Best Exchange Rates to buy Euros August 2011

Wednesday 3rd August 2011
Good morning. We are at a 2 month high vs the Euro, as the single currency weakened further on due to renewed worries about euro zone debt and the risks of it spreading to countries like Spain and Italy. Despite its gains versus the euro, the pound slipped against the US Dollar, stronger now the debt bill has been passed. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1450
• GBP/USD 1.6305
• GBP/AUD 1.5138
• GBP/NZD 1.8851
• GBP/CAD 1.5652
• GBP/ZAR 11.069
• GBP/JPY 125.75
• GBP/DKK 8.5256
• GBP/NOK 8.8074
• EUR/USD 1.4236

Pound vs Euro at 2 month High

Fears that countries like Italy Portugal and Spain may follow Greece and Ireland in defaulting on their debts have weakened the Euro further, pushing exchange rates up to their best in 2 months. This is despite the Pound falling due to a run of poor UK data showing the economy is sluggish.

Analysts still expect rates to drop back away as focus shifts back to fundamental data. It's a great time to buy Euros, and if you need the best exchange rates to buy Euros in the next 6 months, send us a free enquiry now to find out more about our exchange rates and how you can fix the current rate, even if you don't need your currency for some time.

US Debt bill passed into law

President Barack Obama has signed legislation to increase the US debt ceiling and avert a financial default, after Congress voted in favour of a bipartisan compromise deal. But the bill's passage failed to lift financial markets.

On Wall Street stocks ended Tuesday down by more than 2%, amid poor consumer spending data for June. Moody's rating agency reacted to the bill by placing Washington's AAA credit score under a "negative outlook". Without a deal to raise the debt ceiling, the US would have been unable to meet all its bills, the treasury department had warned.

You can read more about this here on the BBC website. In terms of the effect on the currency markets, the US Dollar has not strengthened significantly as expected. It may be that the agreement is simply viewed as delaying the inevitable, and is merely a plaster on a gaping wound.

Today's Data

Australian Retail Sales and Trade Balance figures are released today. From the Eurozone there are also Retail Sales figures. The EU and UK both release Purchasing Managers Index which is a measure of inflation. Stateside, watch for Mortgage Approvals and Factory orders.

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 rates surge up August 2011

Tuesday 2nd August 2011
Good morning. Sterling fell yesterday after poor manufacturing data, however as we'll see in a moment the US debt problems have resulted in GBP/EUR rates surging, nearly at €1.15 this morning. We'll look at the reasons for this after the usual rate snapshot as at 08:30am:

• GBP/EUR 1.1488
• GBP/USD 1.6276
• GBP/AUD 1.4968
• GBP/NZD 1.8640
• GBP/CAD 1.5577
• GBP/ZAR 10.958
• GBP/JPY 125.71
• GBP/DKK 8.5558
• GBP/NOK 8.7917
• EUR/USD 1.4169

US debt agreement and the effect on currency exchange rates

The agreement to congress raising the US debt ceiling has had some interesting effects on the currency markets. As there have been problems in the US, the Dollar had weakened significantly. As it was perceived as a risky investment, other currencies such as the Euro and Sterling benefited.

Now that there is an agreement, investors have been buying dollars again, mostly with Euros. The net effect of this Euro sell off is a severe weakening of the single currency, making it much cheaper to purchase.

Pound vs Euro rates surge up August 2011

The weakening of the Euro has helped push GBP/EUR rates up to nearly €1.15 this morning, creating the best exchange rates for Euros for some time. It's very important to note however that this is purely due to movements with the debt crisis in the US. Fundamental UK data is still very poor, and Sterling is down.

Sterling still weak due to poor data

Further poor data from the UK yesterday highlighted the fragile recovery. Manufacturing activity shrank for the first time in 2 years, and the fact interest rates in the UK will remain low for many months is weighing on the Pound.

As a result Sterling has actually dropped against most currencies, however this has been masked by the upwards movement in GBP/EUR following the developments in the USA.

Summary; what you should do if you need Euros.

If you need to buy Euros, you should seriously consider fixing the rate with a Forward contract, where you can lock in today's rates for up to 2 years, and only pay 10% now, the remainder when you need the currency.

