Pound Euro & Pound Dollar Exchange Rates Drop On UK Borrowing Data

October 22, 2013 - Written by Tim Boyer

STORY LINK Pound Euro & Pound Dollar Exchange Rates Drop On UK Borrowing Data

Slightly better than expected UK public sector borrowing figures failed to assuage the market’s fears regarding the UK PLC’s current fiscal position. The Pound suffered as a consequence, while the Swiss Franc pushed ahead thanks to some better than anticipated import/export data, released earlier.

The Pound to Euro exchange rate (GBP/EUR) is currently trading down by 0.02% at 1.1798 GBP/EUR. The Euro to Pound exchange rate is currently trading at 0.8476 EUR/GBP.
UK public sector net borrowing edged lower during September according to official figures published earlier today, however the greater than anticipated dip from August’s £12.5bn down to £11.1bn was not enough to stop the Pound drifting lower against the majority of the other sixteen most-actively traded global currencies.
The Pound euro exchange rate (GBP/EUR) has dropped to as low as 1.1785 during early trading today, while the Pound US Dollar exchange rate (GBP/USD) has headed southwards to touch the 1.6112 level. The softening of support for the Pound comes as a reaction to the numbers which reveal that the UK’s coalition government is still struggling to make any kind of impression in Britain’s sizable deficit. Investors will be looking for some hefty debt pay-downs in coming months from the Tory-lead alliance in order to keep faith in their deficit reduction plan.

Elsewhere, the Swiss Franc came in for some support earlier today when last month’s Swiss Trade Balance numbers were published. Economists were expecting the figure to point to a trade surplus of CHF2.01bn for last month so a print of CHF2.49bn provided grounds for encouragement regarding the future prospects of Switzerland’s economy. The Pound Franc exchange rate (GBP/CHF) headed downwards to 1.4549 as a response to the Swiss trade data. The Franc remains dependent on flaky global appetite for risk in order to remain strong, so look for a re-ignition of this month’s ugly debt stand-off in the States in order to send GBP CHF lower once more.

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 Dollar Pound Forecasts Euro Forecasts Euro Pound Forecasts P Forecasts