Get best exchange rates to buy Euros

Tuesday 8th November 2011
Good morning. Political uncertainty is rife in the Eurozone. We have Greece attempting to put together a coalition government, and today Italys Prime Minister Silvio Berlusconi is facing a crucial vote on the budget, amid fears that Italy could be the next victim of the eurozone debt crisis. This has kept the Euro weak and helped push GBP/EUR rates and GBP/USD rates slightly higher. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1667
• GBP/USD 1.6065
• GBP/AUD 1.5557
• GBP/NZD 2.0169
• GBP/CHF 1.4502
• GBP/CAD 1.6314
• GBP/ZAR 12.723
• GBP/JPY 125.25
• GBP/DKK 8.6842
• GBP/NOK 9.0225
• EUR/USD 1.3764

Political Instability in the Eurozone

Borrowing costs for Italy's government have risen significantly due to fears it may be unable to repay its huge debts. Yesterday Berlusconi dismissed reports he planned to resign and today EU finance ministers are due to meet in Brussels for further talks on the debt crisis.

Concerns over Italy are overshadowing developments in Greece, where political leaders are wrangling over the formation of a new unity government to impose austerity measures in return for international loans. Stock markets across Europe bounced up on the chance of the Italian premier's departure but returned to negative territory at Monday's close.

Buying Euros at the best exchange rates

This has kept the Euro weak and GBP/EUR rates high. For those buying Euros, it's worth noting rates are relatively good at the moment, while only a few weeks ago trading levels were in the €1.12's. Some clients may wish to hold out hoping rates will rise further, but what do we need to see for rates to rise further?

What you need to see is strength in Sterling, or weakness in the Euro. The Pound is unlikely to strengthen any further as we have more Quantitative Easing on the way, high unemployment, rising inflation, low interest rates and stagnant growth that threatens to push the UK back into recession. So, not much here that will push the Pound higher.

On the Euro side, what else could we possibly see that would cause more weakness? We already have Greece on the brink of collapse, fears Italy and Spain will follow suit, all of which has already been priced in the market. It's these issues in the EU that are keeping rates where they are.

Strategies to employ to get the best Pound/Euro exchange rate

If you need to buy Euros then consider fixing the current rate with a Forward contract. This is where you can fix the current rate for up to 2 years, and only put down 10% of the total Sterling you want to convert. This then protects against adverse rate movements and allows you to budget.

If you do think that rates will rise further, then you should place a Stop Loss order. this is where you place an order to buy your currency if rates should fall below a pre-agreed level. In this way you can still aim for a higher rate, but have a worst case scenario should rates drop.

Employing strategies like this often help you get the best exchange rates, rather than just hope rates will move your way. Hope is not a reliable economic tool!

To discuss our best exchange rates, contact us now by clicking here.

Today's Data

Pretty busy for UK data: Retail Sales, House Prices, Manufacturing Production, Industrial Production and a GDP estimate. So lots today that could affect Sterling exchange rates. Australia releases Trade Balance numbers. From the Eurozone the only release of note is German Trade Balance figures. There are no significant US releases today.

If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.

Weekly GBP/EUR & GBP/USD and the weeks data

Monday 7th November 2011
Good morning. As regular readers will know, every Monday I take a detailed look at what has happened to exchange rates over the last week, in particular the GBP/EUR cross and GBP/USD cross, and also a detailed outline of economic data releases I think will affect exchange rates.

