Here is my latest update of the British pound to euro exchange rate, covering the 11th to 18th 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 to change currencies. Pound to euro: -0.72% decrease on the week (from 1.254 to 1.245) +2.33% increase on the month (from 1.217 to 1.245) This past week: 1. Right-wing UK newspapers including The Telegraph and Daily Express have been openly discussing this week the possibility that the euro might soon end, as economists put the odds of Greece leaving the euro at 50.0% and above. 2. The pound has lost a cent against … [Read more...] about Euro to end as Greece exit nears?
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Pound to euro hits 1.25 as Spain nationalises Bankia
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
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 slips on surprise UK GDP downturn
UK sterling has given up almost a cent against the euro this week, as the ONS (Office for National Statistics) tells us Britain contracted -0.1% more than previously thought in Q4, to a total –0.3%. Obviously enough, this has stoked concerns the UK might re-enter recession in 2012, and in fact the OECD (those cheery fellows!) have already made this prediction. Bright side for Britain Fortunately, on the flip-side there are plenty of economists who accuse the OECD of doom-mongering here, and indeed UK performance in 2012 has been pretty solid so far. Both the manufacturing and services sectors expanded these past 3 months, while exports also enjoyed a solid increase. This suggests the UK … [Read more...] about Pound slips on surprise UK GDP downturn
UK pound to euro exchange rate stable as outlook darkens
The UK pound kept close to the 1.20 mark against the euro this week, as economic data in both the UK and eurozone points to a difficult road for 2012. In particular, in the UK retail sales dropped a precipitous –0.8% last month, signalling that consumers are no more confident in their prospects, while the coalition government borrowed more than twice as much as forecast. In Europe meanwhile, attention has turned to Spain and Italy, where crucial labour reforms are being debated, while spluttering manufacturing output points to a deepening recession. UK retailers on the back foot UK retail sales declined double the expected rate last month, falling –0.8% compared to the -0.4% forecast. … [Read more...] about UK pound to euro exchange rate stable as outlook darkens
Pound to euro unchanged on mixed UK-EU outlook
The pound to euro exchange rate remains unchanged at 1.20 this week, as a series of economic releases indicate that growth in both the UK and Eurozone will be hard-won in 2012. In particular, credit rating agency Fitch has threatened to slash the UK’s triple A credit rating, while in Europe, European Central Bank president Mario Draghi has pointed to the competitiveness gap between northern and southern members as the next big hurdle. Looking ahead, it looks as though the pound-to-euro rate will remain tethered inside the 1.1750-1.20 range established at the outset of 2012, unless a disaster in either Britain or Europe tips the balance. In the UK, pessimism has flared as rating agency … [Read more...] about Pound to euro unchanged on mixed UK-EU outlook
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