Pound to Euro Exchange Rate News Index

A look at the spot exchange rate markets shows:

  • The pound to euro exchange rate is 0.05 pct up on last night's closing rate at 1.1895.
  • The euro to pound exchange rate is therefore at 0.8407.

According to Gareth Berry at OCBC Bank the outlook continues to favour the pound sterling over the euro:

"Focus on the momentum tools which are threatening to cross lower within a bearish trend, signalling scope for more weakness to 0.8353 and then onto 0.8285. Resistance is at 0.8471."

The British pound ran into trouble at 09:30 this morning when GDP data from the ONS threw up a small surprise.

UK Q2 GDP (3rd estimate) +0.7% QoQ unchanged and in line with expectations. But, YoY revised down to 1.3% from 1.5%.

The UK current account deficit comes in wider than expected at -13BN GBP. Analysts had forecast -12BN GBP.

British pound declines halted by CBI data


 

The week had until Wednesday been characterised by the Euro which staged a comeback against the British pound.

This comeback by the Euro was however halted yesterday.

As Piet Lammens at KBC Markets explains:

"The euro was rather well bid early in Europe yesterday and this was also visible in the EUR/GBP cross rate.

"The pair came back close to the 0.8450 resistance which was tested a few times intraday of late. However, the EUR/GBP rebound was blocked by a much strong than expected CBI distributive trades report and EUR/GBP returned to the 0.8425 area and even prolonged its slide to and intra-day low just below 0.84."

Regarding the outlook for the pound euro exchange rate Lammens says:

"Further consolidation/correction might be on the cards. That said, we don’t see reasons for a real trend reversal of sterling unless the UK eco data would turn for the worse.

"We look to sell EUR/GBP in case of a more pronounced correction, but are not in a hurry."