In this week’s Report:

• EU debt crisis dominates G20 Summit
• Greek turmoil continues – referendum or no referendum?
• ECB in surprise interest rate cut
• Round up of the week’s data that may affect rates

(For currencies other then GBP, EUR and USD, contact us for a consultation)

Sterling vs. Euro;

There were fireworks in the currency market last week following the announcement of a Greek referendum on the latest aid package to solve its debt crisis. With a bailout package agreed, the Euro had gained strength against the pound and at the start of the week GBP/EUR was hovering in the high 1.13’s. With the news of the referendum taking place as early as December the gains did not last long, GBP/EUR rocketed back the highs we saw a few weeks ago and for the remainder of the week we saw the rate trading around 1.16:













There was sense of relief last week as EU leaders emerged from late-night talks, hammering out the deal which would write off half of Greece's debt and give another €100bn to the country in new bailout funds. But in one stroke, that relief turned to panic as the whole agreement was threatened with disaster and markets worldwide plummeted. This was all thanks to the astonishing announcement by Greek Prime Minister Papandreou that a public referendum would be held on whether Greece should accept this latest debt deal.

The announcement was coldly received by German Chancellor Angela Merkel and French President Nicolas Sarkozy, bringing accusations the move would intensify the euro zone crisis.
On Thursday there was news the referendum had now been scrapped, amid calls for Mr Papandreou to resign. The developments have overshadowed a key G20 meeting in Cannes. Eurozone leaders fear that failure to solve the Greek debt crisis could risk it spreading to other vulnerable economies, particularly Italy.

Germany had said a referendum would essentially be a vote on whether Greece wanted to be part of the EU and that the stability of the Eurozone was more important than Greek membership. Last week’s events saw a rise in the number of forward contracts being booked as clients look to take advantage of the unexpected rise.

As we have seen over the last few weeks, the continued volatility in the foreign exchange markets has provided huge swings in the exchange rate. With all the economic uncertainties across the Europe exchange rates are likely to remain extremely unstable over the next few weeks, therefore if you are buying or selling Euros in the next 6 months, contact us today for a free consultation.

Sterling vs. US Dollar;

GBP/USD rates dropped off from what was almost a seven week high on Tuesday with Greece's shock decision to hold a referendum on an EU bailout. This news pushed investors towards the relative safety of the US Dollar which strengthened causing GBP/USD rates to fall away.

Much of the attention is back at home in the States as Obama’s Democrats battle Republicans to agree deep deficit cuts amid high U.S. unemployment - something that could hold the key to his hopes for re-election next year. For this reason President Barack Obama has ruled out any grand financial gesture for Europe at the moment but backs were raised at the White house during last week from comments made at the G20 summit.













There is a suggestion that U.S. power within the G20 has diminished with the budget woes back home and Europe appear to look toward an economically self-confident China for help. White house aide Michael Froman went on the defensive saying that "Our ability to contribute, our ability to lead and our ability to influence the outcome of these sorts of issues is not tied necessarily to having the American taxpayer pay for every problem,"

Washington has made no suggestion that it might come to Europe's aid. Instead, the White House argues Europe has the resources to help itself and whilst the U.S economy is the largest in the World, it means that Capital Hill’s views still carry great weight.

Key data was released on Friday with Non-farm payrolls and Unemployment figures published. The U.S. added 80,000 new jobs in October and the unemployment rate fell to a six-month low of 9% from 9.1%. Even though the data was positive for the economy it was less than had been forecast. These figures caused the dollar to only make minimal gains against the pound and analysts agree that job creation needs to be a lot faster to make a dent in the unemployment rate
Last week ended with GBP/USD rates hovering around $1.60 (interbank).

Worries about the fragility of the UK economy continued to weigh heavily on the cross with Sterling unable to gain any real momentum against the dollar. Lee Hardman, currency economist at BTMU said - “It is difficult to envisage it breaking higher when the UK looks like it may be on the verge of recession,".

The situation continues to hang in the balance with both the U.S and U.K. economies tied in to any sort of resolution in Europe. It is difficult to know what will happen, but what we do know is that timing is essential to making the most of your currency. If you are looking at purchasing or selling currency in the coming weeks, months or years click below to open a free, non-obligation trading facility and let a currency specialist talk you through these volatile times.

Do you need to buy or sell US Dollars? Send me an enquiry now.

