Euro Exchange Rate News

Euro to Pound Sterling (EUR/GBP) Exchange Rate Close to 7-Month Low As Italian Political Crisis Looms


Over the past several months the Eurozone has enjoyed a relatively calm political climate and widespread improving economic data. However, the currency bloc could be on course to experience turbulence once again as the German election speeds closer and Italian instability threatens.

The fragile coalition in Italy has so far been held together by Prime Minister Enrico Letta, but Silvio Berlusconi is doing his best to rock the boat. His position within the People of Liberty Party gives Berlusconi a dominant voice in parliament, and many would argue that his views are preventing the government from establishing essential economic reforms.

The Euro/Pound pairing is currently trading in the region of 0.8423

Letta has so far managed to keep the peace by submitting to Berlusconi on several key issues, but he is determined to uphold a law that should remove the controversial politician from parliament, and that could have serious consequences.

Today a senate committee is meeting to begin deciding Berlusconi’s fate. If his conviction for tax fraud is upheld his supporters are likely to protest the decision, which could spell an end for the collation.

A crisis in Italy could be disastrous for the Eurozone, particularly given the fragility of the 17-nation currency bloc’s return to growth, so news from the nation will be a major focus this week.

After softening last week in the wake of the European Central Bank’s rate decision the Euro began the local session trading close to a 7-month low against the Pound.

With UK Chancellor of the Exchequer George Osborne scheduled to deliver a speech today reaffirming his commitment to the austerity plan additional GBP/EUR movement may occur.

The Eurozone Sentix investor confidence gauge will also be of interest. Economists have forecast that the index rose from -4.9 to -3.5 in September.

Euro (EUR) Exchange Rates

As of 08:55

The Euro/US Dollar Exchange Rate is currently in the region of: 1.3181 >

The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8423 >

The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4324 >

The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6518 >

The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3692 <

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