British Pound to Euro (GBP/EUR) Exchange Rate Climbs to Nine-Week High
The British Pound added to yesterday’s gains to climb to its highest level in nine-week against the Euro.
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Sterling received support against the single currency as data out of France and Germany disappointed and as investors look ahead to Thursday’s Bank of England monetary policy meeting.
Pressure is on the central bank’s policy makers to raise interest rates following a long run of positive economic data releases.
Against the US Dollar the Pound was trading at its highest level since August 2009.
“The Pound continues to trade at reasonably robust levels and should continue doing so.
“The gains are also a reflection of US Dollar weakness more so than Sterling strength. However most of the UK data had been reasonably good,” said a London-based forex strategist from Commerzbank AG.
The Euro was weakened by the release of negative data out of the Eurozone’s biggest two economies.
Factory orders out of Germany fell unexpectedly in March as demand waned from China and as tensions between the West and Russia over the situation in Ukraine weighed on sentiment.
Domestic demand was also weaker.
According to the Federal Statistics Office, factory orders fell by 2.85% in March. Economists were expecting a rise of 0.3%.
Data out of France also weighed upon the single currency. The nation’s balance of trade deficit widened in March to -€4.9 billion and both monthly and yearly industrial production declined more than economist forecasts.
Month on month production slipped by -0.7% whilst yearly production dropped by -0.2%.
The British Pound is currently trading against the Euro in the region of 1.2195 and trading against the US Dollar in the region of 1.6968.