Pound to Euro | Pound Euro Exchange Rate News and Insights

Pound to euro exchange rate losses ground as EUR proves increasingly stubborn; recovery could be on the cards warns TorFx

• 

Details

Category: Pound to Euro

Published on Tuesday, 21 February 2012 14:15

Written by Will Peters

The pound to euro is 0.24% lower on the day at 1.1934. As the GBP-EUR exchange rate approaches 1.19 it also approaches a zone of stubborn support.

The Pound lost ground to the euro on reports last night Greece had won a second international bailout to stave off the threat of a default.

---

Advertisement - Article Continues Below

---

"The struggling Euro-zone nation has been given more time to implement further austerity measures in order to bring its debt level down to 120% of gross domestic product by 2020," says Adam Solomon, a deal at foreign exchange rate services firm TorFx.

However, the move to bailout Greece for a second time has been viewed as simply papering over the cracks and there are other EU nations will similar levels of indebtedness and sky high bond yields that may also require emergency funding at some point.

"As a result, the Euro declined against the Dollar this morning, amid speculation that will require further political action to resolve the sovereign debt crisis. The market has been waiting for a resolution to the debt crisis for months but it’s not as easy as that. It’s systemic and throwing money at the problem won’t solve it in the long-run. The Euro has enjoyed a good couple of days but it’s unlikely to last," warns Solomon.