Showing posts from August, 2012

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Pound/Euro exchange rate forecast

Tuesday 28th August 2012
Good morning. Today I'll take my usual retrospective view on what caused the Pound/Euro rates to drop away, and the events in the coming weeks that will dictate the direction of exchange rates and the Pound Sterling forecast in the coming months.

In this week’s Report:
Pound/Euro rates decline as ECB poised to take actionUK Economy didn’t shrink as much as thoughtPound/Dollar rates hit 3 month high on QE threatRound up of the week’s other data that may affect ratesSterling vs. Euro;

Last week we saw the single currency strengthen significantly, causing the pound euro rate to drop away. Trading opened Monday morning around the 1.2760 mark and steadily dropped throughout the week closing on Friday afternoon around 1.2630 as the graph below shows. In this week’s report we will look at the causes as to why the Euro has reached a two week high against Sterling, and what the coming weeks and months may have in store for the GBP/EUR rate.

Last week’s trading opened wi…

Why have Pound/Euro rates fallen?

Wednesday 22nd August 2012
Good morning. Today I’ll give a brief mid-week update on what is happening with exchange rates. We had seen the GBP/EUR rate recover back close to 4 year highs; however rates have been in decline this week. Today I’ll look at what has caused this, and which way rates may move in the coming weeks.

Why have Pound/Euro rates fallen?

Yesterday we saw GBP/EUR rates fall back into the mid €1.26’s. There were 2 reasons for this; firstly the UK deficit grew more than expected, which I’ll examine separately in a moment. The main reason for the fall was a strengthening of the Euro, caused by growing expectations the European Central Bank will take action to ease Spanish and Italian borrowing costs.

The anticipation of measures being taken in the coming weeks, to try and resolve the on-going debt crisis has been welcomed by investors. As a result, it’s spurred investment into the single currency, and this demand has caused strength, making it more expensive to purchase.


Pound/Euro forecast August/September 2012

Monday 20th August 2012
Good morning. So as usual for Monday mornings, here's my outline of what has been happening to the Pound/Euro rate in the last week, with a full analysis of what is causing the movements. In addition I will look at where rates may head in the coming weeks, and also list a run down of the weeks economic data that could affect rates.

In this week’s Report:Pound climbs to 2 week high against US DollarEvents in Eurozone continue to drive ratesThin trade in holiday season creating peaks and troughsRound up of the week’s other data that may affect rates(For currencies other than GBP, EUR and USD, contact us for a consultation)

Sterling vs. Euro;

After the excitement of the previous week and the comments made by Mario Draghi’ s and Mervin King - last week failed to produce any real excitement. The Pound broadly maintained its strength against the single currency, trading in a very narrow range throughout the duration of the week despite a number of important data rele…

Weekly GBP/EUR 2012 forecast, and the weeks data

Monday 13th August 2012
Good morning. Pound/Euro rates recovered last week after the BoE dampened expectations of an interest rate cut. Today I'll take a look at what caused the gains, and look at the data this week that could affect exchange rates going forwards.

In this week’s Report:
Pound gains on Euro after BoE Inflation reportPound/Dollar rates remain in the 1.55/1.56 rangeLots of data from Europe this week that could affect GBP/EURRound up of the week’s other data that may affect ratesContact us for a full free consultation on your requirments.

Sterling vs. Euro;

Last week saw an interesting week on Sterling/Euro with Rallies in both directions, creating decent opportunities for both buying and selling the single currency. The early part of the week saw the pound in general decline with Mario Draghi’s Euro positive rhetoric ringing in many traders’ ears. It was then his counterpart Mervyn Kings turns to move the markets later in the week.

At Wednesdays Bank of England quarterly …

Pound gains against Euro on BoE report

Thursday 9th August 2012
Good morning everybody. So, an interesting week so far since my last post on Monday morning. After steady declines for the Pound/Euro rate, yesterday saw a slight recovery, and it was all to do with the Bank of England (BoE). Today I'll focus on what was said in the BoE's inflation report, and what the forecast is for where Pound/Euro rates may go in the coming weeks and months.

BoE Inflation report gives the Pound a boost

Sterling rose nicely yesterday against the Euro and US Dollar, after the Bank of England governor Mervyn King said cutting interest rates would damage financial institutions and would be partly counterproductive. The Pound had weakened over the last week on expectations that there would be a cut in interest rates. As this now looks less likely in the short term, it has strengthened the Pound and pushed exchange rates up, at least for now. The reason is a higher interest rate is attractive to investors, causing demand for a currency and …

Pound/Euro continues to drop from 4 year high

Monday 6th August 2012
Good morning. While Gold was been the main focus last week in the UK in the form of Olympic medals, the value of sterling has fallen against the Euro with the pound falling away from recent highs and taking a firm second place while the Euro gains. In today's report I'll take a look at what has caused the GBP/EUR rate to drop away, and where rates may head in the coming weeks.

In this week’s Report:
Pound/Dollar drops on better jobs dataSterling/Euro falls again from its 4 year highPossible buying of Spanish bonds strengthening EuroRound up of the week’s other data that may affect ratesSterling vs. Euro;

GBP/EUR rates slipped away from the recent near-four year high of last week mainly due to comments from the Euro zone with Mario Draghi announcing that he will do "whatever it takes" to save the Euro.

The ECB said on Thursday it may resume its programme of buying the government bonds of indebted euro zone countries. The terms and conditions are bei…

Pound/Euro falls: August 2012 forecast

Wednesday 1st August 2012
Good morning. Today I'll give a quick mid-week update on what's been happening in the currency markets in the run up to tomorrows policy decisions by the Bank of England (BoE) and European Central Bank (ECB), after we saw Sterling/Euro rates take a tumble throughout trading yesterday.

Pound/Euro rate falls on positivity from EU leaders

This week we have seen some robust comments from EU leaders that the EU debt crisis will be tackled, and this has strengthened the Euro and pulled exchange rates down. So what was said?

French President Mr Hollande said they agreed that the euro should be "defended, preserved and consolidated" and added there had been "significant progress" in recent weeks. Italy's Prime Minister Mario Monti has said he sees "light at the end of the tunnel" on the eurozone debt crisis.

As well as his meeting with Mr Hollande, Mr Monti is also travelling to Finland and Spain, and he said he hoped his meeting…