With poor UK data continuing to weigh on Sterling, most analysts think exchange rates are going to fall back away. Buying €200,000 today compared to a few weeks ago is an astonishing £7500.00 cheaper, clearly illustrating the huge spike we have seen.

Do you need to buy Euros? Send as an enquiry now to find out more about our rates.

Today's Data - After the holiday in Australia yesterday, today we have House prices, building permits, commodity Index and an interest rate decision, all of which could strengthen the Aussie. Closer to home, we have Inflation data for both the UK and Eurozone. Also from the UK there are shop price index figures from the BRC.

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.

GBP/EUR & GBP/USD Forecast Outlook August 2011

Monday 1st August 2011

As always on a Monday, we'll take stock of the movements in exchange rates for GBP/EUR & GBP/USD over the last week. In this week’s Report:

• Euro debt again weakens Euro
• US debt issue weaken US Dollar
• Sterling benefits despite continued weak data
• 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;

Markets continue to expect the Bank of England to hold interest rates at record lows well into 2012, with some speculation that more asset purchases may be needed to revive flagging growth in the UK economy.

After figures showed the economy barely grew in the second quarter, BOE policymaker David Miles said last Wednesday that the recovery appeared to have slowed and there is a risk the economy could tip back into recession. On the upside, analysts said sterling was likely to benefit from any downgrade to U.S. debt by rating agencies as the UK, with a sound fiscal plan in place, is likely to retain its AAA rating.

But austerity measures to curb Britain's budget deficit are also crimping growth and consumer spending, meaning sterling is unlikely to strengthen significantly in coming months. UK data has been lacklustre of late, with the CBI figures reminding investors that consumers are struggling and that growth in the current quarter is unlikely to be encouraging.

Sterling did however rise against a broadly weaker euro last Thursday as the single currency slipped on lingering concerns about euro zone debt. British retail sales fell at their fastest pace in a year in July and stores expect a further deterioration in August, as hard-hit consumers clamp down on spending, a survey by the Confederation of British Industry showed. Movements in sterling over the past week were largely driven by a broad sell-off in the euro after an Italian bond auction. Also, the pound has benefited as investors have shunned the dollar and the euro due to fiscal issues plaguing those areas, while the UK has been making progress on reining in government spending, although some analysts say this has come at a cost to economic growth.

Commerzbank currency strategist Peter Kinsella said this view would keep the pound supported, but still added the belief that UK interest rates will stay low due to a sluggish economy that would cap any significant upside in Sterling. Many times in July we have seen that data releases haven’t necessarily dictated the movement of the markets, the euro has fallen roughly 3 percent versus sterling so far this month, showing a confused and volatile time for the GBP/EUR cross.

Need the best exchange rates for Euros? Send us an enquiry.

Sterling vs. US Dollar;

Sterling slipped against the Dollar last Friday, tracking a slide in the Euro versus the U.S. currency after a threat by ratings agency Moody's to cut Spain's credit rating prompted some investors to sell riskier currencies for the Dollar. But losses versus the Dollar were limited given that investors remain negative on the U.S. currency as Washington remains far from reaching an agreement on government borrowing before a deadline next week. The Pound ended July around 1.5 percent higher versus the Dollar.

Debt negotiations in the US were hit by further complications at the end of last month as Republican leaders abandoned a vote on plans to increase the debt ceiling after failing to secure enough votes to get the plan approved. This failure gave US politicians 4 days to complete any deal. If they struggle to arrange a deal and the US misses a coupon payment, a technical default would have occurred, but what does that mean for the world economy and the US Dollar?

Any default would lead to a huge adjustment in the value of the Dollar, which would be reinforced by the almost certainty of the Fed starting QE3 to offset the compulsory reductions in governmental spending. We are in uncharted territory in terms of the potential effects on the world economy, particularly with the inter-bank rate which could, according some economists, be affected more by a US technical default than the aftermath of the Lehman Brothers failure.

Some analysts have said Sterling is likely to benefit from any downgrade to U.S. debt by rating agencies, as the UK (with a sound fiscal plan in place) is likely to retain its AAA rating. But austerity measures to curb Britain's budget deficit are also restricting growth and consumer spending, meaning Sterling is unlikely to soar above the $1.70 level in the coming months.

