Pound gains against Euro on ECB comments

4th February 2011
Good morning. The pound gained against the Euro yesterday as the European Central Bank president dampened expectations for a rate hike in the Eurozone, weakening the single currency. At 08:30am rates are as follows:

  • GBP/EUR 1.1854
  • GBP/USD 1.6167
  • GBP/AUD 1.5852
  • GBP/NZD 2.0892
  • GBP/CAD 1.5989
  • GBP/CHF 1.5295
  • GBP/ZAR 11.724
  • GBP/JPY 131.82
  • GBP/NOK 9.2664
  • EUR/USD 1.3637

ECB Comments weaken the Euro

Sterling pared gains versus the dollar on Thursday in a move driven largely by a sharp drop in the euro after European Central Bank President Jean-Claude Trichet dampened expectations for a rate hike in the euro zone.

Trichet’s comments, which came after the ECB’s decision to keep interest rates at a record low 1 percent as expected, disappointed investors who had expected a more hawkish statement after recent inflation data came in above forecast.

Also helping the pound gain were figures showing that activity in Britain’s services sector expanded at its fastest pace in eight months. This weakened the Euro and rates are now above €1.18.

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