Showing posts from April, 2015

GBP/EUR drops to €1.3850 as Euro gains strength. GBP/USD rises.

Wednesday 29th April 2014 
In my last post a week ago, I talked about the Sterling/Euro rate breaking through the €1.40 level. As I predicted, this spike to a near 8 year high was short lived, and today the rate has fallen from 1.40 down to €1.3850 as you can see from the chart below: 

Why has the Pound/Euro rate fallen? 
Simply put, the Eurozone economy is starting to perform well. Euro and German bond yields rose to their highest level in several weeks today, after data showed bank lending has stopped falling, and consumer inflation expectations have risen. As the European economist at RBC Capital Market has said, "Happier days are on the cards”. He added that "The continued improvement in credit supply conditions bodes well for the sustainability of the euro area recovery overall." 

So it seems that the latest figures show that the European Central Bank's (ECB) Quantitative Easing programme is starting to have a good effect, much as stimulus programmes in the UK and …

Pound/Euro breaks €1.40 on BoE minutes and Greek uncertainty

Wednesday 22nd April 2015
As you can see from the chart below, today we have seen the GBP/EUR rate climb above the €1.40 mark, after the Bank of England released its latest minutes confirming interest rates will remain on hold at 0.5%. This is the best it's been in over a month, and only a few cents away from an 8 year high.

Bank of England minutes 
Today the Bank of England (BoE) confirmed they would be keeping interest rates at the record low again. This wasn’t a surprise, but the minutes to the meeting were quite hawkish, and it was these comments that have caused the Pound to rise. 2 of the members said their decision was finely balanced, and after some recent uncertainty which way rates will go in the coming months, it is now quite certain that the next move will be up. 

This speculation of higher interest rates, probably in early 2016, boosted the Pound due to the higher return that may be on offer for investors. Consequently we have seen Sterling/Euro break the 1.40 level, and…

Will the GBP/EUR rate rise or fall in the coming weeks?

Monday 20th April 2015 
Good morning. Before we look at what has been happening with exchange rates this week, I would like to take a moment to thank both regular and new visitors to my site for their support. Today my blog logged its 1 millionth unique visitor! Readers that chose to send an enquiry to find out more about the services I offer have now converted over £35m, at rates up to 3% better than banks can offer meaning I have saved my clients over £1 million pounds to date, which is something I am very proud of. If you would like to see how I can help with your exchange, you can send me a free enquiry by clicking here. 

What has been happening with the Pound/Euro rate? 
After quite a bit of volatility this year that have seen GBP/EUR rates between a range of €1.25 and €1.42, the last week has been relatively stable. The exchange rate has remained within a 1 cent range between €1.3850 and €1.3950: 

Will Pound/Euro rates drop as the election approaches? 
Well that’s what many analysts …

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 €1.38The 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 si…

Pound/Euro back to €1.38, will Sterling go up or down?

Wednesday 8th April 2015
Since the Easter break, Pound/Euro rates have seen a very decent recovery, rising from 1.3550 to 1.3800 today, as you can see from the chart below: 

Before the Easter weekend, the Pound had come under pressure due to political uncertainty in the run up to the general election. This had pulled rates down from 1.38 to the 1.35’s. The reason it has gained and recovered these losses is due to better than expected UK economic data. 

Why has the Pound gone up against the Euro? 
This week we have seen figures that show activity in the UK's services sector grew at the fastest pace in more than 6 months. We have also seen the Confederation of British Industry (CBI) forecast UK economic of 0.7% in the three months to March which is better than it has been. We also recently saw the Office for National Statistics (ONS) revise economic growth upwards. We’ll have to wait a few more weeks however before the first official estimate of the UK's economic growth for this ye…

Pound/Euro starts to plummets as election uncertainty takes hold

Thursday 2nd April 2015
Since my post a few days ago, we have seen the general downward trend in Sterling/Euro rates resume, falling from €1.38+ to €1.36 in the last couple of days. As the chart below shows, in the last 3 weeks alone the Pound has lost nearly 5% against the Euro: 

Economic data from the UK has actually been quite good! Growth has been revised up, manufacturing has picked up, and the UK is now the fastest growing major western economy. Despite this, it looks like the Pound is going to drop further against the Euro. 

The main reason as I’ve touched on a few times in the last few weeks is the general election. The latest polls suggest a hung parliament and it was this that was the catalyst for the drop earlier in the week. If we cast our minds back to last year’s Scottish referendum, the uncertainty that created pulled Sterling significantly lower against other currencies. The election is likely to have the same effect, and it could potentially be a much greater one. Ton…