Euro Rate Today - Resuming Higher Pound to Euro Exchange Rates on International Money Transfers

Modified: Saturday, 6 September 2014 11:09 BST - Written by David Woodsmith

STORY LINK Euro Rate Today - Resuming Higher Pound to Euro Exchange Rates on International Money Transfers

Euro Rate Today - The Euro to Pound and US Dollar exchange rate levels initially trended higher on Thursday as investors awaited the European Central Bank’s (ECB) statement today regarding interest rate hikes, and the following statement from the ECB President, Mario Draghi.

This is likely to prove to be the most influential activity in the currency market on Thursday, as speculation mounts as to what measures the ECB will introduce in an attempt to jump start the fragile and flailing Eurozone recovery.

The US Dollar meanwhile is awaiting the release of domestic data this afternoon which will indicate the present Initial Jobless Claims, Continuing Claims, US Trade Balance and Non-Manufacturing Composite.

For investors looking for the best international money transfer rates (sell/buy Sterling and euros) here are the latest updated inter-bank rates:

- The pound sterling to euro exchange rate is 1.26053.
- The euro to australian dollar exchange rate is 1.38072.
- The euro to pound sterling exchange rate is 0.79332.
- The euro to dollar exchange rate is 1.29513.

Mario Draghi Facing Pressures to Discuss Euro Strength and Stimulus

President Draghi was invited to attend the highly influential Jackson Hole meeting held annually by the Federal Reserve in Wyoming last month. However, Draghi veered away from his prepared notes to confront the growing low inflation anxieties held by many, stating the ‘significant declines’ noted in August were attributed to by some non-temporary issues. He also continued to state that the ECB would be prepared to ‘use all the available instruments’ to help the Eurozone recovery.


The European Central Bank however, has so far avoided undertaking a period of quantitative easing, making it the only leading central bank to do so. So why hasn’t the ECB implemented such measures if the Eurozone recovery is faltering to such a degree? The ECB is aware of strong opposition from Eurozone workhorse Germany, which would oppose such tactics as a way of supporting the weaker economies. Economist Philippe Legrain suggests: ‘Draghi’s remarks shouldn’t be taken at face value. His call for fiscal easing deflects pressure on the ECB to launch QE, safe in the knowledge that Germany would block any such move. By arguing that the effectiveness of QE depends on a more simulative fiscal policy and bolder structural reforms, he was in effect raising new hurdles to it.’

However, there is much speculation as to whether the ECB will announce new measures in this meeting, or wait until the next for more drastic action. Economist Nick Matthews has stated: ‘Draghi has increased expectations that the ECB is preparing to act again. Our reading of his speech is that his deviation (from his text) was important and significant and, we think, intended to signal that further action was likely in the next month.’

US Dollar Rally Paused but Remains Strong, Today’s Data Could Encourage

The US Dollar has been the favourite in the currency market of late with a string of favourable figures and encouraging statements from the US Federal Reserve. Thursday will see the publication of US Employment Change, Alongside Continuing Claims, Initial Jobless Claims and Trade Balance figures. Later on Thursday the highly significant ISM Non-Manufacturing Composite statistic will reach publication which will help investors understand the economic health of the country. Employment Change is expected to see the creation of 220K jobs in August, slightly more than the 218K in July. Further favourable releases will prove positive for the US Dollar as the prospect of rate hikes appears closer.

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TAGS: American Dollar Forecasts Euro Forecasts