The pound euro exchange rate is 0.719% higher on the day with 1 GBP = 1.1465 EUR. The pound dollar exchange rate is 0.057% lower with 1 GBP = 1.5801 USD. The pound Australian dollar exchange rate is 0.586% lower with 1 GBP = 1.5224 AUD. "The Bank of England will this morning reflect on the success of its recent quantitative easing programme in a move that many currency analysts suggest precedes another round of the programme," says a currency note from Money Transfer UK. Quantitive easing is usually interpreted negatively by the relevant currency as it dilutes value and prolongs the period of rock-bottom interest rates. However, should markets expect a boost to UK economic activity the British pound sterling could be bid higher in the event of a new announcement. UK money transfer company Caxton Fx has this morning reflected on the fact that for months now, Asian sovereigns could be relied upon to buy the euro on dips. Bailouts and debt downgrades would occur in the eurozone, and far eastern reserve managers would scoop up cheap euros regardless. The concerns over the debt crisis have reached such levels that there is now more of a ‘sell the rally’ tone to the euro. "Accordingly, the boost that the euro got as a result of last week’s three month dollar liquidity programme for European banks gave investors an opportunity to take profit, which has helped sterling gain a cent," says the money transfer company.

Source