The pound to euro exchange rate is 0.39% lower on the day with GBP to EUR at 1.1304. The pound to dollar exchange rate is 0.247% higher with 1 GBP = 1.6259 USD. The pound to Australian dollar exchange rate is 1.459% lower with 1 GBP = 1.5720 AUD. Pound to euro yesterday gave away a cent and a half as European equities bounced and the euro benefited from a weaker dollar. "Stronger European equities helped support the euro yesterday as the panic caused by successive sessions of heavy stock losses subsided. The euro was also the key beneficiary of a dollar sell off in response to a dovish US Federal Reserve statement," says a note from exchange rate analyst Richard Driver at UK money transfer company Caxton Fx. UK manufacturing and industrial production data was disappointing yesterday. Today’s Bank of England inflation report could well weaken the pound further today. This pair is trading at €1.13, two cents lower than the peaks reached earlier in the week. Elsewhere we see that sterling lost a little ground yesterday but losses were capped by the Fed’s dovish stance. "The Fed’s determination to keep US monetary policy ultra-loose until the middle of 2013 helped sterling recoup some early losses against the dollar. Things could have been worse for the dollar had the Fed showed intent to introduce QE3. However, the fact that three Fed policymakers dissented to the policy of keeping rates at record lows for the next two years reveals that the bar to QE3 is set pretty high indeed," says Driver.

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