Euro exchange rate today: The pound has maintained its 15-month high against the Euro exchange rate

Foreign Exchange Rates Currency News - The pound has maintained its 15-month high against the Euro

by Josh Ferry Woodard

Today’s Euro exchange rate news

The pound has maintained its 15-month high against the Euro exchange rate overnight and the rate currently stands at 1.210. The Pound’s strength can largely be attributed to the Euro exchange rate’s weakness; strong UK Services and Construction PMI figures are helpful, but the rate has been largely dictated by negative market sentiments towards the Eurozone.

Italy’s Unicredit bank announced this week that they are seeking to raise €7.5 billion of new capital as a safety buffer in the case of a Eurozone tragedy. They explicitly cited suspicions that the Eurozone debt crisis could worsen and bring about the exit of one or more Eurozone countries. Unicredit’s lack of refrain in their admission of fear bodes badly for the Euro and investors have reacted cautiously by moving their funds into other currencies. The Euro lost 1.5 cents to the US Dollar, 0.75 cents to the Yen and a further 0.5 cents to the Pound.

Greek PM Papademos has urged his country to push through with tight austerity reforms as quickly as possible: “We have to give up a little so we don’t lose a lot.” In another statement that instilled investors with extreme anxiety, Papademos stated that the country is at risk of defaulting on its debt and leaving the Eurozone unless terms are agreed and the country receives its second bailout package of €130 billion. According to a 1,000+ people poll conducted towards the end of December, 80% of Greeks believe that the government should do whatever it takes to keep Greece in the Eurozone. No doubt the rest of Europe agrees, for although large chunks of Greek debt are being written off, the 17-nation bloc would face severe consequences if Greece were unable to make any of their repayments – France and Germany are especially implicated due to the large amounts of funds they are owed.

Consumer Confidence in the Eurozone has fallen from -20.7 to -21.1 and Economic Confidence in the 17-nation bloc has fallen from 93.8 to 93.3. In another spate of negative economic data for the Euro, Industrial Confidence remained at -7.1, Retails Sales fell by -0.8% in November leaving the figure -2.5% worse off than a year ago, German Factory Orders fell -4.8% in November marking a -4.3% decline from last year, and European Unemployment remained at a high 10.3%.

US Nonfarm Payrolls are expected to rise from 120K to 150K for December but regardless of the result, due to investors’ overarching Eurozone debt crisis concerns, the Dollar is set to strengthen from risk-averse market sentiment. The Euro is currently trading at a low 1.279 against the Dollar, and the Pound has also lost ground to the Greenback, currently trading at 1.548.

Today’s Exchange Rate Data

EU 10:00 – Retail Sales (November)

EU 10:00 – Unemployment Rate (November)

EU 10:00 – Consumer Confidence (November)

US 13:30 – Nonfarm Payrolls (December)

US 13:30 – Unemployment Rate (December)

Related posts:

  1. The Pound rallied to a fresh 9-month high above 1.19 against the Euro exchange rate
  2. Pound Sterling to US Dollar Foreign Currency Exchange Rate Forecast – Sterling hits 15 month high…
  3. The Pound maintained a strong finish to the year against the Euro
  4. Pound Sterling, the Euro and US Dollar exchange rate – The Pound staged a recovery from the 15 month low against the euro
  5. The Pound pushed to a high above 1.5750 against the US Dollar Exchange Rate

Article source: http://feedproxy.google.com/~r/ForeignExchangeOutlook/~3/lW7ODI8PyZk/

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