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Pound Sterling to Euro (GBP/EUR) Exchange Rate Falls As Rally Considered Overdone

British Pounds

Yesterday the Pound was able to achieve an over three-month high against the US Dollar and three-week high against the Euro.

The Pound Sterling Exchange Rate was in the region of 1.1744 against the Euro as of 11:30 GMT

The British currency was buoyed by better-than-forecast UK employment data and has also been supported in recent days by last week’s positive domestic news.

As industry expert Neil Jones asserted during yesterday’s European session; ‘The Pound is outperforming across the board. UK data continues to point to a recovery. Overseas investors are encouraged by the data and are buying the Pound in order to purchase UK assets.’

However, Sterling’s bullish relationship with its European peer ended today as investors bet that the currency’s rally has been overdone.

The Pound weakened to 85.20 pence per Euro

Over the past three months the Pound has emerged as a top performing major currency, but there is speculation that the situation could reverse once Mark Carney takes over as Governor of the Bank of England.

As currency analyst Eimear Daly observed: ‘There’s been a bit of a bull run in Sterling but in my opinion it’s been overdone. We’re seeing a bit of a correction now. Fisher’s comments put back into the market’s mind that there may be more quantitative easing. We may see Sterling heading lower as we approach the end of June before Mark Carney comes into power.’

The Pound also lost ground against the US Dollar.

With UK data releases thin on the ground until next week additional Sterling movement is likely to be caused by news from the US (like today’s advance retail sales figures) and the Eurozone (like tomorrow’s Eurozone CPI and employment data).

Current Pound Sterling (GBP) Exchange Rates

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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5648 <

The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1744 <

The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6432 <

The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9615 <

The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6392 >

The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8514 >

The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6059 >

The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5072 <

(As of 11:30 GMT)

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