Best Exchange Rates Had? Has Pound to Euro Exchange Rate Peaked at 1.26 for 2014?

Modified: Wednesday, 6 August 2014 11:08 BST - Written by John Cameron

STORY LINK Best Exchange Rates Had? Has Pound to Euro Exchange Rate Peaked at 1.26 for 2014?

Currency News UK - For those looking for the best Euro exchange rates we ask, has the Pound to Euro Exchange Rate (GBP/EUR) peaked at 1.26 in 2014?

The services sector is considered key to the UK’s continued economic improvement, given that almost three quarters of the activity in the British economy comes from tertiary businesses.

This means that the monthly Markit/CIPS Purchasing Managers’ Index (PMI) Services survey of the domestic economy is considered an important release.

This morning’s version of the figure printed at 59.1 – a marked improvement from last month’s showing of 57.7, (any figure above the 50.0 level points to an increase in activity levels). Analysts had been anticipating a showing of 58.0, so the result proved to be significantly Sterling-positive. The upshot sent the Pound Sterling euro exchange rate up to as high at 1.2607 GBP/EUR during early trading today.

Chris Williamson of Markit summed up the release by stating that, ‘the July PMI showed the sector expanding at the fastest pace since last November, as demand for services continued to increase at a rate rarely seen in the survey's 18-year history.’

However, the feeling amongst analysts persists that all of the good news regarding the improvement in British economic conditions has now almost been factored-in to pricing on the Pound. Lee McDarby of leading investment bank Nomura backed this up earlier, stating that, ‘the markets always have their favorite currencies and 2014 has been a good year for the Pound. Unless central bankers get even more hawkish and U.K. data improves significantly, it is difficult to see Sterling’s strong run continuing indefinitely.’

If the UK tender does begin leaking support against the euro, then the next level of significance for the pair heading Southwards comes at the 1.2447 which it last reached during the final week of June.

This morning’s session also brought the release of June’s Retail Sales figures for the eurozone economy, which showed at a year-on-year 2.4% versus an anticipated 1.4%. With recent employment numbers from the euroland and individual states including Spain also bettering expectations, the impression is growing that the economic picture in mainland Europe is improving.


However, the main event this week as far as euro-watchers are concerned comes on Thursday with the latest European Central Bank policy announcement and ECB Chief Mario Draghi’s ‘Questions and Answers’ session which follows. Any hint that the euro area’s central bank is not yet done with its recent bout of policy loosening, and Pound to euro could track upwards towards its 22-month high of 1.2700 GBP/EUR once more.

Here's some euro exchange rates for your reference as of 6th August 2014:

The Euro to Australian Dollar exchange rate is trading down -0.22% at 1.43437 EUR/AUD.
The Euro to Canadian Dollar exchange rate is trading up +0% at 1.46599 EUR/CAD.
The Euro to Swiss Franc exchange rate is trading down -0.03% at 1.21563 EUR/CHF.
The Euro to Pound exchange rate is trading up +0.14% at 0.79338 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading down -0.16% at 1.58174 EUR/NZD.
The Euro to Lira exchange rate is trading up +0.43% at 2.89067 EUR/TRY.
The Euro to Dollar exchange rate is trading down -0.11% at 1.33569 EUR/USD.

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: Currency Predictions Euro Forecasts Euro Pound Forecasts Pound Euro Forecasts