Euro Pound Exchange Rate Graph June 2011 – Pound Plunges Sharply

EuroEuro Pound Graph for June 2011 – June was an appaling month for Sterling against the Euro seeing the pound plunge sharply over the past two weeks.

The GBP/EUR rate plummeted last week to the lowest since March 2010, falling against a basket of currencies as well as the Euro. Britain’s currency slid against the Euro in particular on predictions that a faltering economy will limit the policy makers’ scope to raise interest rates, as the European Central Bank lifts borrowing costs to curb inflation. A report on Thursday showed U.K. consumer confidence fell more than economists forecast in June while the Bank of England’s Credit Conditions Survey said mortgage demand is predicted to drop in the third quarter.

It was a dramatic week with market sentiment swinging from worries that Greece would go bankrupt to relief that it would get through the crisis, against a backdrop of violent protests and general strikes over austerity steps. The Greek parliament approved a detailed austerity plan on Thursday, paving the way for 12 billion euros of international aid.

Euro Pound Exchange Rate Graph –  June 2011

Euro Pound Graph June 2011

“The market is bullish on risk and looking to buy euros,” said Paul Mackel, director of currency strategy at HSBC. “The Greek issues still linger, but there is a bit of calm now with the markets’ focus on data.” Barclays Capital pushed back its forecast interest-rate hikes for the UK, saying the central bank will now most likely keep its main rate unchanged until May 2012.

The bank, which previously forecast a rate increase in November, said the change reflects weaker than previously expected economic growth and recent comments from central bank officials. This is in stark contrast with the euro zone where even with weak manufacturing surveys, little changed regarding strong expectations that the European Central Bank would raise interest rates next week.

Sterling has fallen 9 percent in the past 12 months, making it the second-worst performer among 10 developed-market currencies after the U.S. Dollar, according to Bloomberg Correlation-Weighted Currency Indexes.

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.

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Euro Pound Exchange Rate Graph May 2011 – Pound Recovering

EuroEuro Pound Graph for May 2011 – May was a good month for Sterling against the Euro seeing the pound recover due to problems within the Eurozone

Sterling made strong gains throughout the last week in May against the Euro broadly off the back of continued market commentary regarding the problem of the debt crisis in Greece. At its best the Pound gained almost 2 Cents against the Euro from where it started at the beginning of the week.

The pound’s rise came in spite of data confirming Britain’s economy made a sluggish start to the year as household spending saw its sharpest quarterly fall in almost two years reinforced the view that UK interest rates were unlikely to rise soon. It was certainly encouraging to see that the pound has gained ground against the Euro during May and that coupled with low property prices will certainly help the Tenerife property market. It is also a much needed boost for tourism, especially if it is sustained.

Euro Pound Exchange Rate Graph– ~May 2011

Euro Pound Graph May 2011

Problems continued for Greece and the Eurozone following comments made by Eurogroup President Jean-Claude Juncker who said that should the International Monetary Fund not pay its next tranche of aid to Greece, there would be pressure on reluctant European Countries to do so.

Commenting on the GBP/EUR cross, Ankita Dudani, currency strategist at RBS said “It’s a combination of news on the euro zone, including Juncker’s negative comments on Greece. There’s a lot of uncertainty about what a debt profile would contain and how far it may go -Sterling, on the other hand, doesn’t have the same baggage.” She added that compared with the euro, the UK was in a better economic position given that it had a single monetary and fiscal policy unlike the euro zone, which is suffering from increasing political tension among its 16 member nations.

Whilst Sterling has indeed been benefiting from problems within the Eurozone, Euro purchasers should remain somewhat cautious about the medium to long term outlook for the pairing as Sterling still faces many downwards risks including PMI inflation data as well as the fact that Eurozone rates are still expected to rise again this year whilst UK rates are not expected to move until at least February next year.
This recent movement that Sterling has benefited from has far more to do with concerns within the Eurozone rather than fundamental Sterling strength. The UK economy is still a long way from being described as ‘powerhouse’ as it continues to battle rising inflation and slow growth – both of which will leave Sterling vulnerable once the furore with Greece no longer dominates the financial headlines.

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.

Euro Pound Exchange Rate Report – 10th May 2010

EuroLast week we witnessed a turbulent week for Sterling against the Euro with a 4.5% fluctuation in exchange rates on Friday alone. This equated to a difference of an astonishing £7500 when purchasing €200,000. The movements came following the UK election and the hung parliament verdict that came out of it. These sorts of fluctuations highlight the importance of staying in contact with your currency broker who can give you a consultation on your individual requirement helping to maximize your return by use of the many tools at our disposal.

The week had begun so well with the Pound opening at 1.1530 racing to a high of 1.1865 by Thursday. This was mainly down to the riots seen in Greece and the increased speculation of a credit rating cut for Portugal, Spain, Italy and Ireland sending the Eurozone into meltdown. The highs seen represented some of the best buying levels seen for 15 months as seen in the graph below.

Euro Pound Exchange Rate Graph

The UK election then took centre stage and the hung parliament verdict was anything but well received by the currency markets. As mentioned earlier in the report the rate plummeted from 1.1845 down to 1.1357 in a shift seldom seen in the markets. The Pound did rebound in the afternoons trading session after Conservative leader David Cameron talked openenly of the potential for the Tories and Liberal Democrats to form a coalition to bring the UK through the crisis it has been in for some time.

The week ahead promises to be another volatile week as the backlash of the election will still be prominent in the news. The other news of note this week comes in the shape of the Bank of Englands interest rate decision on Monday at midday, and the industrial production figures released on Tuesday at 9:30am. Wednesday sees this months unemployment figures, a release known to cause high volatility depending on the reading. See below for a more detailed report on this weeks data releases.

If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open a currency exchange account today.