Pound to Euro Rate Today: GBP EUR Exchange Rate Touches 7 ? Year High, Falls Forecast

February 12, 2015 - Written by John Cameron

STORY LINK Pound to Euro Rate Today: GBP EUR Exchange Rate Touches 7 ? Year High, Falls Forecast

In a day of dramatic swings, the euro (currency:EUR) enjoyed a boost a few moments ago when the European Central Bank (ECB) confirmed that it would be increasing its Emergency Liquidity Assistance (ELA) to Greece’s ailing banking sector from €60bn to €65bn. The decision, which was taken following a teleconference earlier today involving the board members of the ECB’s governing council, will improve the immediate liquidity of the Hellenic state’s retail banks. However, following the appearance by Greek policymakers in front of the eurogroup of Finance Ministers, the news takes on added significance, suggesting that the two parties are working together in an effort to reach a resolution to the more generalised debt problem in Greece.

Pound to Euro exchange Rate Breaches 7 ½ Year High

The Pound Sterling to euro exchange rate had traded up to its highest level for 7 ½ years during early trading today, touching 1.3565 GBP EUR during the middle part of the European trading day. However, the news regarding the extension of Greece’s ELA saw the pair retrace to 1.3479 a short time ago. This morning’s forward move for the Pound was driven by comments from Bank of England Governor Mark Carney who stated following this morning’s BOE Quarterly Inflation Report that his Bank may have to look at increasing its interest rates later this year as UK growth gained traction thanks to the plunge in oil prices which has taken place during recent months.

Meanwhile, the euro’s fortunes have also been helped this afternoon by the publication of a disappointing set of Advance Retail Sales data in the US. Analysts had been expecting the December figure to point to a slight month-on-month contraction of 0.4% in comparison with November’s counterpart figure. When the actual number showed a drop-off of 0.8% during the final month of last year, investors shifted out of Dollar-denominated assets. The attendant move higher for the euro Dollar exchange rate manifested itself in a similar fall in the Pound euro exchange rate GBP EUR. The consensus amongst commentators is that Greece will reach a compromise with the ECB /EU /IMF ‘Troika’ sooner rather than later, so GBP EUR is forecast to fall back in the near-term.

Euro Exchange Rates Today

The Euro to Australian Dollar conversion rate is -0.17 pct lower at 1.46816 EUR/AUD.
The Euro to Canadian Dollar exchange rate is -0.56 pct lower with a conversion rate of 1 EUR equals 1.41867 CAD.
The Euro to Swiss Franc exchange rate is +0.11 pct higher with a conversion rate of 1 EUR equals 1.06221 CHF.
The Euro to Pound Sterling conversion rate is -0.05 pct lower at 0.74060 EUR/GBP.
The Euro to New Zealand Dollar exchange rate converts -0.34 per cent lower at 1 EUR is 1.52942 NZD.
The Euro to US Dollar conversion rate is +0.06 pct higher at 1.14107 EUR/USD.

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