Dear Subscriber, Please find below our latest update for your chosen currency. If you need to discuss your requirements further, please contact your account manager or call us on 0800 612 9625 or +44 (0)1736 335250. GBP EUR Market Update The Pound struck its highest level since mid-January against the Euro last week as the latest BoE Minutes revealed that all nine Monetary Policy Committee members voted against additional stimulus during September.
The Pound to Euro exchange rate kicked off last week's session in-and-around the 1.1930 mark and inched higher to 1.1940 on Monday as Eurozone Consumer Prices were reported to have decelerated from 1.6% to 1.3% in August. The soft inflation result worked against the single currency because it was seen to increase the possibility that the European Central Bank will introduce another interest rate cut before the end of 2013.
Sterling had a bit of a blip on Tuesday as the UK CPI inflation print fell from 2.8% to 2.7% as expected, ever so slightly closer to the Bank of England's 2.0% target, whilst the Euro was mildly boosted by the highest German Economic Sentiment ZEW survey result since 2009.
The Pound stormed its way to a fresh 8-month high of 1.1971 on Wednesday morning, rallying by just over half a cent in the process, as traders reacted generously to a slightly-more-hawkish-than-expected BoE Minutes Report. The UK Central Bank literature showed that policymakers are happy with the pace of economic expansion and do not consider it necessary to embark on further quantitative easing measures at this moment in time.
However, Sterling sunk towards 1.1860 on Thursday as the British Retail Sales print for August came in at -0.9%. The surprisingly soft ecostat was the first sign for months that the UK economy is not stuck in a perpetual state of broad-based expansion and this hampered the Pound's spritely ascent against the single currency.
GBP/EUR held relatively flat on Friday before falling again on Sunday evening as traders reacted to German Chancellor Angela Merkel's comprehensive personal victory in the German general election. However, Sterling has clawed back some of its losses so far this morning, rising to 1.1880 in response to a below-par German Manufacturing PMI result of 51.3, compared to expectations of 52.2.
Later this week we should see the UK second quarter GDP figure confirmed at 0.7%, German CPI confirmed at 1.5%, and the German IFO for Business Climate tick slightly higher to a 17-month high of 108.0. Barring, an unexpected revision to the British growth report, the economic docket does not appear to favour either currency and therefore GBP/EUR is likely to remain between 1.1840-1.1940 during the next seven days. Heads Up: Summary of major upcoming data releases that we think may move the market. | Date | Time | Issuing country/region | Data Item | Market Expectation | Market Sensitivity | | | | | | | | | Sep 24 | 09:00 | EUR | German IFO - Business Climate (SEP) | 108.0 | | | Sep 24 | 09:00 | EUR | German IFO - Expectations (SEP) | 104.0 | | | Sep 25 | 07:00 | EUR | German GfK Consumer Confidence Survey (OCT) | 7 | | | Sep 26 | 09:30 | GBP | Gross Domestic Product (QoQ) (2Q F) | 0.7% | | | Sep 26 | 09:30 | GBP | Gross Domestic Product (YoY) (2Q F) | 1.5% | | | Sep 27 | 00:05 | GBP | GfK Consumer Confidence Survey (SEP) | -11 | | | Sep 27 | 10:00 | EUR | Euro-Zone Economic Confidence (SEP) | 95.9 | | | Sep 27 | 13:00 | EUR | German Consumer Price Index (YoY) (SEP P) | 1.5% | | | | | | | Sensitivity | | | | | | | Medium | | | | | | | High | | If you need any further assistance, or require a live dealing quote - please do not hesitate to contact me on 01736 335250 or send an email to info@torfx.com Regards,
TorFX 
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