The British pound to euro rate (GBP/EUR) extended its best consecutive run today after rallying strongly on Monday, rising more than 1% on the day from a low of 1.25 and a high of 1.2650. Sterling also moved higher versus the U.S Dollar, rising above the 1.43 level, as swings in oil prices and U.S stocks underlined the UK currency’s sensitivity to risk sentiment.
As foreign exchange markets approach today's key economic events the British pound to euro exchange rate has resumed best conversion levels seen in over 21 days. See today's update.
Today's key GBP to EUR rate impacting events include the UK retail sales, the ECB meeting and BoE Gov Carney's speech.
Earlier in the week, stronger ZEW Economic Sentiment Survey results were ultimately not enough to shore up the Euro (EUR) exchange rates as concerns persist over talks between Greece and its creditors.
With creditors apparently pushing for the Hellenic nation to sign up to additional austerity measures, which would come into force in the event of further target shortfalls, the mood was not overly positive.
The British Pound made strong gains against most major currencies and erased its biggest decline in more than a week against the Euro, as equity markets bounced back amid better-than-expected earnings data on Monday.
The pound sterling to euro exchange rate started the week on the backfoot, reeling following the collapse in Doha of talks among oil producers to limit output.
Investors are anticipating more price swings and more volatility ahead of the June 23rd referendum and Pound exchange rates also benefited from comments from the Chancellor of the Exchequer George Osborne on Monday.
Other Pound Sterling / Currency Exchange News
Latest Pound/Euro Exchange Rates
On Monday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
The pound conversion rate (against pound) is quoted at 1 GBP/GBP.
FX markets see the pound vs us dollar exchange rate converting at 1.256.
The GBP to CHF exchange rate converts at 1.143 today.
NB: the forex rates mentioned above, revised as of 29th Apr 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.
Pound Sterling (GBP) Exchange Rate a Very Risk-Sensitive Currency
The government, campaigning for the UK to remain in the European Union, went on the offensive yesterday with Osborne warning of “permanent” damage should the UK leave the EU, estimating that it would cost each household more than £4,000 a year.
The market interpreted this fear mongering as good reasons for the UK electorate to vote to stay in the EU, despite recent polls indicating a healthy majority for those wishing to leave.
The Pound is also benefiting from a risk-on environment and we have seen this many times through the year already.
Sterling is a very risk sensitive currency and will rise and fall with the stock market to a large degree and the swings in risk sentiment.
Will Pound Sterling (GBP) Relief Rally End?
U.S stocks advanced on the day yesterday, erasing an earlier decline, as investors shook off losses in crude oil prices to focus on the number of corporate earnings reports due this week.
The Pound is up today but sentiment is tentative and any gains should be treated as short-term with the balance of probability suggesting there is a far greater chance of a renewed decline for Sterling than any dramatic shift in trend.
The Pound has been in the middle of a relief rally for the past week or more following lows of 1.2319 versus the Euro but it is still far too premature to be calling the recent upside movement a long-term recovery.
The June 23rd referendum will cause a lot of market uncertainty as we build up to the event and the prospect of a UK exit remains very possible so the Pound is likely to come under pressure again in the short-term.
GBP,EUR,USD Related Data Released 21th April 2016
GBP 09:30 UK Retail Sales (source)
EUR 13:30 ECB Press Conference, Minimum Bid rate (source)
U.S 13:30 US Unemployment Claims (source)
U.K 15:00 BoE Governor Carney Speaks (source)
The Pound Sterling to Euro (GBP/EUR) exchange rate trended lower in response to the fact that the number of unemployed in the UK had risen for the first time since August.
Although German Producer Prices also proved disappointing this was ultimately not enough to shore up the vulnerable GBP/EUR pairing.
GBP/EUR Conversion Rate Edges Lower on UK Jobs Data
Wednesday's European session on the fx markets has seen the pound sterling to euro's uptrend stall after the UK’s average weekly earnings report missed forecasts.
The UK Average Earnings Index printed at 1.8%, 0.3% below market predictions. The Claimant Count Change also missed estimates at 6.7k.
The British Pound has risen against the Euro today, potentially on account of a recent UK Referendum poll
Conducted on behalf of The Telegraph, the poll indicated that (among respondents), more were likely to vote for an ‘In’ vote than an ‘Out’ one.
This strengthened the appeal of the pound to euro exchange rate considerably, due to the fact that a more stable ‘In’ vote seemed a more likely possibility.