Euro Exchange Rate Today: GBP/EUR Climbs To 6-Week High On Positive Data

Modified: Thursday, 15 August 2013 14:37 BST - Written by Toni Johnson

STORY LINK Euro Exchange Rate Today: GBP/EUR Climbs To 6-Week High On Positive Data

Further positive UK data, released earlier today, added to the impression that the British economy is healing. Retail Sales and Housing Sector data both suggested that the Pound may continue strengthening.

The Pound Euro exchange rate is currently trading up 0.20% at 1.1720 GBP/EUR. The Euro Pound exchange rate is currently trading at 0.8532 EUR/GBP.

Another raft of positive data has sent the Pound higher against virtually all of the other sixteen most actively traded global currencies so far today. Hot weather or no hot weather, this morning’s UK Retail Sales numbers for July provided the Pound with a real boost, revealing that British shop sales expanded by an annualised amount of 3.1% versus analysts’ expectations of a showing of 2.7%. The hot dry weather last month was certainly one contributory factor behind this encouraging figure, but the data was part of a larger trend which has been emerging for the UK’s retail sector in recent months.

June’s counterpart figure, which showed a year-on-year increase of 2.1% had provided grounds for optimism that the British population might be able to spend its way to prosperity and the latest data backs this up. The news sent the Pound higher across the board and once again the British tender was the best performing of the sixteen most-actively traded global currencies by the middle part of today’s European equities session. This propelled the Pound euro exchange rate (currency : GBP EUR) up to its highest level since the 4th July at 1.1736 earlier, while the Pound Dollar exchange rate (GBP USD) pushed on towards the 1.5600 threshold.

Meanwhile there was further positive news from the UK housing sector with the release of data which revealed that the number of new homes builds being started increased by 6% during the three months leading up to the end of June. The data suggests that the UK coalition government’s controversial Help to Buy scheme, which provides interest free matched funding for first time buyers in the UK, is starting to have its desired effect. The data follows hot on the heels of yesterday’s positive UK unemployment data, adding to the impression that the British economic recovery is picking up pace. The current forward momentum for the GBP EUR exchange rate could continue for some time.

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