Forex focus: euro has experts sitting on the fence

What are the chances of the euro reaching €1.42 again any time soon? We asked the experts

It was only a few weeks ago that sterling peaked at a seven-year high against the euro at €1.42. Since then the single currency has regained around six cents.

That might not sound much, but if you were planning on spending £100,000 you’d be €6,000 worse off and if you received £1,000 a month you’d have €60 less to spend.

So what are the chances of the euro reaching €1.42 again any time soon? A straw poll among currency specialists showed opinion was divided.

Among those in the positive camp, is Charles Murray of FC Exchange ( fcexchange.co.uk ), who said: “In the short-term 1.40-plus is still a strong possibility, as Greece is dangerously close to running out of money 20 April touted as a likely date for this to happen.”

Alistair Cotton from Currencies Direct ( currenciesdirect.com ) also expects the rate “to move back towards 1.40 over the coming months”.

Caxton FX’s ( caxtonfx.com ) Nicholas Ebisch is even more upbeat: “There is scope for the rate to return to its peak of 1.4250 soon. The predictions for the euro over the next three months are that there will be steady euro weakness.”

Trevor Charsley at AFEX ( afex.com ) agreed, saying: “On the premise that we get a similar government to the incumbents we do see GBP/EUR testing 1.4250 after the election. The next target after this is 1.4500.”

Angus Campbell from FxPro ( fxpro.co.uk ) doesn’t believe there is much that can help the euro, saying, “It is hard to see the euro regaining too much of the ground it lost in the first quarter of the year despite its recent best efforts to do so.”

On the other side of the euro fence, among the pessimists is Chris Towner of HiFX ( hifx.co.uk ). He said: “We would expect the euro to strengthen back again towards €1.30 in the months ahead.”

Josh Ferry Woodard is also in this camp, saying, “As long as Greek officials manage to keep the Hellenic nation inside the eurozone then we could see GBP/EUR weaken towards 1.32-1.34 over the next three months.”

Those sitting on the fence include Chris Saint of Hargreaves Lansdown (LSE: HL.L – news) ( hl.co.uk ) is reluctant to commit while the UK fights its closest general election in decades. He said: “Sterling’s 10pc rise since the start of 2015 to highs of €1.4250 looked to be a little too far too fast and I don’t see it reaching these heights again before we know the outcome of the election. However, the euro’s longer-term weakening trend looks to be intact and I suspect sterling could re-test these highs later in the year, particularly if ‘Grexit’ fears linger as UK political risks fade.”

Charles Purdy of Smart Currency Exchange ( smartcurrencyexchange.com ) is also hedging his bets: “The euro is unlikely to show major strengthening in the short term but also unlikely to see further significant weakness, especially as other countries such as the UK and the US will be very reluctant to see their exporters unduly penalised.”

The huge question mark hovering over the direction of the pound is the UK election in May.

David Kerns of moneycorp ( moneycorp.com ) said: “The GBP/EUR rate appears to have peaked in the short term at €1.42 as sterling itself has come under selling pressure following some disappointing economic data releases at home.

“As the general election looms ever closer that too can have a detrimental impact on the pound as investors shy away from the UK until the leader of the next parliament is known.”

A hung parliament of some form or another looks likely at the moment and none of the outcomes is completely positive. A slim Tory win, while generally encouraging for the pound, has the drawback that David Cameron’s promised referendum on the EU will depress sterling.

However, the biggest threat to the eurozone is the risk that the Greek debt crisis will mean it exits the currency bloc. As negotiations between the Greek government and its creditors heat up and deadlines get nearer, starting this week, the euro is likely to start wobbling.

“The main danger from a ‘Grexit’ is that it sets precedence for departure from the euro,” said Charsley. “Something that Mario Draghi the ECB governor has said is irreversible. If he is proven to be wrong, this could be the beginning of the end for the euro.”

And that’s not all. The eurozone is still struggling with too many out of work, particularly in the southern states, low or no inflation and quantitative easing, which all combine to keep downward pressure on the currency.

