Euro to Pound Exchange Rate Today: EUR GBP Level Despite Positive Spanish Jobs Data

July 26, 2013 - Written by Minesh Chaudhari

STORY LINK Euro to Pound Exchange Rate Today: EUR GBP Level Despite Positive Spanish Jobs Data

Today's session has seen the release of some potentially market-moving data for the Euro to Pound exchange rate (EUR GBP).There was some unexpected good news for the eurozone during this morning’s session in the currency markets when official Spanish government figures revealed that the overall level of unemployment in the debt-addled Iberian state had fallen for the first time since 2011 during the second quarter of this year. The improvement from Q1’s showing of 27.3% down to a still startlingly-high 26.3% was attributed to a pickup in employment in the tourism sector of the nation’s economy. The fact that the increase in Spanish job creation was due to an uptick in seasonal employment took the edge off the numbers – such positions are ordinarily not permanent and are relatively poorly paid. Nevertheless, the fact that the level of job losses in Spain’s economy appears to be levelling out provides some cause for optimism regarding the future prospects of the debt-burdened nation.

The relatively encouraging Spanish job figures were tempered by a report from the International Monetary Fund (IMF) which suggested that many of the eurozone’s retail banks continue to sail close to the wind. The IMF found that many Euro area banks will need to increase their capital ratio in order to be able to withstand future shock to the financial system. The IMF publication went on to doubt the strength of the real economy in mainland Europe, noting that GDP growth levels remain subdued and pointing to the historically high rate of unemployment in many pockets of the region.

The IMF’s proposed solution to the eurozone’s problems came in the form of the suggestion that the European Central Bank should consider further trimming its key interest rate from its current all-time low of 0.50%. Such an action would surely see the Pound euro exchange rate (currency : GBP EUR) climb back into the 1.2000s once more. Today’s session has seen the pair change hands within a tight trading range 30 pips either side of the 1.1600 threshold. 1.1600 on GBP EUR equates to a trading rate of 0.8621 on the Euro to Pound exchange rate (EUR GBP).

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