Currency Rates

EURO/GBP - 1.129

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Sterling fell against the euro yesterday after EU ministers announced details of a standby bail out package to help debt-ridden Greece. The pound dropped almost 0.8% to a low of 1.1311/ £1 as the 30bn package of loans was announced. Up to 10bn will come from the International Monetary Fund if needed. Fresh political opinion polls out over the weekend proved inconclusive and continued to point towards the possibility of a hung parliament as Labour launched their election manifesto. The possibility of a hung parliament kept sterling back against the euro, as investors worry that a government with no clear majority would struggle to push through the tough legislation required to clear the UK’s record budget deficit. It wasn’t all bad for the pound, as details of the Greek bail out fuelled a demand for riskier assets and as a result saw sterling strengthen against the US dollar. Sterling hit a high of $1.5397/ £1 before dropping off marginally towards the end of the day. Out today we have ‘Official’ house price data and more importantly the monthly trade balance figures for the UK. This is expected to show that the UK exported slightly more than it imported last month – a sign that the weak pound is increasing demand for UK goods and services. This data is likely to have a large effect, so call in now for a live price to avoid missing out.

In the Euro zone, the euro traded higher against sterling and the US dollar hitting a high of $1.3692/ 1 as the single currency benefited from the announcement of the standby emergency package. However, analysts at BNP Paribas bank pointed out that the euro’s troubles are not solved by this package, which will most likely be needed. This will see many European economies having to undergo a painful fiscal readjustment for several years to come. As a result, many analysts predict that the euro will decline throughout the rest of 2010. The economic calendar is light today – get in touch now if you need to move euros into sterling, as this could be the best prices we see for some time.

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