But, from a self-interested point of view, a continuing weak euro is going to be welcomed by businesses and expats getting funds in pounds.

BUZZ-The UK stocks exposed to a weaker euro

** Big swing in euro exchange rate puts spotlight on UK companies with significant customer bases in the eurozone

** EURGBP approaching 0.70, fall of 9.2 pct YTD has already outstripped 6.6 pct fall in 2014

** Several FTSE 100 stocks derive more than 50 pct revenues in euros

** Imperial Tobacco (LSE: IMT.L – news) highest EUR exposure in the index at c. 71 pct

** Majority of debt denominated in euros and benefits from stronger macro background in the eurozone, but profits hurt by a stronger euro

** Said in its FY2014 results a 10 pct depreciation in the euro would hit income by £307 mln, knocking £1.1 bln off co’s share price. Chart: http://link.reuters.com/qan34w

** Stock down 6 pct in last three trading days but still up 10 pct YTD

** Other stocks with majority of revenues from eurozone: 3i (c. 67 pct continental Europe), Vodafone (56 pct), Easyjet (52 pct)

** Travel and real estate cos also among most exposed to eurozone on FTSE 250 and Small Cap indices

** Thomas Cook (Xetra: A0MR3W – news) , Flybe, Hansteen among others that derive majority of revenues from the eurozone (RM (LSE: RM.L – news) : [email protected])

Positive signs continue for sterling pound

A positive end to the week saw sterling further its gains against both the euro and US dollar, as a member of the US Federal Reserve’s monetary policy committee spoke out about the dangers of a premature increase in US interest rate.
The week ahead could be an important one for sterling, with a host of data released from the UK, including Purchasing Managers Index (PMI) data from a number of industries.
This will be closely followed on Tuesday by the PMI for the construction industry, which has shown significant expansion over the past year. PMI data for the services sector on Wednesday will be eagerly awaited, with this sector contributing to around 70 percent of UK industry.
Following this we will see the release of the latest interest rate decision from the Bank of England. Following recent comments from BoE Gov. Mark Carney, it is highly unlikely we will see a rate change, resulting in something of a non-event here.

The euro
The euro had a mixed day on Friday, as official data earlier showed that French consumer spending rose 0.6 percent last month, significantly beating expectations for a 0.5 percent fall. December’s figure has also been revised up to a 1.6 percent increase. Yet the single currency lost ground again on Friday.
The euro zone data flow is high this week. Just like the UK they will be releasing the Purchasing Managers Indices for all sectors and all countries during the course of the week.
The European Central Bank (ECB) is also holding its monthly meeting. There is expected to be no change in the euro zone interest rate but they will be issuing an updated economic forecast on growth.
Expectations are for a positive upgrade — it should be noted that Germany and Spain recorded greater growth rates than the UK for the final quarter of 2014 — so we may see some support for the euro. It also has to remembered that the ECB have been keen for euro weakness to boost activity and exports and this does seem to be happening.

US economy
Friday was a positive day overall for the US, who saw their economy grow by 2.2 percent, making it the fastest growing economy in the developed world. Another welcome development came in the form of positive consumer confidence. However the US dollar was undermined towards the end of the day as a Federal Reserve Member cautioned against US interest rates being increased too quickly.
Another busy week is in store for the US, starting with the Purchasing Manager Indices (PMI) for Manufacturing coming out on Monday, as well as personal income and spending. Federal Reserve Chair Yellen has described these data releases as a possible threshold that she wants to see increase before raising interest rates.
Yellen is actually due to speak mid-week — she may vote for an interest rate hike, with a few Federal Reserve members already suggesting June as the possible month for the start of a rate hike. Non-Manufacturing PMI is out also due, and expected to show continued growth, along with an indicator for employment change.
Thursday will see another indicator for unemployment claims data for the US, leading up to the all-important Non-Farm Employment change data released on Friday.
Federal Reserve member Williams also speaks on Thursday, shining the spotlight on another member predicting when the start of an Interest rate hike may take place.
Friday is likely to be the most volatile day for the US dollar with the non-farm employment change due, which has shown steady positive growth in the employment market. Average Earnings data is also out, a key figure that the Federal Reserve want to keep an eye on, along with the trade balance figures and unemployment rate following from the Employment change release.
The fortunes of the US dollar are moving up and down in these uncertain times. If you are looking to buy or sell US dollars, we suggest contacting your trader now for the latest rates, economic and market news and currency buying strategies.

