Pound to Euro Exchange Rate News Index

The Pound to Euro exchange rate is 0.58 pct on a day-to-day basis, GBP to EUR is quoted at 1.1794 at 14:00 in London.
The Euro to Pound exchange rate is thus at 0.8480.
 
Please Note: These quotes are from the wholesale spot markets. Your bank will look to affix their own discretionary spread. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please find out more here.

The British Pound: Best PMI orders since 1994

Driving bids for the British Pound Sterling (Currency:GBP) on Monday was the release of the best Manufacturing PMI data since 1994.

Ipek Ozkardeskaya talks us through today's market action:

"After having shortly cleared 1.5480 support on Friday, GBPUSD kick-started the week. Bids jumped back in the game at 1.5507 (200-dayMA) and the impressive final manufacturing PMI reading (57.2 versus 55.0 expected) pushed the cable back towards last week highs (1.5600). Ahead of us, the BoE will give policy verdict on Thursday.

"We expect status quo in September MPC meeting, and keep our bullish view in sterling. Quick recap on headlines: Andrew Sentance (a senior economic advisor in PWC and former MPC member) remains skeptical on the forward guidance saying that “if the recovery gathers momentum in UK, events may force the hand of Mark Carney and the MPC, causing interest rates to rise sooner than later”.

"On his side, Mr. Carney recognized the danger in rising house prices, yet reiterating that a tightening in the policy is not a response to housing bubble risk, “there are other tools that address risks” to the financial system."

The Euro: Euro PMI Surprises on the Upside

Turning to the shared currency we note there were some good data points to be had which has provided some solid support.

Ozkardeskaya says:

"The final PMI read in the Euro-zone once again surprised on the upside. While the German PMI printed a slight weakness (51.8 versus 52.0 expected), the progress in Italian and Spanish PMIs pushed the overall Euro-Zone PMI manufacturing to 51.4 in August. Supportive data failed to gather significant reaction from the markets, a rapid post-data boost remained capped at 1.3236.

"After several weeks of hesitation, EURUSD momentum picks up on the downside. Given the dissipating fears on a potential attack in Syria and the overall quiet-fashion recovery in the markets, EURUSD is expected to remain range-bound with negative bias before ECB policy verdict due on Thursday.

"Despite the fragile nature of the recovery, a hawkish shift in ECB stance is not neglected this week, yet the topside offers against USD are still solid at 1.3400/20 zone."