Pound To Euro Rate Today: 1.20 Holds, FTSE @ 11m Best

Published: 20 Oct 2017 21:24 Forex

Pound to Euro exchange rate forecast

The British pound to euro rate (GBP/EUR) rose to a best conversion of 1.21220 to cap a remarkable corrective recovery from lows of 1.1583 last week.

  1. Breaking - FTSE 100 rallies to best level seen in 11 months.
  2. The British pound to euro exchange rate today: -0.15pct at 1.20074.
  3. The pound to US dollar exchange rate today: +0.11pct at 1.33705.
  4. Currency exchange markets surprised - The Bank of England shocks currency exchange markets by keeping interest rate at 0.5%.

Today's foreign exchange investors find the GBP/EUR rate holding above the key 1.20 level, having risen sharply during yesterday's session.

Though the British pound has been in high-demand of late, this could be fleeting on account of the close of the week for the UK, which promises to be a flat one.

Unless major political support materialises for the Pound, the poor construction output stats may be a damp ending to a rollercoaster week for GBP.

Pound to Euro exchange rate chart

Current Pound/Euro Exchange Rates

On Friday the Pound to British Pound exchange rate (GBP/GBP) converts at 1

Today finds the pound to pound spot exchange rate priced at 1.

The pound conversion rate (against us dollar) is quoted at 1.262 USD/GBP.

FX markets see the pound vs australian dollar exchange rate converting at 1.937.

NB: the forex rates mentioned above, revised as of 29th Mar 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.

Foreign exchange markets witnessed the GBP/EUR and the GBP/USD rates power ahead as markets react to the BoE's decicion to leave interest rates on hold.

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The British pound spiked to the best levels seen in two weeks of $1.34774 against the US dollar.

The GBP also rallied sharply against the euro (+1.32%), Australian dollar (+1.01%) and the Canadian dollar (+1.11%). Some of the biggest winners of the day were against the Japanese yen (+3.18%) and the New Zealand dollar (+2.54%).

Contrary to expectations the Bank of England (BoE) did not vote to lower interest rates at its July policy meeting.

While policymakers did leave the door open for policy easing to take place in August this failed to dent the resultant optimism of traders, which drove the Pound to Euro exchange rate substantially higher.

British Pound (GBP) Set to Tumble vs Euro (EUR) if BoE Slash Interest Rates Today

Though some are talking of minimal impacts after a ‘pricing in’, the truth is that the outcome of the decision (and the GBP/EUR direction) will only be known when it is officially announced.

Any type of rate cut seems set to cripple the Pound, due to the implications such a decision has for UK economic growth.

Confidence in sterling began to falter on Wednesday, allowing the euro to pound exchange rate to regain some ground in spite of weak domestic data.

Although Eurozone Industrial Production figures proved disappointing this failed to sufficiently dent the single currency.

The UK currency also rallied through 1.33 against the U.S Dollar and is poised for its longest winning streak in two months.

The political uncertainty that has hurt the Pound following David Cameron’s resignation on the 24th June has been arrested with Theresa May set to officially take over as Prime Minister later today.

May had backed the campaign to remain in the European Union but perhaps more significantly she is view as a “safe pair of hands” in delivering the exit from the EU in a controlled manner. May has indicated that the formation of a new Bexit department with a secretary of state at its helm will be one of her first announcements.

Can the Pound Sterling to Euro Exchange Rate Hold Recent Gains With BoE Meeting Ahead?

There is pressure from EU leaders to begin formal discussions quickly but May has indicated that it won’t happen until at least the end of the year.

The British pound is finding support on the idea that May won’t be in any rush to begin the process of an exit and that reduces the immediate negative consequences and brings a sense of stability back to the market.

The British pound has risen to its highest level against the Dollar in July 4th overnight, rebounding from a 31-year low last week and there is a relative calmness sweeping through the market.

However, any gains for the British pound that we have seen this week could well be short-lived with the Bank of England increasingly likely to lower interest rates on Thursday in an effort to support the UK economy.

euro to pound sterling exchange rate chart

GBP/EUR Exchange Rate Forecast - Pound Could Hold Firm if BoE Rate Cut is Priced In

Mark Carney was delivering his testimony to the UK Treasury Select Committee yesterday and refused to give much away in terms of the probability of a rate cut.

It is, however, seen as the more likely scenario amid concerns of the damage that the UK exit from the EU will cause to the economy over the coming months.

It could be argued that the market has been pricing in a rate cut and the effect on Sterling won’t be quite as catastrophic as one might assume.

The British pound has also made gains against all of the major currencies, rising towards 1.70 versus the Australian Dollar, up 2% from the beginning of the week, while the GBP/CAD rate has risen almost 4%, helped in part by the decline in crude oil prices.

Lloyds EUR to GBP Exchange Rate Forecast

"The cross has traded in volatile fashion in recent sessions."

"Having held important daily support at 0.8300 – as GBPUSD rallied on the appointment of Theresa May and the reduced domestic political uncertainty – EURGBP subsequently accelerated back through 0.8450, as EUR maintained an underlying bid tone and GBP sold off ahead of the BoE."

"It enters today’s session in the middle of its interim range."

"Key trend support remains 0.8150/0.7950, while initial resistance comes in at 0.8490/0.8505, ahead of range highs at 0.8625/30."

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