Latest Euro Pound Exchange Rate Report

23rd November 2009

Last week began with the release of monthly trade balance data for the Euro zone on Tuesday. This revealed a larger than expected surplus, easing some concerns that a strong Euro is hindering the economy’s export performance. This in turn improved investor risk appetite which ultimately contributed to the GBP/EUR rate rising to intra-week highs above the 1.13 level.

Further through the week an absence of any further major Euro zone economic data left the Pound’s weakness as the primary source of any Euro gains, particularly after Wednesday’s poor Bank of England minutes. However, by Friday GBP/EUR took a further downfall as the Euro gained strength after the surprise comments by the European Central Bank President Jean-Claude Trichet. In brief his comments warned that the banks should prepare for the unwinding of stimulus measures, which could be taken away promptly if the threat of inflation awakens.

As a result GBP/EUR closed down 0.83% at 1.1101, from 1.1194 a week earlier, continuing to improve market conditions for those converting Euro’s into Sterling further.

This week sees the release of German business conditions data on Tuesday and consumer confidence on Wednesday, both of which will help shape economic growth expectations for the coming months depending upon their positivity. Friday will also see the release of Euro zone business, consumer, and industrial confidence data which could support the Euro if stronger than expected. As for the UK, this week sees the release of Private Consumption, Government Spending, Imports and Exports and most importantly GDP figures all on Wednesday. With the recent array of disappointing data releases from the UK and increasingly optimistic figures from the Euro Zone, it may be a wise to consider buying Euros before the market possibly falls.

In order to take advantage of these spikes, and protect yourself from the falls you should consider “forward buying contracts”, and “limit and stop loss orders”, all of which can help maximise your returns. Visit our main website for Live Exchange Rates or visit our recommended Money Broker website to help with your currency exchange rate problems.

Blog posted by Expedia Property SL – Tenerife Estate Agents for Tenerife Property

Euro Pound Exchange Rate Report 18-11-09

18th November 2009

On Friday morning the Euro zone officially announced it had come out of recession with a growth in GDP of 0.4% just under expectation for a growth of 0.5%. The currency markets had priced in the figures and so we saw little movement in exchange rates between Sterling and Euro. The German ZEW think-tank’s business survey showed that confidence levels in the Euro zone’s largest economy weakened in November, raising some concerns that the economy’s recovery could be more tentative in the coming months.

One of the reasons why the Euro zone has recovered quicker than the UK is because their financial sectors account for a smaller proportion of their economies. Stronger exports driven in Germany particularly by the car market has contributed hugely to the Euro zone’s recovery. Only Spain and Ireland remain in recession. These announcements have potential to affect GBP/EUR exchange rates so if you are looking to purchase any of these currencies now maybe the time to contact your account executive to discuss the options available to you.

In order to take advantage of these spikes, and protect yourself from the falls you should consider “forward buying contracts”, and “limit and stop loss orders”, all of which can help maximise your returns. Visit our main website for Live Exchange Rates or visit our recommended Money Broker website to help with your currency exchange rate problems.

Blog posted by Expedia Property SL – Tenerife Estate Agents for Tenerife Property

Euro Pound Exchange Rate Report 03.11.09

3rd November 2009

The Euro stabilised towards the end of last week after early losses against Sterling. Consumer prices in the Euro zone fell 0.1% during the year and combined with a slowdown in money supply growth, to 1.8% in September from 2.6%, made October the fifth consecutive month that the annual rate has remained negative. In turn this raised fears that the European Central Bank (ECB) may need to keep interest rates low in order to maintain support for the economy. Finally, the week ended with the announcement of a 9.7% unemployment rate, the highest since the Euro’s introduction.

The GBP/EUR rate closed up 2.66% last week at 1.1159, from 1.0870 a week earlier, benefiting those converting Sterling into Euros. Those looking to do so in the future should discuss the possibility of a forward contract in order to take advantage of today’s rates up to two years into the future.

This week sees the release of the latest interest rate decision by the European Central Bank on Thursday. With a no-change decision widely expected the Euro is likely to gain strength and with it weaken GBP/EUR exchange rates. Finally, coupled with the prospect of further Quantative Easing by The Bank of England on Thursday those looking to purchase Euros should perhaps be considering the possibility of doing so before rates fall further.

In order to take advantage of these spikes, and protect yourself from the falls you should consider “forward buying contracts”, and “limit and stop loss orders”, all of which can help maximise your returns. Visit our main website for Live Exchange Rates or visit our recommended Money Broker website to help with your currency exchange rate problems.

Blog posted by Expedia Property SL – Tenerife Estate Agents for Tenerife Property

Euro Pound Exchange Rate Report 27-10-09

Last week saw a very turbulent week, with Sterling starting at a low 1.0880 against the Euro, and strengthening to just over the 1.11 mark in the early part of the week, as Bank of England minutes on Wednesday morning showed unanimous support for a halt in the Quantitative Easing programme upon signs the economy was beginning to recover. Sadly, this strength was to be short lived as GDP figures on Friday unexpectedly showed that the UK was still in recession for the third quarter. Upon this release, Sterling dropped a cent against the Euro in seconds, then a further drop down to 1.0810 as the day went on.

This news was a huge blow to the UK economy, as almost all analysts had been predicting that the UK would see a return to growth in line with the rest of the world. If the US shows positive GDP figures this week as expected, then it is likely that the United Kingdom will be the last of the major world economies to exit recession, which is likely to have catastrophic consequences for the pound. Prime Minister Gordon Brown announced over the weekend that the UK would see a return to positive economic growth by the end of the year, although he offered no justification for his comments other than confidence in the future success of government fiscal policy.

Data releases on the continent were on the quiet side last week, with Sterling strength, then sudden weakness being the driving factor behind the GBP/EUR cross, and this is likely to remain similar for the week ahead, with housing data from the UK on Monday, and inflation data from the Eurozone on Friday the only noteworthy releases, and neither likely to have a significant effect on the market.

More likely to affect the market are speeches by key policymakers such as central bank Governors Mervyn King or Jean-Claude Trichet as well as government finance ministers from the UK and Europe. Unfortunately, the markets get very little notice of such announcements, and thus they react sharply to any comments as and when they appear.

In order to take advantage of these spikes, and protect yourself from the falls you should consider “forward buying contracts”, and “limit and stop loss orders”, all of which can help maximise your returns. Visit our main website for Live Exchange Rates or visit our recommended Money Broker website to help with your currency exchange rate problems.

Blog posted by Expedia Property SL – Tenerife Estate Agents for Tenerife Property