2 of 2 Why this ad? Eliminate VAN Fees - rssbus/freeas2 - Connect Direct With Your Trading Partners with a Free AS2 Solution Print all In new window GBP EUR Market Update: Pound Sterling to Euro exchange rate falls below 1.2000 Inbox x Adrian Penhallow [email protected] Unsubscribe 4:02 PM (39 minutes ago) to me Monday 10 March 2014 Cant read this email? Click Here Dear Subscriber, Please find below our latest update for your chosen currency. If you need to discuss your requirements further, please contact your account manager or call us on 0800 612 9625 or +44 (0)1736 335250. GBP EUR Market Update The Pound to Euro exchange rate recently slipped below 1.2000 for the first time in a month due to the ECB’s decision to remain on the sidelines last week. GBP/EUR remained fairly flat around the 1.2125 mark at the beginning of last week’s session as UK Manufacturing improved from 56.7 to 56.9 and Eurozone factory output accelerated from 53.0 to 53.2 on Monday. Tuesday was similarly uneventful for Sterling as UK Construction slowed from 64.6 to 62.6, but demand for the Pound was underpinned by the highest sub index score for job creation in three years and the best month of civil engineering since April 1997. Despite a strong run of ecostats on Wednesday the Euro declined by around half a cent against the Pound as investors grew jittery ahead of the European Central Bank policy statement. The Composite Eurozone PMI printed at a 2.5-year high of 53.3 and Retail Sales reached 1.6%, their highest peak since 2001. In Britain it was reported that Service Sector output remained robust at 58.2 thanks to the fastest month of job creation since the survey began in January 1998. Sterling plunged lower by just under a cent against the single currency on Thursday in reaction to the ECB’s decision not to loosen monetary policy further. Speculation had been rife that the Bank would look to boost liquidity by releasing around €175 billion of ‘sterilized’ SMP funds into the Euro area banking sector. Instead the ECB chose to remain on the sidelines, signaling that it does not intend to introduce further easing measures unless the situation declines drastically, and this led to a surge of demand for the common currency. GBP/EUR traded lower towards 1.2060 on Friday and has subsequently fallen below 1.2000 during the infancy of this week’s session due to optimism derived from a report showing that banks intend to repay a massive chunk of LTRO loans back to the ECB this week in a sign that confidence is building in the region. It looks to be a fairly slow week for GBP/EUR over the next five days as German CPI is confirmed at 1.2% and Eurozone Industrial Production comes in somewhere in the region of 1.9%. Barring any unforeseen Central Bank announcements or big surprises in data the Pound is likely to reassert itself above 1.2000 as on Tuesday when Industrial Production is predicted to print at 3.0%.
Posted on: Mon, 10 Mar 2014 15:42:29 +0000
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