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British Pound to Euro Exchange Rate (GBP/EUR): Sterling 2.46 pct Up on the Month, Why the GBP has Enjoyed Fresh Success

  • The Pound to Euro exchange rate is 2.46 pct higher than seen at this time last month; 1 GBP converts into 1.1858 EUR.
  • Turning the equation on its head we see 1 EUR converts into 0.8433 GBP.

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UK currency taking a breather


Tuesday morning brings with tentative gains for GBP, however the back end of yesterday saw the Euro regains some initiative.

Sasha Nugent at Caxton FX says:

"The euro certainly took advantage of a quiet day for the UK yesterday, as the single currency managed to regain some its losses. Positive French production data could extend these gains, pushing the GBPEUR back down to 1.18. It will be difficult for the pound to withstand this momentum and so we see the GBPEUR declining further in today’s session."

(In light of the above, it is worth having a read of the latest position held at RBS - RBS warn that we could see some sterling weakness into the year end.)

 

Pound Sterling: Highest level in nearly three weeks


"A firmer U.K. pound rose to its highest in nearly three weeks as recovery optimism continued to offer solid support to Britain’s currency. A steady diet of British data have surprised to the upside, suggesting the economy gained further steam in the third quarter," reports Joe Manimbo, Senior Market Analyst at Western Union in reference to the British Pound's continued strength in recent days.

The economy’s better performance has many betting on an early rate rise by the Bank of England.

The pound found impetus against the euro also partly thanks to strong advances in the headline GBP/USD pair; GBP advanced on Friday’s U.S. jobs report which clouded the near-term outlook for the Fed to scale back its $85 billion a month bond buying plan.

With regards to the euro this week, " the weak fundamental shape of the euro zone should make it tough on the single currency make a run at recent peaks against the greenback," says Manimbo.

The day that was for the Pound Sterling to Euro exchange rate


Here are the key drivers that saw the British pound sterling enjoy fresh gains over it's continental counterpart:

  • UK Fin Min Osborne, says UK economy improving though risks remain, and the recovery is still in the early stages.
  • BOE’s Fisher agrees and suggests no more QE given recent forward guidance efforts and improving outlook.
  • Greek Fin Min Stournaras says he expects the next round of talks with the Troika to be “difficult.”
  • Italy’s government to present a menu of asset sales in Sept.
  • German intelligence reports Syrian military may have fired chemical weapons without the authority of Pres Assad.