Euro to Pound FX: Weekly EUR-GBP Exchange Rate Roundup

March 22, 2015 - Written by James Fuller

STORY LINK Euro to Pound FX: Weekly EUR-GBP Exchange Rate Roundup

At the start of the week, the Euro exchange rate remained at a 12-year low versus the US Dollar and at a multi-year low against the Pound, as the diverging monetary policies of the US, UK and Eurozone continued to weigh.

Lower bond yields made the EUR less attractive to investors at a time when expectations are building that the US Federal Reserve could start hiking interest rates mid-year.

The Pound SEuro exchange rate meanwhile remained in the 1.40 region, whilst Sterling was firmer against the US Dollar after data showed that house prices rose last month.

Prices are now just £30 under the all time record high recorded last year. With no other market moving data releases due, the currency pair traded in a tight range.

On Tuesday, the single currency firmed against the Pound and US Dollar as economists turned their attention to Eurozone employment change, ZEW Economic Sentiment and Inflation data. Concerns over a possible Greek exit from the currency bloc continued to weigh.

The Pound Sterling fell against the Euro, US Dollar and the Rand as economists grew increasingly concerned over the May general election.

48% of economists now cite that political uncertainty is the biggest risk to the UK’s economic recovery.

With no clear winner expected, a coalition will need to be created, but what form that would take is impossible to forecast.

Midweek, the Euro held onto the previous session’s gains following the release of improved Eurozone inflation data. Another report showed that the region’s employment crisis eased in the final quarter of 2014 and economic sentiment in the currency bloc strengthened.

The ZEW Economic Sentiment Index rose from 52.7 to 62.4.

The Pound Sterling softened against the Euro and US Dollar as economists await the release of UK unemployment and average earnings data.

Also due to be published are the minutes of the Bank of England’s March policy meeting. Also of interest for the Pound will be Chancellor George Osborne’s budget, which is likely to influence the May 7 general election.

On Thursday, the Euro gave up gains against the majority of its major peers as economists grew increasingly concerned over Greece and as the currency’s recent gains were deemed as overdone.

The Pound to Euro rate rallied on concerns over Greece as the European Central Bank granted less emergency liquidity than requested.

Athens had requested €900 million but the ECB only granted €400 million. Wednesday’s budget given by Chancellor George Osborne was also seen as a positive for the Pound, as the UK government announced new laws to crack down on tax avoidance.

As the week ended, the Euro recovered from Thursday’s sharp losses as investors focused on talks in Brussels over the Greek crisis. European leaders said that Greece has agreed to establish a new reform plan over the coming days in an attempt to secure much needed bailout funds.

Euro Exchange Rates Today: 23rd March 2015

The Pound to Euro exchange rate converts -0.35 per cent lower at 1 GBP is 1.37543 EUR.
The US Dollar to Euro exchange rate today is converting -0.01 per cent lower at 0.92367 USD/EUR.
The Swiss Franc to Euro exchange rate today is converting +0.09 per cent higher at 0.94560 CHF/EUR.
The Canadian Dollar to Euro exchange rate is -0.06 pct lower with a conversion rate of 1 CAD equals 0.73368 EUR.
The Hong Kong Dollar to Euro exchange rate is +0.02 pct higher with a conversion rate of 1 HKD equals 0.11910 EUR.
The Australian Dollar to Euro (AUD/EUR) exchange rate today is converting -0.05 per cent lower at 0.71858.
The New Zealand Dollar to Euro is converting +0.33 per cent higher at 0.70142 NZD/EUR.

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