Euro Rate Today - Pound Exchange Rate (EUR/GBP) & Dollar (EUR/USD) Fall Yet Further

June 21, 2014 - Written by David Woodsmith

STORY LINK Euro Rate Today - Pound Exchange Rate (EUR/GBP) & Dollar (EUR/USD) Fall Yet Further

Euro Rate Today - The EUR was weaker against the Pound Sterling (GBP) and US Dollar (USD) exchange rates on Friday as producer price inflation and consumer confidence data came in below forecast and renewed concerns over the Ukraine crisis took toll on the European currency.

The weakening of the European tender saw the euro pound exchange rate once more fall towards the lowest levels since October 2008. Further losses are a distinct possibility if Monday's eurozone manufacturing and services PMI data fall short of expectations.

As the forex-trading week came to a close, the global forex rates took the following positions:

- The pound to euro exchange rate is +0.03 per cent higher at 1.25153 GBP/EUR.
- The euro to pound exchange rate is -0.03 per cent lower at 0.79902 EUR/GBP.
- The euro to dollar exchange rate is -0.03 per cent lower at 1.35957 EUR/USD.
- The dollar to euro exchange rate is +0.03 per cent higher at 0.73553 USD/EUR.

One piece of positive news for the Euro-zone was that Lithuania was granted the green light to join the Euro at the start of next year. The nation’s ascension will make it the 19th member of the single currency bloc. Lithuania’s joining of the single currency bloc means that there will only be nine European Union nations not part of the Euro.

Lithuania will convert to the Euro exchange rate in July

“Today is a very important day for Lithuania. This is not the end of the path for Lithuania but just the beginning. Lithuania will try to be a responsible member of the Eurozone and we understand we will face challenges, we will carry responsibilities as a member of the club and not only use the benefits,” said Lithuanian Finance Minister Rimantas Sadzius in Luxembourg.

The European Commission is expected to propose an exchange rate at which the Lithuanian currency will be converted into the single currency in July.

Today the single currency was weakened by disappointing data releases.

Weaker than forecast figures impact the Pound Sterling

Early in the session data showed that German Producer Price inflation fell by 0.2%, a fall which added to the previous month’s decline of 0.1% and defied investor expectations for an increase of 0.2%. The weaker than forecast data raised concerns over the Eurozone weak inflation rate and worries that a deflationary cycle is trying to establish itself.

According to German Statistics agency Destatis the German inflation rate was weakened as prices at the factory gates dropped by 0.2% on a month on month basis and fell by 0.8% on the year in Europe's largest economy,.

The May readings were below expectations for a flat rate from April and a 0.7% decline from May 2013. Energy prices helped fuel the decline, as they fell by 2.6% from the year-earlier month. Excluding energy prices, the producer price index was flat from a month earlier and 0.2% lower in May on the year.

The fall in producer prices reflects muted price pressures in the whole of the Eurozone, whose annual rate of inflation fell to 0.5% in May from 0.7% in April.

Worse than forecast Eurozone data took its toll on single currency

Later in the session we saw the release of the latest Eurozone Consumer confidence report. The data released by Eurostat showed that sentiment amongst the regions consumers fell more than expected in June.

The report showed that consumer confidence in the Eurozone dropped to -7.40 in June, down from the previous month’s figure of -7.10 and was well below expectations for a figure of -6.5.

The single currency was also continuing to be under pressure as the conflict in Ukraine continued to rage on Friday.

According to Reuters, fighting raged in eastern Ukraine resulting in the deaths of 300 Pro-Russian separatists. The Ukraine government said that seven of its own forces were killed in the fighting in the east of the country.

The situation could escalate once more over the weekend after news broke that the US has information that Russia has sent tanks across the border in support of the separatists.

EUR Rates Update - 23/06/2014

The Pound maintained its five year high against the US Dollar and highs against the Euro due to the release of a lack of UK economic data releases. Against the single currency Sterling held onto its recent highs after data released early on Monday showed that Manufacturing and Services PMI fell in June.

Updated Pound to Euro, Dollar & Other Global Currency Rates - 10:15 GMT 23/06/2014

The Pound Sterling to Euro exchange rate is trading up +0.09% at 1.25344 GBP/EUR.
The Euro to Australian Dollar exchange rate is trading down -0.66% at 1.43872 EUR/AUD.
The Euro to Pound Sterling exchange rate is trading down -0.09% at 0.79780 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading down -0.45% at 1.55458 EUR/NZD.
The Euro to US Dollar exchange rate is trading down -0.08% at 1.35800 EUR/USD.
The US Dollar to Euro exchange rate is trading up +0.08% at 0.73638 USD/EUR.

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: Daily Currency Updates Euro Forecasts Euro Pound Forecasts Pound Eu Forecasts