Japanese yen
The Japanese yen had a poor finish to the week, dropping against the US dollar at the end of the week. Official data showed that Japan’s household spending fell 0.3 percent last month, compared to expectations for a 0.4 percent rise. This followed a 0.4 percent increase in December. This was not the only piece of poor news for Japan on Friday, as a separate report showed Japan’s retail sales declined at an annualised rate of 2 percent, much worse than experts’ expectations.

Canadian dollar
Friday saw the Canadian dollar jump, as demand for its US counterpart dropped, shrugging off data that showed a consumer price fall last month, despite the initial higher expectations.

Charles Purdy is director of Smart Currency Exchange, London.

US and UK rate hikes to drive euro further south

The euro has lost considerable ground since last spring as the persistence of very weak growth in the eurozone, coupled with a fall in inflation to very low levels, forced the ECB into further policy easing moves.

It has also become increasingly clear that while interest rates are likely to rise, albeit modestly, in the US and UK over the next couple of years, they are set to remain pegged at virtually zero in the eurozone for a prolonged period.

The euro fell from $ 1.40 last May to close on $ 1.20 by the end of 2014. Against sterling, it declined from a high of 84p in early 2014 to 78p at the end of the year. These trends continued in the opening weeks of 2015, with euro weakness gathering momentum on the back of the ECB announcement of a full-blown QE programme.

The currency is down around 5% against both the dollar and sterling since the start of the year. It fell through critical support levels near $ 1.18 against the dollar and is now trading at around $ 1.14. Against sterling, it has fallen below 74p after major support at 78p gave way.

Another noticeable feature of FX markets in early 2015 has been increased volatility, in part, related to central bank policy changes. The Swiss National Bank caught markets completely off guard with the shock decision to discontinue its policy of capping the franc’s exchange rate against the euro, resulting in a sharp appreciation of the currency.

Meanwhile, surprise easing announcements from Central Banks, such as the Bank of Canada, Reserve Bank of Australia and the Swedish Riksbank, have resulted in weakness for their currencies. The euro has also been volatile enough, recently. It fell to as low as $ 1.11 in January, before edging back to trade in a $ 1.13-$ 1.15 range recently. The uncertainties about Greece, negative eurozone inflation, and QE have all been negative factors weighing the single currency.

Changes in expectations about when we will start to get rate hikes in the US and UK have also been impacting markets, which have become particularly sensitive about labour market data in both economies. In our view, if expectations for a US rate hike by around mid-year prove correct, then the dollar is likely to continue to move higher.

Important upcoming events in this regard are Federal Reserve chairwoman Janet Yellen’s bi-annual testimony to Congress this week and the next Fed policy meeting in mid-March. The expectation is that the Fed may signal that a rise in US interest rates is increasingly likely at one of these events.

The euro-dollar rate could test support levels at around $ 1.10-$ 1.11 before the end of March on any Fed tightening signals. It could then move lower to around the $ 1.05 level later in the year, if US rate hikes materialise. With the Fed expected to raise rates by mid-2015, pushing the dollar higher, sterling traders will face an interesting question: Should sterling also continue to move higher against the euro? In our view, US rate hikes would strengthen the view that UK rates will also have to eventually rise.

