EUR/GBP Rate & Comments for 29th September 2010

EUR/GBP - 1.164

Sterling fell by over 1% against the euro yesterday after downbeat comments by a key Bank of England policy maker left sterling floundering despite hitting a 7 week high of $1.5896/£1 against the US dollar. In a speech to the Hull Chamber of Commerce, Monetary Policy Committee member Adam Posen said that the central bank should start pumping more money into the economy in order to avoid a prolonged slump of the sort that Japan saw in the 1990’s. The markets were not expecting the negative comments and they contrasted sharply with his colleague Andrew Sentance who stated that the Bank didn’t need to restart the Quantitative Easing programme. Sterling hit a low of 1.1634/£1 and $1.5720/£1 following Posen’s comments despite strong data elsewhere. The UK’s trade deficit showed a stark improvement, jumping from -£9.6bn to -£7.4bn which shows that exports are improving. In addition, a survey by the CBI showed a marked increase in sales volume amongst retailers which was positive. However, this data was surpassed by the panic that the unexpected comments made. Today, we have lending data and consumer confidence figures. Speak to a trader now to stay abreast of the volatility.

In the Euro zone, it was a mixed day. Initially, the euro fell against the US dollar after speculation that Spain’s credit rating may be downgraded further by rating agency Moodys. However, weak US data and comments from European Central Bank Board member Juergen Stark helped boost the euro. Mr. Stark stated that the ECB may not renew some of the monetary support measures when they expire later in the year. In addition, there were reports that a former Chinese bank adviser had described the US dollar’s devaluation as “inevitable”. In terms of data, consumer climate data came in better than expected. There is no real data out today – although the euro is expected to give back ground to sterling as the annual EU farm subsidy is converted into sterling. Call in now for a live exchange rate.

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EUR/GBP Rate & Comments for 20th September 2010

EUR/GBP - 1.193

Sterling slipped against the US dollar on Friday, coming off an earlier 5 week high of $1.5730/£1 but holding firm above the $1.56/£1 level. A lack of UK data on Friday left sterling at the mercy of movements in other currencies and as concerns over Euro zone sovereign debt resurfaced, riskier currencies came under renewed pressure. In the last few weeks, huge swings between positive and negative sentiment mean that sterling is generally tracking the movements between euro and US dollar. It is a relatively quiet day on the economic calendar with the key data being the August mortgage approvals figure. The figure is expected to come in at just under 50,000 – historically a figure that does not correlate with a sustained house price boom. A lot of data points to further slowing in the sector. Later in the week, there is public sector lending figures and the Bank of England Monetary Policy Committee’s minutes from their recent meeting. Ensure you are protected over the coming weeks by speaking to a trader today.

In the Euro zone, Friday saw a fresh round of concerns over the debt crisis in Europe as rumours spread that Ireland was seeking help from the International Monetary Fund (IMF). The Irish government quickly denied these rumours but the euro lost nearly a cent against the US dollar despite being the best performing currency for the week. This shows how sensitive traders are to any sign of problems with debt in the region. There are no real data releases today with the key releases of the week being a business sentiment survey and advanced wholesale price inflation later in the week.

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EUR/GBP Rate & Comments for 3rd September 2010

EUR/GBP - 1.201


Sterling fell against the euro and US dollar yesterday as weaker than forecast housing and construction data added to concerns that the UK recovery may be faltering. House price data showed that house prices fell by 0.9% last month against an expectation of a 0.3% drop. Construction PMI data also came in much worse than expected. This added to the view of many analysts and investors that the recovery that the UK has seen over the first half of the year is not sustainable and the UK will follow the USA in faltering after an initial period of recovery. After a period of weak data, there are also concerns that the new austerity measures will impact on UK growth. After briefly recovering against the US dollar on Wednesday, a German bank was responsible for selling large quantities of sterling which saw sterling fall against the US dollar and drop to a 3 week low against the euro. Ensure you don’t miss out if sterling drops any further by speaking to a trader today.

