Euro (€) Currency Thread

kronenbourg

quick heads up for anyone wanting euros over the next 4 few days
i work for travelex/sainsburys and we are running a promotion from 10th-14th on euros ( min spend applies )
theres a special rate of 1% on advertised rates ( today was 1.1362 ) as well as £5 off £500 voucher ( download of sainsburys website ) and also 500 extra nectar points on purchases of £300

this offer is valid at branches of sainsburys with a travelmoney bureau

JasonLVC

STERLING/EURO:
The pound came further away from recent highs yesterday, dropping half a cent against a broadly firmer euro although the price is recovering this morning.

• Although the UK’s trade deficit (at £9.2bn for December) did not have a significant bearing on trading, it certainly didn’t do the pound any favours.
• Sterling was undermined though as investors pared back their expectations for a rate rise from the BoE later today. The Bank is widely expected to keep rates on hold at 0.5% despite rumours to the contrary.
• Any reaction to the BoE's decision will probably be limited if rates remain unchanged although sterling could suffer a brief fall with certain market players likely to be disappointed. Investors will then have to wait for the meeting's minutes due out later this month to see if any more members of the Bank's Monetary Policy Committee (MPC) vote for a rate rise. To data just two members have done so.
• Sterling this morning has recovered back above 1.1750 and looking ahead we expect this trend to remain in place particularly has the market is fully pricing in a rate hike for May.

sabretoothtigger

JasonLVC

STERLING/EURO:
Sterling got close to a one-month high yesterday as investors continue to bring forward their expectation of a near term rate rise.

• Data showed UK inflation remaining stubbornly high, fuelling speculation that the Bank of England will seek to contain price pressures. This speculation was buoyed further as Mervyn King’s explanatory letter to the Chancellor (which he’s required to write when inflation is outside of the target range) was read by the market to have quite a hawkish tone.
• However, in trading this morning the pound has come away from its highs, dropping back to 1.19 with the market a little apprehensive ahead of the Inflation Report.
• The minutes next week are also likely to reveal the differing views on the MPC Committee about the balance of risks. The majority of the members still want to see evidence that the economy can weather the storm of austerity measures before shifting their policy stance. Even with inflation at its current level, we’re unlikely to see a third vote in favour of a rate rise just yet.
• The latest UK claimant count figures are also due today at 09:30 (as is the overall unemployment rate) but the data is likely to struggle for attention ahead of the Inflation Report. A significant monthly change would be needed to even register with investors.

JasonLVC

STERLING/EURO:
Having fallen to near a four-month low on Friday morning, the pound steadily recouped losses through the session to close back at 1.17.

• The pound fell sharply across the board as data unexpectedly revealed a downward revision to UK economic growth for the fourth quarter, pouring cold water on expectations of an early rate hike.
• The data led the market to push back rate expectations to June. Some are still pricing in a 26% chance of a hike in April, lower than around 30% that was being factored in on Thursday.
• Although since December UK figures have shown improvement, weak economic growth highlights the dilemma faced by the BoE in balancing rising inflation, which is double the central bank's 2% target, with the headwinds buffeting the economy.
• Having suffered a near 2% drop on the week, sterling steadily recovered through Friday afternoon as investors took profit leaving the price back at 1.17 where it’s continuing to hold this morning.
• Renewed uncertainty over Ireland looks set to weigh slightly on the single currency in the near term with the incoming government, Fine Gael, looking to renegotiate the terms of the EU bailout.
• Focus for the pound this week will be on the PMI surveys from the manufacturing, construction and service sectors, which are released consecutively from tomorrow. Any sign that activity in these sectors is slowing could undermine the UK currency.

Source : CaxtonFX

JasonLVC

STERLING/EURO: After dipping to a 4 ½ month low, the pound slowly recovered half a cent to reach above 1.1550, amid a shortage of market-moving announcements.

• Sterling received support yesterday as rating agency Fitch affirmed the UK’s AAA sovereign rating, intimating a broadly positive outlook on the British economy. This outlook may be helped tomorrow when monthly UK employment data is released.
• Yesterday’s gains have however been largely undone this morning amid dollar, yen and swiss franc safe haven flows. With focus trained on the Far East, this pair is liable to trade in a relatively tight range short term. A German economic sentiment survey is due for release at 10am today but we doubt that this will incur too much of a reaction within the present environment.

JasonLVC

STERLING/EURO: Sterling suffered a sharp sell-off yesterday as UK inflation undershot considerably, closing the day near a cent lower just above €1.12.

• UK headline inflation dropped from 4.4% to 4.0%, taking the pressure off the MPC to tighten monetary policy in the short-term. The data saw the market scale back a fully priced in BoE rate rise from August to October. For sterling, this contrasts unfavourably with market expectations of a further ECB rate rise in July, which is naturally favouring the euro at present.
• In line with recent trends, some very disappointing German economic sentiment data failed to make an impact on the euro; the same is expected of today’s eurozone industrial production data. In the short term sterling is likely to find any significant gains against the euro very hard to come by, even if improvements in the UK job market are announced today.

Current exchange rate is 1.12

Orville

JasonLVC wrote: »

Current exchange rate is 1.12

That sucks

JasonLVC

Orville wrote: »

That sucks

It does for people going on holiday to the Eurozone......but it is good for UK exports, so there's some silver lining to be had.....

Orville

JasonLVC wrote: »

It does for people going on holiday to the Eurozone......but it is good for UK exports, so there's some silver lining to be had.....

Oh yeah i understand , i was however thinking of taking my son to eurodisney again this year, but with the way things are going with the £ against the Euro i think i'll give it a miss.