Euro to Pound (EUR/GBP) Exchange Rate Roundup - December 2014

December 8, 2014 - Written by Ben Hughes

STORY LINK Euro to Pound (EUR/GBP) Exchange Rate Roundup - December 2014

Our Weekly Euro to Pound Exchange Rate Roundup and Live Conversions

The Euro began the week under pressure as market attention focused upon Thursday’s European Central Bank (ECB) interest rate decision and press conference.

Economists had been betting that the central bank would announce an introduction of a quantitative easing programme in the next quarter after inflation across the Eurozone fell again last week.

EUR Rates Today

The Pound to Euro conversion rate is 1.26817 GBP/EUR.
The US Dollar to Euro exchange rate today is converting at 0.81400 USD/EUR.
The Swiss Franc to Euro exchange rate is 1 CHF equals 0.83155 EUR.
The Canadian Dollar to Euro exchange rate is 1 CAD equals 0.71190 EUR.
The Aus Dollar to Euro exchange rate today is converting at 0.67673 AUD/EUR.

Euro Weakens vs Pound Sterling

The Euro then weakened against the Pound and other major peers as data out of the Eurozone showed that manufacturing activity barely grew last month.

New orders tumbled to a 19-month low and activity in the region’s top three economies of Germany, France and Italy all saw contraction.

The final Eurozone PMI came in at 50.1, the lowest reading since June 2013 and was below an earlier flash reading of 50.4. Pressure is building on the European Central Bank (ECB) to introduce more measures to stimulate growth and tackle the threat posed by dangerously low inflation.

The Pound was held above the 1.26 level against the Euro as data out of the single currency region raised fears over the strength of the Eurozone economy. Sterling meanwhile was supported by better than forecast manufacturing PMI data, which suggests that a UK economic slowdown may not be as severe as first thought.

As the week progressed, The Euro remains weaker against the Pound and US Dollar as concerns over the health of the Eurozone economy continued to spook investors.

Weak Producer Price Inflation data released on Tuesday did little to ease fears over low inflation and increased pressure on the European Central Bank to take further action to stimulate growth and tackle the threat posed by deflation.

The Euro experienced further volatility due to the release of a number of PMI and retail sales reports.

EUR/USD Exchange rate Hits 2 Year Low

The Euro fell to a two-year low against the US Dollar and weakened against the Pound as the weak economic data caused economists to raise their bets that the European Central Bank could introduce more stimulus measures to encourage growth and tackle low inflation.

Pound Euro Exchange Rate Slips on Thursday

The Pound softened slightly against the Euro on Thursday as market attention turned to the interest rates decision from the Bank of England and European Central Bank.

The Euro then made gains against most of its major peers after ECB President Mario Draghi indicated that the central bank would not embark on quantitative easing until next year. He said that policy makers would reassess its stimulus programme in the first quarter of 2015.

As the week ended, the Euro gave up previous gains as economists deemed Draghi’s comments as not dovish enough and as GDP data continued to paint a grim picture over the state of the Eurozone economy.

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TAGS: Daily Currency Updates Euro Forecasts Pound Euro Forecasts