In the Euro zone, European data came in very much as expected with quarterly GDP remaining unchanged at 1%, monthly PPI data for the region showing the expected 0.2% improvement and the European Central Bank keeping interest rates on hold at 1%. The Central Bank surprised a few people with their decision to keep policy unchanged, but the press conference later in the afternoon provided a little more clarity. In terms of data today, there is final services PMI data out today and monthly retail sales data which is expected to show a mild 0.3% increase on last month. Get in touch with a trader to ensure you get the best price.

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EUR/GBP Rate & Comments for 1st September 2010

EUR/GBP - 1.210


Sterling fell across the board on Tuesday as concerns over the global economy sent jitters through financial markets. Sterling dropped to a 5 week low of $1.5327/£1 – breaking through the 200 day ‘moving average’ which means there is likely to be further downward movement. Sterling also hit the lowest level against the Swiss franc since January 2009 and fell significantly against the Japanese yen. The Swiss franc, US dollar and Japanese yen are all ‘safe haven’ currencies and the extent of the demand for these safer holdings shows the level of poor sentiment that is prevalent in the global economy. Despite data showing that UK mortgage approvals increased and consumer credit improved last month, there was a clear feeling yesterday that the best of the UK data has already been seen and it is now a ‘high risk’ currency to invest in. In terms of data released today, there is manufacturing data which is expected to show a mild decline. Call in now to ensure you do not buy when the market has fallen further.

In the Euro zone, the euro also strengthened against sterling by 1.1% to hit 1.2064/£1 which is the highest in roughly 3 weeks. Many traders cited ‘month end’ demand for euro and one UK bank apparently moved a significant amount of sterling into euro which would have had a significant market moving effect. In terms of data yesterday, German unemployment dropped by 2,000 less than expected but Italian data surprised to the upside with retail sales improving by 0.3% and the unemployment rate dropping by 0.1% to 8.4%. Out today there is manufacturing data which is expected to remain the same. Get in touch now for a live price.

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EUR/GBP Rate & Comments for 24th August 2010

EUR/GBP - 1.219

Sterling hit a 2 month high against the euro yesterday reaching 1.2279/£1. This was short lived and this morning we have seen sterling lose ground against both the euro and the US$. Trading volumes in August are traditionally low which means that we can see rapid movements even when there is a lack of supporting data. That is why it is so important to get in touch as early as possible so that we can best help you manage your exposure.

In the Euro zone, sentiment in the region has deteriorated following comments from Axel Weber, German Bundesbank president and a member of the ECB’s governing council last week. He is pushing the ECB to extend its ultra loose monetary policy for as long as possible amid concerns that the difficulties caused by the sovereign debt crisis are not over. This seems sensible to me as the risk factors are still extreme. Second quarter growth in Germany was confirmed at 2.2% this morning as exports and investment fuelled Germany’s record breaking economic growth. Get in touch now for a quote to ensure you do not miss out.

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EUR/GBP Rate & Comments for 23rd August 2010

EUR/GBP - 1.225


Last week was a strong one for sterling against the euro and this trend has continued this morning as it is trading at 1.2260/£1. During this past week, the Bank of England minutes for the month of August showed that the decision to keep interest rates unchanged was not unanimous for a third successive month as Andrew Sentance was once again the lone dissenter, calling for an increase of 25 basis points to 0.75 percent. Sterling was initially well supported after the Bank of England minutes as there was no talk about a further bout of quantitative easing. For this upcoming week broader risk trends will dictate sterling price action as sterling faces a light economic calendar. Call in now for a live exchange rate.