If expectations of even modest rate hikes in the UK remain intact, the currency should appreciate further against the euro. Hence, we see the euro-sterling rate heading towards 70p over the course of 2015. We expect sterling to remain fairly stable against the dollar at close to $ 1.50. An important risk to bear in mind for sterling, though, is a result in the UK general election that markets view as negative for the currency. The outcome of the election is unclear. It could result in an unstable, minority government. It is also unclear whether there will be a referendum on the UK’s continued membership of the EU. These issues have the capacity to cast a cloud over sterling this year.

The Euro Beyond Greece: Getting Larger, Not Smaller

Everyone is looking at Greece, but that is not the real story for the future of the euro. The more important drama centers on Denmark. In the longer term, the Danes – who currently fight hard to preserve the krone/euro peg — have no alternative but to join the euro.

And this has important implications for two other persistent non-members of the single currency: Switzerland and the UK.

The Greek government may fail to square its heated rhetoric with the circle of cold reality that encompasses it, bring down its banking system and default upon its debts. But even then, the euro would remain the country’s de facto currency.

In such a crisis, the heterodox coalition led by far-left Syriza could not continue, precipitating new elections with new political groupings.

Greece is in the midst of a revolution to transform itself into a serious modern European country for which membership of the euro, and the concomitant exorbitant accumulation of debt, are merely the stage and backdrop, not the play itself.

It’s the exchange rate, stupid!

This would be a short-term disaster for the Greeks. But it would not derail reform efforts in other struggling peripheral euro members.

Indeed, the risks of “contagion,” if such exist, would be greater were Alexis Tsipras, the Greek prime minister, to win concrete rather than cosmetic concessions from his partners.

The control of debt was and is a vital part of the euro’s construction. But its fundamental raison d’ètre was, and is, the simple truth that in today’s world of freely flowing capital, which operates on a scale far exceeding actual commercial transactions, sharp exchange rate fluctuations are a serious disincentive to trade.

A true single market in the European Union must eventually have a single currency. If the exchange rate mechanism had worked generally, it would probably have been impossible to create the euro in 1999. The ERM did work for the Danes, as they had successfully maintained a peg with the D-mark for almost a generation.

Denmark’s fight

Now, the Danish National Bank is fighting to maintain the peg in what is left of the ERM, using euro intervention purchases, negative interest rates and the freezing of bill and bond auctions. But the end of this story is clear. The Danes will eventually have to join the single currency de jure, not just de facto.

The Danish crisis was triggered by last month’s decision by the Swiss National Bank to drop its peg against the euro. This exceptionally disruptive episode shows enormous uncertainty in Switzerland as to how to deal with the EU, and most specifically with the euro area.

It followed the contradictory outcomes of Swiss referendums on European rules on free movement of labor and on the composition of the nation’s foreign exchange reserves.

The Swiss franc has risen sharply against the euro, making a severe and sustained recession in the country unavoidable. This has implications, too, for the UK, with its chronic trade deficit, still inside the EU but contemplating leaving for some kind of Swiss-style detachment.

British monetary independence is increasingly illusory and is a major barrier to the essential export- and productivity-oriented rebalancing of the UK economy.

The Danes are paying a very high price in distorting their monetary policy so they can use a different colored euro banknote.

But further in the future, the Swiss and even the British will face comparable stresses dragging them towards the only sure solution for seeing off speculators and securing the stability they need: abolishing their respective exchange rates and joining the euro.

ECB and BoE rate reviews: Pound declines steeper than euro since November decisions

The euro has fallen sharply so far this week while the pound has strengthened, but compared to where the currencies traded before the November rate decisions, the UK unit has dropped much more than the common currency, indicating the market preparedness for December rate decisions.

Skyrocketing US dollar is also weighing on the euro and the pound along with other major currencies. The USD index rallied to a 68-month high of 89.04 on Thursday helped by better than expected services data from the US.

The Bank of England (BoE) will announce rates at 12:00 GMT and the European Central Bank (ECB) at 12:45 GMT. The market consensus is for hold decisions from both the apex banks, the former at 0.5% and the latter at 0.05%, in the case of benchmark lending rates.