The US problems would have worrying implications for the European debt markets, since if the safe haven of the US cannot meet its obligations, who can? The recent problems in Spain and Italy would be amplified and may lead eventually to those countries requiring some sort of bail-out. However, since money would have to flow somewhere, the Euro could actually benefit from the US problems. The recent shift away from the Greenback has been profound in all currencies, in the shorter term and over the past weeks, as investors have been protecting themselves from potential Dollar fallout.

Need the best exchange rates for US Dollars? Send us an enquiry.

Weekly Economic Data that may affect exchange rates

Monday – Inflation data and unemployment figures are released from the EU today. In the UK we have House Prices and Inflation data. In the US there are manufacturing prices.

Tuesday – After the holiday in Australia yesterday, today we have House prices, building permits, commodity Index and an interest rate decision, all of which could strengthen the Aussie. Closer to home, we have Inflation data for both the UK and Eurozone. Also from the UK there are shop price index figures from the BRC.

Wednesday – Australian Retail Sales and Trade Balance figures are released today. From the Eurozone there are also Retail Sales figures. The EU and UK both release Purchasing Managers Index which is a measure of inflation. Stateside, watch for Mortgage Approvals and Factory orders.

Thursday – As with every first Thursday in the month, the UK and EU announce their latest interest rate decision. Both are expected to leave rates on hold, but watch for any mention of Quantitative Easing from the BoE. The USA has various measure of unemployment.

Friday – A busy end to the week, with PPI (Inflation) data from the UK, in addition to Industrial Production figures from Germany. A busy day in the states also, with Unemployment and Non Farm Payrolls at lunchtime.

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 up vs Euro on debt fears

Friday 29th July 2011
Good morning. Sterling rose against the Euro yesterday after the Euro weakened on concerns about the EU debt problem spreading, weakening the single currency and pushing rates up. Poor UK data however pushed the Pound down slightly against other currencies. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1431
• GBP/USD 1.6312
• GBP/AUD 1.4908
• GBP/NZD 1.8808
• GBP/CAD 1.5506
• GBP/ZAR 11.029
• GBP/JPY 126.52
• GBP/DKK 8.5139
• GBP/NOK 8.8411
• EUR/USD 1.4266

Sterling up vs Euro on debt fears

Yesterday there was a broad sell off of the Euro after an Italian bond auction, and fears the debt problems will spread to other countries weakened the Euro, pushing it up into the €1.14's. It was only a week or two ago rates were at €1.10, and the gains have been largely driven by problems in the EU rather than any particular strength in the Pound.

Pound still weak after more poor data

British retail sales fell at their fastest pace in a year in July and stores expect a further deterioration in August, as hard-hit consumers clamp down on spending, a survey by the Confederation of British Industry showed.

This just adds to the poor economic picture. UK data has been lacklustre of late, with the CBI figures reminding investors that consumers are struggling and that growth in the current quarter is unlikely to be encouraging.

After figures showed the economy barely grew in the second quarter, BOE policymaker David Miles said on Wednesday the recovery appeared to have slowed and there is a risk the economy could tip back into recession. For this reason we think the Pound could continue to fall.

US Debt issues could help Sterling

Analysts said sterling was likely to benefit from any downgrade to U.S. debt by rating agencies as the UK, with a sound fiscal plan in place, is likely to retain its AAA rating. The problems in the US have weakened the US Dollar, and with the Euro also facing problems, investors like the fact the UK has a firm plan in place, and as such the Pound may benefit from any weakness in the other major currencies, despite poor data.

Today's Data

UK figures today are Consumer Credit, Mortgage Approvals and Money Supply. From the EU we see inflation data, and Canada and the USA both release GDP figures.

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.

Getting the best exchange rates for Euros, Pounds, Dollars

Thursday 28th July 2011
Good morning. Further poor data on Wednesday hurt the Pound, however exchange rates remained high due to Sterling being supported by the problems regarding the US debt ceiling. Today we'll look at the implications of this, and where rates may go moving forwards.

Sterling supported due to problems in US

Sterling dipped slightly on yesterday after disappointing UK factory data, but remained within sight of a 6 week high versus a weak USD and looked set to retain support in the absence of a deal to raise the U.S. debt ceiling. Against the Euro the Pound also rose, as investors bought it as an alternative to the USD, and this supported the Pound.

