if next year’s budget talks do not result in lower debt to GBP ratio.

When the results finally came in late Thursday UK time the conclusion certainly didn’t disappoint those expecting some action. Ben Benanke backed the purchase of $40 Billion of mortgage backed securities every single month until US growth as well as the US job market improves. In addition Fed Chairman Benanke added to his commitment to get the US economy moving through spending by confirming that interest rates in the US would remain low and wouldn’t be raised until 2015 at the earliest.

This is probably the most decisive action that the market has seen from the US to deal with the financial crisis since its inception. At the very least it sends a clear signal to the rest of the world that the US are prepared to do everything necessary, including trying new strategies to navigate their way out of recession and into competitive growth.

Dollar weakens significantly after announcement

Naturally following this announcement cable continued its upward trajectory as equities and perceived riskier currencies (including Sterling) made gains against the Greenback. With the Fed Chairman indicating that he would be prepared to pump $40 Billion into the economy every month until it has an effect, the market has the potential to continue the current trend of Dollar weakness. Essentially Mr Bernanke has embarked on an endless amount of quantitative easing and so it will be interesting to see how far the markets move off the back of this uncertainty.

Whilst this is undoubtedly a great time for dollar purchasers to be taking advantage of the recent gains, it would be wise to approach the market with some trepidation as the FX markets are notoriously volatile. Despite a clear shift in fundamentals there is no absolute guarantee that the technical levels will follow suit, and indeed there have been countless occasions throughout history where a sharp market movement has been followed by an equally sharp market retraction.

Ensure that you take advantage of a free consultation and explore the possibilities of both Stop Loss orders and Limit orders so that you are able to take advantage of any market gain, whilst at the same time protecting yourself should the market move against you.

Weekly Economic Data that may affect exchange rates

Monday – The main data today is Trade Balance data from the Eurozone, showing imports and exports. Elsewhere we have UK House Prices. There are no significant releases from the USA today.

Tuesday – Some important UK data today including Inflation data, House Prices and Retail Sales, all of which are a barometer of overall economic health. In the Eurozone we have Economic sentiment surveys from Germany and the EU. In the USA we have a speech from the Federal Reserve, and some Housing data.

Wednesday – The Bank of England release their minutes today, which often causes volatility for Sterling. In the Eurozone we see the latest construction data output. In the USA there are Homes Sales data and another speech from the FED. Over in New Zealand we see the latest GDP figures at 11:45pm.

Thursday – UK Retail Sales are released today, showing full monthly and annual comparisons. On the Eurozone we have inflation data from Germany, Manufacturing data from Italy, German and France. We also see measures of EU Consumer confidence. Over in the USA we see the latest Jobless Claims, Manufacturing data, and yet another speech from the FED.

Friday – We end the week on a quiet note, with the only UK data of note Public Sector borrowing. There is nothing of note from the EU today. Over in the United States we have, you guessed it, another speech from the FED.
Getting the best exchange rates

You want the best exchange rates, of course you do. That's why you're reading this blog to try and gauge your timing. Take the next step and send us a free enquiry and have a consultation on all the options available to you.

It's free, it doesn't obligate you, and you may be surprised how much you can save by using us to get exchange rates that are up to 5% better than offered by banks. Click below to send your free enquiry now, and get a response the same day.

Click here to send me a free enquiry

GBP/EUR & GBP/USD forecast September 2012

Thursday 13th September 2012
Good afternoon everybody. I'm posting a quick update on what's been happening so far this week with exchange rates. In a nutshell, it's not much! Sterling remains near a 4 month high vs the US Dollar, and is still just below €1.25 against the Euro. Let's take a quick look at each cross in turn:

Pound/US Dollar remains near 4 month high

Rates are looking pretty good for the Pound against the US Dollar, remaining around the $1.61 level. The reason for this is firstly more confidence in the Eurozone, which has meant investors leaving the safe haven Dollar. This in turn has weakened it slightly making it cheaper to buy.

The rate is also supported by expectations of more monetary easing by the U.S. Federal Reserve which will be announced later this afternoon at 17:30pm. This has underpinned demand for perceived riskier currencies such as the Pound, and helped push rates up a little. Many analysts said the pound could rise further against the dollar if the Fed does relaunch its bond-buying programme, which tends to weigh on the dollar, but sterling was also vulnerable to the risk policymakers will hold fire.

All in all it's a good time to look at buying Dollars, given it's at a multi month high, and not very far away from the best it's been in a year.

Sterling/Euro remains flat in the €1.24's

In contrast to the good Pound/Dollar rate, Pound/Euro has fallen in recent weeks from the 4 year high we saw in the summer.

The single currency has been lifted by growing confidence in euro zone assets after Germany's Constitutional Court gave the green light to the region's new rescue fund and the European Central Bank's bold plans to lower borrowing costs for struggling countries.

This means investors are much more confident of the Eurozone being able to weather further financial storms and bailouts, and the Euro has strengthened accordingly. A stronger Euro is more expensive to buy, and that's why rates have fallen.

Over the last few days however the market has been very flat indeed, with hardly any movement in rates to note.

Tomorrow we have the G20 meeting starting, which is a gathering of finance ministers and central bank governors and thus could add a new dimension to the currency markets. Scheduled releases tomorrow also include EU inflation and unemployment numbers, US inflation and Retail Sales figures, so we could see a little movement then.

Also the FED's actions this evening could cause some movements in rates. Keep an eye on the Twitter feed in the sidebar, which I regularly update with the latest exchange rates to see how things are moving.

