RECORD 2014 Pound to Euro Exchange Rate, Sterling Outperformed by NZ Dollar

Modified: Saturday, 14 June 2014 09:39 BST - Written by John Cameron

STORY LINK RECORD 2014 Pound to Euro Exchange Rate, Sterling Outperformed by NZ Dollar

The Pound Sterling (GBP) has pushed higher against the Euro (EUR) to reach a record best exchange rate not seen for the last 19 months.

The single currency has since clawed a little ground back against the Pound exchange rate following this morning’s stronger than anticipated whole of eurozone Industrial Production data for April.

As we enter the weekend, the Pound to euro exchange rate is positioned at 1.25306. Analysts had been expecting the number to show a month-on-month increase of 0.5%, so the 0.8% result provided the euroland tender with a much-needed fillip.

However, even the ostensibly strong print was tinged with a euro-negative element; March’s counterpart number was downgraded to -0.4%. Analysts continue to forecast further gains in the short-to-medium term for the GBP EUR exchange rate.

NZ Dollar focus of global forex markets

The New Zealand Dollar (currency:NZD) was the star turn in the global currency markets during today’s session following last night’s announcement from the Reserve Bank of New Zealand that it was once again raising its Official Cash Rate.

The hike to 3.25% makes the New Zealand Dollar one of the highest-yielding of the major global currencies, with only the South African Rand (currency:ZAR) providing more of a return for investors.

The move saw the Pound Sterling New Zealand Dollar rate slide to as low as 1.9361 GBP/NZD on the session and there could be further losses to come for the pair if ASB Bank’s Chief Economist Nick Tuffley is to be believed; he stated earlier that there was a 60% chance of another rate increase last month but went on to caution that there would ‘be a pause before another move in December.’


Meanwhile, on the other side of the Tasman, the New Zealand Dollar’s sister currency was experiencing differing fortunes.

Overnight Australian labour market numbers revealed a loss of 4,800 jobs in the Antipodean nation last month. The Pound Sterling Australian Dollar exchange rate climbed to 1.7959 GBP/AUD during early trading this morning, before peeling back slightly when New York opened a short time ago.

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TAGS: Australian Dollar Forecasts Daily Currency Updates Euro Forecasts E Forecasts