Different ways you can get the best exchange rates

Thursday 8th October 2015 
The currency markets have been calmer this week, with not as much fluctuation a we have seen in recent weeks. In the chart below, you can see that the Pound/Euro rate in particular has remained range-bound between 1.3550 and 1.3650 in recent days: 

The reason rates are relatively stable is that economic figures have been roughly as expected. UK GDP is around 0.5% which is about what the markets thought. German Exports were down but it didn’t really weaken the Euro much. The Bank of England (BoE) have kept interest rates on hold as expected, and the speeches by the central bank governors didn’t really give any surprises. It’s still the case that the BoE will likely raise rates halfway through 2016 and I don’t expect much Sterling strength until then. 

How to buy currency at the best exchange rates 

Given the relative calm in the markets, I thought today would be a good opportunity to outline the various contracts that I can offer to help you get the best exchange rates and protect you against adverse movements in currency prices. I can source you rates up to 5% better than banks and other brokers may offer, so if you have a currency transaction and would like a quote to compare, then get in touch for free here. 

Here are the main contracts I can offer for currency exchange: 

Spot Contract (Buy your today) – This is the most popular way to buy currency. You fix a rate over the telephone, settle within 2 days, and your currency is transferred by priority transfer to the account of your choice. The rate varies throughout the day as we buy live from the market, and can be up to 5% better than your bank or existing broker may offer. 

Forward Contract (Fix into the Future) –You can fix today’s rate of exchange for up to 2 years, protecting you against volatility and helping you to budget. You lodge 10% of the total to be converted within 2 days, with the remaining balance due when you want your currency transferred. This type of contract really helps budgeting for business’s and those buying or selling property abroad. 

Limit order (Hold out for a better rate) – Secure your currency when your desired rate becomes available; particularly useful if time is on your side and you think the rate may get better. This allows you to aim for a higher rate in the hope that things will get better. 

Stop loss order (Protect against rates dropping) – Your currency is exchanged if the rate goes below a pre-determined level. Combined with a limit order, you can hold out for a better rate while protecting yourself from a sudden fall in the market. This gives you a worst case scenario so you don’t end up paying more than necessary for your currency. 

So that's a brief overview of the main contracts I offer. I also provide a free consultative service for any clients who need the best exchange rates in order to explain what may move the rate, to help you decide when to fix a rate and what contract type to use. Using these types of contract give you control over your currency purchase. The alternative is simply sitting back and hoping the exchange rate will move in your favour. In my experience, hope is not a reliable economic tool. 

To discuss our contract types in more detail and take the first step to taking control of your currency needs, contact me today by sending me a free enquiry by clicking below, and I will get in touch personally to discuss your requirements. 

Click here to send me a free enquiry and get a quote.

What could affect exchange rates this week?

Monday 7th September 2015 
Good morning. As usual for a Monday, today I will outline this weeks scheduled data releases that could affect exchange rates. 

If you’re reading my blog, the chances are that you have a currency transaction to perform and are looking at what is moving exchange rates. If that’s the case, then why not get in touch to discuss your requirement in more detail and get a quote? 

I can source exchange rates all major currency pairs that are up to 5% better than the banks can offer. We also have several different types of currency contracts that enable you to fix today’s rates for up to 2 years, and ways of booking currency should the exchange rate hit a particular level you may be targeting. Click here to send a free no obligation enquiry today and see how much you could save. 

This week’s data that could affect Sterling exchange rates 

Monday 7th September 2015 – It’s been relatively quiet today on the data front due to a market holiday in the United States. In Europe, the month on month German Industrial production was slightly worse than expected, weakening the single currency slightly and pushing GBP/EUR rates to around €1.37. 

Tuesday 8th September 2015 – There’s no UK data of note today, however GBP/EUR exchange rates could still be affected by some important releases in Europe. In Germany, the latest Trade Balance figures are released. This can be important because if this shows a demand for German exports, then the Euro could gain strength and become more expensive to buy. We also see the latest EU wide Gross Domestic Product (GDP) numbers today. I expect quarterly growth of 0.3%. Any less than this then expect GBP/EUR to rise, and vice versa. 

Wednesday 9th September 2015 – Some UK data for investors to chew on today, including Industrial & Manufacturing production, a GDP estimate (expected at 0.7%) and House Price data. If we see less growth than expected with any of these, the Sterling is likely to fall. Elsewhere, Canada and New Zealand releases their latest decision on interest rates which could affect GBP/CAD and GBP/NZD rates. 

Thursday 10th September 2015 – Today is the most important day of the week for Sterling, as we have the latest Bank of England interest rate decision. Rates are almost certainly going to be left on hold at 0.5%, however immediately after the decision, the governor will release the minutes which will show how the vote went, and what they discussed. If any of the members voted for a rate hike, expect the Pound to gain. Elsewhere, Australia releases lots of Jobs numbers. I think these are quite likely to be poor so expect the AUD to lose out if that’s the case. 

Friday 11th September 2015 – The only UK data of note today is the latest inflation expectations. This can impact future interest rate movements and so might affect Sterling. Elsewhere Germany releases inflation numbers, and the USA has its latest monthly budget statement. 