In the Eurozone, the euro finished the week on the slide against sterling which has continued into this morning. This was despite good German data which showed that German manufacturing has enabled the country to return to pre-crisis levels for exports of goods, with renewed demand for German cars and machine tools. There seems to be a feeling that Germany is carrying the rest of Europe on its own with Greek, Portuguese, Irish, Italian and Spanish debt interest rates all rising sharply. Today sees Purchasing Managers Index (PMI) data released today for various member states. PMI data is generally seen as a good barometer for industrial trends. Get in touch now for a quote to ensure that you don’t miss out.

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EUR/GBP Rate & Comments for 18th August 2010

EUR/GBP - 1.209

Sterling fell yesterday against the US dollar and euro yesterday after inflation data showed a slow down in UK price growth. Sterling hit a high of $1.57/£1 in early trading yesterday before a US bank sold a large amount of sterling, and in thin trading, this caused the pound to drop down to a session low of $1.5560/£1. CPI inflation data didn’t necessarily help sterling either, coming in lower than last month at 3.1% for the year against last month’s reading of 3.2%. This is the eighth straight month that inflation has exceeded the Bank of England’s 2% target and yet again requires Governor Mervyn King to write an explanatory letter to Chancellor George Osborne. King is adamant that inflationary pressures are short term and will ease over the next 2 years. This remains to be seen, but with the Bank of England minutes released tomorrow, it is likely that this will be the tone that was set. Speak to a specialist now to ensure you are buying at the right time.

In the Eurozone, German ZEW economic sentiment fell by more than expected after recent poor GDP data, but European sentiment as a whole improved. This mixed data had little impact as the euro rose 0.8% against sterling following a boost in risk sentiment towards the single currency after a better than expected bond auction saw investor confidence jump. The reason for this was that the Irish government successfully auctioned 1.5bn worth of bonds despite major concerns over the country’s banking sector. Call in now for a live exchange rate.

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EUR/GBP Rate & Comments for 17th August 2010

EUR/GBP - 1.216

Sterling reclaimed some of the ground lost against the US dollar last week, rising 0.4% yesterday to hit $1.5665/£1 after risk sentiment improved in trading yesterday. Against the euro, sterling slipped after house price data showed that the housing market had faltered in the last month. Data from Rightmove showed that prices slipped by 1.7% against an expected gain of 0.6%. This saw sterling drop by 0.4% against the euro as additional positive data added to the single currency. Aside from the house price data, it was a relatively quiet day for sterling. However, there is key inflation data out today and retail sales data released later in the week with the most important release being Wednesday’s Bank of England minutes likely to cause the most market movement. What most investors are looking for is whether any of the Monetary Policy Committee members joined Andrew Sentance in voting for an interest rate rise, as he did last month. Call in and speak to a trader to ensure you protect yourself from the markets moving against you.

In the Euro zone, sentiment towards the region improved yesterday and risk appetite improved after the European Central Bank revealed that it had bought minimal government bonds from the region last week. This encouraged financial markets, as it shows that there is a demand for European government bonds despite serious concerns over the ability of many governments to repay debt. As a result, the euro experienced higher demand as investors looked for riskier assets to invest in. In terms of data, inflation data came in as expected at 1.7%. Out today, there is economic sentiment data for the region which could see a surprise jump upwards after the last month. As always, get in touch to avoid missing out.

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EUR/GBP Rate & Comments for 13th August 2010

EUR/GBP - 1.217

It has been a mixed week for sterling which ended the week up against the euro and down against the US dollar as a fresh wave of risk aversion hit global markets. Sterling hit a new 6 month high of $1.5999/ £1 on Monday but then dropped to a 2 week low of $1.5565/£1 on Thursday. The reason for this sudden increase in risk aversion was as a result of Wednesday’s Bank of England quarterly inflation report. This was a key assessment of the new government’s spending cuts and tax hikes and as a result, growth forecasts were slashed and inflation is expected to be well within the target 2% level within 2 years. More importantly, the Bank left the door wide open for further emergency Quantitative Easing if it is needed. This left financial markets concerned over UK recovery. Poor housing data and lower consumer confidence added to sterling’s problems and the strength against the Euro was related to risk aversion caused by the US economy. Call in now to ensure you don’t lose out on further poor market movements

