GBP EUR Exchange Rate: Investors Eyeball British Pound Sterling to Euro Rate As Share Markets Climb

April 23, 2014 - Written by Toni Johnson

STORY LINK GBP EUR Exchange Rate: Investors Eyeball British Pound Sterling to Euro Rate As Share Markets Climb

GBP EUR exchange rate: Investors eyeball British Pound Sterling to Euro rate as share markets climb - Risk was most definitely back on the menu during yesterday’s session in the global currency markets, as evidenced by movements in the world’s leading equities exchanges. Frankfurt’s Dax closed up by over 2.00% on the day, while London’s FTSE 100 index climbed by almost 1.00%. By the middle part of the trading day in North America, the broad-based S&P 500 index was up by just over 0.50%.

Updated 13:30PM: The Pound Sterling to Euro exchange rate is trading down -0.39% at 1.21359 GBP/EUR.

The shift from safe haven assets back into stocks has been driven by a series of positive company reports from Western exchanges, as well as news from major enterprises and positive movement triggered by Mergers and Acquisitions rumours. Aeronautical giant Boeing’s revelation early yesterday that China’s Shandong Airlines had placed an order for some fifty 737 aircraft costing a total of $4.7bn helped the mood of investors sending Boeing’s share price Northwards by almost 5.0% on the session.

Meanwhile, market whispers from the pharmaceutical industry were rife, with analysts suggesting that a $100bn takeover of AstraZeneca by US drug giant Pfizer is imminent. The development saw AstraZeneca’s share price gain over 8.00% during London trading. Elsewhere, the announcement from GlaxoSmithKline that it will be entering a $16bn commercial accord with Novartis added to investors’ appetite for risk.

The ebullient mood in equities markets following the Easter shutdown has fed into the global currency markets as well; the high-yielding currencies enjoyed a good day of it yesterday, with the Pound Australian Dollar exchange rate dipping to 1.7928 GBP/AUD during early trading. Meanwhile, the Pound New Zealand Dollar exchange rate edged lower to 1.9514 GBP/NZD.
Elsewhere, the Pound euro exchange rate made another run at its 14-month high during late trading yesterday, touching 1.2195 GBP/EUR just after the London equities close. A failure by the pair to register a fresh range-topping rate above its existing high of 1.2258 today will sound a strong negative indicator. The Bank of England’s April minutes, due for publication later this morning, represent the next risk event of note for the pair.

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