Currency Rates

EURO/GBP - 1.114

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx

Sterling rose to a 3 week high against the euro breaching the 1.12/ £1 mark for the first time since the 26th February. Sterling fell marginally against the US dollar following Wednesday’s gains, but held firm above $1.52/ £1. Sterling’s strength was in the wake of data released yesterday morning that showed the UK’s public borrowing for February was £2bn less than expected. Despite the UK Government borrowing a February record of £12.361bn, this undershot market expectations of nearly £15bn and the markets now expect the Government to borrow less than was initially targeted in this financial year. This is good news for Chancellor Alastair Darling ahead of next Wednesday’s budget as it shows the UK is performing slightly better than the prevailing negative sentiment suggests. Whilst there is still a poor outlook for sterling over the next few months, some analysts feel that the pound has been ‘oversold’ – i.e. dropped more than it should have – and that many of the risks facing sterling are already reflected in the price. As a result, we could see the pound strengthen against the euro and US dollar – but bear in mind that there is a lot of risk still that the pound could drop over political concerns. Today, the Deputy Governor of the Bank of England speaks in Brussels – get in touch now for a price, as this could bring sterling down.

In the Euro zone, the euro dropped against both sterling and US dollar as data out yesterday showed that the European trade balance worsened far more than expected as the region imported more than it exported. This is bad for the euro as it shows directly that demand for the single currency has dropped, as foreign demand for European goods and services drops. Today, European Central Bank President Jean-Claude Trichet speaks in Brussels at a conference organised by the European Commission which could cause volatility. Get in touch now to avoid any adverse movements.

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