EUR/GBP Rate & Comments for 23rd April 2010

EUR/GBP - 1.159

Sterling hit a 12 week high of 1.1583/ £1 against the euro yesterday and has briefly broken through the 1.16/ £1 this morning - buoyed by better than expected data on UK public finances and euro weakness related to the Greek debt crisis. UK public sector borrowing was better than expected, despite the fact that the UK’s deficit is the highest since World War II. Retail sales data came in slightly worse than expected at 0.4% on an expectation of 0.6%, but had little effect on the pound. With political uncertainty still rife in the run up to the May 6th election, all eyes were on last night’s second prime ministerial debate. The debate was a lot more evenly matched and initial polls had David Cameron as the winner of the debate. Out today we have the first estimate of GDP data, which is expected to show that the UK economy grew at a rate of 0.4% in the 1st Quarter. This week demonstrates why it is so important to be registered with a currency specialist. We saw the pound jump up by half a cent over the course of 15 minutes before dropping back down shortly after. Registered clients were able to take advantage straight away rather than trying to set up an account, which by the time it was open was too late to get the price they wanted. Call in today for a price and to talk to a currency specialist about how to avoid losing out on favourable rates.

In the Euro zone, the single currency came under heavy selling pressure after Greece’s budget deficit was revised upwards to 13.6% from 12.7% and credit rating agency Moody’s cut Greece’s rating to A3 from A2. As a result, the investors demanded when buying Greek government bonds increased yield and as a result we saw demand for the euro fall. Aside from this, purchasing manager data was relatively positive but had little effect on the price. Out today, there is retail sales data and ‘business climate’ data. Expect these to have little or no effect and the focus to remain on the Greek crisis. Get in touch now for a live price.

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