Weekly Economic Data that may affect exchange rates

Monday – EU Retail Sales are released today which reflect how confident consumers are about the economy. Other than that there are some German industrial Production figures. There is no UK data today.

Tuesday – Pretty busy for UK data: Retail Sales, House Prices, Manufacturing Production, Industrial Production and a GDP estimate. So lots today that could affect Sterling exchange rates. Australia releases Trade Balance numbers. From the Eurozone the only release of note is German Trade Balance figures. There are no significant US releases today.

Wednesday – A few bits to watch for from the UK today: BRC Shop Prices, Trade Balance and Goods Balance. The Trade figures in particular could affect the value of the Pound. Not much else of interest today other than some Inflation data from New Zealand.

Thursday – The busiest day of the week for data. Today the Bank of England announces their latest decision on interest rates. They are likely to be left on hold again, but some in the market predict there is a risk they will embark on another round of Quantitative Easing – if so expect GBP rates to fall. In Australia we have employment figures. Germany releases inflation numbers which could drive EU interest rates. In the USA we will see Jobless numbers, a budget statement from FED.

Friday – US Markets are closed for Veterans Day. The UK releases various measures of inflation.

If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.

EU Cut interest rates, Greek farce continues

Friday 4th November 2011
Good morning. Sterling rose against the Euro yesterday and also rose from a 2 week low against the US Dollar, helped by the European Central Bank's surprise decision to cut interest rates, which supported riskier assets. There is also uncertainty in Greece where there will now not be a referendum on the bailout, as the prime minister said he would scrap the move if the conservative opposition party voted to pass the bailout package in parliament. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1587
• GBP/USD 1.5999
• GBP/AUD 1.5420
• GBP/NZD 2.0183
• GBP/CHF 1.4165
• GBP/CAD 1.6213
• GBP/ZAR 12.5804
• GBP/JPY 124.84
• GBP/DKK 8.6226
• GBP/NOK 8.9615
• EUR/USD 1.3803

ECB cut interest rates

The European Central Bank (ECB) surprised the markets yesterday when they cut eurozone interest rates to 1.25% from 1.5%. The new ECB president Mario Draghi told a news conference that growth in the eurozone was likely to remain weak. He said that Europe's financial crisis and a slowdown in global growth meant the euro area faced an "environment of high uncertainty".

Usually an interest rate cut would weaken a currency due to the lower return on offer, however in the current volatile market, the move actually supported riskier currencies, and the development that there will now not be a referendum in Greece actually strengthened the Euro slightly, and exchange rates dropped back in the €1.15's.

Greece farce continues

The second day of the G20 meeting today will see the Greek prime minister George Papandreou face a confidence vote in parliament. The opposition have called for him to quit after his decision earlier this week to hold a referendum on the bailout sparked a turmoil on financial markets and upset both Germany and France.

Yesterday however he said he would scrap the move if the conservative opposition party voted to pass the bailout package in parliament. However, there are fears that he may lose the confidence vote and Greece may have to hold fresh elections, a move which may further delay the implementation of a Greek bailout package.

The mess in Greece caused some turmoil in the markets. Initially after the interest rate cut GBP/EUR rates rose but after the news from Greece, rates fell back away again as the threat of a referendum on whether Greece stays in the Euro subsided and calmed the markets.

Sterling still at risk however due to poor economic outlook

Despite the latest rise for Sterling, analysts said that the Pounds prospects are not looking very good, with the National Institute of Economic and Social Research lowering growth prospects.

They said there is now a 50% chance of a new recession and that is likely to ramp up expectations of more quantitative easing from the Bank of England in coming months. The Monetary Policy Committee will meet next week and the chances are it may consider more easing.

More QE would weaken Sterling and lower exchange rates.

Today's Data

The G20 meeting continues today. From the Eurozone we have further inflation numbers, this time the Producer Price Index. In Canada there are Unemployment and Building permit figures. In the USA we will see Non-farm payroll & unemployment data.

