Pound to Euro Exchange Rate News Index

At 09:20 in London we see the pound to euro exchange rate is trading 0.14 pct higher at 1.1910.

Thus the euro to pound exchange rate can be quoted at 0.8396.

Carney, UK house prices boost sterling

Driving the British pound sterling higher today is a combination of factors  which included the governor of the Bank of England and house price statistics.

Robin Haynes at Currency Index says:

"The Pound has benefitted in early trading this morning, after Bank of England Governor Mark Carney gave an interview saying that the UK recovery had “strengthened and broadened”. In his view this means that, unless the economy falters, there will be no need to extend Quantitative Easing (QE) any further.

"QE has been one of the main factors hindering the Pound in recent years and an extension was seen as likely, so the news that the main decision maker is against this has given sterling a boost. The Pound rose around half a cent against the Euro and US Dollar at 6am today when the interview was published."

The euro: Well poised, but negatives aren't being ignored

Turning to the euro exchange rate we see the currency to be well poised with gains being registered against an under pressure US dollar.

However, with regards to the euro pound exchange rate traders have tended to pick up on the negatives over the course of the past 24 hours.

"Ongoing weakness in M3 money supply and especially lending might have played some role, as it is one of the concerns the ECB has and it might influence policy decisions. So, it is a euro negative," says Piet Lammens at KBC Markets.

There is a busy calendar for currency markets today, "Risks for the EC confidence data and for the US Michigan consumer confidence are on the upside of consensus," says Lammens.