Mixed Pound to Euro Forecast - Will Best Exchange Rate Levels Remain?

May 15, 2015 - Written by John Cameron

STORY LINK Mixed Pound to Euro Forecast - Will Best Exchange Rate Levels Remain?

Currency News UK Brings you Today's Pound to Euro Exchange Rate Forecast

The Pound Sterling to euro exchange rate oscillated around the 1.3850 level during yesterday’s trading as investors couldn’t make their minds up whether they should follow Wednesday’s mini sell-off of the UK unit.

The GBP EUR exchange rate now sits comfortably five cents higher than in the immediate lead-up to last week’s UK General Election, but a full two cents below where it was trading following Wednesday morning’s encouraging domestic labour market data. At this stage, the pair could go either way.

Latest Top Euro Exchange Rates

The Pound to Euro exchange rate is +0.09 pct higher with a conversion rate of 1 GBP equals 1.38448 EUR.
The US Dollar to Euro forex rate is +0.34 pct higher with a conversion rate of 1 USD equals 0.88000 EUR.
The Swiss Franc to Euro rate is -0.33 pct lower with a conversion rate of 1 CHF equals 0.95786 EUR.
The Canadian Dollar to Euro exchange rate converts +0.07 per cent higher at 1 CAD is 0.73223 EUR.
The Australian Dollar to Euro conversion rate is -0.47 pct lower at 0.70557 AUD/EUR.
The New Zealand Dollar to Euro rate today is converting -0.25 per cent lower at 0.65536 NZD/EUR.

Renewed Pressure for British Pound vs Euro

Analysts forecasting a renewed downside move for the British unit pounced on yesterday’s comments from Bank of England (BoE) Governor Mark Carney.

The top man at Threadneedle Street told an interviewer that the new Conservative government should hold a European Union In / Out referendum as quickly as possible, as the uncertainty which it engenders is putting the UK’s economic recovery at risk. He went on to assert that domestic firms, ‘have not yet acted on that uncertainty. Or to put it another way, they are continuing to invest and they are continuing to hire.’

The threat of a bout of the jitters from UK market participants remains clear.

Euro Exchange Rate Complex Faces Further Problems

However, the euroland financial system remains far from problem-free.

Greece represents the epicentre of these difficulties and the Hellenic state’s Finance Minister Yanis Varoufakis their talisman.

The shaven-headed money man from Athens stated at a press conference yesterday that, ‘over July-August the finance ministry will have to borrow €6.7 billion from our partners in one way or the other to repay bonds from the SMP program, (the ECB’s Securities Market Programme which ran from 2010-2011). About €27 billion of those bonds are still left, which should be repaid in the next months or years. These bonds should be pushed back to the distant future. This is clear.’

Best Pound Euro Conversion is Forecast on Greek Default Fears

Fears of a Greek debt default, even if it is carried out in a managed fashion, have lead some commentators to forecast a break to a new 7 ½ year best conversion above 1.4257 for the GBP to EUR exchange rate.

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TAGS: Currency Predictions Euro Forecasts Euro Pound Forecasts Pound Euro Forecasts