Euro to Pound (EUR/GBP) Exchange Rate Firmer as UK Data Weakens Pound Sterling

April 11, 2014 - Written by Tim Boyer

STORY LINK Euro to Pound (EUR/GBP) Exchange Rate Firmer as UK Data Weakens Pound Sterling

The Euro Pound exchange rate (EUR/GBP) firmed on Friday as weaker than forecast construction data and the Bank of England’s interest rate decision weighed in on the Pound Sterling (currency:GBP).

The Euro currency continued to find mild support from yesterday’s positive return to the financial markets for Greece. The austerity ravaged nation managed to raise €3 billion in its first bond auction since it received its first batch of bailout funds in 2010.

Sterling meanwhile fell as investors broadly ignored the publication of a number of reports which showed that inflation in the Eurozone fell more than forecast in March and instead weighed upon Sterling following a weak construction report.

According to the Office for National Statistics Construction output in the UK fell in the second month of the year as heavy rain caused flooding in many parts of the nation. Construction output declined by 2.8%, the biggest drop recorded since November last year.

Looking ahead to next week we can expect the Euro to once again soften as economists expect Wednesday’s Eurozone inflation report to disappoint. Concerns are high over the threat of deflation and a negative figure will pile more pressure onto the European Central Bank to take action.

Sterling will be impacted by next week’s publication of the latest UK inflation and unemployment data. Investors will also be looking at the average earnings data for signs of improvement. A positive report will suggest that business confidence and the overall economy have strengthened.

Relevant Euro Exchange Rates (Updated: 16:30 GMT 11/04/2014)

The Euro to Australian Dollar exchange rate is trading down -0.03% at 1.47729 EUR/AUD.
The Euro to Canadian Dollar exchange rate is trading up +0.29% at 1.52266 EUR/CAD.
The Euro to Swiss Franc exchange rate is trading down -0.04% at 1.21625 EUR/CHF.
The Euro to Pound Sterling exchange rate is trading up +0.38% at 0.83084 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading down -0.16% at 1.59928 EUR/NZD.
The Euro to Turkish Lira exchange rate is trading up +0.12% at 2.93605 EUR/TRY.
The Euro to US Dollar exchange rate is trading up +0.06% at 1.38955 EUR/USD.
The Euro to South African Rand exchange rate is trading down -0% at 14.53497 EUR/ZAR.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Currency Predictions Daily Currency Updates Euro Forecasts