Euro to Pound Weekly Exchange Rate Roundup ? May 25 to 29

May 30, 2015 - Written by Tim Boyer

STORY LINK Euro to Pound Weekly Exchange Rate Roundup ? May 25 to 29

Euro to Pound Weekly Currency Roundup – May 25 to 29

With the British and US markets closed for bank holidays, Monday’s session was devoid of any major movements for the Euro and other major currencies.

On Tuesday, the Euro was trading at a 1-month low against the US Dollar and a 3-month low against the Pound Sterling as traders reacted to warnings that Greece is likely to fail to pay the €1.6 billion it owes to the IMF. Also weighing on the single currency was the election success of anti-austerity party Podemos. The success of the group has increased uncertainty as to who will win Spain’s general election, which is due later in the year. A lack of market moving data out of the UK meant that the Pound reacted to external events.

Midweek, the Euro firmed against the Pound and other peers due to Greek officials playing down the threat of a default. The Greek government announced that it was confident that it would be able to repay the money owed to the International Monetary Fund. The single currency also received support from the release of positive German consumer confidence data but further gains were restrained as French confidence missed expectations. The Pound Sterling gave up some of the gains it achieved in the previous session after Greek officials eased concerns that the country will default on a debt repayment due on June 5. The main event for the UK was the state opening of Parliament. The Queen delivered a speech outlining what the government’s plans will be for the coming year.

On Thursday, the Euro inched higher against the Pound and US Dollar as it found support from more good news from Spain. The Spanish economy was shown to have expanded by 0.9% on a quarter-on-quarter basis in the first three months of 2015. The figure was an improvement on the previous figure of 0.7% and on a yearly basis; the nation grew by 2.7%. As the session progressed, the currency experienced mixed movement as Eurozone sentiment reports came in mixed. The Pound Sterling softened as UK GDP data came in below expectations. The UK economy was confirmed to have grown by 0.3% in the first quarter, disappointing economists who had been forecasting for a revision higher to 0.4%.

As the week ended, the Euro weakened against its major peers as worries over Greece continued to weigh upon sentiment. International Monetary Fund (IMF) Chief Christine Lagarde warned on Thursday that Greece could leave the Eurozone, suggesting that the markets are fearful of the impacts of a ‘Grexit’. The Pound Sterling softened to 1.39 due to the release of a worse-than-forecast Gfk Consumer Confidence report. The consumer confidence index fell 3 points to +1 from +4. Economists had expected the index to remain at +4.

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