In the Euro zone, sterling has broken out of the tight range we have seen over the last 2 weeks against the euro after the US Federal Reserve voted to inject further money to jumpstart the flagging US recovery. This saw investors pull out of riskier euro assets and buy into the safer currencies of US dollar and sterling. As a result, the euro lost over 2% against the US dollar and 1% against sterling. Poor data from Greece and a drop in European industrial output on Thursday kept the euro under pressure. Out today, there is GDP data for the region so call in now to ensure that you don’t miss out.

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EUR/GBP Rate & Comments for 12th August 2010

EUR/GBP - 1.215

Sterling dropped by nearly 1% against the US dollar yesterday after the Bank of England’s quarterly inflation report said that inflation would drop below the 2% target level in the next 2 years. In addition the Bank left the door wide open for further emergency funding or ‘Quantitative Easing’. The Bank also slashed growth forecasts on the grounds that there is significant uncertainty ahead for the UK, European and US economies. With markets pricing in increased inflation following next year’s VAT hike to 20%, a downward revision came as a bit of shock to many investors and set the pound on track for the biggest daily drop against the US dollar since the election. The economic prospects for the UK were described as “highly uncertain” and as such further emergency funding could be used if needed. There is hardly any data out today, and as such expect the pound to underperform against the US dollar as a result of continued poor sentiment. Get in touch now for a live exchange rate.

In the Eurozone, the euro dropped by over 1% sterling and over 2% against the US dollar as investors pulled back from riskier investments after the US Federal reserve announced a further round of quantitative easing. The move sparked investors in European assets to pull back as concerns over growth left them fleeing towards safer currencies. Sentiment towards the pound is better than the euro and as such, despite a poor assessment from the Bank of England, sterling strengthened by over 1% to hit a high of 1.2160/£1. Out tomorrow, there is the European Central Bank monthly bulletin and monthly industrial production data.

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EUR/GBP Rate & Comments for 10th August 2010

EUR/GBP - 1.199

Sterling hit a daily high of $1.5998/£1 but slipped away as the pound yet again struggled to break through the $1.60/£1 barrier. Sterling strengthened as the fallout from Friday’s poor US jobs data continued to hammer the US dollar. With many financial options ready to trigger at the $1.60 level, as well as it being a key ‘psychological’ level there is a need for a large ‘boost’ for the pound to push through – and hold firm – away from the $1.50s. This week, we might have just that with the FOMC (the US equivalent of the Monetary Policy Committee) meeting getting under way yesterday evening. There is speculation that there may be further emergency funding injected into the US economy to help jumpstart the floundering economy. The decision is announced today. Aside from that, it was a quiet day on the economic calendar. Out later today, there is UK trade balance data and consumer confidence figures. Ensure you don’t miss out and call in now for a price.

In the Eurozone, it was yet another quiet day. The euro has kept a low profile in the last few weeks, and as one Reuters reporter rightly asked today – whatever happened to the eurozone crisis? The euro is up nearly 10% against the US dollar, lending markets have improved and demand for sovereign debt in the region has increased. One argument put forward is that the risks were wholly over exaggerated. Talk of financial Armageddon and total collapse of the single currency was the norm a few months back, but now there is nothing. There are still significant risks, and several long years worth of tough spending cuts, but the panic has (for the moment) died down. This is likely to keep the pound from hitting 1.25/£1 in the short term, so get in touch now to maximise the size of your payments.