So what do the analysts say?

"Everyone is looking at the bigger picture of what is going on with the U.S. with the debt ceiling, so sensitivity to data has been somewhat diminished," said Charles Diebel, head of market strategy at Lloyds. This basically supports what happened yesterday, with the Pound rising despite poor UK economic data.

"This data is a little disappointing but to a degree most of the expectations for UK data have been skewed to the downside. When you get a weak number like today it's more an affirmation of people's thinking than a shock."

This following Tuesdays poor growth figures showing that UK economic recovery is sluggish.


What about Sterling to Euro rates for the coming weeks?

Despite the euro zone debt crisis and threat of a Greek debt default the single currency has remained strong against the pound as a result of favourable rate differentials.

The Bank of England is expected to keep interest rates on hold at a record low 0.5 percent until late next year because of concerns over the fragility of the UK economic recovery while the European Central Bank has already embarked on a tightening cycle.

It's hard to know which way things will go. If UK data continues to be poor and the EU continue raising interest rates, then it is likely GBP/EUR will fall. If however there are further debt problems in the EU, or economic data in the UK starts improving, rates could go up further.

So what are the options to protect against rates moving the wrong way?

If you need to buy or sell currency, then at the moment rates are volatile and there's no way to now which way rates will move. In uncertain times like this, simply hoping rates will move in your favour is not a reliable method, and you could end up with a significantly worse rate than necessary.

You can use Stop Loss and Limit Orders to your advantage. A stop loss is an order for us to buy your currency should the rate fall below a pre-agreed level. In this way you have a safety net and a worst case scenario. At the same time, a Limit order can be placed to buy should rates spike to a level not currently achievable. In this way you can aim for a higher rate, without leaving yourself open to a significant cost increase.

These orders are useful if you are buying or selling property abroad, and need the best exchange rates. They can also be useful if you are a business and need to pay or receive payments in a foreign currency.

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 down due to GDP

Tuesday 26th July 2011
Good morning. Sterling is down this morning, ahead of GDP figures later today that are expected to show the economy has slowed. This has pushed the Pound down against other currencies, as the rate snapshot as at 08:30am below shows:

• GBP/EUR 1.1266
• GBP/USD 1.6335
• GBP/AUD 1.4942
• GBP/NZD 1.8736
• GBP/CAD 1.5398
• GBP/ZAR 10.941
• GBP/JPY 127.50
• GBP/DKK 8.3961
• GBP/NOK 8.7538
• EUR/USD 1.4494

UK GDP Figures today

UK growth figures published at 09:30am this morning are expected to show that the UK economy slowed between April and June. They may even show it contracted, some analysts forecast, after growth of 0.5% in the first quarter. This news has weakened Sterling, and exchange rates are down in anticipation of poor figures.

A weak figure from the Office for National Statistics will put pressure on the government to boost growth. The problem for the government is its plan for reducing the deficit relies on a certain amount of growth in the economy to increase the amount it raises through taxation and reduce the amount it spends on benefits.

However some organisations, including the International Monetary Fund (IMF), have supported the government's policy despite the lack of growth in the economy. The IMF said last month that the UK's high inflation and low growth had been unexpected but were largely temporary and that no changes to policy were yet needed.

Lacklustre growth or a contraction in the UK would add to expectations the Bank of England will keep interest rates on hold until late 2012 , and increase speculation policymakers may consider another round of quantitative easing, pumping more cash into the market to kickstart the economy. This would only weaken Sterling further.

Today's Data

Lot's of data from the UK today, including UK House Prices and UK GDP which if poor could push the Pound lower. Germany releases measures of Consumer Confidence and Retail Sales. From the USA we have Home Sales and Consumer Confidence.

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 Forecast Outlook

In this week’s Report:

• EU bailout agreed, strengthening Euro
• US deficit and credit rating threat weaken USD
• Global Markets surge on the agreement
• 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;

The main news of last week was of course the details surrounding the European Sovereign debt crisis. Details of how Greece will restructure its massive debts emerged last week as euro zone leaders agreed a package they hope will help resolve the debt crisis. The share prices of banks seen as most exposed to distressed euro zone government debts rose by more than 5%, led by Lloyds, which ended the week almost 20% higher than on Monday.