Do you need to buy or sell Euros at the best rate? 

If you need to convert currency and would like to discuss the market and ways to protect you against market fluctuations, I am happy to speak to any potential clients that would like a quotation to compare what I can offer with their bank or existing currency broker. On average the rates I can provide are 2 to 3% better than available elsewhere which can mean huge savings when converting a large sum. 

Click here to get in touch for a quote 

 

Pound/Euro rises on ECB comments

Thursday 3rd September 2015
After falling 9 cents in the last month, Sterling/Euro rates have staged a slight recovery today, pushing back above €1.37 as you can see from the chart below: 

ECB cuts inflation and growth forecasts 

The reason for the rise in rates wasn’t anything to do with the Pound, but rather the Euro weakening and becoming cheaper to buy. This was because the European Central Bank (ECB) has cut its inflation and growth forecasts for the next few years. 

They said that inflation in the Eurozone would probably be very low indeed for years to come and in turn this means that economic growth is unlikely to increase as much as had been thought. The banks president Mario Draghi said it expected inflation to be 0.1% for 2015, rising to 1.5% in 2016 and 1.7% in 2017, dampened by lower energy prices. They also hinted that further Quantitative Easing (QE) may be requried to shore up the economy. QE effectively creates new money to pump into an economy and usually weakens a currency as more of it is in circulation. 

The Euro dropped like a stone on these comments and because all of this means that the EU recovery is not quite as on track as analysts and investors had thought, the result has been a sell-off in the single currency, causing it to weaken and push exchange rates back up to €1.37. 

Do you need to buy or sell Euros at the best rate? 

A typical purchase of €250,000 to buy a property abroad has differed in cost by over £11,500.00 in the last month alone, which really illustrates how important it is to get your timing right when fixing your rate of exchange. If you need to convert currency and would like to discuss the market and ways to protect you against market fluctuations, I am happy to speak to any potential clients that would like a quotation to compare what I can offer with their bank or existing currency broker. On average the rates I can provide are 2 to 3% better than available elsewhere which can mean huge savings when converting a large sum.

Click here to get in touch for a quote

GBP/EUR falls 4 cents in a week. GBP/USD also set to drop

Tuesday 28th July 2015
Sterling has fallen sharply against the Euro of late, and in the last week had slipped from €1.44 down to €1.40. As you can see from the chart below, the rate has recovered slightly this morning, getting back above €1.41: 

The main reason for the gradual slide in Sterling is partly due to renewed optimism surround Greece, but also the global economic picture. If you look at the global economy, you will see that the Chinese market is in turmoil, and there has also been a sharp drop in Commodity prices. This is giving investors serious doubts over the strength of economic growth worldwide, and in turn this casts some doubt over whether the Bank of England will actually raise interest rates at the turn of the year. 

The global picture means that the Bank of England may well have to tighten their monetary policy, and this has pulled Sterling lower against other currencies. 

This morning however, strong UK Growth figures have shown that the economy has grown by 0.7% in the last few months, which is an improvement over recent measures. This positive news has pushed the Sterling/Euro rate up by 1% comfortably over the €1.41 mark. 

Sterling/Dollar 

It is interest rates driving this currency pair too at the moment. Today, the US Federal Reserve starts a 2 day meeting, with an announcement due tomorrow. If they give further signals that interest rates are going to rise within the next few months, then expect the US Dollar to gain strength and pull rates lower.

 
Currently GBP/USD is trading at around $1.56. I don’t expect the level to remain at these levels. As the US are widely expected to be the first western economy to start pushing up rates, this could mean the USD strengthens. I still expect rates to drop below the key $1.50 mark by the end of the year. 

Do you have a currency transaction to perform? 

You can get in touch with me using the link below to obtain a quotation on your exchange. I usually have no problem beating rates from bank and other brokers, and even a small improvement in the rate can save you a significant amount of money. 

Click here to get your quote today

Sterling gains on BoE MPC minutes

Wednesday 22nd July 2015 
Yesterday was not a good one for Sterling/Euro rates, with levels sliding all day from €1.44 to €1.42. The reason for the drop was renewed confidence about Greece, and in particular credit rating agencies increasing Greece’s rating as they felt there is now much less chance of them leaving the Eurozone. 

This morning, Sterling has fought back slightly after the release of the Bank of England (BoE) minutes from this morning’s Monetary Policy Committee (MPC) meeting. The full minutes can be read here.  

The key phrase I noticed was “the decision between holding Bank Rate at its current level versus a small increase was becoming more finely balanced”. This means that despite all 9 members voting to keep the interest rate at the record low of 0.5%, it shows that they are going to start leaning towards finally raising rates towards the end of this year. The next meeting is in 6 weeks’ time, and we may start to see some of the members voting for a hike in rates. 

This has given Sterling a boost, as the rumour of an interest rate rise usually does. The same effect has been seen on the US Dollar this week. 

