- British Pound Euro (GBPEUR) Exchange Rate currently trading at: 1 GBP = 1.2222 EUR (+0.00784, +0.645%)

The pound hit an 18-month high against the euro yesterday following a decision to raise interest rates during the BoE’s monitary policy meeting two weeks ago. The decision contributed to the sterling’s upswing to 1.2150, but how much upside potential remains?

British Pound Euro (GBPEUR) Exchange Rate

Policymaker Andrew Sentence voted for a rise in interest rates in the latest MPC meeting, and despite reassurance from the MPC that inflation is well under control it appears inflation is a concern going forward and inflation needs to be brought back to the 2.0% targert sooner rather than later.

Today’s other Forex news:

British Pound US Dollar (GBPUSD)
The pound is continuing to appreciate against the dollar in today’s trading session, spurred on by positive comments from a ratings agency and hints of an early hike in interest rates from BoE’s monetary policy meeting minutes, though there is some concern that a rise in interest rates could negatively affect the UK’s economy in the long-run.

US Dollar Euro (USDEUR)
The Euro slipped in early trading but recovered to close the day above $1.23 against the dollar. The dollar was took a hit on news of a weak housing market in the US. Sales of US homes fell to a record-low in May, lower than forecasted, causing many investors to question their assumptions about the US recovery.

We will continue to monitor the British Pound Euro (GBPEUR) exchange rate throughout the day.