Euro exchange rates on the way up
Euro exchange rates are once again on the way up against the Pound and significantly versus the Dollar which has weakened substantially against both overnight. Yesterdays rate hike has helped the cause of anyone selling euros and any news which confirms expectations of two more interest rate hikes this year for the single currency will likely provide further support in the short term.
UK Producer Price Index released in the next 15 minutes could cause some further volatility on GBP EUR exchange rates.
GBP/EUR Holds Steady
GBP/EUR exchange rates have remained relatively steady throughout the day with the pound slightly gaining against the Euro to the tune of 0.3%. As expected the Bank of England kept its base rate on hold at 0.5% and the European Central Bank followed 45 minutes later by raising rates, as many expected, by 0.25% to 1.25%. Following the release we saw an initial surge in the Euros favour however Jean Claude Trichet's subsequent comments have paired back the Euros gains.
The next data set of...
Euro Rate Drops After Portugal And Interest Rate Decision
The Euro has lost a little ground against the Dollar and the Pound from yesterday following portugal leeting us in on the worst kept secret and finally requesting the need for financial assistance from the EU.
Trichet didnt dissapoint markets and announced a 0.25 point interest rate rise for the Eurozone but didnt give strong commitments to a series of rate rises which some were looking for to ensure further gains for the Euro.
Sterling Exchange Rates Continue Losses
Following yesterday's positive gains we have seen the pound lose ground against the Euro further this afternoon. I do feel, however, that GBP/EUR rates hinge on tomorrows key interest rate decisions from the UK and Europe. Personally I believe the UK will keep rates on hold and this will have little impact, however of interest will be that of the ECB. Many analysts expect Europe to raise rates by 0.25% and I firmly believe this has been priced into the market (hence Euros recent...
GBP Exchange Rate Down
Sterling exchange rates have taken a big hit this morning against both the Dollar and the Euro after UK PMI Manufacturing data came out a lot lower than expected. The disappointing figures have eroded much of the Pound's gains from yesterday and early morning trading.
Euro Rate Dependant On GDP Today
Current Euro exchange rates will be dependant on GDP figures released today expected to come in at 0.3%. However if these figures are revised down it may discourage the ECB from raising interest rates in the short term which may mean Thursday's decision to hike becomes a lot less certain.
As posted yesterday, EUR USD rates did break the year high after the Fed Minutes suggested interest rates in the US will remain low for some time, allowing GBP USD rates to climb, and with rates...
Euro Dollar Rate Close To Year High
The Euro remains close to breaking the year high recently seen despite poor Euro zone retail sales figures today- The FOMC Minutes release in the next two hours could prove very interesting in terms of future monetary policy for the Dollar and determine whether the Euro will break new ground in the short term...If you are selling Euros or buying Dollars keep a close eye on the next 3 days!
The Pound is up close to 1% against the Euro at market close, although Manufacturing...
Sterling Exchange Rates Rally
GBP exchange rates have rallied today in a trend very much against the the recent trading conditions the market has been experiencing. Much of the movement can be attributed to the much better than expected PMI (Purchasing Managers Index) figures released at 09:30 this morning. PMI data came in at the best in over a year and indicated towards solid first quarter GDP growth giving impetus to an earlier interest rate hike in the UK than many had expected.
This led to the pound gaining over 1...
Sterling Euro Forecast Predicts Pound To Remain Weak
Sterling exchange rates are likely to remain very weak versus the Euro if the Eurozone does raise interest rates this week. The risk for anyone buying Euros will be if the anticipated interest rate hike is bigger than the expectation of a 0.25 point increase.
Comments from Jean Claude Trichet early last month about the need for a modest increase, whilst not part of a series of hikes, really boosted the Euro against the Pound and the Dollar, and given that both the latter currencies...
GBP EUR – Data out today
This morning sees the release of PMI (Purchasing Managers Index) data for both the U.K and the Euro Zone, Europe stepping up first at 09:00 and the U.K following shortly after at 09:30am.
I would imagine whoever performs the better of the two should gain ground on the other, however the market moves on rumour as well as fact so this really depends on what was initially predicted and how much the releases differ.
At 10:00am the final big release of the day for this currency...