View live currency graphs here

Today’s Data 

All eyes were on the Bank of England and the inflation report this morning, and at 10am there is a parliamentary inflation report. For the remainder of today, the only data of note is an Interest Rate decision and policy statement by the Reserve Bank of New Zealand. Their inflation is very low at the moment, and the NZD is very weak due to the low commodity prices (See my post about commodity currencies to learn more). I think there is a chance they will cut interest rates to try and boost the economy. If they do, then expect GBP/NZD rates to go higher. 

Getting the best exchange rates 

If you want to get the best possible exchange rates, then contact me for a quote. I provide commercial rates of exchange to private and corporate clients looking to trade £5k+. You can send me a free enquiry using the link below, and I will get in touch personally to discuss your requirements, explain how the service works, and discuss the different options you can consider to help you get the best rate of exchange possible. 

Click here to discuss your currency requirements today.

 

GBP/USD & GBP/AUD Currency Forecast

Tuesday 7th July 2015 
In recent posts I’ve been focusing on Sterling/Euro exchange rates and the Greek crisis that is the reason for the current buying levels for the Euro being around the best in 8 years. Nothing has really changed for GBP/EUR and while a deal is yet to be made, the rate remains supported around the €1.41 level. 

For something a little different, in today’s report I’m going to take a look at Sterling/US Dollar, Sterling/Australian Dollar, and also some of the other commodity based currencies, including the forecast for where analysts think rates could go. Many readers are unaware that this site not only provides a market commentary on Euros, but also most major international currency pairs. (If there is a particular currency pair that you would like to chat about, then get in touch for a free consultation.)

In addition to the market reports I provide for free, I can also provide you a quote on your currency exchange. I can access commercial rates of exchange for over 30 currency pairs that are up to 5% better than you can achieve at the bank. If you have a currency exchange to perform this year, then click here to find out what rates I can offer you. 

Sterling/US Dollar

GBP/USD was down in the $1.40’s a few months ago, however recently it had been climbing. In the last 3 months the rate climbed over 10 cents higher, as you can see from the chart below: 

In the Spring, markets expected the USA to raise interest rates at some point this year. This along with strong US economic data strengthened the US Dollar and made it more expensive to buy. However in the last few month's economic data was coming in worse than expected. Also, the expectation of an interest rate rise has now been pushed back, and this is what caused the USD to weaken and exchange rates to rise. 

Today however, we have seen the rate slide from $1.5625 to $1.5425. This is because interest rate differentials are starting to move in the Dollars favour. Also, while the crisis in Greece deepens, the US Dollar is seen as a ‘safe haven’ for investors in times of uncertainty. In my view I think this slide will continue, and we may well see rates down at or below the $1.50 mark again by the end of this year. 

GBP/AUD, and GBP/NZD, GBP/CAD, GBP/ZAR 

Sterling/Australian Dollar rates are currently around their best in 6 years. Part of this is due to a robust UK economy, but mostly this is due to weakness in the Australian Dollar. 

The Aussie Dollar is a commodity based currency, which is a name given to currencies of countries which depend heavily on the export of certain raw materials for income*. Australia is just such a country as a large part of its economy relies on exports of raw materials to China. China's economy has been slowing down recently, and their stock market is falling.

This has resulted in less demand for these raw materials, and commodity prices are low anyway due to the Greek crisis. The result is a weak Aussie Dollar, and at the moment £1.00 will buy you $2.08 AUD, which is around a 6 year high. To be honest, while commodity prices continue to suffer, we could see all commodity based currencies like the AUD, CAD, NZD, NOK and ZAR continue to weaken and exchange rates may rise further for those buying these currencies with Sterling. 

*Other Commodity based currencies are the Canadian Dollar, New Zealand Dollar, Norwegian Kroner, South African Rand. All of these currencies are currently weak and very cheap to buy due to low commodity prices. 

Click here for a free consultation, obtain a quote and find out more about the service and exchange rates I can offer you.

How could Euro react to the Greek referendum?

Friday 3rd July 2015
Regular readers of my blog will be well aware that most moves in Sterling/Euro of late have been due to the ongoing problems in Greece. The failure to meet their debt payments and the ongoing negotiations have weakened the Euro significantly in the last few months, resulting in a cheap single currency. In fact the current GBP/EUR is very close to the best it’s been in 8 years. Below is a chart showing the exchange rate over the last 3 months. As you can see, it's risen to €1.40 several times before dropping back away again:

 

What’s happening this weekend? 

The Greek people are voting on a referendum called by the Greek government, on whether they support the bailout offer, in terms of further international loans. This follows months of tough talks with creditors. 

Currently all support to Greece has been stopped, and the banks are likely to run out of cash on Monday. You can read more about this here on the BBC website.  EU leaders have warned that a "No" vote could see Greece leave the Eurozone. 

What if Greece votes ‘No’? 

This would mean them rejecting the bailout plans, and the Euro could well weaken pushing Pound/Euro rates higher. Some say this would mean Greece leaving the Euro. Actually, there is currently no mechanism for them to do so, as it simply wasn’t envisaged when the Euro was created! Even if they decided to leave the Euro tomorrow, it would take months for the EU to work out how to do this in practice. A no vote though would mean back to square one, and negotiations would start again. I do think however that a No vote will keep Pound/Euro firmly above 1.40 and we could possibly see rates climb even higher. 

