The Pound Sterling Exchange Rate News
The pound dropped against a broadly supported euro exchange rate to a fresh one month low overnight as we await further potential bad news in this morning’s UK services sector data.
At the time of writing this report, the figure which is expected to slip to 54.1 in May from 54.3 the previous month has rounded off a week of largely dismal data on the UK economy, which has stung the pound as it has bolstered the view that a sluggish recovery will keep UK interest rates low, potentially until next February. The figure has come is at 53.8 may now see the pound slip to below €1.12 (89.28 pence).
Sterling remained largely unchanged against the US Dollar exchange rate, settling at the range of $1.6310/$1.6370 since dropping from the $1.6550 high that we saw earlier this week.
The Euro Exchange Rate News
The Euro exchange rate hit a one month high against the dollar and sterling late Thursday, supported by a string of weak US and UK data as well as hawkish comments from the ECB President.
Jean Claude Trichet supported the proposed establishment of a euro-zone finance ministry. A successful Spanish T-bills auction, and signs that a new deal to provide further financial aid to Greece could be ready, have also provided a boost to the fortunes of the ever strong single currency.