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Pound Euro Exchange Rate Soars as Hopes of UK-US Trade Deal Grow

Euro EUR exchange rates

  • GBP EUR up to 1.15 – EUR GBP slips to 0.86
  • Pound boosted by hopes of rapid US trade deal – Trump-May phone call raises optimism
  • Euro mixed after Constancio comments – ECB official forecasts falling 2017 unemployment

The Pound has managed to advance to 1.15 against the Euro today, equivalent to a 1.3% advance. This has been triggered by the latest news concerning the UK and the US. In addition to prior speculation about the UK being ‘front of the queue’ when it comes to trade with the US, a recent phone call between Theresa May and Donald Trump has reinforced this sentiment.

Reporting on the news, BBC Assistant Political Editor Norman Smith stated that the call focused on a ‘desire to strengthen bilateral trade and investment’.

In the Eurozone, the single currency has also been an in-demand option against most peers, though against the Pound, the Euro has dropped to 0.86.

The latest Eurozone support has come from European Central Bank (ECB) official Vitor Constancio, who predicted that the multinational union would see inflation drop into single figures in 2017.

(Last updated 16:35 November 10th, 2016)

The Euro has found itself in low demand due to a resurgent US Dollar, with investors remaining uncertain about how the European Central Bank (ECB) will react to a Trump Presidency.

Pound Sterling Exchange Rate News: PM’s Talks with China Fail to Trigger GBP Rally

Pound Sterling exchange rates have been poor overall today, mainly due to the sideshow of the US election dying down and business returning to ‘as usual’. In the GBP EUR exchange rate, the Pound has been extremely close, although at a rate of 1.13 it is still performing better than the more common 1.12 rate that has been seen lately.

The day’s UK domestic data has been extremely limited, with the only real news being that the Royal Institute of Chartered Surveyors (RICS) house price balance for October has jumped from 18% to 23%.

Elsewhere, Prime Minister Theresa May has attempted to strengthen diplomatic and trade relations with China during talks with the nation’s Vice Premier Ma Kai. Striking an optimistic tone, May said that;

‘As we take the next step in this golden era of relations between the UK and China, I am excited about the opportunities for expanding trade and investment between our two countries’.

Mixed Movement seen in Euro Exchange Rates after US Dollar Recovers Footing

The Euro has fluctuated wildly over the current week, mainly because of developments in the US.

When it became clear that Donald Trump would become the US’s next President, the Euro-Pound exchange rate was boosted in appeal by a tanking US Dollar.

Since then, however, the US Dollar has recovered after investors considered that Trump may moderate his previous pledges. This has brought another drop for the Euro, which has dipped against the Pound to 0.87.

As with Wednesday, there hasn’t been much Eurozone data out to provide a domestic influence today; the only major contributions on this front have been a slight increase in Greek unemployment in August, as well as a move closer to positive Greek inflation on the year in October.

Downing Street

Future GBP EUR Forecast: ECB Policy Comments may Enable GBP EUR Uptrend

The last major pairing news due today will come from the Eurozone, where European Central Bank (ECB) officials Vitor Constancio and Yves Mersch are due to give comments this afternoon.

The pair could weaken the Euro considerably if they discuss policy easing in response to Trump’s election victory, though his actual assumption of power isn’t due until January 20th.

From the UK, tomorrow morning will see the September construction output figure announced; this has a rise from 0.2% to 0.6% predicted.

Current Interbank Exchange Rates

The Pound Euro (GBP EUR) exchange rate was trending in the region of 1.13 and the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.88 today.