Pound to Euro Exchange Rate Today - GBP EUR Edges Higher Ahead Of This Morning?s UK CPI Inflation Data

February 14, 2012 - Written by Ben Hughes

STORY LINK Pound to Euro Exchange Rate Today - GBP EUR Edges Higher Ahead Of This Morning?s UK CPI Inflation Data

The Pound Euro exchange rate (GBP EUR) is 1.1943. The Pound Dollar exchange rate (GBP USD) is 1.5730. The Pound Australian Dollar exchange rate (GBP AUD) is 1.4705.

Yesterday’s session in the currency markets saw institutional investors adjust their positions following Sunday night’s vote in favour of the proposed austerity package by Greece’s parliament. The result elicited a forward move in global appetite for risk, sending share markets higher – London’s FTSE 100 gained the best part of 1% on the day, while Europe’s stock indices also traded into positive territory.

The easing of risk aversion benefitted the high-yielding currencies above all others, sending the GBP AUD back down towards its lowest level since 1985. The New Zealand Dollar also made healthy gains on the day, to break to an intraday low of 1.8868.

On the other side of the coin, the safe-haven US Dollar leaked support in the markets as investors liquidated their safety plays in order to get involved in more rewarding investments. This saw the GBP USD exchange rate trade up to 1.5828 during yesterday's session, before dropping back overnight, while the EUR USD also traded up on the day.

Looking ahead to today’s session, the highlight for investors holding Sterling-denominated assets will be this morning’s UK CPI Inflation figure for January. Analysts are expecting the data to show a considerable cooling in the rate of British price rises, with the headline CPI number expected to drop from December’s 4.2% figure to a relatively lowly 3.6%. This remains considerably above the government’s target of 2.00%, but a slowdown in British price rises may cause investors to dampen their expectations of the timing of the next Bank of England interest rate rise, placing further pressure on Sterling.

Meanwhile, in the eurozone, this month’s German ZEW Survey is released at 1000hrs GMT. The key economic sentiment survey is expected to register at -15, showing a marked improvement from January’s -21.6 print. Anything worse than the expected -15 could cause market participants to question the future prospects of Europe’s powerhouse economy, potentially causing the GBP EUR exchange rate to make a renewed run at the key 1.2000 level.

For exchange rate updates/forecasts, live exchange rates and a currency converter please see the currency news website.

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