Euro Exchange Rate Today: GBP/EUR, GBP AUD & GBP NZD Rates Tumble

June 12, 2013 - Written by Toni Johnson

STORY LINK Euro Exchange Rate Today: GBP/EUR, GBP AUD & GBP NZD Rates Tumble

This morning’s session brought the latest in a string of positive data releases emanating from the UK economy. The Office of National Statistics published figures at 0930hrs BST this morning which revealed that the overall level of UK unemployment had dipped by a total of 5,000 during the three months leading up to the end of April. However, the positive showing from the UK’s labour market was not enough for the total number of unemployed in Britain to fall below the psychologically important 2.50m level.

The closely-watched British jobs figure saw the Pound well supported in the global currency markets, sending the Pound to euro exchange rate (currency : GBP EUR) up to as high as 1.1805 earlier. However, Sterling struggled to assert itself against the high-yielders as world share markets traded into positive territory following yesterday’s poor showing. The ‘risk on’ trading environment saw the Pound to Australian Dollar exchange rate drop back into the 1.6300s, while the Pound to New Zealand Dollar exchange rate (currency : GBP NZD) also pulled back from yesterday’s near-term highs to briefly change hands in the 1.9400s.

The GBP NZD exchange rate will be afforded further direction when the Reserve Bank of New Zealand announces its latest policy decision. The consensus amongst analysts is that the RBNZ will opt to maintain its Overnight Cash Rate at its current level of 2.50%. Anything other than this would be a major surprise, but the NZD is still likely to shift in the wake of the announcement as investors closely monitor the rhetoric contained in the RBNZ Governor Graeme Wheeler’s accompanying statement.

Looking ahead to the next 24 trading hours, the two major risk events which stand out, apart from the RBNZ decision, come in the form of May’s Australian unemployment data and the latest ECB Monthly Report. Look for a poor showing from the Australian jobs numbers to send GBP AUD higher once more, while any mention of negative interest rates from the ECB and the Sterling to euro exchange rate is likely to make a renewed run at its key level of resistance at 1.1900.

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TAGS: American Dollar Forecasts Currency Predictions Euro Forecasts Euro Forecasts