Euro (€) Currency Thread

inspector_monkfish

1.1390 trading

Jake80

Hi, If you do need Euros my Travel Cash are having a sale on their Euro currency cards at the moment (mytravelcash.com/sale). I think it is only on for another half an hour or so but the rates at 1.1276 at the moment which is looking pretty good to me...

JasonLVC

STERLING/EURO:
Having jumped up to 1.15 in the very early hours of yesterday morning, sterling steadily lost ground through the day following some downbeat comments.

• Ex-BoE policymaker David Blanchflower, a notorious dove, commented about the very real possibility of a double-dip recession and the potential negative impact of the spending cuts. He said, “we are desperately in danger of a double dip, and the last thing you do in a recession is make things worse.”
• He added that the spending cuts will be a “terrible mistake” and threaten to derail any recovery.
• Unsurprisingly the comments did not sit too well with the pound that continued to lose ground through the day to close back below 1.14.
• In trading this morning sterling remains on the back foot and will likely remain vulnerable ahead of the release of the UK government's spending review on Wednesday, as well as the BoE minutes, which may reveal one or members voting in favour of additional stimulus.

A number of key central bank speakers are the main focus today, with Mervyn King due to talk tonight at 19:50. As yet though it looks like price movements will be relatively limited ahead of tomorrow’s announcements, which should give the markets clearer direction.

Source : CaxtonFx

JasonLVC

STERLING/EURO:
Bucking the recent trend, sterling was the currency outperforming yesterday, boosted as UK data revealed a higher rate of economic growth than had been expected.

• It was revealed yesterday that third quarter economic growth in the UK came in at 0.8%, double the broad market estimate, sending sterling soaring across the board.
• The more positive sterling environment was added to following a vote of confidence in the government's management of the economy from ratings agency Standard and Poor's, which revised its outlook on the UK to "stable" from "negative", securing the triple-A credit rating.
• The announcements had the effect of dampening speculation of an imminent policy change from the Bank of England to extend quantitative easing.
• Indeed, Andrews Sentence took the opportunity to reiterate his stance for a higher interest rate stating in an unscheduled radio interview that a move to extend QE now would be “taking policy in the wrong direction.”
• Although Adam Posen later in the day defended the need for loose monetary policy, he has likely lost support in light of the announcements.
• The pound achieved its best daily gain against the euro since June and is continuing to edge higher this morning with the price now back near 1.1450, a full two cents higher than Monday.
• The data calendar is more US based today, which should leave this pair relatively range bound with tomorrow’s UK inflation report hearings the next focus.

Source: CaxtonFx

JasonLVC

The pound moved back through €1.15 yesterday as data revealed an unexpected acceleration in the pace of manufacturing output in the UK.

• Above forecast UK manufacturing data boosted confidence in Britain's economic recovery and helped to further dampen the chances of the Bank of England restarting its asset purchase scheme.
• The index measured an encouraging 54.9 (with 50 marking expansion in the industry), some way north of the consensus market expectation, which had forecast a modest monthly fall to 53.2.
• The figure is certainly an encouraging sign for the fourth quarter and triggered a stronger pound across the board.
• Ahead of the BoE's policy announcement on Thursday the market will keep a close eye on data from the construction and services sector, the former of which is due for release this morning.
• However, the pound is struggling to generate the momentum to head higher and has fallen off slightly today but the price is continuing to hold above 1.15. With borrowing costs for Ireland and Portugal shooting higher the single currency could struggle to sustain gains in the near term.
• There are no significant data releases this morning, and ahead of the key central bank meetings which will dominate the markets, we expect a relatively range bound affair in trading today.

JasonLVC

After an initial surge higher against the euro, sterling found its gains eroded in later trade as the market reacted to the Fed’s policy decision.

• Following Tuesday’s sharp sell-off, sterling had a positive start yesterday after data revealed that activity in the UK services sector accelerated in October.
• The PMI's main business activity index rose to 53.2 last month from 52.8 in September, the highest reading since June and confounding analysts' forecasts of a slight dip.
• It marks the second consecutive month that growth in the sector has accelerated helping to offset some of the damage done by the uninspiring construction figures on Tuesday.
• Sterling’s gains were undone though after the Fed’s move to extend QE prompted a dollar sell-off, boosting demand for the single currency.
• The pound has recovered back to €1.14 this morning, receiving a little help from the Halifax housing price index, which showed average prices rose by 1.8% in October.
• Focus now turns to the policy announcements of both the Bank of England and European Central Bank. Off the back of surprisingly positive Q3 economic growth and better-than-expected PMI readings in the services and manufacturing sectors, the chance of the BoE extending QE is looking increasingly unlikely.

As ever the ECB press conference should prove the more interesting affair, but aside from some potentially dovish comments regarding peripheral borrowing costs, there is not too much scope for large price movements

The US announced $600 billion of QE which caused a rush on Euro, hence the pound dropping agaisnt it.

EycplUK

Probably been asked before , sorry !
If i use my Debit Card in a Eurozone ATM which rate do i get ?
Tourist or Business ?
Regards

Voyager2002

EycplUK wrote: »

Probably been asked before , sorry !
If i use my Debit Card in a Eurozone ATM which rate do i get ?
Tourist or Business ?
Regards

Try asking your bank.

dzug1

EycplUK wrote: »

Probably been asked before , sorry !
If i use my Debit Card in a Eurozone ATM which rate do i get ?
Tourist or Business ?
Regards

You get the business rate or some version of it

then your bank (with few exceptions) slaps on charges which bring it to the tourist rate (or somewhere near it)

A bit of an oversimplification but broadly true

Baldur

EycplUK wrote: »

Probably been asked before , sorry !
If i use my Debit Card in a Eurozone ATM which rate do i get ?
Tourist or Business?

Mastercard rates - https://www.mastercard.com/us/personal/en/cardholderservices/currencyconversion/index.html

VISA rates - http://www.corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp

Modified by your issuer's charges - See Credit & Debit Card charges http://www.moneysavingexpert.com/travel/overseas-card-charges