Pure FX Blog

11 August 2017

Euro Hits New 10-Month High Versus Pound, Could Continue to Climb

The euro to pound interbank exchange rate has hit a new 10-month high today, at 0.9072, as the UK trade deficit reached an 8-month high in June. Image credit: William Lepretre.

The euro to pound interbank exchange rate has hit a new 10-month high today, at 0.9072, as the UK trade deficit reached an 8-month high in June. Image credit: William Lepretre.

by Peter Lavelle

Welcome to Pure FX’s latest update of the euro to pound interbank exchange rate.

The common currency jumps higher versus sterling!

The euro to pound interbank exchange rate has hit 0.9072 today, its highest since October 11th 2016, or 10 months.

What’s more, looking ahead, the euro may strengthen further against the pound. Here are 5 reasons why:

1. The pound may weaken, because the UK’s trade deficit expanded to -£4.56 billion in June, said the Office for National Statistics yesterday, an 8-month high.

2. Sterling could lose out, because UK industrial production fell -0.4% between April and June compared to 3 months earlier, according to the ONS yesterday, as UK car production fell.

3. The pound may decline, because the UK economy expanded just +0.2% in the 3 months to July, said economics watchdog NIESR yesterday, -0.1% lower than Q2.

4. Sterling could sink, because UK construction output dropped -1.3% between April and June, according to the UK statistics office yesterday, thus undoing Q1’s +1.1% rise.

5. The pound may dip, because, according to former Former Office chief Sir Simon Fraser, “I don’t think [the Brexit talks] have begun particularly promisingly, frankly, on the British side.”

With all this in mind, the euro to pound interbank exchange rate could rise above its 10-month high!

Get a free euro to pound exchange rate quote

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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email peter.lavelle@purefx.co.uk.

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