Pound Euro Exchange Rate Report – 27th September 2010
Last week, saw the GBP/EUR currency pair plummet from a heigh of 1.2001 on Monday, to as low as 1.1658 on Wednesday. This change in rate equates to almost 3%, a difference of €3430, between the two rates, when you exchange £100,000. The pair increased slightly as we came to the end of the week, jumping as high as 1.1792 Friday afternoon. This week emphasises the volatility of the market, highlighting its daily unpredictability and how difficult it is to judge where it will lie in the future.
Data released Monday morning underlined an unfortunate start for the UK economy, with lower than expected Mortgage Approvals. At 45,000; this figure is 2,000 less than its equivalent month last year, which may be a reason for the immediate decline in Sterling’s strength. Midweek saw a brighter horizon for the UK, with the Wednesday morning release of the minutes of the BoE MPC meetings, which showed that the nominal GDP had increased by 1.7% on the previous quarter. This may explain the increase in rates throughout the end of the week, as growth in the economy boosts the value of the GBP.
The week to come has important data to be released on Tuesday with the UK’s GDP Q2 figures to be made public. The recent trend has been on the increase, with expectations to be around 1.2%, however if statistics are lower than anticipated or even negative, this corresponds to a negative effect on the Pound, therefore, leading to drops in Sterling’s currency pairings.
Thursday sees the publishing of German Unemployment Figures. This time last year, the figure was comparatively low at 7.6%. This time around, a figure higher will imply poor economic growth within Germany, in turn, decreasing the strength of the EUR. This may lead to an increase in the GBP/EUR pair.
These factors emphasise the importance and necessity to remain in close contact with your currency broker, as, evidently the market will remain volatile as the week progresses. The smallest change in exchange rates can lead to huge differences in transactions, so utilising the knowledge and professionalism of a currency broker can help to save you thousands of Pounds.
If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open an exchange rate account today.
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