The Pound Euro exchange rate is 0.209% higher on the day with 1 GBP = 1.1622 EUR.
The Pound Dollar exchange rate is 0.315% lower with 1 GBP = 1.6151 USD.
"The British Pound bounced back above 1.16 against the Euro this morning, while the single currency also struggled to break 1.40 versus the U.S Dollar, amid renewed concern over European sovereign debt as Greece endured a large credit rating downgrade by Moody’s Investors Service," says exchange rate specialist Adam Solomon at Tor Fx.
The Euro retreated from a near-four month high against the Dollar, as bonds across the Euro-zone declined on concern that finance ministers will fail to agree on a comprehensive solution to the ongoing debt crisis.
The Euro has wobbled against the majors today but the decline is not enough to suggest a key reversal in the recent trend is likely.
The single currency is still expected to make further gains against the majors, as money markets factor in a 25 basis point increase in European interest rates next month.
The Euro is likely to recover quickly from today’s blip but it will represent a timely warning that some of the peripheral economies within the Euro-zone are still struggling with recession and rate increase at this stage will not win universal acclaim across the region.
