EX: Pound To Euro Exchange Rate Today: Further Weakness Following Slowdown In Service Sector
The Pound Sterling to Euro exchange rate continued its bearish momentum on Thursday as Greek negotiations continued in Athens in an attempt to save Greece defaulting on its current debt plan.
On Wednesday Greek Prime Minister Alexis Tsipras emerged from late night talks with senior European officials in Brussels saying a deal with creditors was “within sight” and that the 300 million Euro payment which is due to the International monetary fund would be paid by Friday.
The Pound to Euro exchange rate: GBP/EUR converts at 1.375.
The Euro to Pound exchange rate converts at 1 EUR is 0.727 GBP.
The Euro to US Dollar exchange rate today is converting at 1.111 EUR/USD.
The Euro to Canadian Dollar exchange rate: EUR/CAD conversion is 1.383.
The Euro to Swiss Franc exchange rate converts at 1 EUR is 1.044 CHF.
Note: the foreign currency rates above, revised as of 6th Jun 2015, are inter-bank prices that will incur an extra cost by your bank for any international money transfer requirements. Speak to a recommended FX provider to lock in the best exchange rates.
Pound to Euro Exchange Rate Remains Volatile
The Pound Euro rate was volatile in early morning trading reaching a low at 1.3541 before rejecting lower end support to reach a daily high at 1.3660.
The Pound Sterling to Euro (GBP/EUR) exchange rate currently remains down over 5 cents from its highs at 1.4180 only a week ago and will continue to remain volatile until a bailout is agreed.
The upside for the Euro was also strong against the US Dollar which was up from a daily low at 1.1228 to reach a daily high at 1.380, gaining as much as 4% in the last week alone as disputed reforms continue in Athens.
In other news out on Thursday weighing on price movement for the British Pound, growth in the UK service sector slowed in May as the PMI Purchasers Managers Index for May fell to 56.5 which was down from 59.5 in April.
Whilst the figure still represents expansion, it was the lowest reading for four months and raised doubts about the economy’s ability to bounce back from the weak start to the year for 2015.
Chris Williamson, chief economist at data provider Markit, which carries out the PMI survey, warned that the latest reading indicated continued weakness.
“Recent weakness in manufacturing and construction has spread to services. The surveys point to GDP growing at a quarterly rate of just 0.4% in May, raising doubts about the ability of the economy to rebound convincingly from the weakness seen at the start of the year.”
Whilst the Service sector figure was below analysts’ expectations, the Pound Vs Euro remained primarily driven by events in Athens and currently consolidates above the 1.36 level.
BoE Holds Interest Rates
In other news out in the UK on Thursday, the Bank of England kept its benchmark rate unchanged at 0.5% and the asset purchase target at ÂŁ375 billion. This is the sixth year that rates have been held at record lows and likely to rise until at least 2016.
Howard Archer, chief economist at IHS Global Insight, said: "The Bank of England was always a nailed-on certainty to keep interest rates at 0.5%. Indeed, the odds currently strongly favour the Bank of England sitting tight on interest rates (and on the stock of quantitative easing) over the rest of 2015."
Pound to Euro Forecast - GBP/EUR Exchange Rate Volatility
Looking ahead at the economic calendar for Friday, the Bank of England GfK Inflation figure will headline the UK diary in early morning trade, followed by the latest Euro-zone GDP figure which is likely to cause volatility for the GBP/EUR pair.
The Non Farm payrolls figure, which is considered one of the biggest events in the economic calendar, will also dominate price movement once the US market opens.