What if Greece votes ‘Yes’? 

This would be a blow to the Greek government. It would in no way resolve the problems, as all it would mean is that negotiations would start again. However, I think a Yes vote would strengthen the Euro, and pull GBP/EUR rates back below the 1.40 mark again. 

What does all this mean for Pound/Euro rates? 

This afternoon GBP/EUR has fallen as the latest polls suggest the Yes vote has a slight lead. This indicates that rates could tumble if the vote goes this way on Sunday. Personally, whichever way the vote goes on Sunday, I still firmly believe a deal will be done between Greece and its creditors, and when it does I would expect Sterling/Euro to drop sharply. 

It’s in everyone’s interest to do a deal especially Greece’s. If I needed Euros in 2015, I would give serious consideration to fixing a rate while it’s close to the best in 8 years. 

Do you need to get the best exchange rates? 

Regardless which currency you need to buy or sell, why not get in touch with me for a quotation, and to discuss the different tools I provide to protect you against adverse exchange rate movements. The rates I source are up to 5% better than banks and other brokers may offer, and it costs nothing to contact me for a free consultation and quote. 

I can also discuss your particular requirements, explain what may happen to exchange rates in the coming months, and explain the options you can consider so you can make an informed choice on how to proceed. 

Have a great weekend.

Click here to send me a free enquiry today.

Pound/Euro rates fall to €1.36 on ECB comments

Wednesday 3rd June 2015 
Not good news for those looking to convert Sterling to Euros I’m afraid. The decline in the GBP/EUR rate has continued today, as you can see from today’s chart: 

The reason for the continued fall today was further strength in the Euro. This was caused by the European Central Bank (ECB) saying that Eurozone’s recovery is set to "broaden and strengthen", as it raised its inflation projections for 2015. ECB president Mario Draghi's comments came in a press conference earlier today. 

This is good news for the EU economy, and strengthened the single currency causing it to become more expensive to buy. The next thing that could affect the rate will be whether Greece makes it's first debt payment on Friday. If they do, then expect the rate to fall further. If they don't then it may recover slightly, but I can't see it getting back to €1.40 any time soon.

What effect did this have on Pound/Euro exchange rates?

The effect on the GBP/EUR rate was for it to drop from €1.3775 to €1.36. This is a far cry from the levels of €1.41 we saw just a week ago, and really demonstrates how quickly exchange rates can change. To put this into real terms, a client purchasing €250,000.00 today has to pay £6500.00 more for the same amount of currency compared to a week ago. 

Fluctuations in the exchange rate can make a big difference to the cost of buying currency, which is why it’s wise to use a specialist broker like myself rather than the bank. I can not only help you to achieve much better rates of exchange, but also help with tools such as ‘Stop Loss’ orders that limits any negative effect of the exchange rate dropping. 

If you need to buy or sell Euros or indeed any international currency, then get in touch with me for a free quote and more information about the services I can provide. I will get back to you personally within 24 hours to discuss your requirements and give you a free consultation on the different options you can consider. I look forward to hearing from you.

Alastair Archbold 

Click here to send me your free enquiry today

Will GBP/EUR go up or down in June 2015?

Wednesday 27th May 2015 
Sterling/Euro has been holding firm well above the €1.40 mark so far this week, on continued concerns Greece may not be able to make its next debt payments. However this may not last for long, as there are indications Greece are about to strike a bail out deal.

The Greeks have 4 different loans to repay in the next 4 weeks, totalling around €1.6 billion. One payment of €300 million is due in 1 week. There has been talk that they could avoid paying back the IMF next week, lump it all together and make one large payment at the end of June, however they still have to negotiate the funding to do this, which is keeping the Euro weak. 

For most of today and yesterday, GBP/EUR was sat at a 3 month high, and only 1 cent below the best it’s been in 8 years. However the rate has been sliding this afternoon, after Greek Prime minister Alexis Tsipras said his government was "close" to a deal after reports the two sides had begun the process of drafting an agreement. 

"We have made many steps. We are on the final stretch towards a positive deal," said Mr Tsipras, without revealing the details of the terms. The Queen’s speech this afternoon also weakened the Pound, pulling exchange rates lower as it outlined the UK referendum on an EU exit. As you can see from the chart below, the exchange rate has dropped by cent, however still remains supported above €1.40, for now: 

Will Pound/Euro go up or down in June2015? 

On the one hand, if it looks like that Greece will be unable to make it’s debt payments, expect rates to remain firmly above €1.40. On the other hand, if they make a deal with it’s creditors that now seems quite likely, the Euro could very quickly regain some strength and pull rates back below €1.40 very quickly indeed. 

Should the Greek situation be resolved, then it’s also likely focus will turn to a possible UK exit from the Eurozone. Many say that should this be a possibility, then there are real risks to the UK economy. This is because our economy here in the UK really relies on inflows of investment and this would likely be diminished should there be uncertainty about us remaining within the EU. 

Do you have a currency transaction to perform? 

