Call Free Phone Now:0808 163 0102
Outside the UK: +(44) 207 898 0541 Request a Call Back
  Daily Currency News Euro US Dollar Educational Articles  
Posted July 11th, 2011 by Charles Purdy

EUR/GBP Rate & Comments for 11th July 2011

EURO/GBP - 1.1279 

Sterling strengthened on Friday against the US dollar after much weaker than expected US employment figures saw investors reverse bets against the pound. Sterling had hardly moved earlier in the day when figures showed that UK construction struggled and producer price inflation surged to the highest level since October 2008. There are some key figures out this week – including UK consumer price inflation, unemployment and trade data. With UK inflation at 4.5% in May and most domestic utility companies likely to follow Scottish Power’s lead in hiking tariffs, inflation is likely to top 5% over the summer which is likely to put mounting pressure on the Bank of England to increase rates far sooner than expected. In addition, with the UK economy so reliant on ‘rebalancing’, Tuesday’s trade figures will also be key. Call in now for a live exchange rate.

In the euro zone, the strong surge that the euro saw in the wake of the Greek austerity vote was brought to an abrupt halt last week as credit rating agency Moody’s downgraded Portuguese government bonds to ‘junk’ status. This raised the concern of further ‘contagion’ in the region and left investors concerned. Markets will be keeping a close eye on European finance ministers this week and additionally there are the results of European bank ‘stress tests’ this week which could see some significant movement so ensure you protect yourself by speaking to one of the team sooner rather than later.

For individual requirements, visit the website and for companies visit the website



Be Sociable, Share!

Comments are closed.

© Copyright 2010 Smart Currency Exchange. All Rights Reserved.
Site by Iniquus