British Pound Sterling likely to continue its "unedifying slide against the single currency"

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Category: Pound to Euro Exchange Rate News Articles

Published on Wednesday, 27 February 2013 13:13

Written by Will Peters

The pound sterling (Currency:GBP) continues to hold steady on the FX markets today - see the latest drivers behind GBP here; this includes Charles Bean of the Bank of England, below we focus on today's GDP stats as they relate to the UK currency. The pound euro exchange rate is 0.16 pct down at 1.1561; for our latest GBP/EUR focus please see here.

The pound dollar exchange rate is 0.14 pct higher at 1.5146.

The pound Australian dollar exchange rate is half a percent higher at 1.4857. For our latest GBP/AUD focus please see here.

Please be aware that the above quote is taken from the wholesale markets - your bank will affix their own discretionary spread when passing on their currency offer. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please find out more here.

Jason Conibear, trading director at the forex specialists Cambridge Mercantile says the following on today's GDP numbers:

"It may not steady the sinking ship, but at least it hasn't added any more holes.

Live EUR/GBP Chart
Exchange Rate Forecasts 2013: USD GBP EUR AUD NZD JPY CHF CAD SEK NOK

"Sterling still has a sinking feeling, but many Poundwatchers will be breathing a sigh of relief. These numbers could have been so much worse.

"With no change to the headline GDP figure, and manufacturing looking less of a basket case than first thought, there may even be some sense of improvement. Construction output grew by a respectable 0.9%, though this is compared to a dire third quarter.

"But these are all crumbs of comfort. The fact is that consumer and business confidence remain low in the UK, and there is every chance the Chancellor will miss his borrowing targets.

"For that reason Sterling's prospects have to remain poor. Despite being knocked by uncertainty following the inconclusive Italian election result, the Euro is enjoying a run of strength.

"The Pound is likely to continue its unedifying slide against the single currency."

Currency markets update: US Fed supports equities and risk currencies

"The USD has lost a little ground overall on the back of dovish comments form Fed Chairman Bernanke’s comments yesterday, generally firmer stock markets and some optimism (for the moment, at least) that Italy may be able to form a government," says Shaun Osborne at TD Securities.

The CAD remains a relative under-performer on the session, however, sliding alongside the NZD and AUD after suggestions from S&P that there were “a number of possible scenarios that may put pressure on Australia’s sovereign rating”. Key capex data are due for Australia tonight.