The pound to euro exchange rate is 0.087% higher on the day with 1 GBP = 1.1413 EUR at 10 AM in London. The pound to dollar exchange rate is 0.645% higher with 1 GBP = 1.5457 USD. "It was a case of range-bound trading between these two out-of-favour currencies," says a note from UK money transfer company Caxton Fx. Eurozone, French and German PMI data disappointed expectations across the board but the market has accepted the global economy is slowing down and the eurozone is no exception. The debt crisis remains the number one concern. There were some encouraging indications that European officials looks ready to speed up plans to recapitalise the 16 banks that came close to failing the European stress tests we saw in the summer. Pound to euro traded around the €1.14 level yesterday, but the euro may well get a boost from the G20 meetings today. Looking at the pound to dollar we see sterling crashed to a one-year low versus the US dollar, as safe-haven flows intensified. "With the Swiss National Bank’s success thus far in weakening the swiss franc, the US dollar is enjoying a greater share of global safe-haven flows at present. With USD/JPY dipping to record lows, speculation is growing that the Bank of Japan will take similar action to weaken the yen. This only strengthens the dollar’s medium-term outlook, because falling global stocks, concerns surrounding a global recession and financial turmoil, and fears of a Greek default are unlikely to fade soon," says the note from the UK money transfer company. The dollar has weakened off a little in overnight Asian trading, helping sterling to climb a cent above yesterday’s lows of $1.53. Equities are likely to keep struggling until we get some signs of action from the G20.

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