The EUR/USD has fallen to a 28-month low of 1.2295, making a 1.15% drop from the previous Friday’s close. The pair was at 1.2482 before the November ECB meeting, from where it traded 1.5% down a few hours ahead of the December review.

The GBP/USD has been moving sideways for the past three weeks or so, but at the 14-month low of 1.5585 touched last week, the pair was down 1.8% from the 6 November level.

Both the euro and the sterling have reasons to look south with the eurozone and the UK facing deflationary pressures and slowing growth. The ECB is likely to expand its stimulus measures while the BoE is now expected to wait longer before the first rate hike than earlier expected.

The French unemployment rate rose to 10.4% in Q3 from 10.1% in Q2. The UK Halifax house price growth slowed to 8.2% from a year earlier in the three months to November compared to the October quarter print of 8.8%, but beating analysts’ expectations of 8.0%.

Labour market data from the UK after the November rate review too was pound-negative. Claimant counts dropped by 20,400 in October, more than the September drop of 18,400, but less than market expectations of 24,900.

The UK unemployment rate as of September was 6%, unchanged from August and against the consensus of a drop to 5.9%.

Equity markets in most parts of the world are trading at all-time highs, despite the likelihood of rate tightening in the US, mainly helped by easy money policies in the eurozone and Japan.

Reports that Japan’s market favourite Prime Minister Shinzo Abe will return to the post in the upcoming snap election has boosted the share markets but markets will look for more cues in that regard when Mario Draghi, the ECB president, addresses the media after the rate decision.

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  • ECB and BoE rate reviews: Pound declines steeper than euro since November decisions

Goldman: Pound to hit 15-year highs against the euro

We are in a “multi-year phase of a US dollar recovery” and markets are underestimating the power of the trend

Sterling is to climb relentlessly against the euro over the next three years and will reach levels last seen at the turn of the century, according to new forecasts by Goldman Sachs (NYSE: GS-PB – news) .

The US investment bank said the dollar will rise even faster as the American economy powers ahead and interest rates rise steeply, touching parity against the euro and climbing to 140 Japanese yen. The Brazilian real will tumble to 3.10 as the commodity boom continues to deflate.

“We are in a multi-year phase of a US dollar recovery. The market may be underestimating the scope and persistence of that trend,” it said.

The euro will drop to 0.65 against the pound by 2017, driven by capital inflows rather than trade effects. This approaches levels seen in the period from 1999-2002 when Germany’s economy fell into a deep slump and the Neuer Markt for hi-tech stocks collapsed. This is a dramatic revision since the bank’s previous forecast was 0.85. “Euro downside remains our top conviction view,” it said.

Goldman Sachs said the European Central Bank is still reluctant to buy sovereign bonds and launch full-blown quantitative easing but is likely to act more aggressively than markets expect when it finally does.

On an inverted basis, UK exchange rate would be €1.54 to the pound by 2017. This turn would Europe into a cheap region for holidays once again, and offer bargain basement prices for farmhouses in Tuscany or Aquitaine.

Yet such a dramatic rise in sterling cannot easily be justified by the underlying weakness of the British economy, which already has the worst current account deficit in the developed world. It was running at 5.2pc of GDP in the second quarter.

While part of this deficit is due to the economic relapse in the eurozone, it also suggests that the exchange rate is badly overvalued even at current levels. The International Monetary Fund estimates that the pound is 5pc to 10pc too strong.

The exchange rate follows the divergence in Interest rates

Cumulative inflation in the UK has been much higher than in the eurozone, without any improvement in relative productivity. A return to the euro-sterling exchange rate of fifteen years ago would imply a massive overvaluation, and could push the UK deficit towards 7pc of GDP.

“The current account deficit is probably the worst in history,” said David Bloom from HSBC. “We have only three problems with sterling: cyclical, structural, and political; and we don’t really believe in this recovery.”

