Euro Pound Exchange Rate Report – 15th November 2010
November 15, 2010 Leave a comment
We have seen a pretty volatile week for the Sterling – Euro exchange rate with the cross starting Monday morning at 1.1551 and reaching a high on Thursday afternoon of 1.1825; which for those buying euros makes a difference of over £2,000 on a €100,000 purchase.
Weaker than expected manufacturing & industrial data from both the UK and Eurozone earlier in the week meant that the rate remained pretty stable but on Wednesday the Bank of England’s monthly inflation report helped the Pound to recover some of the ground it has lost over the last couple of months. When delivering the report, Governor Mervyn King, said that the outlook for the UK economy remains uncertain and inflation will be higher than expected until at least the end of 2011, giving Sterling bulls some optimism about a possible interest rate hike next year. He also stated that “the government’s “substantial” austerity measures and deep cuts should not send the UK into a double-dip recession”.
Thursday & Friday saw further Sterling gains against the Euro as sovereign debt concerns in the Eurozone increased, and figures showed growth rates have slowed in some of Europe’s largest economies.
This week could give some real insight into how the GBP/EUR pair may fair over the coming months with some key data releases from both the UK & EU including inflation figures, unemployment numbers and house price data.
The big one however will be the Bank of England minutes from their November meeting. If the voting shows that only one of the MPC members is still voting for more Quantitative Easing then it could allay fears over the central bank announcing more austerity measures (which would weaken Sterling) and help to force the rate up, but more than one vote for QE could send it spiraling down.
There will almost certainly be more news about the state of affairs in Ireland, Greece and other poorer fairing Eurozone economies too, so without sitting on the fence it really could still go either way. We advise you to get in touch with a currency broker to discuss your specific requirements and to get up to the minute rates of exchange.
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.