The news also strengthened both the Euro and to some extent the pound (against other major currencies), as investors calmed about investing in riskier currencies. Against the Dollar, the Euro stayed near a 2 week high as news of the agreement broke. The latest Greek bail-out by the 17 euro zone governments and the International Monetary Fund is part of a comprehensive package to shore up the single currency unveiled on Thursday.

On the GBP/EUR cross rates were knocked down accordingly. Sterling has also strengthened on the news due to the UK's exposure to Greek debt, but despite the Pound gaining the Euro has become much stronger, and the net result is lower exchange rates to buy Euros.

With the uncertainty over the Euro zone seemingly over, markets will likely focus on fundamental data, and given the UK economy is in a poor state at the moment, we expect further falls for Sterling. It has only been the debt crisis keeping GBP/EUR rates high, and now this is resolved we could see further drops for the currency pair. If however this unified agreement shows any signs of cracking, perhaps if more peripheral EU nations require funding then the potential for a weakening of the Euro is a distinct possibility.

With such uncertainty in the markets it is essential to keep close tabs on your positions. To make the most of our commercial exchange rates, make an enquiry with us now for free.

Sterling vs. US Dollar;

Last week started with Sterling encountering losses of almost 1 cent against the Dollar following concerns about UK banks' exposure to the euro zone debt crisis. However, sterling rallied on Tuesday, helped by a rebound in equities market when banking stocks were hit by concerns Europe's bank stress tests were unrealistic.








Sterling is seen as especially vulnerable to renewed euro zone debt worries, particularly against the dollar due to concerns about UK banking sector health and given the UK's close trade links with Europe. "Sterling's outlook is still very closely linked to sentiment towards Europe. Ultimately the UK is so closely entwined with Europe that a crisis would certainly hit the UK". Lee Hardman, currency strategist at BTMU said.

This is likely to dominate the cross in the coming weeks despite the growing concerns in the US over the problems the growing deficit in the Federal budget as discussed in last week’s report. The most anticipated data release over the course week was the minutes of the Bank of England committee meeting which was held at the beginning of the month. With a 7-2 split in favour of keeping rates on hold at 0.5% there were no great surprises contained within the minutes and as a result virtually nothing happen with regards to the cross.

The problems with the US deficit in the Federal budget continue to rumble on following the threat from ‘Moody’s’ and ‘Standard and Poors to downgrade America from their AAA rating. This is unless a compromise between Obama’s camp and Congress can be made within the next 2 years to find a way to move forward and repair the damage.

Speculation continues however, that many in the Republican camp would prefer that a compromise in not reached and that the country is downgraded - in a political more to try and topple Obama’s government. Sterling finished the week up against the Dollar hanging on the shirt tails of the Euros performance following the conclusion of a draft report created at a Eurozone summit outlining a method to it would go about solving the region’s debt problems.

Do you need to buy or sell US Dollars? Make a free enquiry with us now.

Weekly Economic Data that may affect exchange rates

Below are the main releases for the week ahead. For a free consultation on how these releases could affect the cost of your currency requirement, open an account with us today. This is free to do, doesn’t obligate you in any way, and simply gives you access to our market knowledge and commercial exchange rates.

Monday – Today is quiet for data releases. Mortgage Approval data from the UK at 09:30am, Inflation figures from Australia and Trade balance figures from New Zealand are the only releases of note.

Tuesday – Much more to watch out for today, including UK House Prices and UK GDP which if poor could push the Pound lower. Germany releases measures of Consumer Confidence and Retail Sales. From the USA we have Home Sales and Consumer Confidence.

Wednesday – Onto Wednesday, and today we see Consumer Confidence figures from the UK. In the Eurozone we have inflation figures from Germany. In the USA we see Mortgage approvals, Durable Goods Orders and the Feds beige book which reports on the economic situation in the USA. We also have inflation figures from Australia today.

Thursday – A busy day for the EU today, with German Unemployment, EU Economic, Consumer and Industrial confidence measures. From the USA we have Jobless figures.

Friday – UK figures today are Consumer Credit, Mortgage Approvals and Money Supply. From the EU we see inflation data, and Canada and the USA both release GDP figures.

If you need to buy or sell foreign currency, click here 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.