Euro to Pound Sterling Rate Today: Weekly EUR/GBP Exchange Rate Roundup Feb 2015

February 22, 2015 - Written by Toni Johnson

STORY LINK Euro to Pound Sterling Rate Today: Weekly EUR/GBP Exchange Rate Roundup Feb 2015

Today's Euro to Pound Sterling (EUR/GBP) Exchange Rate Summary/ Analysis

Greece dominated sentiment towards the Euro last week as the new Syriza led Greek government clashed with its European partners and in particular the Germans who resisted any plans to allow Greece to end its austerity measures.

As the week got under way, investors were widely optimistic that a deal would be reached and that the situation would blow over.

As Euro group finance ministers gathered in Brussels for crunch talks on the subject, it quickly became obvious however that things would not be as simple as first hoped as the meeting ended in abject failure with nothing being decided. Also on Monday, the single currency found support from data, which showed that the Eurozone’s balance of trade hit a massive surplus of €24.3 billion in December.

A lack of market moving data for the UK and the closure of the US and Canadian markets meant that the Pound experienced little movement.

Pound to Euro Exchange Rate Softens on Inflation

Tuesday’s session however saw the Pound Sterling rally as the latest UK inflation data showed that consumer prices fell to their lowest level on record thanks to falling oil and food prices.

The fall was widely seen as a positive as economists bet that the UK economy will rally strongly as consumers find more disposable income in their pockets.

‘A lower inflation rate is excellent news for the consumer’s purchasing power. With inflation likely to fall further and earnings growth now finally trending upwards, consumers should see appreciable improvement in their purchasing power as 2015 progresses,’ said Howard Archer, chief economist at IHS Global Insight.

Euro (EUR) Exchange Rate Slips Despite ZEW

The Euro was softer despite the release of relatively positive ZEW economic sentiment index data as Greece continued to dominate market attention.

The Sterling to euro rate made further gains due to the release of far stronger than forecast UK average earnings data and as the nation’s overall unemployment rate fell unexpectedly from 5.8% to 5.7%.

The sharp drop in unemployment now means that the UK is quickly gaining on Germany as Europe’s main job creator.

The Euro meanwhile was still under pressure from Greece and as data showed that Eurozone construction output fell by -3.5% on an annual basis.

Thursday saw the Pound Euro exchange rate surge to the 1.36 level as Germany dismissed a request by Greece for extension to its bailout scheme. As the week ended, the Euro managed to claw back some ground against Sterling as data showed that the German economy picked up momentum this month.

Looking ahead the Euro’s movement will all depend on the Greece situation.

Today's Exchange Rates:

The Euro to Australian Dollar conversion rate is +0.1 pct higher at 1.45220 EUR/AUD.
The Euro to Canadian Dollar conversion rate is +0.12 pct higher at 1.42794 EUR/CAD.
The Euro to Pound Sterling exchange rate today is converting +0.12 per cent higher at 0.74006 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is +0.01 pct higher with a conversion rate of 1 EUR equals 1.51358 NZD.
The Euro to US Dollar exchange rate today is converting +0.14 per cent higher at 1.13955 EUR/USD.

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