The Euro to Pound Sterling Exchange Rate was trading at 0.8623 as of 14:30 pm GMT
After European Central Bank President Mario Draghi commented that the strength of the Euro could prove detrimental to Eurozone inflation and growth the common currency tumbled. Although it has since recouped some of its losses it took the G-7 to end the Euro’s downward spell.
The G-7, a grouping of economic/financial representatives from nations including the UK, US, Germany and Japan, today asserted that its members would avoid devaluing its currencies in the name of global economic growth.
Luxembourg Prime Minister Jean-Claude Junker also commented that the Euro had no ‘optimal rate’, and these two developments allowed the common currency to climb against the US Dollar for a second day.
The Euro gained on other safe-haven rival the Japanese Yen as well as the majority of its most traded rivals.
With the Bank of England widely expected to slash growth forecasts for the UK tomorrow the Pound also broadly declined.
One industry expert discussed today’s news in the following terms: ‘Given the overall tone of the [G-7] statement, it doesn’t appear that there is significant pressure on Japan. The takeaway is that perhaps some of the currency-specific rhetoric by the Japanese policy makers will subside, but there’s nothing in the G-7 statement that would prevent Japan from continuing to pursue very aggressive monetary easing.’
Additional Euro movement can be expected today following the meeting of Draghi and Spanish Prime Minister Mariano Rajoy.
In the wake of allegations of political corruption there have been widespread calls for Rajoy to rescind his leadership of the third largest economy in the Eurozone. Rajoy denies any wrong doing, but whether or not he will abandon Spain when the nation is still facing so many economic obstacles remains to be seen.
The two will be giving a press conference this afternoon.
Current Euro exchange rates
As of 14:30 pm
The Euro to Pound Sterling exchange rate is currently trading in the region of 0.8623
The Euro to US Dollar exchange rate is currently trading in the region of 1.3439
The Euro to Australian Dollar exchange rate is currently trading in the region of 1.3045
The Euro to New Zealand Dollar exchange rate is currently trading in the region of 1.6090
The Euro to Canadian Dollar exchange rate is currently trading in the region of 1.3504
The Euro to Emirati Dirham exchange rate is currently trading in the region of 4.9353
The Euro to Swiss Franc is currently trading in the region of 1.2336
The Euro to Japanese Yen exchange rate is currently trading in the region of 126.5940