EUR/GBP Rate & Comments for 10th September 2010

EUR/GBP - 1.213

Sterling fell against the US dollar yesterday after the UK reported a record goods trade deficit and on speculation that the Bank of England would further stimulate the economy with additional Quantitative Easing. Sterling dipped as figures showed that the UK’s trade deficit unexpectedly jumped to a record £8.667bn. Whilst this entails imports outpacing exports – suggesting increased domestic demand – analysts are sceptical that this will help boost UK growth as the pending spending cuts take full effect over the next few years. The Bank of England held their interest rate meeting yesterday and kept interest rates on hold at 0.5% as expected, but many commentators expect further money to be pumped into the economy at a later stage as the ‘fiscal austerity’ measures cut growth and output. The main UK data out today is wholesale price inflation, which is expected to show a 0.2% rise. Get in touch now for a live exchange rate and to ensure you are protected.

In the Euro zone, the single currency rose by 0.4% on the day against sterling as investors bought in following poor sentiment towards the UK. There was also speculation that several European banks had orders in place to buy significant amounts of euros which added a boost. In terms of data, French non-farm payroll data came in slightly under the 0.2% that was expected, showing 0.1%. German inflation data also came in as expected at 0.0%. There is French and Italian industrial production data out today so call in to ensure you don’t miss out.


Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.