Get in touch for a quote and free consultation on the rates and service I can offer you. I can explain what is moving the rate and let you know the different options and contracts you can consider, to ensure you don’t pay more for your currency than necessary. 

With rates up to 5% better than banks can offer, coupled with a range of contract types to protect you against adverse exchange rate movements, I could save you thousands on your currency transfer. 

I can help with bank to bank transfers for amounts £5k + and can source over 35 major international currency pairs including GBP, EUR, USD, AUD, NZD, CHF, CAD, HKD, SEK,NOK, DKK, HUF, TRY, PLN, CZK, SGD, THB, CNH, ZAR. 

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Pound/Dollar rates at 5 year low

Monday 13th April 2015

Pound/Dollar rates hit 5 year low

The US Dollar has been gaining more and more strength recently, and has therefore become more expensive to purchase. First thing this morning the GBP/USD rate was as low as 1.4569 which is the lowest in 5 years. It’s climbed a little during trading to 1.4645. Still a far cry from the highs of $1.72 we saw last summer! 

The reason is the US economy is performing very well, and it’s likely they will be the first major western economy to raise interest rates. Also, global uncertainty is driving investment into the ‘safe haven’ US Dollar, which also strengthens it. This is great news for anyone looking to convert Dollars to Pounds. Those needing Dollars however should note that many forecasts think the rate will continue to slide this year. 

 

 

Sterling/Euro remains supported at €1.38

The strength of the Dollar is also causing weakness in the Euro. Issues over Greece means investors are moving from Euro to Dollar, which is weakening the single currency and keeping GBP/EUR rates supported above the €1.38 level. 

I’m actually surprised the rate is holding at these levels, and I’m still of the view that as the election draws closer, Sterling will start to lose value against other currencies. Only on Friday figures showed weaker-than-expected industrial data, and the rising risk of prolonged political uncertainty after a tight British election next month is already dragging the Pound down against other currencies. Remember, the current high level is Euro weakness, not any fundamental strength in the Pound! 

If you are looking for the best exchange rates and would like a quote on your exchange, click here to send me a free no obligation enquiry. 

What could affect exchange rates this week? 

Below I’ve listed the scheduled releases for the coming week that I think may affect exchange rates. Remember that other things such as election uncertainty could also change rates at any time without warning. To discuss your currency requirement in more detail, or have a chat about which direction the exchange rate may go, click here to send a free enquiry today. 

Tuesday 14th April 2015 – Quite an important day for the UK as we have the latest inflation numbers. Recent figures show the UK headed towards deflation, which could in turn mean interest rates going down. If that’s the case, the Pound could weaken. In Europe the only data of note is Industrial Production at 10am. Later in the afternoon in the USA we see the latest Retail Sales numbers. These are a good overall indicator of economic activity and so GBP/USD rates could be affected. 

Wednesday 15th April 2015 – Nothing from the UK today, but plenty from the EU that could move GBP/EUR rates. Germany releases a host if inflation numbers at 7am, and at 12:45pm we have the latest decision from Europe in interest rates. They are unlikely to change the rate, but at 13:30pm they give a press conference, and comments made often cause volatility for the Pound/Euro rate. Elsewhere, Canada also announces interest rates, and the USA has Industrial production figures. 

Thursday 16th April 2015 – Another quiet day for the UK. The only data of note today is in Australia where we see the latest employment figures, and the USA which also releases jobs data. Staying in the USA, we also have a speech by a FED member which could affect the Dollar. 

Friday 17th April 2015 – After a quiet few days, this could be an important one for Sterling. At 09:30am we have the latest employment numbers from the UK. This can often affect the Pound so expect a volatile morning for GBP exchange rates. Europe, Canada and the USA all release inflation numbers today too, so GBP/CAD, GBP/EUR and GBP/USD could all change today. 

Do you need to convert currency at the best exchange rates? 

If you have a currency transaction to perform, would like a quote, or to simply discuss the market or anything I’ve covered above, contact me for a free no obligation consultation by clicking below. 

Click here to send a free enquiry today.

Pound/Euro rates drop to €1.39

Tuesday 17th March 2015
The spike of last week to €1.4255 appears to have been short lived, with the Pound falling during trading on both Monday and Tuesday, testing the €1.40 level before breaking below it. The drop continued today and at the time of writing the rate is a little above €1.39: 

 

Why has the rate fallen? 

It’s to do with events in Europe, the USA and the UK. Over in the EU the recent QE programme has been well accepted, and this shows confidence that the Eurozone will sort out their issues and return to growth. This view was supported with economic data released this morning, showing better than expected numbers for consumer sentiment, inflation, and employment. The better numbers have given the Euro back some strength, dragging down the GBP/EUR rate. 

Over in the USA, there are nerves ahead the FED’s meeting tomorrow, halting the Dollar buying and in turn Euro selling. The Dollar has weakened a little after weaker than forecast manufacturing, industrial output and housing data. 

Here in the UK, its Budget day tomorrow, and the Conservatives last chance to convince voters they are the only choice to protect the UK economy. Tomorrow is going to be a very important one for the currency markets, so let’s take a closer look at what’s on the agenda. 

