Pound to Euro Exchange Rate News Index

A look at the exchange rate markets on Friday morning confirms the British pound is turning increasingly confident once more:

The pound to euro exchange rate is 0.03 pct up on last night's closing rate at 11826, comfortably above the psychologically important level of 1.18.

The euro to pound sterling exchange rate is thus at 0.8455.

Note: These are wholesale inter-bank market rates. Your bank will affix a charge at their discretion, hence why you never receive anything close to the market rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please learn more here.

Both pound and euro enjoying fresh strength

UK retail sales data came in for the month yesterday with a 0.6% increase, better than the 0.5% prediction. This helped keep this pairing above the 1.18 mark which it seems to be struggling with recently.

"Strangely the EUR remains strong and whilst both the euro and pound sterling are making awesome gains against the dollar, we cannot help but feel that the EUR is still having the better time of things. Trading should remain sideways as we enter a quiet end to the week and no huge movements are expected," says Sasha Nugent at Caxton FX.

Tentative signs that a new sterling rally lies ahead

According to analyst Piet Lammens at KBC Markets, the pound could be at the start of a fresh rally:

"There are tentative signs that the sterling correction has run its course. A cautious sell-on-upticks approach can be considered. Tight stop loss protection remains warranted in case of a break above 0.8510."

Beware a Euro comeback

However, before we call this a one-way bet in favour of the pound sterling, we consider the viewpoint of ICN Financial.

Analysts at ICN have today updated clients on the possibility of a return to form for the Euro.

Commenting on the Euro to Pound exchange rate, ICN say:

"The royal pair continued to consolidate near 0.8460-0.8465 regions, while the bullish effect of the previous caught classical pattern is still in play suggesting further upside movements following the re-test of the falling trend line that connected the trend from 0.8770 levels.

"RSI 14 remains stable above the value of 50.00 reinforcing our bullish overview mainly targeting 0.8600 zones. A break above 0.8510 will accelerate."