- British Pound Euro (GBPEUR) Exchange Rate currently trading at: 1 GBP = 1.2252 EUR (+0.01110, +0.915%)

The pound was able to maintain trading at prices near its 18-month high in trading on Friday as confidence in the UK’s new budget buoys hopes for the future. The Budget is expected to set the UK apart from other debt-laden European countries and revive interest in the pound.

British Pound Euro (GBPEUR) Exchange Rate

The price remained relatively unchanged Monday morning, trading around 1.22 with low trading volume. If the pound can appreciate against the dollar, that will in turn sustain its rally against the Euro. But currency markets are relatively flat after a muted response from the G20. Traders are holding their breath, awaiting more news from the G20.

Today’s other Forex news:

British Pound US Dollar (GBPUSD)
The pound gained steadily against the dollar on Friday after bad reports on the US economy, closing the day Friday over $1.50. First quarter US GDP growth was unexpectedly revised down from 3.0% to 2.7%. In light of this lowering, the Fed may try to keep interest rates low, which will put broad downward pressure on the dollar.

US Dollar Euro (USDEUR)
The Euro had a good week of trading against the dollar, gaining for the third consecutive day to close at a one-week high. While Europe has debt issues, the US has its own economic strength issues, and now that focus is shifting to concerns about the US economic recovery, the dollar is losing ground to the Euro.

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

- 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.

It was sterling’s day in the British Pound Euro Exchange Rate (GBPEUR) market yesterday, with the currency gaining one and a half cents to close at 1.1650. The British currency had a very strong day against the Euro, in contrast to its recent decline.

British Pound Euro Exchange Rate (GBPEUR)

Spain has added more jitters to the Eurozone, with an announcement that a savings bank, CajaSur, is to be taken over to prevent it from failing. Last week we had seen an amount of Euro appreciation, which was all but erased yesterday.

The announcement that the new coalition government will make nearly £6.2 million of cuts had little or no effect on the British Pound Euro Exchange Rate (GBPEUR), as the cuts were widely in line with predictions, and have already been factored in to the pricing.

Yesterday’s other Forex news:

- The continued fears about the Eurozone helped the greenback gain a little against sterling in the British Pound US Dollar Exchange Rate (GBPUSD). Investors continued the trend to move away from risky investments, and bolster the dollar’s strength.

- The European single currency had a bad day against the greenback, with the US Dollar Euro exchange rate (USDEUR) up 2 cents in the American currency’s favour yesterday. Many foreign exchange investors took the opportunity of selling their Euros after a brief recovery for the currency.

We’ll be monitoring the British Pound Euro Exchange Rate (GBPEUR) throughout the day, to keep you updated on any news or large movements which may affect it.

There were two major stories controlling the British Pound Euro Exchange Rate (GBPEUR) yesterday. The big story, which has been dominating the currencies for weeks, was Greece and its banking crisis and subsequent bailout.

British Pound Euro Exchange Rate (GBPEUR)

The Eurozone currency has taken a huge beating over the past few months, and the British Pound Euro Exchange Rate (GBPEUR) has only been slowed down by sterling’s own uncertainty around the political situation in the country.

Many thought that there would be a large amount of movement in the British Pound Euro Exchange Rate (GBPEUR) following the announcement regarding the British inflation rate. Even though that rate has seen a continued increase – up to 3.7% (17 month high) – the pound maintained its strength.

Late in the day an announcement by the German government regarding a ban on short-selling of some financial products meant more pain for the Euro. Greece also received the first tranche of its bailout money from its European partners, which means a payout for its creditors (including the UK). Ironically, as the Greek economy continues its recovery, the pound may continue to strengthen its position as more money comes back to UK creditors.

We’ll continue monitoring the British Pound Euro Exchange Rate (GBPEUR) throughout Wednesday for further points of note.

There are a number of issues currently affecting the Pound Euro Exchange Rate (GBPEUR) today, influenced mainly by yesterday’s announcement of an increase in the British trade deficit. Sterling made early gains against the common European currency, but later fell after the announcement was made.

Pound Euro Exchange Rate (GBPEUR)

March’s deficit was £7 billion, compared with the February total of £6.3 billion. It wasn’t all bad news for the British, however, as the level of exports had stayed steady.

Continued disquiet about the bailout package for Greece meant that there was not a stronger movement in the Pound Euro Exchange Rate (GBPEUR) against the British currency. Analysts previously had envisioned the bailout causing a huge jump in the strength of the Euro, but that has still not yet materialized and probably will not until there is more strength in the other Mediterranean countries such as Portugal and Spain.

A number of Eurozone countries will be forced in the near to medium term to make larger cuts in spending if they are to ward off future financial problems. This will in turn hamped the recovery of the Euro, especially against the Pound – as the new British coalition government is committed to lowering the amount of spending in the short term.

We will monitor the Pound Euro exchange rate (GBPEUR) throughout the day to see what influence these factors have.