If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.

Eurozone in crisis ahead of Greek vote

Thursday 3rd November 2011
Good morning. Sterling rose slightly against the US Dollar and Euro yesterday, as the Greek referendum took centre stage and weakened the Euro. Markets' focus turns to monetary policy meetings in the U.S. and Europe today, and also the G20 meeting where Europe's escalating debt crisis is set to be the main subject of discussion. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1623
• GBP/USD 1.5923
• GBP/AUD 1.5551
• GBP/NZD 2.0281
• GBP/CHF 1.4121
• GBP/CAD 1.6210
• GBP/ZAR 12.8013
• GBP/JPY 124.20
• GBP/DKK 8.6462
• GBP/NOK 9.0396
• EUR/USD 1.3700

Eurozone in crisis ahead of Greek vote

The eurozone has been plunged into renewed turmoil by Greece's decision to hold a referendum on the EU's offer to bail out its stricken economy. EU leaders fear that should Greece deliver a "no" vote it may plunge the country into a disorderly default and spread financial contagion to Italy and Spain. The developments have weakened the Euro and pushed rates higher in the last few days.

Last month the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) said they had reached agreement with Greece on reforms to put the nation back on track. They have now however suspended the next bailout of €8bn in and called on Athens to decide whether or not to remain in the eurozone.

Eurozone leaders fear that should Greece deliver a "no" vote it may plunge the country into a disorderly default and spread financial contagion to Italy and Spain.

EU Interest Rates today

At 12:45pm we have the ECB interest rate decision. Rates will probably be left on hold, but in the press conference afterwards watch for any sign rates may be cut in the coming weeks. Any negative comments could weaken the Euro and push GBP/EUR rates higher.

China's EU aid in doubt

China has said it cannot commit to investing in the European Financial Stability Fund (EFSF) until the situation with Greece has been clarified. European leaders hoped that China would buy EFSF bonds, injecting capital in the region's financial markets. The EFSF was one part of a three pronged rescue plan put together to solve eurozone's debt crisis.

UK at risk of falling back into recession

There is a strong chance the UK will fall back into recession even if eurozone leaders find a resolution to the debt crisis. NIESR said that whatever the outcome of the G20 meeting, the UK could well return to recession by the end of 2012. This could of course weaken Sterling and push rates lower.

Today's Data

Australian retail sales are released today. There is the G20 meeting also that may throw up a few surprises. In the USA there are jobless numbers. In the EU we have an interest rate decision followed by a press conference – this often causes swings in GBP/EUR rates

If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.

Sterling vs Euro forecast hits 1 month high

Wednesday 2nd November 2011
Good morning. Sterling rose to a 1 month high against the Euro yesterday after Greece's decision to hold a referendum on an EU bailout. This highlighted concerns that the debt crisis is far from over and weakened the Euro. This also pushed investors towards the relative safety of the US Dollar which strengthened causing GBP/USD rates to drop. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1618
• GBP/USD 1.6010
• GBP/AUD 1.5376
• GBP/NZD 2.0073
• GBP/CHF 1.4135
• GBP/CAD 1.6244
• GBP/ZAR 12.782
• GBP/JPY 124.97
• GBP/DKK 8.6430
• GBP/NOK 9.0200
• EUR/USD 1.3776

Sterling hits 1 month high vs Euro

Only a week ago there seemed to be a resolution to the debt crisis when EU leaders voted through measures to help Greece. This had strengthened the Euro and pushed GBP/EUR rates down in the low 1.13's. However it now seems that the prospect of a swift end to the euro zone's debt crisis is not as secure as first thought, after the Greek Prime Minister called a referendum on the latest bailout package, drawing calls from within his own party to step down.

This caused the Euro to weaken again, highlighting how volatile the currency markets are to any bad news. The euro fell against sterling pushing rates to their highest in nearly a month.

