Weekly Currency Update GBP/EUR - Week ending 13th August
Aug 17th 2010, 1:33 pm
#1
BE Enthusiast
Thread Starter
Joined: Dec 2004
Posts: 524
Weekly Currency Update GBP/EUR - Week ending 13th August
As promised here’s a brief update on what’s been happening with the Euro over the last week.
It was a quiet week on the data front for Europe until Friday’s all important 2nd quarter GDP growth figures. From the UK, the governor of the Bank of England delivered the quarterly inflation report in which they downgraded their forecasts for growth saying the economic outlook was ‘choppy’ and said inflation is likely to remain above target well into next year. Sterling initially eased back against the Euro before climbing again as concerns started to re-emerge over sovereign debt in the southern countries.
Friday’s GDP numbers were better than expected, at least for some countries. Germany grew 2.2%, the strongest quarter in 20 years! France also beat expectations but the Euro weakened. This was due to a weaker showing from the PIIGS which with continued weak growth and stringent cuts in government spending could again face the wroth of the market. The Sovereign debt issue is far from forgotten.
GBP/EUR movement – High’s & Low’s of last week (9th August – 13th August)
High’s: 1.2238
Low's: 1.1954
A movement of 2.38%
Difference on £200,000
High: EUR 244,760
Low: EUR 239,080
Difference of: EUR 5,680
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
Regards
Mark Bodega
Director - HiFX
It was a quiet week on the data front for Europe until Friday’s all important 2nd quarter GDP growth figures. From the UK, the governor of the Bank of England delivered the quarterly inflation report in which they downgraded their forecasts for growth saying the economic outlook was ‘choppy’ and said inflation is likely to remain above target well into next year. Sterling initially eased back against the Euro before climbing again as concerns started to re-emerge over sovereign debt in the southern countries.
Friday’s GDP numbers were better than expected, at least for some countries. Germany grew 2.2%, the strongest quarter in 20 years! France also beat expectations but the Euro weakened. This was due to a weaker showing from the PIIGS which with continued weak growth and stringent cuts in government spending could again face the wroth of the market. The Sovereign debt issue is far from forgotten.
GBP/EUR movement – High’s & Low’s of last week (9th August – 13th August)
High’s: 1.2238
Low's: 1.1954
A movement of 2.38%
Difference on £200,000
High: EUR 244,760
Low: EUR 239,080
Difference of: EUR 5,680
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
Regards
Mark Bodega
Director - HiFX
