Latest Currency Exchange rates news

pm, May 18th 2010. Latest Currency exchange rates movements.

Now that the UK Election has been decided, the markets have settled into slightly more predictable fluctuations. Yesterday was a fairly quiet day for currency rates, with the Euro consolidating a little after its rapid descent. Don’t expect this to be the end of the euro slide though. The markets show large numbers of speculators don’t have much faith in the Euro at present.

 

GBP to USD: The latest news from the USA suggests that they now have a robust economic performance, relative to the UK and Europe. This has led to the Pound sliding against the Dollar. It wasn’t so long ago, that we saw $1.63 to every £1. We are now seeing around $1.44. It would seem that everyone has run for the safety of the dollar.. and Gold.

EUR to USD: The Euro has taken a battering from the US Dollar. It was only towards the end of last year when you could get a rate of 1.50. It’s now heading down, very close to 1.20. That’s a drop of 20%! Predictions are that the markets still don’t like the overall weakness of the economies in the Eurozone and this rate may drop further over the next few days.

GBP to EUR: The costly and hastily “cobbled together” aid package for Eurozone economies hasn’t convinced the markets, and the Pound has strengthened slightly against the euro. If economists are to be believed, we may see the Pound strengthening even more, as we approach the forthcoming emergency budget. However, don’t be overconfident about the strength of the pound against the Euro. As we get closer to the budget annoncements, we may see the pound value start to fluctuate wildly. Let us know what rate you would like here, and we will contact you.

AED to AUD: The Australian Dollar (Aud) has been riding a high against the UAE Dirham. In the last year, we have seen the Dirham dip from around 0.3005 aud right up to around 0.3037. That’s around 10% in a year! Is this the time to consider selling Australian dollars and buying AED? Maybe buy forward with just 10% deposit though us?

With currency rates fluctuating as much as they are at the moment, now may be a good time to buy your currency ahead of time buy using our “forward currency contract” mechanism. This only requires a 10% deposit initially from you.

If you would like to discuss any aspect of currency conversion with one of our experienced currency dealers, please contact us here and we will get back to you.

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Take the risk out of currency fluctuations

Take the risk out of currency fluctuations

Global Currency Exchange Network have a simple way to remove the risk of all major currencies getting more expensive. You only need to place a deposit of 10% of the whole amount and that will fix the exchange rate today, leaving you free to deal with other matters until the day you need the total amount changed.

That’s it! No catches, no hidden deals.

Why would you want to buy your money now?

Currency values change every few seconds. Over a period of a week, or a month, the value of one currency to another can change dramatically. It’s possible that you could lose a great deal of money by waiting until you actually need the money in the other currency.

So, if the exchange rate looks good at the moment, and you have 10% of the total amount available, it could be the time to buy a FORWARD CURRENCY CONTRACT. This simply fixes the exchange rate today.

 The table below shows how much a particular currency has weakened, or strengthened, in just the last month.

If we take one currency pair shown: EURO to GBP (Pounds). The euro has weakened by 3.38% over the last month. If you have €100,000 and you wanted to change to Pounds, you could have done of of two things a month ago.

1. Wait until now to change the euros. In which case, you will have lost €3380
2. Buy the Pounds with your euros. In which case you will have gained €3380 against today’s rate.

Who can afford to lose €3380?

Here’s who this could help the most:

• Property buyers overseas
• Businesses who have regular invoices to pay, or need to fix the value of their goods for a contract, or delivery
• People living overseas, who need regular amounts exchanged.
• Customers who feel that the exchange rate has peaked for now.

To have a chat about how we can help you to buy your money ahead of time, please contact your GCEN dealer here.

Currency Exchange Update

As there have been significant changes in the currency markets over the last few days, I thought I’d drop you a line just in case you were thinking of exchanging currency.

I have kept this update to the main currencies. However, if you require a quote for any other currency types, please just email me here, or call me on the usual numbers, displayed at the end of this email.

 Today, US markets have shown the Dollar making modest gains against the Euro and Pound, while the Yen has dropped across the board.

Euro to US Dollar: The Euro has lost some of the ground that it gained yesterday. After hitting a two-week high of 1.3785, the rate has dropped back slightly. Bear in mind that we were at 1.50 just a few weeks ago. If you have Dollars to change to Euros, you may want to talk to us even if you don’t need the money changed straight away. As long as you have a 10% deposit, we can secure the rate for the balance to be paid when you need the money.

 Pound to US Dollar: We were at 1.63 Dollars to GBP a few weeks ago, but we’re now around 1.58. The rate was a little lower at 1.5625 yesterday. Likewise, if you have Dollars and want to buy Pounds, talk to us as soon as possible. If you have Pounds to change to Dollars, let us know what rate you’d like to change at, and we’ll contact you as soon as it reaches that level

The Yen has been the big loser over the last few days.

• The US Dollar to JPY has changed significantly since the low of 88.55 on Feb 12^th. Today, the Dollar has strengthened up to 91.10.
• The GB Pound to JPY has shown the same improvement from 140.70 yesterday, to 143.65 today.
• The Euro to JPY was similar, from 122.30 to 124.85 today.

The Pound to Euro hasn’t shown significant moves recently. However, if you have a sum to exchange, now would be a good time to talk to me as we can either fix a good rate for you now, or elect to notify you when the rate reaches your preferred level.