Wednesday a very important day for exchange rates 

Tomorrow we will see much that could affect exchange rates. In the UK at 09:30am we have the latest Bank of England announcement, various unemployment numbers. Both of these could affect the Pound significantly better than expected figures could strengthen the Pound and vice versa. 

Later on we have the UK Budget Statement which is of more importance than usual, given there is a UK general election in less than 2 months. There could well be some surprises in this budget to woo voters ahead of the election, and given the economy is going to be the main weapon in the Conservatives arsenal, there is every chance we could see a significant effect on exchange rates for Sterling. 

Over in the United States at 6pm we have the Federal Reserve’s monthly statement. The markets are nervous ahead of this as analysts try to determine when the FED will raise interest rates. This is very important for exchange rates, as flows in and out of the Dollar can have knock on effects for the Pound, the Euro, and other major currencies. 

Do you want to get the best exchange rates? 

Get in touch with me for a free no obligation consultation. I can provide you a rate, explain the various options you can consider to help you get the best rate, and explain how the above data releases could affect the currency rate you are interested in. 

Click here to send me a free enquiry today

Sterling/Euro exchange rate forecast Feb 2015

Monday 2nd February 2015
Good morning and welcome to a new trading week. After a very volatile couple of weeks that has seen GBP/EUR hit 7 year highs of €1.35, things have stabilised somewhat, and this morning the rate has dropped back into the €1.32’s. With no significant data of note today, the only thing I can attribute the drop to, is a rumour that the Swiss National Bank will be unofficially targeting a EUR/CHF rate of 1.05. 

Why has the Pound/Euro rate fallen? 

This is significant as they recently ended their policy of keeping the rate at 1.20. They did this by selling CHF and buying Euros to keep the desired rate. These rumours mean the SNB could be buying huge volumes of Euros to keep the rate where they want it, and this demand for Euros has strengthened the single currency and made it more expensive, hence why this could be the reason GBP/EUR rates have fallen a cent this morning. 

Will the Pound/Euro rate go higher or lower in February? 

All in all, with rates to buy Euro still above 1.30 which is close to a 7 year peak, it’s a good time to take stock of any Euro requirements you may have in the coming months. With all the bad news from Europe now priced into the rate, I think we’ll struggle to see it get much higher. Furthermore if the QE measures recently announced by the ECB have the desired effect, we could see the Euro gain further strength and pull GBP/EUR rates lower. 

It’s also worth mentioning Greece – it looks like they won’t default on their debts, and for the time being will be firmly remaining in the Euro, so the initial uncertainty after their election has now subsided, and that’s also why GBP/EUR has stopped climbing. 

Do you want the best possible exchange rates? 

Get in touch with me today to discuss the rates I can offer and the contract types you have at your disposal to ensure you don’t lose out. The consultancy service I provide is free, and involves a chat over the phone regarding your requirements. I can then explain the various options and choices you have to ensure you make an informed decision when to fix a rate. When you decide to fix a rate I can provide you a quotation; the rates I provide are often up to 5% better than banks and other brokers can offer so the savings can be huge. 

Click here to make a free enquiry with me today. 

What could affect exchange rates this week? 

Below I have outlined what I think will move exchange rates this week. To discuss how this could affect your currency requirement in more detail, click here to send me a free enquiry. 

Tuesday 3rd February 2015 – The only UK data of note is PMI construction, which looks at the construction sector. It’s a relatively minor release but could affect Sterling. GBP/AUD could face a volatile day however with an Australian Interest Rate decision and following statement. GBP/EUR has recently seen very good gains with trading levels above $1.90. Staying with the antipodean currencies, the NZD could also be affected by Unemployment figures and a central bank speech today. 

Wednesday 4th February 2015 – Again only 1 release from the UK today; services PMI. As an indicator of the economic situation in the UK it can often affect Sterling. Sterling/Euro could also be affect today however by EU Retail Sales, and a policy meeting from the European Central Bank. Across the Pond we have a host of data from the States, including Employment, Manufacturing and Services figures. 

Thursday 5th February 2015 – today we have the Bank of England interest rate decision. I think this will be a non-event; rates won’t change from 0.5% in my view for another year. Elsewhere today we have an economic bulletin from the ECB, Retail Sales from Australia and Jobless claims along with Trade Balance figures from the USA. 

Friday 6th February 2015 – Today the UK releases its Trade Balance figures, which show the difference between imports and exports, and this release often creates some volatility for the Pound. There aren’t any releases from Europe today, but in the afternoon we have Jobs data from the USA. The Non-Farm payrolls in particular can really move the GBP/USD rate. The forecast is for 235,000 new US jobs to have been created, but the actual figure is often very different which could move the Pound/Dollar rate around 1.30pm. 

To discuss how the above could affect your currency requirement in more detail, or to obtain a quotation on the rates I can offer, click here to send me a free enquiry.

Pound/Euro hits €1.32 after QE announced by ECB

Thursday 22nd January 2015 
The European Central Bank (ECB) today announced its Quantitative Easing (QE) package, outlining over €1tn of stimulus for the economy. It’s been the main driver of exchange rates in recent weeks and today it became a reality. You can read a very good outline of the measures and how they work here on the BBC website. 

