The Pound (GBP) to Euro (EUR) exchange rate was flat on Friday as a lack of market moving data releases combined with geopolitical concerns which spooked investors.
Against a number of its most traded peers Sterling softened as investors took advantage of the quiet news day to embark on a bout of profit taking. Further losses were restrained however due to the continuing speculation that the Bank of England will raise interest rates before the end of this year.
The Euro meanwhile was little moved against the Pound and was seeing muted trade against most of its major peers.
The single currency fell by 0.41% against the Australian Dollar (AUD) as investors took advantage of the higher interest rate offered by the South Pacific nation.
Trade was muted in general as market sentiment was weakened after the crash of a Malaysian airliner in eastern Ukraine. All 298 passengers on board were killed, sharply increasing tensions in the conflict between the pro Western Ukrainian government and pro-Russian rebels. Both sides condemned the other for shooting down the plane.
The incident comes just one day after the USA imposed newer and harsher sanctions against Russia who it blames for escalating the violence in Ukraine and as punishment for its annexation of the Crimean peninsula.
Also spooking the markets is the escalating conflict in Israel. Last night ground troops invaded the Gaza strip in an attempt to stop militants launching rocket attacks.
The Pound is widely forecast to make further gains against the Euro over the coming days as the UK economy continues to diverge from that of the Eurozone.
Key GBP/EUR Data for Next Week
Monday July 21 – EUR German PPI data
Tuesday July 22 – GBP CBI Trends Orders
Wednesday July 23 – GBP MPC Meeting Minutes
EUR Consumer Confidence
Thursday July 24 – EUR Manufacturing Flash PMI
EUR Services Flash PMI
GBP – Retail Sales Data
Firday July 25 – EUR German Consumer Confidence
EUR German IFO Business climate
GBP – GDP Growth Rate Data
Pound (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,US Dollar,1.7098 ,
Pound Sterling,,Euro,1.2645 ,
Pound Sterling,,Australian Dollar,1.8218 ,
Pound Sterling,,New Zealand Dollar,1.9698 ,
US Dollar,,Pound Sterling,0.5849 ,
Euro,, Pound Sterling ,0.7908 ,
Australian Dollar,, Pound Sterling ,0.5486 ,
New Zealand Dollar,,Pound Sterling,0.5072 ,
[/table]
Comments are closed.