April 26, 2011 Leave a comment
26th April 2011 – Sterling vs. Euro.
During a short week’s trading, the GBP/EUR cross only fluctuated 1.2% between the high and low of the week. Sterling rose vs. the Euro on Tuesday as the single currency weakened due to debt concerns. Portugal had begun talks with international authorities about the terms of a bail-out. Meanwhile Greece, which received a bail-out last year, denied reports that it would have to restructure its debts. The euro lost 1% of its value against Sterling, with market nervousness also spreading to Spain helping push GBP/EUR rates up from the near 1 year low.
Sterling had dropped back into the 1.12’s on Wednesday, as the Euro regained some of its losses after the Bank of England (BoE) released the minutes to their decision to hold interest rates 2 weeks ago. The minutes showed Bank policymakers maintained a 6-3 split in favour of keeping rates on hold this month, leaving them no closer to a rate hike.
Latest Euro Pound Exchange Rate Graph – 26th April 2011
Thursday Sterling again gained versus the euro after British retail sales rose unexpectedly and UK public finance data showed the government borrowed slightly less, but uncertainty remained about economic growth.
The overall picture for sterling hasn’t changed in terms of uncertainty about the UK economy or in terms of interest rate hikes. The euro has been boosted in recent months as euro zone interest rates are widely expected to rise again after last month’s 0.25 basis point increase. UK rates remain at record lows of 0.5 per cent, with markets pushing back the timing the first hike to November.
The week ahead however, is even shorter than the last and possibly more volatile. While the UK retail sales data for March was positive, uncertainty remains about the April 27 release of first-quarter gross domestic product (GDP) data, which analysts say would be more important in influencing the BoE’s decision on rate hikes as another negative reading would plunge the UK into another technical recession. To gain a clearer picture of how this could affect your currency click below to open an account with us today.
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 and an experienced trader will be in touch to discuss your requirement and offer expert market knowledge.