If you have to send money by a certain date, please let me know and I will carefully watch the rates for you. The current Interbank rate for GBP:EUR is around 1.15

The UAE Dirham is, of course, tied to the US Dollar, so my comments on the current rates for the US Dollar apply to the UAE Dirham. If you have Dirhams to change to euros, pounds, or yen, the rate is with you at the moment.

 

Don’t forget, you can use our online buying facility for smaller amounts.

If you’d like to know more about buying online, have a look at this explanation where you’ll find a link to our site for online buying.

 I hope you’ve found this helpful, and I look forward to hearing from you.

Good time to Sell Euros and Buy Pounds?

Some of you may recall my article on the 27th of January.. “Is this a good time to buy euros with pounds?” Well, it transpires that it was. Now the situation has reversed.

The Pound value has dropped against the euro, since that article. We had a case, this week, where a customer may not have been able to complete on his house purchase as the exchange rate had dropped so much that there was a shortfall of a few thousand euros on completion day.

This could have been overcome if the client had bought a Forward contract at the exchange rate that existed on the 27th of January. If he had done this, he would have been sure that he would have had sufficient funds for his property purchase.

So,…. Is it a good time to sell euros and buy pounds? Probably. No-one can say for sure, but it would appear that the pound is as weak as the euro, when compared to the US Dollar and the Yen. The eurozone is still dragging the Greek finance problem around and the Pound is still suffering from a wave of poor economic results. So, some would say that the Euro and the Pound have levelled off. Experience shows that this staus quo rarely remains for long.

The easiest way to look at this is; if you need to change your money at some point and you need to achieve a certain amount, then you have these options:

1. Exchange all of your Pounds for euros at today’s rate. This is called a SPOT Contract. It ensures that you fix the rate today and you get your money transferred, to where it needs to be, in good time.
2. Exhange some of your Pounds for Euros and risk the exchange rates going in your favour by the time you need to have the rest of the money changed. This is HEDGING in its simplest form. It does mean you can sleep at night, safe in the knowledge that you’ve made sure you don’t lose too much if the rates don’t go your way.
3. Exchange your Pounds for Euros, at today’s exchange rate with just 10% deposit. Then pay the balance when you need the money in the future. This is called a FORWARD Contract. This is the way that most of my clients are now exchanging their money. By paying just a 10% deposit, our clients can relax, safe in the knowledge that they have the right amount of money for their property purchase.

Of course, this doesn’t just apply to Pounds and Euros. It applies to any tradeable currencies. It also applies to much smaller amounts than usually needed for property purchases.

Contact me here, for some free advice on how to get the best currency exchange rates to suit your circumstances.

Worried about the state of the Pound?

How will the low Pound value, against the Euro,  affect International Estate agents?

Over the last week, we have seen the pound decline in value against the Euro. This has started to affect sales that estate agents have agreed some time ago.

Buyers are pulling out of the deals claiming that the Pound has lost so much value, that the properties they agreed to buy, some time ago, will now cost them many more pounds.

This was avoidable. Sadly, many clients chose to ignore good advice to fix the rate at a given point some months ago when the rate was around 1.17 euros to 1 Pound. They are now faced with getting around 1.08 Euros to a Pound. When put into context, with a house purchase of 200,000 euros, that´s a difference of 14,245 British Pounds!

Your buyer will now have to choose between:

1. finding the extra money
2. buying another property that´s 14,250 GBP cheaper
3. pulling out of the purchase altogether

What can Global Currency Exchange Network do about this?

There´s nothing we can do about the current exchange rate, but we can help by:

1. constantly reviewing the rate and calling your client as soon as it rises sufficiently to mitigate the perceived loss
2. register the clients for what we call a “Limit Order”. This is an agreed exchange rate that the client will be happy to buy their Euros at. In this case, it could be 1.10 euros to 1 GBP. We then call the client as soon as the currencies hit this rate and they have the option to buy at that moment. (More on how we do this later)
3. We register the clients for what we call a “stop-loss order”. This is a point at which the client has the option to buy the currency so that the loss doesn´t get any greater. Using this example, this could be set at 1.06.

How to avoid all of this in the first place?

If you send your clients to us as soon as you have them appointed, we can discuss with them ways to improve their current perceived value of the Pound against the Euro. Of course, we will offer a better rate than any bank. In addition to this, we don´t charge for the transfer or any commission.

Using this example of a 200,000 euro purchase, a bank is likely to offer a rate of 1.06 euros to the pound and we would offer 1.08. The bank is likely to charge a commission of  30 euros and a transfer charge of  up to 60 euros. Finally, we have negotiated that the local banks in Portugal and Spain won´t charge their usual recipient fee of 1% (2,000 euros). This represents a difference in charges of 2090 euros PLUS a rate difference of  3494 pounds

So by using GCEN, your client would be likely to save 5346 Pounds.

Quite a difference and likely to create a more stable sale / purchase for you

One last way to avoid this:

If the clients are introduced to us early enough, we can offer what we call a “Forward Currency Contract”. This is ideal for everyone. The client will only have to part with just 10% as a deposit (20,000 euros in pounds equivalent). After that, they have fixed the rate and can relax as their only commitment is to part with the balance on the date when the currency deal matures. This is usually set for a month after the sale is anticipated to go through. The client can complete the deal early by sending us the balance money and the property deal can go through on time.

We´re here to help you with your sales. Feel free to call one of us anytime if you think we can help.

Alison in Portugal, Marie in Costa Blanca, Lucy and Emma in Mojacar.