EUR/GBP Rate & Comments for 5th July 2010

EUR/GBP - 1.210

Sterling hit a month high of $1.5230/ £1 – the strongest since early May – after US Non-Farm payroll data came in far worse than expected and investors dumped the US dollar in favour of sterling. Following the drastic first budget of the new UK coalition government, the pound has taken advantage after a string of lacklustre US data with many analysts feeling better about the UK’s chances of cutting the deficit. Overall the pound finished up 1% against the US dollar, and despite barely holding above 1.20/£1 for most of Friday after the euro performed well, the pound staged a late rally and closed just shy of 1.21/£1. Out later today there is house price data for the UK and also services PMI data that is expected to show a slight decline. Get in touch now for a live price to ensure that you do not lose out on the best exchange rates.

In the Euro zone, the euro strengthened this week against both the US dollar and sterling after concerns over the liquidity and funding of many European banks turned out to be less of a problem than expected. Higher than expected demand for Spanish bonds and lower than expected demand for European Central Bank emergency funding helped stem concerns over the state of the region as a whole. In terms of data, there is final services PMI data and also monthly retail sales data. Call in now for a live exchange rate.

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