Euro Exchange Rate Today: Pound Sterling to Euro Hits 10 ? Month High of 1.21177 GBP/EUR

Modified: Monday, 2 December 2013 17:51 BST - Written by Ben Hughes

STORY LINK Euro Exchange Rate Today: Pound Sterling to Euro Hits 10 ? Month High of 1.21177 GBP/EUR

The Pound euro exchange rate struck its highest level since the middle part of January during the middle part of today’s European equities session, as institutional investors fretted over the potential for further euro-negative comments from European Central Bank President Mario Draghi at his post-ECB policy decision press conference on Thursday. The single currency endured hefty losses against most of the other majors on the day in spite of this morning’s whole of eurozone Purchasing Manager Index survey of the manufacturing sector of the mainland European economy. The print showed at 51.6, marginally above the anticipated 51.5 level, but that wasn’t enough to stem the sustained losses for the euro on the session.

The Pound to Euro Exchange Rate Hit Record High of 1.21177 GBP/EUR

This morning’s UK PMI Manufacturing survey thrashed expectations, more than cancelling out the mildly euro-positive effect of the counterpart survey from the eurozone. There could be further gains for the Pound tomorrow morning if November’s PMI Construction survey also beats expectations.

Price action in the global currency markets during today’s session was shaped by a surprise announcement from policymakers in the world’s second largest economy during last night’s Asian session.

The news of new regulations in China’s burgeoning equities market last night caused a generally poor performance from share markets in the surrounding regions. The Shenzen stock index fell 4% following an announcement by Chinese lawmakers that they will be relaxing rules on the listing of new companies next year. The glut of Initial Public Offerings which analysts are predicting will follow is likely to drive down the generalised value of stocks thanks to the laws of supply and demand.

GBP/AUD and GBP/NZD Gain as Australian/NZ Dollars Lose Ground

The Australian and New Zealand Dollars gave up ground against the Pound as appetite for risk seeped from the market. The move sent the Pound to Australian Dollar exchange rate (GBP/AUD) back up above the 1.8000 threshold during early trading in Europe, while the Pound to New Zealand Dollar exchange rate (GBP/NZD) broke up into the middle 2.0100s during the same timeframe.

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