The Euro also rebounded from a four month low against the Dollar following the growth figures.
Sterling / Euro and US Dollar exchange rates
The Pound weakened from the highest level since November 2008 against the Euro this morning, while the single currency also made fleeting gains versus a number of currencies, after data showed that economic growth in Germany accelerated and helped the Euro-zone avoid a recession.
The much better-than-expected GDP numbers in Europe’s largest economy have rekindled risk appetite, reducing the appeal of the U.S Dollar as a safe haven. The improvement in the economic outlook in Europe also reduced the demand for Sterling as an alternative to the Euro. The Pound traded back through 1.25 this morning, as a separate report showed the UK trade deficit narrowed by less than forecast.
The Euro also rebounded from a four month low against the Dollar following the growth figures and continued to make gains, after the Luxembourg Prime Minister Jean-Claude Juncker signaled that Greece may be granted more time to meet the budget reduction targets, as long as the country forms a government that is committed to austerity. The improvement in risk sentiment saw the Australian Dollar rise for a near five month low, with technical indicators suggesting the Aussie has fallen too far and is due a correction.
- The Pound rallied to the strongest level against the Euro since November 2008
- Foreign Exchange News Flash – The Pound has weakened a further 1% against the U.S Dollar today
- The Pound briefly trades above $1.6000 against the Dollar, recording the highest level since November 5th
- Pound Sterling, the Euro and US Dollar exchange rate news flash – The Pound weakened back towards 1.5950 against the U.S Dollar this morning
- Foreign Exchange News Flash – Sterling plummets to lowest level since May 2009