The Pound Sterling Exchange Rate was 1.1567 against the Euro as of 10:38 am
The Pound has experienced fairly manic volatility so far this morning, following on from a day of fluctuations yesterday.
Over the course of trade on Thursday the Pound posted modest gains against the Euro – benefiting from a disappointing German retail sales report – but with investors expecting that the latest UK manufacturing figures would reveal economic weakness this advance was shed quite swiftly.
Before European markets closed yesterday Sterling had sunk within touching distance of a 13-month low against the Euro.
The Pound’s bearish relationship with its common currency rival continued this morning as German PMI rose unexpectedly, boosting the Euro.
However, although economists expected the gauge of factory output compiled by Markit Economics and the Charted Institute of Purchasing and Supply to show a decline of 0.2 per cent, taking the level to 51 and extremely close to the 50 mark which separates growth from contraction, the actual figure came in at 50.8.
Immediately following the data release the Pound slid by as much as 0.8 per cent against the Euro, briefly hitting the lowest level seen since the end of November 2011. A slight upward correction saw the pair trading at 86.40 pence per Euro as of 10.24 am.
It is important to note that although January’s manufacturing expansion was modest, and slower than economists expected, it still marked a second month of growth.
However, as the Chief Executive of CIPS stated, although ‘on the surface this is good news for manufacturing and should be welcomed… underlying factors suggest deep rooted problems remain.’
The report also revealed that output increased by the most since September 2011 and some industry experts are hoping that this may indicate that the contraction recorded in the fourth quarter of last year will not be repeated in the first quarter of this year.
Concerns that the UK economy is sailing headlong into an unprecedented triple-dip recession have been weighing on the Pound in recent weeks, but much of its downward movement has also been triggered by renewed confidence in the Eurozone’s economic recovery.
Today separate reports have shown that Eurozone unemployment remained at its previous level of 11.7 per cent in January whilst the currency bloc’s inflation rate unexpectedly fell.
These factors, in addition to this afternoon’s US non-farm payrolls data are likely to cause additional movement as the day progresses.
Current GBP Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1567
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5814
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5248
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8809
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5811
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.8289
The Pound Sterling to Swiss Franc is currently trading at 1.4305
The Pound Sterling to Japanese Yen exchange rate is currently trading at 145.7100
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