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Posted July 26th, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 26th July 2010

EUR/GBP – 1.196

Sterling jumped sharply on Friday after stronger than expected economic data saw demand surge for the pound. Sterling jumped by more than 1% against the euro and US dollar after the 1st estimate of 2nd Quarter GDP growth for the UK almost doubled analyst estimates. Most had been expecting a mild improvement of 0.6% – and even then many were skeptical after the last 2 first estimates came in woefully under par. However, when the data showed that the UK economy had grown by 1.1%, many investors started to bet that the Bank of England would start raising interest rates sooner than expected. On the other hand, with many economic headwinds to come, this could be the best growth we see for some time as the government slashes spending over the coming months. Elsewhere on Friday, data showed that mortgage approvals in the UK fell by 8% on the June before. There is not much on the horizon this week with the exception of a speech from Mervyn King on Wednesday. Get in touch now for a live exchange rate.

In the euro zone, the major news on Friday was the release of the European bank stress tests. The tests – where the European Central Bank ran hypothetical scenarios to see the effect on bank balance sheets – were failed by several banks in the region. 7 banks need to raise a combined 3.5bn in capital to shore up the ailing balance sheets. However, many (including the Financial Times) have been heavily critical of the exercise, which did not go far enough. One major flaw in the tests was that the scrutiny only fell on the ‘trading book’ and not the overall debt picture. In addition, the figure of 3.5bn was seen as far too low given the rather shocking state of debt in the region. The result of Friday’s exercise has been that any upside for the euro has been cancelled out, and sentiment has fallen for the single currency. Call in now for a live price.

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Posted July 22nd, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 22nd July 2010 EUR/GBP – 1.187 Sterling fell yesterday after the minutes from the Bank of England’s latest policy meeting on interest rates showed a dampened outlook for growth. As a whole, there was a lack of confidence from the policy makers as further quantitative easing (injection of money into  Continue Reading…

Posted July 21st, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 21st July 2010 EUR/GBP – 1.188 Sterling recovered from Monday’s losses yesterday as concerns over European bank stress tests saw investors taking profit from the stronger euro. Despite starting the day poorly after data on UK public finances came in worse than expected, the pound recovered against the euro and  Continue Reading…

Posted July 20th, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 20th July 2010 EUR/GBP – 1.177 Sterling fell yesterday against the euro to hit a 7 week low against the euro as higher demand for the single currency saw investors cut short positions in the currency – particularly against the pound. Sterling hit a low of 1.1724/ £1, as a  Continue Reading…

Posted July 19th, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 19th July 2010 EUR/GBP – 1.181 Sterling fell on Friday, hitting the lowest level against the euro since June 1st as strong European stock markets helped drive demand for the single currency. Strong corporate earnings from the USA have also helped drive demand for higher risk currencies. Given the concerns  Continue Reading…

Posted July 16th, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 16th July 2010 EUR/GBP – 1.192 Sterling continued its rally against the US dollar yesterday, hitting a 2½ month high of $1.5393 as risk appetite helped drive demand for the pound. Data in the UK was fairly thin on the ground and the movement was driven by strong data out  Continue Reading…

Posted July 15th, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 15th July 2010 EUR/GBP – 1.199 Sterling hit a 2 month high against the US dollar yesterday as UK jobs data came in better than expected. The number of people claiming unemployment fell by more than expected, showing a fall of 20,800 people against an expectation of 20,0000. In addition,  Continue Reading…

Posted July 14th, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 14th July 2010 EUR/GBP – 1.198 Sterling rose yesterday against the US dollar after inflation data remained above the Bank of England’s target rate. The CPI year on year inflation figure fell from 3.4% for May to 3.2% for June. The Bank’s target rate is 2.0%, and many investors felt  Continue Reading…

Posted July 13th, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 13th July 2010 EUR/GBP – 1.196 Sterling fell against the US dollar on Monday after concerns resurfaced over the UK’s triple A credit rating. Standard & Poor’s said it was maintaining the negative outlook on Britain’s economy as the challenging spending cuts announced in the recent emergency budget have yet  Continue Reading…

Posted July 12th, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 12th July 2010 EUR/GBP – 1.190 Sterling slipped against the USD dollar and euro on Friday as the post-election and budget rally seems to be coming to an end. After hitting $1.5141/ £1 on Thursday – the highest level since May – the pound is now trading at $1.4970/ £1.  Continue Reading…

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