Pound to Euro Exchange Rate News Index

  • The Pound to Euro exchange rate is 0.6% higher at 1.1797.
  • The Euro to Pound exchange rate is at 0.5564.
  • The Pound to Swiss Franc is 0.8% higher at 1.4533.

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Commenting on the recent price action in the Euro to Pound exchange rate is Stephen Gallo at BMO Capital Markets:

"The move lower in EUR/GBP – also continuing a trend we witnessed last week – is an important point of interest. We intend to finalise and release a few thoughts on the EUR tomorrow when North America returns.

"For the time being, we suspect that the trend lower in the pair reflects something deeper and perhaps more profound than simple data divergence."

Today's data points

UK manufacturing PMI at 57.2 in August (55 expected); new orders index at highest since 1994.

Euro Area manufacturing PMIs broadly in-line to slightly better in August; recovery still sluggish and fragile.

Swiss Data slumps

The Swiss Franc has meanwhile been sold off on the first trading day of September.

Ipek Ozkardeskaya explains that today's data miss, while still strong by any standard, could actually be welcomed by the Swiss National Bank:

"Swiss PMI fell to 54.6 vs. 57.4 prior read (56.0 exp). This is a slight pullback from July’s surprise spike but smack on the 3 month moving average. Overall the pace of improvement in the undelaying’s sub-indices remains healthy. This, in turn indicates that the speed of the Swiss economic expansion is strong.

"Interestingly the Purchase Price sub-indices jumped from 47.0 to 51.4 indicating prices pressure are starting to build which will be good news to the SNB.

"In an interview to Berner Zeitung, the SNB President Jordan repeated that the EURCHF cap at 1.20 will be kept as long as needed, “there’s absolutely no reason to give up the cap”.