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EUR/GBP Rate & Comments for 9th August 2010

EUR/GBP - 1.199

Last week was a strong one for sterling – especially against the US dollar where the pound finished up 1.74% on the week. We saw sterling hit a 6 month high of $1.5999/ £1 against the US dollar on Friday after poor US employment data showed a worse than expected decline in July. As expected, last week saw the Bank of England Monetary Policy Committee keep interest rates and the £200bn asset purchase facility on hold. This week sees the publication of the Bank of England’s inflation report on Wednesday, which should give some idea of what the bank is likely to do with monetary policy over the next few months. Many are expecting an upward revision to the interest rate forecast, but growth expectations following the new government’s spending cuts are likely to be key. Also out on Wednesday is unemployment claimant count data. Call in now for a live exchange rate.

In the Eurozone, the euro finished the week 0.04% up against sterling – testament to the lack of data released, but more that the focus has been between sterling and the US dollar of late. German industrial production and factory orders came in better than expected on Friday which helped the euro. Recently, there has been a slow return of confidence in the euro after the bank stress testing and Spanish bond auctions. Another quiet week for the euro, with the only potential market mover being the German GDP figures out on Friday. Get in touch now for a quote and to ensure that you don’t miss out.

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EUR/GBP Rate & Comments for 6th August 2010

EUR/GBP - 1.203

It has been a strong week for sterling – especially against the US dollar. We saw sterling hit a 6 month high of $1.5968/ £1 against the US dollar earlier in the week after a run of strong banking earnings from HSBC, Lloyds TSB, Barclays and RBS. The return to profit from UK banks saw the FTSE 100 surge as investors felt that the major risk to the UK economy had now passed. This in turn saw demand for the pound rise. Better than expected manufacturing data helped increase demand for sterling, but construction data was worse than expected highlighting that there are still areas for concern. Sterling is likely to struggle to break through $1.60/£1 without significant data giving it a reason to move. The Bank of England Monetary Policy Committee kept interest rates and quantitative easing on hold as was widely expected. Out later today there is manufacturing data for the UK – call in now for a live exchange rate.

In the Eurozone, Sterling strengthened earlier in the week against euro on the strong bank earnings. Since then it has stayed in a very tight range between 1.2040/£1 and 1.2070/£1. European data has been fairly limited this week, with monthly retail sales figures showing no growth from last month. In addition, the French trade balance improved by around 2bn and the European Central Bank kept rates on hold as was expected. There is always opportunity to take advantage of volatility – despite the lack of movement this week. Get in touch now to avoid missing out and to ensure that you are minimising the cost of your international payments.

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.

EUR/GBP Rate & Comments for 5th August 2010

EUR/GBP - 1.204

Sterling slipped off Tuesday’s highs as weaker than expected data on the UK services sector highlighted the possibility that the UK economy may struggle to match the better than expected growth posted in the first half of the year. The figure showed that the services sector was still growing, but not at the rate that had been expected. As a result, sterling fell off from the $1.5968/£1 level seen on Tuesday and is now trading around the $1.58/£1 level. House price data helped sterling, showing prices rose by 0.6% and strong earnings data from Lloyds TSB also helped keep the pound afloat. So far today, Barclays has released strong earnings figures, but a drop in Investment Banking profits has concerned investors. Out later today, there is the Bank of England’s interest rate decision for the month – widely expected to remain on hold. In other news, the Chinese government investment fund is rumoured to have sold $558m worth of shares, equating to £351.4m – the exact amount of Liverpool FC’s club debt, sparking rumours that the Chinese government will announce a takeover. Call in now for live exchange rates (and up to date progress on the Liverpool takeover story).

In the Eurozone, the single currency had a fairly quiet day, gaining marginally against sterling after the poor UK PMI data. Data in the region showed that retail sales were flat for the month, and European services data showed a small drop. In terms of data, the interest rate decision for the Eurozone is released later today, with ECB President Jean-Claude Trichet scheduled to take questions in a press conference following the announcement. Get in touch now for a live exchange rate to ensure you are buying at a good rate.

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.