What has it meant for exchange rates? 

The Euro has weakened as markets expected it would. As you can see from the chart below, Pound/Euro rates have risen to a new 7 year high of €1.32, so fantastic rates for Euro buyers: 

Will it go higher or drop back down? 

I can’t see rates going that much higher, and given the GBP/EUR cross is now comfortably above the €1.30 benchmark, I think it will stay at this level. For this reason anyone that needs to buy Euro soon should consider fixing a rate while it’s so good. If you want to gamble on the hope of higher rates, then you should place a ‘Stop Loss’ order to protect against rates going back down. 

Euro sellers don’t have much on the horizon that could improve things. This weekend’s election could cause further uncertainty for the beleaguered Eurozone, and so if you need to sell Euros, consider cutting your losses and getting something done sooner rather than later. 

Getting the best exchange rates. 

If you have a currency requirement for any major international currency, and need to have funds wired between bank accounts, I can help you achieve excellent rates of exchange. Whether you are buying or selling property abroad, or are a business that sends and receives payments in foreign currencies, I can save you up to 5% on the exchange rate, which is considerable when moving a large sum. 

Even if you already use a currency broker, it costs nothing to compare the rates that I can offer. 

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Pound continues to fall against Euro and US Dollar

Tuesday 6th January 2015 
Sterling initially had a good start to 2015 against the Euro, hitting highs of over €1.29 on Friday. As has been the case of late however, when it tested these highs it quickly dropped back away again. Against the US Dollar, the Pound has fallen to its lowest in well over a year. Let’s take a more detailed look at what’s been happening. 

Sterling/Euro 

The Euro is fundamentally weak at the moment, and this is reflected in its value. Over the New Year, comments from the European Central Bank president Mario Draghi indicate they are getting closer to a Quantitative Easing stimulus programme. This weakened the single currency and made it cheaper to buy. There are also the Greek elections later this month, with a strong chance the anti EU party could win. This also raises questions about a possible Greek exit from the Eurozone, and this is also keeping the Euro on the back foot, pushing GBP/EUR rates to above €1.29 last week: 

  
The gains were short lived as is often the case. With the New Year, came concerns over the Pound, and Sterling has weakened in the first few days trading. Much of this is probably due to the political uncertainty the upcoming election will generate, with the result quite open at the moment. This coupled with the fact that UK interest rates aren’t likely to rise for at least 6 months mean the Pound could be facing further pressure in the coming weeks. 


Longer term, I expect Pound/Euro to break the €1.30 barrier, probably in the latter part of this year. In the shorter to medium term however, those that need to buy or sell Euros should weigh up their options now, as a small movement in the wrong direction could cost you a significant sum. If you need to buy or sell Euros in the next 3 to 6 months, contact me today to find out what could happen, what your options are, and obtain a quote on the rates that I can offer you. 

Sterling/Dollar 

The downward trend for cable continues. The rate fell to $1.53 yesterday, and today has fallen below the $1.52 mark which is the lowest it’s been since August 2013. The main reason for this is Dollar strength, caused by uncertainty in the global oil markets, unrest in Ukraine and the Middle East, and a robust US economy that is going from strength to strength. The drop could continue, but I think the rate will struggle to drop below the $1.50 mark as this is a key technical level. 

If you need to buy or sell Dollars, would like a quote or would simply like to chat about which way the exchange rate is moving, click here for a free consultation. 

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Pound recovers after Bank of England Minutes

Wednesday 19th November 2014 

Sterling/Euro recovers to €1.25 

Just a quick update this morning, as we have finally seen the Pound recover slightly after the last week in which we saw rates drop from €1.28 to €1.24. 

Earlier this morning the Bank of England released the minutes to its recent meeting where they decided to leave rates on hold. Of the 9 member committee, 7 voted to hold rates, with 2 voting to raise them, which has been the case for the last few months. You can read the full minutes here on the BoE website.

Why did this cause the Pound to rise? 

Given inflation numbers have been lower recently, some analysts including me thought that the 2 members that had been voting for a hike would not do so. The market had also been expecting this and it starting getting priced into rates in advance, and before the release of the minutes GBP/EUR rates were as low as €1.2440. As you can see from the chart above, as soon as the result was out Sterling exchange rates jumped to €1.25 where it now stands. 

This is a key technical level so I expect rates to remain at around €1.25 in the short term. 

Sterling/Dollar 

Focus will now be on Pound/Dollar rates. Currently this sits at around $1.57, but there is some key data out in the next few days that could change this. This evening at 7pm we have the US Federal Reserve minutes, and if there are hints at an interest hike in the states we could see the exchange rate drop further. Tomorrow we have a host of inflation data and jobless claims from the states and quite simply, good economic news could strengthen the US Dollar and cause the exchange rate to drop. 

Do you have an upcoming currency transaction? 

If you need to convert currency then get in touch to find out more about the exchange rates I can offer. I regret we do not deal with cash or holiday money, only bank to bank transfers for amounts £5k+. You may have bought or sold a property abroad, or perhaps your business buys and sells goods from the Eurozone. Whatever your currency needs, you could save thousands by achieving a better exchange rate. 

