Pound to euro exchange rate in volatile morning's trade, Halifax House Price's torpedo any hopes of sterling strength
Last Updated on Tuesday, 06 March 2012 10:32 Written by Rob Samson Tuesday, 06 March 2012 10:27
The pound to euro exchange rate is 0.06% lower than at yesterday's closing level, the pair is at 11998 at 10:24 - we note that today's high is at 1.2021 and the low at 1.1971 - suggesting today has been rather volatile.
The pound dollar exchange rate is a great deal weaker coming in 0.6% lower at 1.5774.
The British pound has had to contend with a poor Halifax house price release - UK house prices fell by 0.5% month-on-month, a dismal figure if we consider the consensus estimate was for a rise of 0.3% month-on-month.
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Looking to yesterday's performance, we note that a poor UK services figure fails to dent the pound with sentiment towards the UK economy a little firmer now.
"Whilst yesterday’s UK services number came in well below expectations, the sector remains at comfortable levels of growth, which should ensure a positive Q1 2012 GDP showing. This contrasts favourably with the poor showing from the eurozone services sector last month. A eurozone investor confidence survey also came in worse than expected, though retail sales in the region came in higher than expected," says Richard Driver at Caxton Fx.
Caxton note that the euro is finding it very hard going to make any sort of recovery from last week’s decline amid anxiety over the ongoing Greek PSI negotiations.
"Alarmingly, a German investment body recommended that Greece’s private creditors should reject the deal. This pair trades at €1.20 and sterling looks pretty comfortable at these levels," says Driver.
Sterling is trading sideways against the US dollar, though risks remain to the downside.
US services sector growth came in at its highest level in a year in February, adding credence to last week’s indications from Fed Chairman Bernanke that there will be no further US quantitative easing. The Greek concerns are certainly weighing on global stocks at present, European stock indices are already down half a percent, which is favouring the US dollar this morning.
- Sterling set to recapture lost ground vs euro
- BoE Votes 8-1, Softens Dovish Tone On Above-Target Inflation
- S&P Raises Greece’s Credit Rating, ECB To Accept Greek Debt As Collateral
- Euro consolidates as market volumes thin out
- Euro pound FX direction continues to be driven by technical considerations
- Spanish borrowing in 2013 expected to be raised higher
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