EUR/GBP Rate & Comments for 4th August 2010

EUR/GBP - 1.207

Sterling hit a new 6 month high against the US dollar yesterday after improved sentiment towards the UK and concerns over the state of the US recovery. The pound hit $1.5968/£1 at lunchtime yesterday, buoyed by robust bank earnings data and recent strong UK economic data from the manufacturing sector and better than expected growth figures on Friday. However, sterling’s run was held back after construction activity data fell to a four month low. As a result, sterling stopped just short of the key level of $1.5970/£1, which is an important ‘technical’ recovery point from May’s $1.4225/£1 low. Whilst we might see sterling push through this level after today’s service sector data (which is expected to show growth) there is expected to be strong resistance at the $1.60/£1 level – firstly from a psychological perspective, and as there are reportedly numerous ‘sell’ orders set to trigger at that price, which will see sterling drop should we hit that price. Either way, get in touch now to ensure you are taking advantage.

In the Eurozone, the euro had a flat day against sterling but strengthened to a high of $1.3262/1 as concerns over the US economy saw the US dollar lose ground across the board. Inflation data for the Eurozone came in slightly worse than expected, showing 0.3% against an expectation of 0.4%. Out today, there is purchasing manager data and also retail sales which are expected to be flat. Despite a quiet day on the sterling/ euro front, there is always potential for significant volatility. Call in now for a live exchange rate.

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.

EUR/GBP Rate & Comments for 3rd August 2010

EUR/GBP - 1.206

Sterling continued to strengthen against the US dollar and euro yesterday after the FTSE jumped by 2.5% following strong earnings data from the banking sector. Sterling hit a 6 month high of 1.5950/£1 against the US dollar and a 4 week high of 1.2111/ £1 against the euro. Shares in Europe’s largest bank HSBC jumped by 5.2% after first half profit more than doubled to $11.1bn – significantly beating expectations. The strong results helped drive appetite for riskier currencies as strong performance from HSBC showed evidence of a healthy banking sector, and given the banking sector’s contribution to the UK economy this in turn drove demand for sterling. Data on the UK manufacturing sector came in better than expected, with demand and employment higher than expected. Later today, there is data released on house prices and construction sector activity which are expected to show a mild decline on last month. House price data has been relatively poor over the last few months, but one report out today suggested that house prices would rise by 20% over the next 2-3 years. Call in now for a live exchange rate.

In the Eurozone, the euro strengthened against the US dollar hitting $1.3125 after demand for riskier currencies helped drive demand for the euro. However, the euro weakened against the pound after rumours circulated over a proposed sale of UK branches of RBS to Spanish bank Santander which could yield £1.8bn, which would need to come from euros. Manufacturing data came in slightly better than expected and later today we have purchasing manager data which is expected to show a slight improvement. Call in now for a live exchange rate.

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.

EUR/GBP Rate & Comments for 2nd August 2010

EUR/GBP - 1.208

It was a strong week for sterling – especially against the US dollar. The pound has already breached the 5 month high of $1.57/ £1 that was seen on Friday. The reason for sterling’s strength was that the previous week, GDP data exceeded expectations to show 1.1% growth for the 2nd Quarter in the UK. Also, Retail sales data was far better than expected last week. Investors now feel better about the UK’s prospects. However, Bank of England chief Mervyn King was still cautious, stating that the ‘UK economy still faces significant headwinds’. He stated that there was still a possibility that interest rates could go down or more money could be pumped into the economy. Overall though, it was a strong week for sterling, but areas for concern still remain. Ahead today, there is manufacturing purchasing manager data which is expected to show an improvement. Call now for a live price to ensure you don’t miss out.

In the Euro zone, the news was dominated last week by the results of last Friday’s European bank stress tests which showed that only 7 out of 91 banks needed further capital. Whilst on the face of it, this may seem positive, the tests were heavily criticised for not giving a true picture of the sheer scale of the debt situation in the region. One analyst went so far as to say he was ‘bemused’ by the relative strength of the euro last week, and in early trading today we have seen the pound recover back above the 1.20/ £1 mark to hit a 4 week high. Given market estimates of 1.25/ £1 many see this as a good time to take advantage and protect yourself if you need to move euros into sterling. Call in now for a live price.

