Best Pound to Euro Exchange Rate in 7 Years - Latest EUR/GBP Weekly Report

Modified: Monday, 12 January 2015 10:10 BST - Written by Frank Davies

STORY LINK Best Pound to Euro Exchange Rate in 7 Years - Latest EUR/GBP Weekly Report

Today's Euro to British Pound Exchange Rate Report and EUR/GBP Forex Analysis for 2015

At the start of the week the Pound to euro exchange rate continued to trade at a seven-year high, as the single currency continued to be battered lower by concerns over the upcoming Greek general election and as European Central Bank President Mario Draghi gave his clearest signal yet that the bank will announce quantitative easing measures.

The Euro meanwhile tumbled to its lowest level in nine years against the US Dollar as investors raised their bets that the ECB will introduce a quantitative easing programme at its next policy meeting.

Pound Euro Exchange Rate Gives Up Ground

Tuesday saw the Pound Euro rate give up ground as weaker than forecast construction PMI data released in the previous session caused investors to raise their bets that the Bank of England will choose to delay raising interest rates until later in the year.

The Euro remained close to a 9-year low against the US Dollar but managed to claw back some ground against the Pound following the release of the disappointing construction PMI data.

The single currency also received some support from positive French consumer confidence data but PMI data out of Italy, France and Germany came in negatively.

Midweek the Pound fell sharply against the majority of its most traded peers due to the release of another weaker than forecast PMI report. Throughout the session, the currency continued to remain under pressure. The Euro firmed however, as a report out of Germany showed that retail sales in the nation increased for a second consecutive month. Sales rose by 1% in November compared to the preceding month.
The Pound weakened against most of its major peers after data showed that British house prices increased by 7.8% in the three months to December, the increase was the weakest recorded since January 2014 adding to signs that the UK economy is experiencing a slowdown. The Bank of England left interest rates unchanged at 0.5%, which also weighed.

Pound to Euro Pushes Towards Best Exchange Rate in 7 Years

As the week ended, the Pound strengthened against the Euro after German balance of trade data and industrial production data weakened in the Eurozone’s largest economy. French industrial data was also well below expectations.
The Euro resumed its decline against the Pound and other major peers as data showed that factories across the Eurozone are producing fewer goods than before the start of the financial crisis, which began more than six years ago. French industrial output was 2.6% lower and production in Germany declined by 0.1%.

Exchange Rates Today

The Pound to Australian Dollar exchange rate converts +0.3 per cent higher at 1 GBP is 1.85265 AUD.
The Pound to Canadian Dollar exchange rate is -0.17 pct lower with a conversion rate of 1 GBP equals 1.79604 CAD.
The Pound to Euro conversion rate is +0.02 pct higher at 1.27994 GBP/EUR.
The Pound to New Zealand Dollar exchange rate converts +0.54 per cent higher at 1 GBP is 1.94656 NZD.
The Pound to US Dollar exchange rate converts -0.51 per cent lower at 1 GBP is 1.51121 USD.

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