Stronger Euro brings Pound down to earth

10 March, 2014

Robin Haynes

The Euro consolidated its gains against the Pound on Friday, sterling on Thursday having dropped nearly as many points as Manchester United have this year. Despite the fall in rates for buying Euros, which came after ECB President Mario Draghi’s speech talking up the Eurozone recovery, sterling has still risen 9.3% in the last year on a trade-weighted basis, against a broad basket of currencies. Indeed the Pound now stands at its highest level since November 2008 on that measure. 

On Friday the main monthly US labour market statistic, non-farm payrolls, showed that more jobs than expected (175,000) were added to the US economy in February, but the official unemployment figure, calculated differently, rose to 6.7%. This left the US Dollar broadly stable and we are still seeing excellent rates for sending payments in US Dollars. 

This week we have something of a mid-month lull in data releases, so we might expect to see rangebound trading and little volatility in rates. Today there is nothing major due to be released, although overnight tonight the Bank of Japan release their monthly policy statement. 

Later in the week we do have a few pieces of UK industrial data which could move the Pound, so if you are waiting for a rate to send money abroad let us know at Currency Index and we can keep you updated with the latest rates and news through the week.