Foreign Exchange Report : GBP EUR Rate Gains as UK Inflation Accelerates and Franco-German Summit Fails to Provide Debt Solution
17 Aug 2011 at 6 AM - Written by John Cameron
The Pound Euro exchange rate (GBP EUR) is 1.1405. The Pound Dollar exchange rate (GBP USD) is 1.6433. The Pound Australian Dollar exchange rate (GBP AUD) is 1.5667.
The markets had held great hopes that yesterday’s meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy to discuss Eurozone debts would yield a road map to lead Europe out of its current debt crisis.
When the two leaders spoke at a joint news conference after yesterday’s European equities markets had closed, their comments were met with widespread apathy by investors. The best that the leaders of the Eurozone’s two dominant economic powers could muster were promises of further non-specific European integration and a twice yearly meeting of the seventeen Eurozone leaders to be chaired by Herman van Rompuy, the head of the European Council.
Whilst making promises of further ‘step-by-step’ integration, Chancellor Merkel rejected legendary investor George Soros’s proposal that the European Central Bank should introduce a Eurozone-wide ‘eurobond’ which would have enabled policy-makers to exert increased leverage on Europe’s collective economies. Actions speak louder than words.
Market participants showed their disappointment at the Franco-German summit’s lack of tangible results by selling equities and moving into the safe haven of government treasury bills, in the immediate aftermath of the press conference.
The Euro was already on the back foot by the time Merkel and Sarkozy sat down to deliver their press conference, following the release of weak German GDP growth data yesterday morning. The figures showed that Europe’s powerhouse economy had expanded by only 0.1% in the three months leading up to the end of June. German economic activity had shown a healthy 1.5% quarterly rise in the first three months of 2011, so the figures pointed to a real slow down.
The poor German growth numbers and lack of message from the Franco-German summit saw the EUR USD rate reject its monthly high of 1.4477, reached on Monday, to trade down to 1.4353 overnight.
The Euro also suffered against the Pound during yesterday’s session, partly thanks to a higher than expected UK CPI inflation figure, which showed that UK prices are rising at an accelerated rate. This saw the GBP EUR rate trade up from 1.1331 before the inflation figure to touch 1.1444 in late trading.
For other live currency exchange rates and a currency converter see the currency news website.
Foreign Exchange Report : GBP EUR Rate Gains as UK Inflation Accelerates and Franco-German Summit Fails to Provide Debt Solution
The markets had held great hopes that yesterday’s meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy to discuss Eurozone debts would yield a road map to lead Europe out of its current debt crisis.
When the two leaders spoke at a joint news conference after yesterday’s European equities markets had closed, their comments were met with widespread apathy by investors. The best that the leaders of the Eurozone’s two dominant economic powers could muster were promises of further non-specific European integration and a twice yearly meeting of the seventeen Eurozone leaders to be chaired by Herman van Rompuy, the head of the European Council.
Whilst making promises of further ‘step-by-step’ integration, Chancellor Merkel rejected legendary investor George Soros’s proposal that the European Central Bank should introduce a Eurozone-wide ‘eurobond’ which would have enabled policy-makers to exert increased leverage on Europe’s collective economies. Actions speak louder than words.
Market participants showed their disappointment at the Franco-German summit’s lack of tangible results by selling equities and moving into the safe haven of government treasury bills, in the immediate aftermath of the press conference.
The Euro was already on the back foot by the time Merkel and Sarkozy sat down to deliver their press conference, following the release of weak German GDP growth data yesterday morning. The figures showed that Europe’s powerhouse economy had expanded by only 0.1% in the three months leading up to the end of June. German economic activity had shown a healthy 1.5% quarterly rise in the first three months of 2011, so the figures pointed to a real slow down.
The poor German growth numbers and lack of message from the Franco-German summit saw the EUR USD rate reject its monthly high of 1.4477, reached on Monday, to trade down to 1.4353 overnight.
The Euro also suffered against the Pound during yesterday’s session, partly thanks to a higher than expected UK CPI inflation figure, which showed that UK prices are rising at an accelerated rate. This saw the GBP EUR rate trade up from 1.1331 before the inflation figure to touch 1.1444 in late trading.
For other live currency exchange rates and a currency converter see the currency news website.
TAGS: American Dollar Forecasts Daily Currency Updates Euro Forecasts Pound Dollar Forecasts Pound Euro Forecasts Pound Sterling Forecasts
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