GBP/EUR September Currency Update
Oct 11th 2010, 9:55 am
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GBP/EUR September Currency Update
Last month with the Euro proving impenetrable, despite some terrifying data continuing to stem from the peripheral economies, we saw Sterling under further pressure.
GBP/EUR closed at the end of the month clinging on to the 1.1500.
In terms of the economic data from the UK we continued to see mixed messages as the IMF gave rare praise to the UK Government for their deficit reduction plan, whereas MPC member Adam Posen highlighted the potential requirement for further quantitative easing in order to avoid a Japan-style slump.
However economic data was not the key driver this month, as if this had have been the case, then arguably the Euro would have been under some pressure given the further deterioration in the Spanish labour markets and/or the potential 50bn Irish bail-out for its banking sector.
Therefore in October, will be key for GBP/EUR as to whether it can hold this 1.15-1.22 trading range or break lower again to a 1.10-1.18 trading range.
Current Central Bank Rates:
European Central Bank: 1.00%
UK (Bank of England): 0.50%
GBP/EUR Highs & Lows of September:
High: 1.2192
Low: 1.1512
A movement of: 5.91%
Difference this would make on £200k
High: €243,840
Low: € 230,240
A difference of €13,600
All of the information above can be explained clearly by your personalised dealer should you open a trading facility with HIFX. To discuss your requirements in more detail and for a free currency consultation please contact HiFX plc on 01753 859 159 or email [email protected].
Kind Regards
Mark Bodega
Director - HIFX
GBP/EUR closed at the end of the month clinging on to the 1.1500.
In terms of the economic data from the UK we continued to see mixed messages as the IMF gave rare praise to the UK Government for their deficit reduction plan, whereas MPC member Adam Posen highlighted the potential requirement for further quantitative easing in order to avoid a Japan-style slump.
However economic data was not the key driver this month, as if this had have been the case, then arguably the Euro would have been under some pressure given the further deterioration in the Spanish labour markets and/or the potential 50bn Irish bail-out for its banking sector.
Therefore in October, will be key for GBP/EUR as to whether it can hold this 1.15-1.22 trading range or break lower again to a 1.10-1.18 trading range.
Current Central Bank Rates:
European Central Bank: 1.00%
UK (Bank of England): 0.50%
GBP/EUR Highs & Lows of September:
High: 1.2192
Low: 1.1512
A movement of: 5.91%
Difference this would make on £200k
High: €243,840
Low: € 230,240
A difference of €13,600
All of the information above can be explained clearly by your personalised dealer should you open a trading facility with HIFX. To discuss your requirements in more detail and for a free currency consultation please contact HiFX plc on 01753 859 159 or email [email protected].
Kind Regards
Mark Bodega
Director - HIFX
