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Euro to Pound Sterling (EUR/GBP) Exchange Rate Supported As Investors Remember Draghi’s Pledge

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As the European session began the Euro consolidated recent gains against a softening US Dollar and the British Pound.

The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8627 as of 11:25 GMT

The common currency was bolstered by some positive news from the Eurozone’s second largest economy and renewed interest in ECB President Mario Draghi’s momentous pledge.

Earlier today data compiled by French national statistics agency Insee showed that consumer confidence in the nation surged this month as unemployment concerns began to ease.

The Euro to Pound (EUR/GBP) exchange rate hit a high of 0.8649 pence per Euro

A gauge of household sentiment climbed from a revised 79 to 82 in July.

The result was significantly better than the advance to 79 which economists had forecast and the increase was the most notable for two-years.

With France falling into recession in the first quarter of this year, this result is a positive indication that the nation is getting its economic recovery back on track.

These figures follow a business confidence report published earlier this week, which showed that sentiment was at a 15-month high.

However, France still has a long way to go before it’s out of the woods. As one industry expert commented: ‘with unemployment at a record high and rising, and tighter fiscal policy, we do not expect a change in consumers’ mood to be translated into a sharp improvement in consumption levels.’

Today is also the anniversary of the momentous day last summer where ECB President Mario Draghi vowed to save the Euro by any means necessary.

In July of last year Draghi asserted: ‘Within our mandate, the ECB is ready to do whatever it takes to preserve the Euro. And believe me, it will be enough’.

Since those remarks were made, and the Outright Monetary Transactions programme was introduced, bond markets have regained a measure of stability and the Euro has strengthened considerably against the Pound.

An absence of UK data has limited EUR/GBP movement today, but EUR/USD fluctuations may result from the release of this afternoon’s US University of Michigan confidence index.

Economists have forecast that the measure of US sentiment will come in at 84, but with the Federal Reserve holding its policy meeting next week a surprising result may lead to volatility.

Current Euro (EUR) Exchange Rates

< Lower    > Higher     – Little Changed

The Euro/US Dollar Exchange Rate is currently in the region of: 1.3286 >

The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8627 >

The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4316 <

The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6413 <

The US Dollar/Euro Exchange Rate is currently in the region of: 0.7524 <

The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1593 >

The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6980 >

The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6088 >

(Correct as of 11:25 GMT)

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