Comments on: Pound to euro hits 22-month high despite UK recession http://iberosphere.com/2012/04/pound-to-euro-hits-22-month-high-despite-uk-recession/6025 Spain News and Portugal News - Information and Analysis Tue, 21 May 2013 13:56:02 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Peter http://iberosphere.com/2012/04/pound-to-euro-hits-22-month-high-despite-uk-recession/6025/comment-page-1#comment-25204 Peter Thu, 10 May 2012 09:47:40 +0000 http://iberosphere.com/?p=6025#comment-25204 Hi Alison, Thanks for getting in touch! I apologise for the delay in getting back to you, but I’ve just returned from a brief break in Andalucia. I suppose you know by now, but Francois Hollande was indeed elected President of France on Sunday. The interesting thing though is that this had almost no influence on the rate, as his victory had long been “priced in” to the value of the euro against the pound. (In other words, the decline in the euro that might have came after Hollande’s victory was integrated beforehand.) Instead, it was Greece, and the electoral victory there of parties that favour leaving the euro, that has seen the pound climb to 1.2470 at the time of writing. This trend could well continue, if it starts to look more likely that Greece will in fact take the plunge, and re-instate the drachma. (Though this is just my opinion as someone that works in the industry, and shouldn’t be taken as legal guidance.) Do you still need to make your transfer? If so, feel free to email me at peter.lavelle@purefx.co.uk and I can forward your details to one of our dealers, who can help you in more detail. I hope that’s helpful, and look forward to hearing back, Peter Peter Lavelle Pure FX http://www.purefx.co.uk peter.lavelle@purefx.co.uk Hi Alison,

Thanks for getting in touch!

I apologise for the delay in getting back to you, but I’ve just returned from a brief break in Andalucia.

I suppose you know by now, but Francois Hollande was indeed elected President of France on Sunday. The interesting thing though is that this had almost no influence on the rate, as his victory had long been “priced in” to the value of the euro against the pound. (In other words, the decline in the euro that might have came after Hollande’s victory was integrated beforehand.)

Instead, it was Greece, and the electoral victory there of parties that favour leaving the euro, that has seen the pound climb to 1.2470 at the time of writing. This trend could well continue, if it starts to look more likely that Greece will in fact take the plunge, and re-instate the drachma. (Though this is just my opinion as someone that works in the industry, and shouldn’t be taken as legal guidance.)

Do you still need to make your transfer? If so, feel free to email me at peter.lavelle@purefx.co.uk and I can forward your details to one of our dealers, who can help you in more detail.

I hope that’s helpful, and look forward to hearing back,

Peter

Peter Lavelle
Pure FX
http://www.purefx.co.uk
peter.lavelle@purefx.co.uk

]]> By: Peter http://iberosphere.com/2012/04/pound-to-euro-hits-22-month-high-despite-uk-recession/6025/comment-page-1#comment-25203 Peter Thu, 10 May 2012 09:30:46 +0000 http://iberosphere.com/?p=6025#comment-25203 Hi Gerry, Thanks for getting in touch! You’re right - the pound-to-Canadian dollar took the same dive as the pound-to-euro, in the immediate aftermath of the financial crash. That looks to be a semi-permanent thing, and I wouldn’t expect to see GBPCAD at $2.00 for a long time at this point. That aside though, that doesn’t mean the pound can’t make gains against the Canadian dollar in the meantime, as we’ve seen with the euro. In fact, the 1.61 interbank rate for GBPCAD right now is the highest the pound has been against CAD since late 2011. This is all because of risk aversion, and the fact that, compared to the Eurozone, Britain remains a stable and reliable place to put funds in spite of the fact that it’s in recession. That means it’s possible the GBPCAD could continue to climb in the short-to-medium term. Of course, this is just my feeling as someone that works in the industry, and shouldn’t be taken as legal guidance. Do you have a transfer lined up? If so, feel free to email me at peter.lavelle@purefx.co.uk and I can forward your details to one of our dealers, who can help set out your options with you. I hope that’s helpful, and look forward to hearing back, Peter Peter Lavelle Pure FX http://www.purefx.co.uk peter.lavelle@purefx.co.uk Hi Gerry,

Thanks for getting in touch!

You’re right – the pound-to-Canadian dollar took the same dive as the pound-to-euro, in the immediate aftermath of the financial crash. That looks to be a semi-permanent thing, and I wouldn’t expect to see GBPCAD at $2.00 for a long time at this point.

That aside though, that doesn’t mean the pound can’t make gains against the Canadian dollar in the meantime, as we’ve seen with the euro. In fact, the 1.61 interbank rate for GBPCAD right now is the highest the pound has been against CAD since late 2011.

This is all because of risk aversion, and the fact that, compared to the Eurozone, Britain remains a stable and reliable place to put funds in spite of the fact that it’s in recession. That means it’s possible the GBPCAD could continue to climb in the short-to-medium term.

Of course, this is just my feeling as someone that works in the industry, and shouldn’t be taken as legal guidance.

Do you have a transfer lined up? If so, feel free to email me at peter.lavelle@purefx.co.uk and I can forward your details to one of our dealers, who can help set out your options with you.

I hope that’s helpful, and look forward to hearing back,

Peter

Peter Lavelle
Pure FX
http://www.purefx.co.uk
peter.lavelle@purefx.co.uk

]]> By: Alison http://iberosphere.com/2012/04/pound-to-euro-hits-22-month-high-despite-uk-recession/6025/comment-page-1#comment-25092 Alison Tue, 01 May 2012 12:00:45 +0000 http://iberosphere.com/?p=6025#comment-25092 Hi Peter, So as I need to transfer GBP to Euros ove the next month, would you advise me to wait till next weekend to see if Holland is elected? It seems this may lead to a better rate for me. I just did a fist transfer at 1.22. Not bad, but would like better! Alison Hi Peter, So as I need to transfer GBP to Euros ove the next month, would you advise me to wait till next weekend to see if Holland is elected? It seems this may lead to a better rate for me. I just did a fist transfer at 1.22. Not bad, but would like better!
Alison

]]> By: moscow http://iberosphere.com/2012/04/pound-to-euro-hits-22-month-high-despite-uk-recession/6025/comment-page-1#comment-25057 moscow Sat, 28 Apr 2012 06:38:51 +0000 http://iberosphere.com/?p=6025#comment-25057 I keep watching mesmerized the relentless rise in the pound. I guess the Uk's dwindling band of manufacturing exporters will be chaffed by the news. I expect a post-olympic bust. I keep watching mesmerized the relentless rise in the pound. I guess the Uk’s dwindling band of manufacturing exporters will be chaffed by the news. I expect a post-olympic bust.

]]> By: Gerry Blais http://iberosphere.com/2012/04/pound-to-euro-hits-22-month-high-despite-uk-recession/6025/comment-page-1#comment-25053 Gerry Blais Fri, 27 Apr 2012 15:45:10 +0000 http://iberosphere.com/?p=6025#comment-25053 Hi Peter, Many thanks for your analysis. How do you see the pound vs the Canadian dollar over the next 6-12 months? the exchange used to be $2 for £1. Now, you get $1.60ish for £1. Any chance to see the pound getting stronger ? I look forward to reading your analysis. Keep up the good work! Best regards, Gerry Hi Peter,

Many thanks for your analysis.

How do you see the pound vs the Canadian dollar over the next 6-12 months? the exchange used to be $2 for £1. Now, you get $1.60ish for £1. Any chance to see the pound getting stronger ?

I look forward to reading your analysis.

Keep up the good work!

Best regards,

Gerry

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