The Pound has strengthened against the Euro to once again trade at the psychologically important 1.20 region as the UK currency finds support from expectations that house prices and mortgage approvals data due for release later in the week will show increases.
As the New Year approaches trade is light as most traders are away for the holiday season and liquidity is low. There are no important economic data due for release for the Pound or Euro until Thursday when PMI reports are released. House and mortgage data for the UK is due for release on Friday.
Sterling is set to end the year on a high against the majority of its most traded peers amid speculation that the strength of the UK housing market will continue to support the country’s economic recovery.
The Pound gained 5.3 percent this year, the third-best performer out of 10 developed-nations, as a strengthening economy boosted speculation the Bank of England will need to raise interest rates sooner than it forecasts. The euro appreciated 8.5 % and the dollar rose 3.4 %.
The Euro is on track to be the year’s best performing currency as it surprised economists with its resilience and relatively high value despite the agonisingly slow recovery and continuingly weak data releases.
Comments at the weekend form ECB President Mario Draghi that he saw no urgent need to cut the Euro zone’s main interest rate further and saw no signs of deflation also helped the Euro.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3770
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8332
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5447
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6767
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7261
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1999
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6470
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5963
(Correct as of 10:35 am GMT)
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