Euro Exchange Rate Today - GBP/EUR Trades Lower as Pound Sterling Out of Favour

Modified: Tuesday, 9 July 2013 14:55 BST - Written by John Cameron

STORY LINK Euro Exchange Rate Today - GBP/EUR Trades Lower as Pound Sterling Out of Favour

The Pound has put in yet another poor performance against the other sixteen most-actively traded global currencies so far today. In fact, Sterling has proved to be the most out of favour of the super 16 as investors continue to price-in a high percentage chance that the Bank of England’s base rate will remain low for years to come. The Pound’s tame showing sent the GBP EUR exchange rate down to as low as 1.1530 earlier while the GBP USD exchange rate has lost 0.44% so far on the session.

The Pound received an additional hit earlier today when the latest UK Industrial and Manufacturing Production numbers were published – both figures showed at well below the level which analysts had been anticipating, causing a heightening of concerns that the non-services sectors of Britain’s economy are struggling to recover from their post-2007 slump. Investors holding Sterling-denominated assets will be given further guidance on this when the latest NIERSR GDP Estimate is released later this afternoon.

Elsewhere, the high-yielding commodity Dollars have been well-bid so far today thanks to a generalised improvement in global appetite for risk. The Pound to Australian Dollar exchange rate (currency : GBP AUD) traded down into the 1.6100s earlier today. The pair made a concerted run at the 1.7000 threshold only a few trading sessions ago making a near-term correction likely for GBP AUD after its sharp move forward of recent months. The remainder of this month will inform investors whether the current downward move for the pair adds up to more than this.

Meanwhile, GBP NZD had tumbled through the 1.9000 level on the day. The Reserve Bank of New Zealand has stated that it will actively weaken the Kiwi if it shows signs of ‘over-strengthening’. With GBP NZD having briefly traded above two to one last week, such a move from the RBNZ becomes more likely – investors holding NZD-denominated assets should be mindful of such an action.

Current exchange rates mentioned in this article are as follows: Pound to Euro exchange rate: 1.15684 GBP/EUR (-0.38%), Pound to Dollar exchange rate: 1.48726 GBP/USD (-0.41%), Pound to Australian Dollar exchange rate: 1.61942 GBP/AUD (-1.1%) and Pound to New Zealand Dollar: 1.91813 GBP/NZD (-1.5%)

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