Against the US Dollar however, the bad news from the EU pushed investors back to the safe haven US Dollar, strengthening it and making it more expensive to purchase. Also adding momentum to the pound's slide against the dollar was an unexpected contraction in UK manufacturing activity. This has drawn attention to concerns about the economic outlook despite slightly better GDP figures yesterday. This weakened the Pound slightly.

The UK economy may be on the brink of recession according to data showing manufacturing contracted at its fastest pace in more than two years. There are further PMI figures today and if the are also weak, this will likely weaken Sterling further.

Today's Data

Today we see the minutes from the US decision to hold interest rates. Staying in the states we also see mortgage applications, employment data, and at 16:30 there is an interest rate decision. There is little UK data today other than PMI construction. There is a lot to watch out for from the Eurozone: German unemployment in addition to German and EU inflation data.

If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.

If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.

Pound vs Euro exchange rates rise November 2011

Tuesday 1st November 2011
Good morning. Sterling has surged against the Euro, rising by nearly 3% since last week, and has now sitting in the mid €1.16's. The Pound is being driven by external factors: investor perception about the US Dollar and Euro, in addition to the intervention by the Japanese has pushed the dollar higher and strengthened Sterling. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1666
• GBP/USD 1.5967
• GBP/AUD 1.5445
• GBP/NZD 2.0027
• GBP/CHF 1.4192
• GBP/CAD 1.6138
• GBP/ZAR 12.851
• GBP/JPY 124.68
• GBP/DKK 8.6811
• GBP/NOK 9.0108
• EUR/USD 1.3687

Sterling rises against Euro November 2011

The Pound has risen well against the Euro so far this week, with European markets opening lower this morning, following an announcement yesterday on a Greek referendum on the latest aid package to solve its debt crisis. Eurozone leaders had agreed a €100 billion loan to Athens and a 50% debt write-off last week, however the announcement of a referendum has cast doubt on whether the deal will be able to go ahead.

This has weakened the Euro, and made it cheaper to purchase. Sterling vs Euro exchange rates have surged as a result, and we are now sitting not far from €1.17, when only last week rates nearly dropped into the €1.12's.

If you need to buy Euros, you should consider locking in the current rate with a Forward contract. this is where you can lock in the current rate for up to 2 years, but only lodge 10% of the total amount of Sterling you need to convert. You will then be protected against a drop in rates. Click here to send us a free enquiry about Forward Contracts.

UK Gross Domestic Product today

This morning at 09:30am we will see the UK's GDP figures. This will show how the economy is growing and we expect a 0.3% gain in the 3 months until September. If the figure is lower than this however, then expect Sterling exchange rates to drop.

The other concern is further Quantitative Easing by the UK. This could also weaken the Pound, and so we think the gains in GBP/EUR will be short lived, making it even more important to contact us to discuss forward contracts if you need to buy Euros in the next 6 months.

US Dollar weakens

US brokerage firm MF Global has filed for Chapter 11 bankruptcy protection after revealing £4bn of eurozone debt exposure. MF Global worried markets last week after disclosing a $191.6m quarterly loss. This saw its shares fall by two thirds, and its credit rating cut to junk.

The result for exchange rates is the Dollar weakened pushing GBP/USD rates higher, however the issues in Europe have now swung the pendulum the other way: weakness in the Euro drives investment towards the US Dollar, and this has created strength this morning pushing rates back below the $1.60 mark.

Today's Data

Australia releases House Price data and there is also an interest rate decision. In the UK we will see Gross Domestic Product figures – these are important as it shows at what rate if any the economy is growing. There is some minor construction data from the USA.

Getting the Best Exchange rates

Our rates are up to 6% better than you can achieve at the banks. For any large currency purchase this represents a huge saving. If you are reading this currency report, the chances are you have an interest in getting the best exchange rates.

Click here to send us a free no obligation enquiry now, and find out how much we can save you.