I'll be back on Monday morning with my usual detailed analysts of the Sterling/Euro rate and a full breakdown of next weeks economic data.

Getting the best exchange rates

You want the best exchange rates, of course you do. That's why you're reading this blog to try and gauge your timing. Take the next step and send us a free enquiry and have a consultation on all the options available to you.

It's free, it doesn't obligate you, and you may be surprised how much you can save by using us to get exchange rates that are up to 5% better than offered by banks. Click below to send your free enquiry now, and get a response the same day.

Click here to send me a free enquiry

Pound/Euro exchange rate forecast for September 2012

Monday 10th September 2012
Good morning everybody. I'm back from sunny Kos in Greece, so let's get cracking and see what's been happening with exchange rates. In a nutshell, the Euro has been gaining strength and as a result Sterling/Euro exchange rates have fallen further from their recent highs. Today I'll take a look at what's been happening in Europe, why the Pound/Euro rate has fallen, and what the coming weeks may hold. If you need to buy or sell Euros at the best exchange rate, read on....

In this week’s Report:

• Euro gains strength pulling GBP/EUR rates down
• Is a solution to the debt crisis imminent?
• Pound/Dollar rates climb steadily to $1.60
• Round up of the week’s other data that may affect rates

Sterling vs. Euro;

Speculators waited in anticipation last week as a relatively stable few days led up to Mario Draghi’s long awaited ECB press conference. Today I will consider the major announcements from both the UK and Euro-zone that drove the sterling-euro cross price since I've been away.


Last week began with a UK Manufacturing data report that was greater than predicted; lifting the pound as speculators concluded that the announcement would reduce the chance of more Bank of England stimulus. Sterling gains were offset, however, as on that day Angela Merkel stood before Bavarian beer drinkers to announce her support for a unified euro.

The inference of her speech appeared to be that the hard line taken with troubled Euro-nations, such as Greece, was ultimately to bring about an end to the crisis, rather than to simply protect German interests. The markets took the signal as an affirmation that a plan was on its way and this, coupled with a buoyed sterling, kept the markets relatively constant around the €1.26 level.













Just as the steam from Chancellor Merkel’s comments began to wane, and European stocks slipped again, Mario Draghi set the cat amongst the pigeons when he explained to lawmakers that if the ECB were to purchase two to three year sovereign debt from troubled nations, this was not tantamount to outright quantitative easing; a breach of their mandate.

All eyes fell on Draghi and Thursday’s announcement; the euro had tentatively held its ground, never quite weakening back to the four year high levels, but not quite strong enough to warrant the sterling-euro cross to fall below the 1.26 mark. Speculators were divided as to the fate of the euro; the broad strokes of the ECB plan were relatively well known by this point, what was not, were the details. Draghi could announce an insubstantial plan, such as capped bond purchases, that would disillusion markets in a similar vein to his prior press conference. A stronger message however, would settle investors, buoy the euro and reduce the dreaded bond yields of nations such as Spain.

Although the ECB President delivered with respect to content, Draghi’s speech was perhaps not the vitriolic call to arms many expected, or hoped, it would be. The markets did respond, albeit eventually, as an initial weakening of the Euro during the speech ultimately saw the single currency close in on two-month highs against the US dollar stealing momentum from the yen.

Friday delivered weaker than forecast Non-Farm payroll data from the US which will have driven speculators from the dollar to the euro as the ECB’s recent actions, and the risk of Fed stimulus, has seen more traders drop their risk-adverse positions on Europe. The news also caused GBP/USD rates to rise above the $1.60 level for the first time in quite a while.

With the euro increasingly gaining on its counterparts we have seen the Pound/Euro rate start to drop further away from the recent highs, on Friday falling over a point down towards €1.25. As such it has never been a better time to consider your currency options if you need to buy or sell Euros. We have a range of contracts to cater to many Forex requirements. Whether you are buying or selling Euros, we can provide you will all the information to help you make an informed decision and make the very most of your currency.

Make the first step now, click here to make a free enquiry.

Weekly Economic Data that may affect exchange rates

Monday – Today is all about the EU. We have various releases including Italian GDP data, Greek Inflation numbers, EU investor confidence, French Industrial Output and Portuguese Trade Balance. Elsewhere there are some House Price figures for the UK, and GDP figures for New Zealand.

Tuesday – Today we have some Trade Balance figures from the UK showing imports and exports. A little quieter in the Eurozone with German wholesale prices the only data of note. In the USA we have Trade Balance figures.

Wednesday – An important day for GBP/EUR. Starting at home we have a host of earnings and unemployment data at 09:30am. In the Eurozone we have Inflation data from Germany, Spain and France. There are also some industrial production figures for the EU. Over in the USA there are several Import and Export numbers being released at 13:30pm.

Thursday – The only UK data of note is the BoE Quarterly Bulletin. It’s relatively quiet in Europe also with only Greek unemployment and Italian inflation data. Most figures today are from the USA: Jobless Claims, Interest Rate decision, FOMC minutes & a monthly budget statement.

Friday – The G20 meeting starts today, which is a gathering of finance ministers and central bank governors and thus could add a new dimension to the currency markets. Scheduled releases today include EU inflation and unemployment numbers, US inflation and Retail Sales figures.

Getting the best exchange rates

You want the best exchange rates, of course you do. That's why you're reading this blog to try and gauge your timing. Take the next step and send us a free enquiry and have a consultation on all the options available to you.

It's free, it doesn't obligate you, and you may be surprised how much you can save by using us to get exchange rates that are up to 5% better than offered by banks. Click below to send your free enquiry now, and get a response the same day.

Click here to send me a free enquiry