“We think that whatever infects the eurozone also infects Britian. They feed into each other and that is why we think sterling will go down with the euro. The dollar is the only rose between these two thorns,” he said.

Euro/Sterling rate for the last 20 years

The Goldman Sachs (Xetra: 920332 – news) forecasts were contained in its predictions for 2015, a list that includes a “New Oil Order” as extra crude supply from Libya, Iraq, and Iran pushes prices even lower.

The bank said the US Federal Reserve will not raise rates until September of next year, later than the markets expect. But it will then move faster and on a steeper trajectory than widely assumed as it tries return to a “neutral” rate of 4pc. The report insists that this will be “manageable” for the world, invoking the curious argument that bond tapering has so far been benign and that Fed tightening will therefore continue to be so in the future.

The analysis of Fed policy almost certainly reflects the broad outlook of William Dudley, a Goldman Sachs economist before he became head of the New York Fed. He is one of the most influential figures on the voting committee. Mr Dudley’s views have tended to prevail over recent meetings and are tracked closely by analysts.

The latest Fed minutes played down concerns about the strength of the dollar, suggesting that the closed nature of the US economy makes it resilient against an exchange rate shock.

Goldman Sachs said the US economic expansion has “several years to run” and will drive another long phase of global growth.

The S&P 500 index of Wall Street stocks will rise to 2,300 by 2017, the Stoxx Europe 600 index will rise to 440, and the Japanese Topix wil hit 1,900, so bask in sunlit uplands and enjoy. Gold will go nowhere.

Goldman Sachs eyes sterling surge to 15-year highs against the euro

The exchange rate follows the divergence in Interest rates

On an inverted basis, UK exchange rate would be €1.54 to the pound by 2017. This turn would Europe into a cheap region for holidays once again, and offer bargain basement prices for farmhouses in Tuscany or Acquitaine.

Yet such a dramatic rise in sterling cannot easily be justified by the underlying weakness of the British economy, which already has the worst current account deficit in the developed world. It was running at 5.2pc of GDP in the second quarter.

While part of this deficit is due to the economic relapse in the eurozone, it also suggests that the exchange rate is badly overvalued even at current levels. The International Monetary Fund estimates that the pound is 5pc to 10pc too strong.

Cumulative inflation in the UK has been much higher than in the eurozone, without any improvement in relative productivity. A return to the euro-sterling exchange rate of fifteen years ago would imply a massive overvaluation, and could push the UK deficit towards 7pc of GDP.

Euro/Sterling rate for the last 20 years

“The current account deficit is probably the worst in history,” said David Bloom from HSBC. “We have only three problems with sterling: cyclical, structural, and political; and we don’t really believe in this recovery.”

“We think that whatever infects the eurozone also infects Britian. They feed into each other and that is why we think sterling will go down with the euro. The dollar is the only rose between these two thorns,” he said.

The Goldman Sachs forecasts were contained in its predictions for 2015, a list that includes a “New Oil Order” as extra crude supply from Libya, Iraq, and Iran pushes prices even lower.

The bank said the US Federal Reserve will not raise rates until September of next year, later than the markets expect. But it will then move faster and on a steeper trajectory than widely assumed as it tries return to a “neutral” rate of 4pc. The report insists that this will be “manageable” for the world, invoking the curious argument that bond tapering has so far been benign and that Fed tightening will therefore will continue to be so in the future.

The analysis of Fed policy almost certainly reflects the broad outlook of William Dudley, a Goldman Sachs econmist before he became head of the New York Fed. He is one of the most influential figures on the voting committee. Mr Dudley’s views have tended to prevail over recent meetings and are tracked closely by analysts.

The latest Fed minutes played down concerns about the strength of the dollar, suggesting that the closed nature of the US economy makes it resilient against an exchange rate shock.

Goldman Sachs said the US economic expansion has “several years to run” and will drive another long phase of global growth.

