The euro to pound exchange rate is 0.254% higher on the day with 1 EUR = 0.8846 GBP.
The euro dollar exchange rate is 0.494% higher with 1 EUR = 1.4439 USD.
Euro exchange rate today
The ECB and the BoE extended their reciprocal swap lines, although these have never been used. The lines were originally set up in Dec 2010, and were due to expire in Sept 2011.
However, following the extension, they are now due to remain in place until Sept. 2012. Should funding strains increase, the lines are designed to ensure a ready supply of sterling for Eurozone banks, up to GBP 10 bn in total.
German Finance Minister Schaeuble said the euro will “definitely” be around in 10 years’ time. He said the German parliament might delay until Sept 29 a vote on extending the powers of the EFSF.
France, Italy, Spain and Belgium extended their bans on short selling financial stocks to Sept 30. The original ban came into force on Aug 3.
Yesterday all three ratings agencies affirmed Germany’s credit rating at AAA, according to CNBC
Denmark’s central bank lowered the policy rate by 10 bp. The move is a reaction to falling Eurozone money market interest rates which have encouraged DKK inflows. Markets are now pricing in 17 bp of ECB cuts over the next 12 months. Our European economists think the ECB will keep the refi rate at 1.50% for all of 2012.
