Pound euro exchange rate: Sterling topples from one week high ahead of Eurozone update | Travel News | Travel

The exchange rate is buying €1.118 after climbing to €1.124 at midday yesterday. 

Sterling was boosted by an optimistic UK retail sales report from the Confederation of British industry. 

The GBP/EUR rate jumped to its highest rate seen all week but gains were short-lived.

Sterling dipped back over the course of the day and has been hovering around the €1.118 mark for much of the morning. 

It marks the end of a relatively static week for the exchange rate, which has made modest gains without real significance.

This is partly due to a lack of UK data, which weighs heavily on both currencies. 

Data released out of the Eurozone today stands to similarly influence the rate. 

Germany – the largest economy in the bloc – will reveal its inflation report.

If figures slide, this could signal the possibility of the ECB pulling back on controversial stimulus policies. 

TorFX currency analyst Laura Parsons said: “An upbeat UK retail sales report from the Confederation of British industry helped push the GBP/EUR exchange rate to a one-week high on Thursday – but Sterling’s gains were brief. 

“The pound soon edged lower again, slipping back to €1.11. 

“Today’s German inflation report could help the GBP/EUR exchange rate end the week on a high however if it shows a decline in consumer price pressures. 

“Sliding inflation in the Eurozone’s largest economy would reduce the likelihood of the European Central Bank (ECB) winding down its current stimulus measures.”

Meanwhile the pound soared to 10-month highs against the US dollar after an update from the Federal Reserve

America’s central bank yesterday confirmed it is looking to withdraw Quantitative Easing and monetary support for the economy “relatively soon”.

The comments would usually strengthen the dollar, if not for the caveat: “Provided that the economy evolves broadly as anticipated”.

There are growing fears President Trump will have trouble passing his economic and tax reforms, thereby stunting growth. 

Read the full article at the Original Source..

Back to Top