The S&P 500 index of Wall Street stocks will rise to 2,300 by 2017, the Stoxx Europe 600 index will rise to 440, and the Japanese Topix wil hit 1,900, so bask in sunlit uplands and enjoy. Gold will go nowhere.

ECM launches 750 million euro European infrastructure debt fund

By Claire Ruckin and Jack Aldane

LONDON (Reuters) – Wells Fargo-owned ECM Asset Management (ECM) has launched a 750 million euro (600.14 million pounds) European infrastructure debt fund, ECM announced on Wednesday.

The fund will invest its parallel euro and sterling vehicles in senior debt for high value/low risk assets across infrastructure projects and utilities in continental Europe and the UK, on a buy-and-hold basis.

ECM has teamed up with Santander in order to secure strong deal flow, giving it access to a large number of diverse transactions in Europe and the UK on a first right of refusal basis.

ECM said it had entered into a strategic partnership with a leading European player but declined to comment on it being Santander. Santander was not immediately available to comment.

The fund will mainly focus in floating rate debt, with an ability to invest up to 20 percent in fixed rate debt across the renewable energy, social infrastructure, transport, power, oil and gas, telecoms and utilities sectors.

“With government funding reduced globally and banks’ appetite for long term lending structurally diminished by Basel III new capital and liquidity rules, funding is evolving as these traditional sources decrease. This is a great time therefore to take advantage of the sizeable supply and demand gap present in this space,” said Nicola Beretta Covacivich, ECM Head of infrastructure finance.

The fund is structured as a closed-ended English limited partnership and is due to have a first close by the end of the first quarter in 2015.

ECM manages $ 8 billion of European fixed income credit assets across a number of credit asset classes including investment grade, high yield corporate bonds, asset backed securities, bank capital, senior secured loans, high yield, European emerging market debt and Infrastructure debt.

(Editing by Christopher Mangham)

Early Christmas Bonanza for UK Travellers from BestForeignExchange.com

London, UK (PRWEB UK) 12 November 2014

Outbound travellers from the UK will enjoy cheaper travel expenses due to the weakening Euro, compared to many foreign currencies.

Financial Times on 6th Thursday reported, “The Euro has turned around from a day-long rally to fall to a two-year low after the European Central Bank sent a clear signal that it is prepared to undertake more stimulus.”

“That is a Euro 44 extra bonus, which is good news for UK travellers shopping in Europe this Christmas,” stated Senior Manager Trevor Samuel of BestForeignExchange.com.

It is estimated that over 3 million people will travel during this Christmas and New Year period. If they buy their travel money in advance, they will benefit from the weakening Euro and will receive more value when travelling to the continent.

BestForeignExchange.com, the online arm of Thomas Exchange Global Ltd, has found that a lot of its customers are seeing this benefit when they exchange British pounds into Euro. In addition to Euro, the currencies pegged to Euro such as Croatian Kuna, Czech Koruna, Romanian New Leu, Bulgarian Lev and Serbian Dinar, are expected to depreciate. However, these attractive exchange rates are not offered to customers in some instances, especially at airports and when using bank cards where charges are applicable.

“My advice is to buy currencies in advance avoiding poor rates at airports and reap the benefit of the upward trend in the market,” concluded Samuel.

About Best Foreign Exchange.com
Owned and operated by Thomas Exchange Global, BestForeignExchange.com offers the most competitive exchange rates in London and customers that reserve currencies online will be assured the same exchange rate until close of business on the particular day despite any adverse fluctuations. They stock the widest range of foreign currencies in London with over 120 types of foreign bank notes. All foreign currency buy/sell transactions are free of any commission or charges.

Thomas Exchange Global also offers International Money Transfer Service where funds can be remitted to overseas bank accounts within 1 to 2 days. With commission free service for transfers over £10,000 backed by competitive exchange rates, customers are assured of a better deal and a substantial saving compared to banks and money brokers. Thomas Exchange Global branches are located at Strand, Victoria Street, Liverpool Street, Hammersmith, Cannon Street and Wormwood Street.