Pound vs Euro hits 10 week high on EU debt worries
Good morning. Sterling rose to a 10 week high against the Euro yesterday, with the single currency being weakened on further speculation Greece will need further bailouts. Against the US Dollar we are at a 2 week high. At 08:30am this morning rates stand as follows:
- GBP/EUR 1.1536
- GBP/USD 1.6448
- GBP/AUD 1.5392
- GBP/NZD 2.0134
- GBP/CAD 1.6047
- GBP/CHF 1.4110
- GBP/ZAR 11.353
- GBP/JPY 133.18
- GBP/NOK 8.9736
- GBP/DKK 8.6012
- EUR/USD 1.4254
Weak Euro pushes GBP/EUR to 10 week high
Greece's problems in terms of needing further debt assistance from the EU has weakened the single currency, pushing investors to dump the Euro and buy other currencies such as Sterling.
Despite the fact EU rates are higher and the UK economic recovery is fragile, analysts say that because we have a single monetary and fiscal policy unlike the Eurozone, this has given some strength to the Pound.
However, it's also the fact that due to expectations the UK economy will struggle to recover and that interest rates are unlikely to move this year, a snap back in Sterling could happen at any time, back to the 1 year lows we saw several weeks ago.
Most market watchers are saying that the risks to Sterling remain, and once the debt problems are sorted in the EU and the markets are calmer, the general trend of the Euro outperforming Sterling will continue soon.
For this reason if you need to buy Euros you may wish to consider fixing a rate soon to take advantage of the best rates for 10 weeks.
Enjoy your weekend.
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