Best Pound Euro Exchange Rate in Over Two Months, Sterling at 1.2144
- Written by: Gary Howes
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Those looking for the best the pound sterling to euro exchange rate conversion should consider we are at good inter-month levels at present.
The pound to euro exchange rate is currently seen trading at 1.2144 on Thursday morning in London.
The euro to British pound (GBP) exchange rate is therefore at 0.8234.
We have seen the level below 1.21 and above 1.250 as being a favourite haunt for the GBP-EUR for much of April.
The rate is often prone to a retreat back into this zone, thus any levels above 1.21 should be considered to be a decent buying opportunity for those looking to stock up on EUR.
Likewise, for those looking to buy pound sterling, a retreat lower could well be worth waiting for.
What is the outlook for the pound sterling to euro exchange rate?
Recent weeks have seen the GBP/EUR has recover from around 1.19 towards 1.21.
The rebound has occurred despite a softening in the UK PMIs and a deterioration in the UK’s current account deficit.
It seems that, for now, currency participants are content to ignore the UK’s balance of payments in favour of its other strong economic fundamentals, with the IMF forecasting the UK will top the G10 growth table this year.
Lloyds Bank Research say they believe the current levels in GBP-EUR are justified.
In a note to clients they say the rate could achieve a level of 1.25 in 2014.
We agree that this could indeed be possible.
However, those hoping to buy EUR at 1.25 agains the pound should keep in mind that the rise will likely be slow.
Those hoping to buy pounds with their euro's should probably get in while they can.
There remains the threat that the ECB introduces quantitative easing to fight a deflating Eurozone economy.
Should this become the case, then expect the pound euro exchange rate to reach 1.25 in quick fashion.
