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Posted January 17th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 17th January 2011

EURO/GBP - 1.1937

Sterling had a strong finish to the week, closing at a 1 month high against the US dollar after speculation over a UK interest rate hike helped boost the pound. Higher than expected producer prices, that came in at 4.2% against an expected 3.9%, gave further reason for investors to expect an interest rate hike from the Bank of England sooner rather than later as inflation remains stubbornly high. Sterling also strengthened against the euro despite speculation that the European Central Bank might also need to raise interest rates sooner rather than later. However, given the current situation in the euro zone, talk of interest rate rises seems a little premature. This week sees some key data releases – inflation on Tuesday, unemployment on Wednesday and ‘official’ retail sales data on Friday. Call in now for a live exchange rate.

In the euro zone, it seemed the region breathed a sigh of relief at the close of a turbulent week for the euro. Successful bond auctions from Portugal and Spain saw the euro strengthen by 3.8% against the US dollar on the week – the best performance for 1 ½ years – as fears eased over the credit crisis in the region. Many analysts starting getting a little euphoric and talking about a euro rally towards $1.50/€1, but there are some serious issues in the region that cannot be fixed by 1 or 2 successful bond auctions. A meeting of EU finance ministers kicks off today, with many sceptical that a quick fix to the situation will be found. Watch this space, as a minor spark could see somebody heading to the EU and IMF for a bailout again…

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Posted January 14th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 14th January 2011

EURO/GBP - 1.1777  Sterling fell against a stronger euro yesterday, but hit a 1 month high against the US dollar helped by speculation that UK interest rates may rise sooner than expected and following weaker than expected US data. With the Bank of England keeping interest rates on hold at record lows of 0.5%, many feel  Continue Reading…

Posted January 13th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 13th January 2011

EURO/GBP - 1.1987 Sterling strengthened to near a 1-month high against the US dollar yesterday following strong buying by Asian sovereign accounts. This helped offset an earlier drop caused by poor UK data. Figures released showed that the UK trade deficit widened to £8.736bn in November – £0.4bn more than expected and the highest trade deficit  Continue Reading…

Posted January 12th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 12th January 2011

EURO/GBP - 1.2010 Sterling held firm above the €1.20/£1 level after jumping to a four month high in the last few days as sovereign debt concerns continued to punish the euro and expectations of an interest rate hike in the UK gave sterling a boost, despite a survey by the British Retail Consortium showing that sales  Continue Reading…

Posted January 11th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 11th January 2011

  EURO/GBP – 1.2015 Sterling hit a 4-month high against the euro yesterday as the single currency was dogged by concerns over the debt problems in the euro zone.  Sterling was also helped against the euro as many (including PM David Cameron) believe inflation is too high in the UK and as such the Bank  Continue Reading…

Posted January 10th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 10th January 2011

EURO/GBP – 1.2028 Sterling had a strong day on Friday, closing above 1.20 against the euro after the biggest weekly gain against the single currency since mid-November 2010. Sterling benefitted from heavy selling of the euro as concerns over the debt crisis increased. After weaker than expected services and construction data earlier in the week,  Continue Reading…

Posted January 7th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 7th January 2011

EURO/GBP - 1.1885 Sterling had a shaky start to the day yesterday, falling against the US dollar and euro following worse than expected data for UK services sector activity for December. However, sterling recovered from the early knee-jerk drop as the poor figures were attributed to the prolonged disruption that December’s snow caused in the UK.  Continue Reading…

Posted January 6th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 6th January 2011

EURO/GBP - 1.1830 Sterling fell against the US dollar yesterday as poor UK data contrasted with better than expected US economic data. Sterling dropped by 0.6% to a low of $1.5452/£1 after a PMI survey of construction purchasing managers showed that activity in the sector fell by more than expected. With the poor weather in December,  Continue Reading…

Posted January 5th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 5th January 2011

EURO/GBP - 1.1770 Sterling gained yesterday as manufacturing data showed that activity in the sector grew in December at the fastest rate in 16 years. The Purchasing Manager’s Index (a survey in which purchasing managers are asked about their company’s buying) shot to 58.3 – the highest since September 1994 and beating expectations of a figure  Continue Reading…

Posted January 4th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 4th January 2011

EURO/GBP - 1.1631 Happy New Year! In our first currency note of 2011, sterling started the week slowly as UK markets were shut for the bank holiday. Sterling had a volatile end to 2010, dropping sharply on Thursday against the euro to hit 7 week lows which was attributed to heavy ‘year-end’ euro buying. The pound  Continue Reading…

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