Euro Pound Exchange Rate Today: EUR GBP Currency Pair Hit By Ukraine Debt Fears

March 28, 2014 - Written by John Cameron

STORY LINK Euro Pound Exchange Rate Today: EUR GBP Currency Pair Hit By Ukraine Debt Fears

The Euro gave up ground against both the Pound (EUR/GBP) and the US Dollar (EUR/USD) during yesterday’s session in the currency market, sending the Pound euro exchange rate up to close to the 1.2100 GBP/EUR threshold, while the euro Dollar exchange rate dipped to 1.3729 EUR/USD during afternoon trading.

Some of the weakness for the single currency during the session was driven by the announcement from the International Monetary Fund (IMF) that it is close to reaching an accord with the newly-installed leadership of Ukraine to provide it with a bail-out of $14-18bn. The move will allow the troubled state to mend its broken balance sheet, but judging by price action, market participants did not appear overly keen on the move. The Kiev administration is desperate to forge closer ties with the European Union and following the bloody regime change of the early part of this year, Brussels may be feel duty-bound into fast-tracking Ukraine into its group of 27 nations. Investors voted with their feet yesterday and registered their displeasure at the prospect of yet another debt-addled peripheral state being allowed to join the euroclub by selling off the single currency.

Elsewhere, the Bank of England’s Financial Policy Committee announced that it would be placing exposure to shocks in the property market at the centre of the review of the UK’s retail banking sector which it will be embarking upon later this year. Figures published by the British Office of National Statistics earlier in the week revealed that domestic house prices has risen by 6.8% in January compared to the first month of 2013. Increasingly, the UK property market is showing signs of overheating – given this, the results of the banking stress tests may make interesting reading. Their release will certainly represent a risk event to be mindful of for investors holding Sterling-denominated assets.

Key Pound Sterling / Euro Exchange Rates (Publish: 10.00 AM GMT 28/03/2014)

The Pound Sterling to Australian Dollar exchange rate is trading down -0.01% at 1.79161 GBP/AUD.
The Pound Sterling to Canadian Dollar exchange rate is trading down -0.19% at 1.82854 GBP/CAD.
The Pound Sterling to Euro exchange rate is trading up +0.14% at 1.21027 GBP/EUR.
The Pound Sterling to New Zealand Dollar exchange rate is trading down -0.32% at 1.91008 GBP/NZD.
The Pound Sterling to US Dollar exchange rate is trading down -0.04% at 1.66016 GBP/USD.
The Euro to Australian Dollar exchange rate is trading down -0.14% at 1.48034 EUR/AUD.
The Euro to Canadian Dollar exchange rate is trading down -0.32% at 1.51085 EUR/CAD.
The Euro to Pound Sterling exchange rate is trading down -0.14% at 0.82626 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading down -0.46% at 1.57823 EUR/NZD.
The Euro to US Dollar exchange rate is trading down -0.17% at 1.37173 EUR/USD.

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