Sterling up against Euro on EU summit concerns

Friday 21st October 2011
Good morning. The pound fell slightly against the US Dollar yesterday, but continued it’s volatility vs the Euro, and rose a point to nearly €1.15. This was because of doubts the EU summit this weekend would go ahead, and whether or not they would reach a deal on leveraging the euro zone rescue fund. This weakened the Euro and pushed GBP/EUR rates up. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1479
• GBP/USD 1.5779
• GBP/AUD 1.5416
• GBP/NZD 1.9901
• GBP/CHF 1.4044
• GBP/CAD 1.6023
• GBP/ZAR 12.919
• GBP/JPY 120.98
• GBP/DKK 8.5440
• GBP/NOK 8.8584
• EUR/USD 1.3740

Pound gains vs Euro on EU bailout doubts

Yesterday the volatility in GBP/EUR rates continued, as investors questioned how much progress would be made on resolving the EU debt crisis at the EU summit this weekend. There was a German media report that said they had not ruled out postponing the meeting.

This weekend will be very important for the future of the Eurozone, and analysts said that the Pound’s value against the Euro would continue to be dictated by what happens with the Euro, and that the pound could suffer more against the US dollar if EU leaders are seen to be unable to agree on the euro zone bailout fund.

This weakened the single currency and helped push GBP/EUR rates higher. There were also some better UK retail sales data released yesterday, however it didn’t do much to affect the value of the Pound, with events in the Eurozone continuing to take centre stage.

Today’s Data

Australia releases import and export data which could affect GBP/AUD rates that have been dropping from the $1.60 level in the last few weeks. Germany has various confidence measures, and as the largest economy in the EU this could impact EUR prices. Finally, the weekends summit in the Eurozone could also have an effect.

On Monday I will be posting a detailed outlook of GBP/EUR rates, GBP/USD rates and all the weeks economic data that you should watch out for if you are buying or selling currency.

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