Currency Rates

EURO/GBP - 1.097


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Sterling fell to 1 week lows against the euro and US dollar as investors reacted to the gloomy outlook in the UK. Sterling hit $1.4873/ £1 and 1.0966/ £1 as Tuesday’s political opinion polls and a fresh round of poor economic data continued to weigh on the pound. British manufacturing output unexpectedly showed a decline of 0.9% - the largest monthly drop since August last year, and clashing with the market’s expectations of a rise. Relatively positive comments from a member of the Bank of England offered sterling some support, but Ian Stallard (a senior FX analyst from investment bank BNP Paribas) stated today that the short term outlook for the pound remains negative. He expects the pound to extend losses towards $1.44/ £1 in the next few weeks. We wait to see if he is right. It is a relatively quiet day for economic data today, with some consumer inflation expectation data out. Despite this, the pound is likely to remain volatile – get in touch now to avoid missing out.

In the Euro zone, French and Italian industrial production outperformed expectations and showed expansion of 1.6% and 2.6% respectively. In addition, German inflation data was revised upwards to show prices had risen by 0.4% last month in the region. This data helped the euro strengthen by 0.3% against sterling. Greece is still an issue, and over the next few weeks they must make some rather large debt repayments – any problems will give markets the jitters again, but for now this is on the back burner. Today, we have French unemployment data and a monthly bulletin from the European Central Bank. Get in touch now to take advantage of current prices and avoid losing out further.

Call 0808 163 0102 or +44 (0) 207 898 0541 from outside the UKor fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx