The pound to euro exchange rate is 0.366% higher with 1 GBP = 1.1532 EUR. The pound to dollar exchange rate is 1.367% higher with 1 GBP = 1.5645 USD. The British Pound enjoyed an impressive bounce after last Thursday’s BoE quantitative easing announcement. "Sterling certainly looked oversold on Thursday as investors responded to the MPC’s decision to add further monetary stimulus to the UK economy. Friday saw this pair recoup all of its losses. The euro is trading a little stronger this morning in light of a plan from Merkel and Sarkozy to recapitalise European banks, address the Greek issue and the region’s economic governance. The two leaders have given themselves until the end of this month to achieve these goals," says a note from Richard Driver at foreign exchange and money transfer services firm Caxton Fx. Clearly many market players remain sceptical on the chances of progress, and rightly so given the countless times that euro-leaders have failed to deliver on deadlines, but the news is positive regardless. The pound to euro is trading just below €1.1550 this morning and as the market continues to respond to this new European plan, the euro is likely to remain well-supported. Looking at the pound to US dollar we note that this pair has climbed by three cents from Thursday’s lows, as demand dips for safe-haven assets such as the dollar. "Friday’s important US non-farm payroll figure was impressive; one hundred thousand jobs were added to the US economy, almost double the number that was expected. The unemployment rate remained at 9.1%, but the market responded by exiting the US dollar and targeting riskier assets," says Driver. There were some mildly concerning comments from MPC member Weale, who asserted that there is “a lot of scope” for yet more asset purchases. Longer-term UK price pressures look likely to be sedate, which “justifies a slacker policy.” Nonetheless, this pair is trading at $1.56 and could climb a little higher today.

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