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Pound falls away from 6 year high vs Euro

Thursday 2nd October 2014 
The Pound has fallen quite sharply today, falling from 1.2875 to 1.2750 against the Euro. Against the US Dollar we have seen rates fall from 1.6250 to 1.6125. What’s been going on? 

Pound/Euro drops as single currency strengthens 

Earlier this week GBP/EUR rates were close to a 6 year high, peaking at 1.2875 yesterday afternoon. It looks like investors have had enough of buying the Pound however, and as soon as markets opened this morning the Pound steadily lost value, as you can see from today’s chart:  

Euro gains strength, but remains on a tightrope

Today we had the European Central Bank (ECB) announce its decision to hold interest rates at the record low of 0.15%. Not really a surprise, as they can’t really cut it any lower than they already have! This was expected, so all eyes and ears were on the press conference that followed, to see if the ECB president Mario Draghi said anything about their Quantitative Easing programme. 

It turns out that what moved the currency markets wasn’t to do with what he said; it was more to do with what he didn’t say. The BBC are reporting that the ECB are starting it's asset buying programme, however in his speech he declined to actually give any figures on how much this would involve, so we don't really know any more about these plans than we did already. The fact that he didn't clarify 'QE proper' means that the Euro actually gained strength causing Pound/Euro rates to drop by 1% on the day so far. This doesn't sound like much but if you're converting a large sum, small changes like this can be costly. 

Given the recent figures showing that inflation is at a 5 year low in the Eurozone, many including myself thought that Draghi would have to pursue a proper QE programme, much like the UK and US have done in recent years. However he gave no indication of an imminent stimulus program through the purchase of sovereign bonds. He simply said that their mandate is to bring inflation back to a level that is close to but below 2%. 

As markets were expecting a little more from his comments, the Euro gained strength and became more expensive to buy, pulling levels down from the recent highs we have seen. 

Do you have Euros to buy or sell in the coming months? 

Those that need to buy Euros and took advantage of the recent highs, or had a ‘Stop Loss’ order in place to protect against a downturn in the rate will be pleased as the rate has now dropped. If you still need Euros in the coming months however, there are tools to help you achieve the best rate of exchange within your timeframe. 

Don't just leave things to chance, speak to a specialist currency broker like myself to discuss what is happening in the market to help you make an informed choice on when to fix your rate. Contact me today by clicking here for a no obligation consultation on what I can do for you and the rates we can offer. 

Those that need to convert Euros back to Pounds should consider taking advantage of this spike in your favour. I think that in the long term, the ECB will pursue more aggressive stimulus, and this coupled with higher interest rates in the UK should eventually put GBP/EUR back on its upward path. 

Click here to make an enquiry on how I can help you achieve the best possible exchange rates.

Pound/Euro hits new 2 year high €1.28+

Thursday 25th September 2014 
The Pound/Euro rate has surged today, smashing through the €1.28 level to a fresh 2 year high. In fact this is now very close to the best Euro buying rates we’ve seen in 6 years. 

Pound/Euro level breaks €1.28, why has this happened? 

There are 2 reasons for the rise, and both involve the heads of Central banks. Early this morning we saw the European Central Bank president Mario Draghi give a speech, in which he said that they were willing to instigate further stimulus measures if necessary. In other words, it’s likely they will pump money into the economy to try and spur it along, and this has weakened the Euro making it much cheaper to buy. 

He said that "We stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation". He also forecast only modest growth in the second half of this year, due to "weaker than expected" preliminary economic data over the summer. 

This afternoon, it was the turn of the Bank of England governor Mark Carney. In his speech which you can read in full here, he said that “with many of the conditions for the economy to normalise now met, the point at which interest rates also begin to normalise is getting closer. In recent months the judgement about precisely when to raise rates has become more balanced.” Adding that “While there is always uncertainty about the future, you can expect interest rates to begin to increase.” 

This has really given the Pound a push higher, and you can see the results of these comments from the ECB and BoE in today’s GBP/EUR chart: 

 

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Will rates keep going up? 

Nobody can predict where rates will go, but I think all the good news about the UK economy is now priced into the market, and I personally can’t see much more gains to be had. 2 years ago we were in a similar position, with many thinking the rate would break €1.30, but within 6 months it was down at €1.15. 

I’m not suggesting it will plummet again, but with the future of the rate impossible to forecast, if you needed to buy Euros is it worth risking these amazing levels currently available? I think those that do have much more to lose than to gain. In my view, you are holding out for an inch and risking losing a yard! 

How to get the best rates of exchange

Whether you are buying or selling Euros, Dollars, Swiss Francs, Aussie Dollars or any international currency, I can help you achieve commercial exchange rates very close to the mid-market level. I also provide various contract types to help protect against the market moving against you. Using my service exchange rates can be fixed for anywhere up to two years into the future, removing uncertainty, fixing a sterling price for your overseas property or imported goods or services. 

To find out more and to get a quote, click here to send me a free enquiry today.