Although the Euro was close to a four-month high against the Pound as the European session began, the common currency shed gains as minutes from the Bank of England’s latest policy meeting turned Sterling bullish.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8651 as of 11:15 GMT
After the minutes were published the Euro weakened to 0.8608 pence.
The minutes showed that all nine members of the BoE’s Monetary Policy Committee were united in their belief that the current level of asset purchases should be maintained. This is the first time the MPC has been of one mind on this issue for several months.
However, according to some industry experts the Pound is still likely to struggle against the Euro for some time to come.
As senior currency strategist Jane Foley observed: ‘It does seem certain that Carney is viewing forward guidance as a favoured policy tool over quantitative easing, at least for the present time. In the medium term, it’s still going to be difficult for Sterling to pick up the pace.’
The Euro to Pound (EUR/GBP) exchange rate hit a high of 0.8608 pence per Euro
Also wearing on the Euro was data showing that construction output in the 17 nation currency bloc slipped by 0.3 per cent in May, month on month. Construction output was down 5.1 per cent on the year, but this was a slower rate of decline than the fall of 6.8 per cent seen in April.
Building construction in the Eurozone fell by 0.6 per cent from April to May after a previous monthly gain of 0.5 per cent.
Further EUR/USD volatility can be expected as a result of Fed Chairman Ben Bernanke’s highly anticipated speech to congress.
Additional Euro fluctuations could also occur in reaction to the decision reached by Greek MPs regarding the controversial civil service employment bill.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3142 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8651 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4269 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6730 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7603 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1559 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7008 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5967 <
(Correct as of 11:15 GMT)
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