The Pound Sterling Exchange Rate was in the region of 1.1578 against the Euro as of 14:30 pm
Despite falling to a six-month low against the US Dollar following an uninspiring UK housing report this morning the British Pound has since enjoyed a rebound against the Euro.
In the housing report (compiled by Halifax) UK house prices were shown to have fallen by 0.2 per cent last month. Although prices were up 1.3 per cent up on the year the news pushed the Pound lower against the safe-haven ‘Greenback’.
As trade progressed however Sterling broadly strengthened, notably gaining on another of its key currency rivals, the Euro.
After German factory orders came in just below expectations, advancing by a seasonally adjusted 0.8 per cent rather than the 0.9 per cent predicted by economists, the Pound climbed 0.4 per cent against the common currency – rebounding from close to a 15-month low.
The Pound’s rise can be primarily attributed to fears that the British currency may have weakened too much in anticipation of the instatement of new Bank of England governor Mark Carney. Expectations that Carney will step up efforts to boost the flagging UK economy, fuelled by his own recent comments, have aided the Pound’s decline over the past several weeks.
So far this year the Pound has shed 4 per cent, but now industry experts are asserting that Sterling’s losses may have been more severe than they needed to be.
One such expert, currency strategist Geoff Kendrick, stated: ‘I am relatively optimistic on Sterling at these levels. Carney’s speech will be interesting tomorrow, there will be focus on what he’s going to do when he takes over. Sterling has overreacted to the idea that the BoE will take extreme measures and I think markets will pare back some of the bearishness.’
Carney, the first non-British BoE governor, leaves his counterpart post in Canada to take over at the UK central bank in July but will testify to lawmakers in London tomorrow.
Current GBP Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1578
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5650
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5183
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8599
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5619
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.7471
The Pound Sterling to Swiss Franc is currently trading at 1.4278
The Pound Sterling to Japanese Yen exchange rate is currently trading at 146.0800
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