Euro Pound Exchange Rate (EUR/GBP) Climbs On Positive Eurozone PMI Data

Modified: Friday, 23 August 2013 09:23 BST - Written by James Fuller

STORY LINK Euro Pound Exchange Rate (EUR/GBP) Climbs On Positive Eurozone PMI Data

The GBP EUR exchange rate has trended lower on the day thanks to firm data from the eurozone. Improvement for the single currency will be tested by this afternoon’s eurozone Consumer Confidence survey.

The Pound Euro exchange rate is currently trading down by 0.30% at 1.1670 GBP/EUR. The Euro Pound exchange rate is currently trading at 0.8569 EUR/GBP.

Yesterday’s session saw a pronounced improvement for the euro against the Pound and the US Dollar which sent the Pound euro exchange rate (GBP/EUR) down to as low as 1.1653 and the euro Dollar exchange rate (EUR/USD) up to 1.3372.

Gains for the single currency on the day were driven by the release of a better than anticipated whole of eurozone Purchasing Managers’ Index survey which rose from June’s showing of 50.5 up to 51.7 last month. The reading was well ahead of the consensus expectation of analysts for a print of 50.9. Figures earlier this month revealed that the continental European economy had pulled away from recession during the second quarter of 2013 and today’s numbers suggest that this improvement is now picking up momentum.

Investors will learn more regarding the future prospects of the eurozone economy this afternoon when the latest regional Consumer Confidence survey is published. A showing of better than the anticipated -16.5 would provide the single currency with further support as we head towards the weekend market shutdown. Such an occurrence would be likely to send the euro Pound exchange rate (EUR/GBP) up towards its 2013 zenith around the 0.8800 level.

Elsewhere, yesterday’s session saw the GBP USD exchange rate trend lower towards the middle part of the 1.5500s. The improvement for the Greenback came courtesy of Wednesday night’s Fed minutes which have seen market participants factor-in a higher percentage chance that the US central bank will be trimming its $85bn per month Quantitative Easing programme in September. This afternoon’s US New Home Sales data will give investors further guidance on the likelihood of such an event and should be closely-watched.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Daily Currency Updates Dollar Po Forecasts