Here is my latest update of the British pound to euro exchange rate, covering the 4th to 11th May 2012. This is intended as a brief guide to what’s affected the exchange rate this past week as well as what might happen next, to help you decide if now’s the best time for you to change currencies. Pound to euro: +1.609% weekly increase 1.2504 (1.2306 a week ago) +2.094 monthly increase 1.2505 (1.2129 a month ago) This week: 1. The pound hit its highest rate against the euro since 2008, as well as breaking the hugely symbolic 1.25 point, as Spain’s nationalisation of Bankia as well as electoral chaos in Greece pull the euro down. 2. The Bank of England didn’t announce a fourth … [Read more...] about Pound to euro hits 1.25 as Spain nationalises Bankia
gbp-eur
Pound to euro hits 22-month high despite UK recession
Here is my latest update of the British pound to euro exchange rate, covering the 20th to 27th April 2012. This is intended as a brief guide to what’s affected the exchange rate this past week as well as what might happen next, to help you decide if now is the best time for you to change currencies. Pound to euro: +0.66% weekly increase. 1.2293 (1.2212 a week ago.) +2.79% monthly increase. 1.2293 (1.196 a month ago.) This week: 1. The pound held at its highest rate against the euro in 22 months this week, in spite of the fact that the UK officially re-entered recession. If nothing else, this reflects just how low confidence is in the euro right now. 2. Francois Hollande won … [Read more...] about Pound to euro hits 22-month high despite UK recession
Pound looks to consolidate gains against euro
Here is my latest update of the British pound to euro exchange rate, covering the 13th to 20th April 2012. This is intended as a brief guide to what’s affected the exchange rate this past week as well as what might happen next, to help you decide if now is the best time for you to change currencies. Pound to euro: +0.96% weekly increase 1.2223 (1.2107 a week ago) +2.91% monthly increase 1.2223 (1.1878 a month ago) This week: 1. UK unemployment falls. The pound has climbed to 1.22 against the euro this week (its highest rate since August 2010) as UK unemployment registers a surprise decline. Sterling also took ground from most other major currencies. 2. Spanish bond auctions … [Read more...] about Pound looks to consolidate gains against euro
Pound gains as Spain teeters on the brink
This is my latest update of the British pound to euro exchange rate, covering the 6th to 13th April 2012 period. This is intended as a brief guide to what’s affected the exchange rate in the last week, to help you decide if now is the best time for you to change currencies. I wouldn’t blame Spanish Prime Minister Mariano Rajoy for feeling a little disgruntled right now. Like a good student, he has listened to the teachings of his EU professors and announced spending cuts of some €28 billion, not to mention €10 billion more in so-called efficiency savings in health and education. Has this restored market confidence in Spain? Not an inch. In fact, since announcing these measures, banded … [Read more...] about Pound gains as Spain teeters on the brink
Pound to euro stable as central banks hold rates
The situation in Greece especially has topped the headlines this past week, and had the potential to send the euro into meltdown had it not turned out so well. The Greek government conducted a debt swap, aimed at getting bondholders holding more than €200bn in Greek bonds to change their bonds for ones worth 75% less. Had they refused, Greece would have been refused its €130bn EU bailout and been forced to default, prompting the much-feared contagion across Europe. In the event though, Greece’s creditors decided that triggering a financial apocalypse was not perhaps in their best interests, and more than 95% accepted the deal. Cue much jubilation among Greek and European Union public … [Read more...] about Pound to euro stable as central banks hold rates
Pound to euro rate rises on ECB loan scheme
In particular, the Long Term Refinancing Operation by the European Central Bank has stoked concerns European banks might be close to collapse, while unemployment on the continent continues to climb. The European Central Bank initiated its second loan scheme this week, called the Long Term Refinancing Operation (LTRO.) The scheme is intended to provide European banks unlimited loans for three years at just 1.00%, and since round one in December has been widely credited with preventing a credit crunch in Europe. In the event this second round proved more popular than the first, with 800 banks borrowing €529.5 billion. On the one hand this is testament to the willingness of the ECB to … [Read more...] about Pound to euro rate rises on ECB loan scheme
UK to dodge the recession bullet?
(In case you don't know, the UK services PMI is a monthly measure of productivity in the UK services industry. It accounts for two thirds of economic output in Britain, and so is crucial in determining UK growth.) This month UK services took market forecasts, chopped them into small chunks with onions and carrots, fried them, and ate them for dinner. The PMI hit 56.0 (releases above 50.0 mean growth and the higher the better.) This compares to 54.0 the month before, and expectations of a slowdown to 53.5. It’s a 10 month high for UK services, and the biggest single jump on record. Great! Of course, before this, economists thought Britain would soon be re-entering recession. The economy … [Read more...] about UK to dodge the recession bullet?