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.

EUR/GBP Rate & Comments for 30th July 2010

EUR/GBP - 1.198

Sterling hit a further 5 month high of $1.5660/£1 yesterday on speculation over month end ‘rebalancing’ after strong performances on the US stock market. Strong earnings from many US firms over the last week has left many analysts expecting investors to sell their US dollar share holdings, putting pressure on the US dollar. Sterling also broke through a key technical barrier on the graph this week, breaking through the 200 day ‘moving average’, which is a strong positive signal for sterling. In terms of data, house prices and lending data in the UK disappointed, which serves as a reminder that the UK is not quite out of the woods yet. There is little or no data out today for the UK – call in now for a live exchange rate.

In the Euro zone, German unemployment data came in better than expected, as the level of unemployment dropped by 20,000 – 2,000 more than expected. The euro maintained its relative strength against the pound, keeping sterling from breaking above the 1.20/ £1 barrier. In terms of data, there is German retail sales data and European inflation data alongside Italian unemployment figures. The Euro has had a relatively good week, but many are confused as to why the euro has performed so well, given the issues with sovereign debt in the region. Call in now for a live exchange rate.

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.

EUR/GBP Rate & Comments for 29th July 2010

EUR/GBP - 1.198

Sterling breached the $1.56/ £1 barrier as investors ignored downbeat comments from the Bank of England Monetary Policy Committee after a run of better than expected UK data. The pound continued to ride the wave of strong GDP and better than expected retail sales data and this saw investors treat sterling with optimism. Bank of England governor Mervyn King warned that strong second quarter growth data should not mean that monetary policy should tighten up; pointing out that significant risks still face the UK economy and that interest rates could drop further if needed. The pound shrugged off these comments and continued to strengthen against the US dollar after poor data from the USA left investors feeling happier holding sterling. Out today there is key house price data and lending data. Call in now as this could take the edge of the pound’s strong run.

In the Euro zone, the euro weakened against sterling marginally and the pound briefly broke through the 1.20/£1 barrier before falling back off. Data from the euro zone showed that German inflation remained the same at 0.2%. Out later today, the key European data released is German unemployment figures which are expected to show an improvement, but not at the same rate as last month. There is still concern from some analysts that the euro is far too overvalued following the heavily criticized stress tests. Get in touch now to avoid losing out if the pound does jump.

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.

EUR/GBP Rate & Comments for 28th July 2010

EUR/GBP - 1.197

Sterling continued to strengthen to a 5 month high against the US dollar after better than expected retail sales data boosted the pound further off the back of last week’s strong GDP data. Sterling hit a high of $1.5570/£1 as better than expected bank earnings data saw investors look to riskier investments away from ‘safe haven’ US dollar holdings. UBS beat profit forecasts and Deutsche bank delivered stronger than expected results after a fall in losses from loans. However, the same appetite for risk that saw the pound strengthen so much against the US dollar kept the pound below 1.20/£1 as the euro is the more ‘riskier’ investment option when compared to sterling. Later today, the Monetary Policy Committee appears before the Treasury Select Committee to present on monetary policy and growth expectations. Some analysts are fearful that given the recent minutes of the Bank’s last meeting, the rhetoric is likely to be negative which could impact sterling. Get in touch now for a live exchange rate.

In the Euro zone, the euro continues to enjoy relatively strong support despite the heavy criticism that the bank stress tests have attracted in recent days. One analyst went so far as to express complete bemusement at the support the euro was seeing, after the methodology behind Friday’s test results has widely been shown to be flawed, and as such, the result that showed only 7 banks need further capital is a huge underestimation of the true situation. Regardless, the euro briefly pushed past 1.30/$1 for the first time since early May. Out later today there is German inflation data. Get in touch now for an exchange rate.

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