by Damian -
Having seen a near 100 point movement over the last few days, the Pounds to Euros exchange rate seems to be hovering around 1.2750
A relatively busy day for the Euro rate today, possibly seeing the Euro strengthen for a brief period until the main UK data comes out this afternoon.
Over the past few days we have seen the German economy continue to strengthen. A great start to the new year if Germany begins as they mean to go on, at this rate it looks unlikely that we will see 1.2900 again for a long time as Germany seems to be holding the Euro-zone together.
This morning in the UK we had the Halifax house price index, indicating that house prices are still rising in the UK Month on Month but the rate of increase has slowed quarterly.
Interest rates expected to stay at the same level for the UK, the economy isn’t getting worse for the UK, a good sign for Euro buyers.
The main data to come out for the UK is this afternoon where we will hopefully see the pound strengthen against the Euro once again, currently sitting 1.2750 but seeing highs yesterday close to 1.2800
This could be a chance for the Pound to gain against the ever-strengthening US Dollar, which sits at 1.5050 although has been close a few times to dropping under 1.5000
Pounds to US Dollars is at a low and looks as if it’s going to get worse before it gets better, although for those Dollar sellers a perfect time to take advantage of the one and a half year high.
This afternoon for the US Dollar could again see it strengthen against most of the 19 major currencies as the amount of Initial Jobless Claims continues to decrease, showing that an already strong US economy is expected to get stronger.
EURUSD drops under 1.1800 for the first time since August 2005 and continues to decrease.