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Showing posts from February, 2013

Will Pound/Euro drop or go up?

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Wednesday 27th February 2013 
Good afternoon. The Pounds rollercoaster ride has continued, with GBP/EUR rates moving between 1.1350 and 1.1650 in the last few days alone. In this afternoon’s post, first I will take stock of what has caused all the volatility. I will then look at what may happen in the coming days and weeks that might affect the exchange rate.

Finally, for those that are trying to time their purchase and who want to know whether to buy currency now or wait in order to get the best rate, I will go over the case for rates falling further, and also what might cause rates to recover. So in today's post you will find out all about....

Overview of why the Pound has fallenEuro weakness could push rates backWhy rates may continue to fallWhat needs to happen for rates to recoverHow to get the best exchange ratesI’ve gone in to quite a bit of detail today, but there’s lots to talk about so I make no apologies for this! So, read on below to get a full understanding of what is h…

Sterling to Euro predictions Feb March 2013

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Monday 25th February 2013 Good morning. I hope you all had a nice weekend. As usual for a Monday morning, today I will have a look back at last weeks movements, look at what might be in store for exchange rates this week, and also look at what I think are the most important economic data releases that might affect currency. 
In this week’s Report:  Bank of England weakens Sterling, again. More Quantitative Easing on the horizon UK loses AAA Credit Rating Round up of the week’s other data that may affect rates 
Sterling vs. Euro; 
Well, what a week for the Pound, especially against the Euro, with the pair starting and finishing the week trading at mid-market levels over 1.16, but a low on Wednesday of 1.14. Sterling fell also during the weekend during trading in Asia as financial markets reacted to the loss of Britain's top AAA credit rating. The pound fell to a 31-month low against the dollar and a 16-month low against the euro.

So, let's have a little look back at what happened la…

Pound/Euro falls after BoE MPC vote. Will GBP/EUR keep falling?

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Wednesday 20th February 2013  Good morning. Sterling has dropped again dramatically this morning, after The Bank of England released the minutes to its latest Monetary Policy Committee meeting, showing that some members voted for more Quantitative Easing. In today’s post I will look at the effects of the news, and what this means for those looking for the best exchange rates. 
Bank of England minutes
At 09:30am this morning, the minutes were released. It looks like the Bank of England took a dovish tone, as it showed that three members of the Monetary Policy Committee voted for an increase in quantitative easing, including Bank governor Sir Mervyn King. 
The members of the rate-setting committee showed the nine-member committee split 6-3 in favour of holding the asset purchasing programme at £375bn, but the fact that 3 voted for more QE, including the governor, weakened Sterling significantly as you can see from this morning’s daily chart below. You can read a full breakdown of the minut…

Will GBP/EUR rates go back up? 2013 forecast predictions

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Monday 18th February 2013 Good morning. The GBP/EUR rate continued its roller coaster ride last week, starting off at a relatively good level around 1.18, recovering after the European Central Bank president talked the Euro down (more on that shortly). 
As you can see from the chart below, the recovery was short lived as the Bank of England followed suit and talked the Pound down. In today’s report we will look at what is causing the swings, explain what is moving exchange rates both in the UK and the Eurozone, and look at what may happen to the exchange rate in the coming weeks and months. 
In this week’s Report: 
Central Banks risk engaging in ‘Currency War’ BoE comments and Retail Sales weaken SterlingPound/Euro forecast for next 6 months Round up of the week’s other data that may affect rates
Sterling vs. Euro; 
This week’s moves can be attributed to 4 main areas – Bank of England Comments, UK data such as Retail Sales, EU growth figures, and the increasing danger of an all our ‘curre…

Exchange rates fall after BoE Inflation report

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Wednesday 13th February 2013  Good afternoon. In my last post I outlined the fact that Sterling had made a recovery against the Euro. However I’m afraid the recovery was short lived, and the Pound has continued to lose value and rates have fallen. In today’s post I’m going to explain why this has happened, and look at the Pound/Euro trend for the coming months. 

So let's get straight on to why rates have fallen again...
Bank of England weakens the Pound pushing exchange rates lower. 
This morning at 10:30am, the Bank of England (BoE) released it’s latest inflation report, delivered by outgoing governor Mervyn King. A link to the full report is here. This afternoon I will simply run over the effects on exchange rates rather than analyse the full report in detail. 
Recent figures have shown that the economy shrank by 0.3% in the last three months of 2012, fuelling fears that the UK could re-enter recession, defined as two consecutive quarters of contraction. In todays report, Sir Mervyn …

Pound/Euro recovers after GDP estimate

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Monday 11th February 2013
Good morning. After weeks of decline, Sterling made a modest comeback last week, pushing up from a low of 1.1475 breaking 1.18. In today's report I'm going to go into detail on what caused rates to bounce back, and also look at what the coming weeks may hold. If you are keen to know what is moving the market, in order to try and get the best exchange rates, then read on.

In this week’s Report:  Pound/Euro makes modest recovery UK GDP estimate better than expected Mario Draghi talks Euro down helping GBP/EUR Round up of the week’s other data that may affect rates
Sterling vs. Euro; 
This week’s report will focus on the erratic swings in GBP/EUR rates, the news and data that caused the fluctuations, and potential moves in the coming weeks. The story dominating FX headlines recently has been sterling’s rapid decline. The pound has been subject to an aggressive sell-off as fears mounted that the UK may enter a triple-dip recession, which could result in …

Pound/Euro exchange rate forecast Feb 2013

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Wednesday 6th February 2013 Good afternoon everybody. As usual today I'm posting up a quick mid week update on what has been happening with exchange rates, and the Pound/Euro rate in particular. As regular readers will know, Sterling/Euro has been in sharp decline over the last few weeks, however we have seen things steady a little over the last few days. Read on for more on what the predictions and forecast is for Sterling/Euro exchange rates over the next few weeks. 

Well let's get started then. To kick off, I'm going to take a retrospective look at what has happened this week, before moving on to where rates are headed. 
Pound steadies against Euro
On Friday, we saw rates fall as low as 1.1475, the lowest in around 16 months. this was after a particularly sharp decline in rates on Friday, reminding us all the exchange rates can often move very quickly and without warning. 
On Monday the Pound recovered nearly all its losses and rose back up to around €1.16. There was no par…

Will the Pound keep falling against the Euro?

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Monday 4th February 2013 Good morning. Well readers, I'm sorry to say I do not bear good news for anyone needing to purchase Euros in the near future. Rates last week continued their decline falling significantly. A month ago rates were at 1.23 - on Friday afternoon they were as low as 1.1475 - this was the biggest one day fall for the Pound since 2008.

Rates have recovered slightly this morning, back to €1.1550. Today I'll review why rates are falling, and what effect data this week could have on rates.
In this week’s Report: Pound/Euro continues to fall to 14 month low US GDP figures disappoint, but GBP/USD still low UK decision on QE and the latest GDP estimate this week Round up of the week’s other data that may affect rates Sterling vs. Euro; 
Sterling’s fortunes remained unchanged last week as it continued to fall against the single currency. Rates fell a further 2.0% over the course of the week, which now means we have seen a 7% decline since the turn of the year and at its…