Pound to euro: EUR boosted by some good economic data

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Category: Exchange Rates

Published on Tuesday, 23 August 2011 09:28

Written by Sam Coventry

We take a look at the pound to euro exchange rate and other key money market news stories.

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The pound euro exchange rate is 0.232% lower on the day with 1 GBP = 1.1443 EUR. 
 
The British Pound traded flat against the euro ahead of this morning’s eurozone data. But, the euro is on the front foot at present.

In light of the weak German second quarterly GDP figure (0.1%), there will be plenty of focus on this morning’s German economic sentiment data. German economic strength is vital to the eurozone’s prospects, but expectations are for a particularly weak figure this morning.

This morning’s French PMI data revealed a slight contraction in the manufacturing sector but some impressive growth in the services sector.

Germany’ figures were more positive and have pushed the euro higher. Sterling should be able to rebound today from the current trading level of €1.1430.

Gold at record high

Elsewhere on the financial markets we see that gold surged to a new record high last night and banks tumbled as economic woes spooked investors.

Gold – a traditional haven in times of turmoil – powered to nearly $1,900 an ounce as it built on its biggest weekly gain in two-and-a-half years last week, the Daily Mail Reports.

QE3 optimism misplaced?

Markets may be heading into a new squall amid overblown optimism that the Federal Reserve will announce a big new economic stimulus package on Friday, analysts have warned.

The Dow Jones industrial average rose sharply before settling little changed, driven by what some economists warned was premature speculation that the Fed would purchase hundreds of billions of dollars of government bonds in an effort to revive growth, the Times reports.