Pound to Euro Exchange Rate Climbs, Pound to Australian & New Zealand Dollar Rates Dip

Modified: Tuesday, 10 September 2013 14:52 BST - Written by Toni Johnson

STORY LINK Pound to Euro Exchange Rate Climbs, Pound to Australian & New Zealand Dollar Rates Dip

The GBP EUR exchange rate has edged higher on the day thanks to weak Italian data and some bad news for the eurozone’s policymakers. Meanwhile, GBP AUD and GBP NZD have tumbled.

The Pound euro exchange rate (GBP/EUR) is currently trading up by 0.08% at 1.1851 GBP/EUR. The euro Pound exchange rate is currently trading at 0.8438 (EUR/GBP).

Data and news stories emanating from the eurozone have hogged the headlines in the global currency markets so far today. The single currency suffered a blow during early trading today following the publication of finalised Italian Q2 Gross Domestic Product data which saw previous estimates of the level of economic activity during the three months to the end of June downwardly revised to -0.3%. The initial estimate of -0.2% for the figure was disappointing enough, given that other nearby economies appear to be pulling away from recession and returning to growth, so today’s number raises the spectre of renewed debt problems for the region as a whole.

There was further bad news for eurozone policymakers a short time ago when it was announced that a 14-page legal document from lawyers in Brussels had found that proposed plans for a Financial Transaction Tax in the region are incompatible with the European Union treaty. The news appears to scupper eurozone policymakers’ plans for a so-called Tobin Tax which would levy a percentage charge on equities, currency and bond transactions. The region’s lawmakers had been banking on the introduction of such a tax in order to create a fund to tackle future liquidity crises, so the development was bad news for the euro. The Pound euro exchange rate (GBP/EUR) has climbed to as high as 1.1864 in the aftermath of the announcement, falling just short of yesterday’s intraday high.

Elsewhere, the Pound US Dollar exchange rate (GBP/USD) has hovered just below the 1.5700 threshold throughout the day whilst the GBP AUD and GBP NZD exchange rates have suffered pronounced downside on the session. Price action for these three pairs points to a ‘risk on’ trading environment, hinting that most investors are now uncertain that the US Federal Reserve will be trimming its controversial Quantitative Easing programme next month.

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 Australian Dollar Forecasts Currency Predi Forecasts