Euro Exchange Rate Today: GBP/EUR Climbs, Gains For GBP USD Are Limited By Syria

Modified: Thursday, 29 August 2013 16:02 BST - Written by John Cameron

STORY LINK Euro Exchange Rate Today: GBP/EUR Climbs, Gains For GBP USD Are Limited By Syria

Sterling fared well on the day yesterday, climbing against the euro. However, the Pound’s gains against the US Dollar were limited by safe haven support for the Buck in anticipation of the effects of an international response to events in Syria.

The Pound euro exchange rate is currently trading down by 1.30% at 99.6547 GBP/EUR. The euro Pound exchange rate is currently trading at 0.010035 EUR/GBP.

Sterling enjoyed a largely positive session yesterday thanks to comments from Bank of England Governor Mark Carney. The top man at Threadneedle Street spoke publicly about the timing of the next alteration to the cost of borrowing in the UK. Carney stuck doggedly to the policy which he outlined at the start of this month when he stated that there would be no alteration to the UK base rate until the overall level of British unemployment drops below the 7.0% threshold. Futures markets are predicting that UK interest rates will remain at their current ultra-low level of 0.50% until 2015 and Carney’s reluctance to suggest that the next hike could be delayed triggered support for the Pound, sending the Sterling euro exchange rate (GBP/EUR) up towards the higher end of the 1.1600s today.

Meanwhile the Pound US Dollar exchange rate (GBP/USD) is holding just above the 1.5500 threshold. The Greenback has come in for steady support so far this week thanks to investors’ concerns that the USA and other Western powers may be about to launch an attack on Syria in response to last week’s apparent chemical attack on civilians in Damascus. With uncertainty levels likely to spiral in response to such an event, the Buck has hovered up substantial safe haven support.

Looking ahead to today’s session, the key risk event in Europe comes in the form of this afternoon’s German Consumer Price Index data – a considerable drop from last month’s 1.9% is anticipated and such an outcome would be likely to trigger a euro sell-off. If this comes to pass, then expect the euro Pound exchange rate (EUR/GBP) to drop towards the 0.8500 level.

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