Euro to Pound Rate Today: EUR GBP Could Go Higher Before Downtrend Resumes Say Analysts

However the longer-term picture remains troubling for euro bulls. There was zero growth in the Eurozone in the second quarter of 2014 confirming the weakest period of growth for the region since it came out of recession in early 2013.  

Germany is a worry as it experienced its first contraction since Q1 of 2013 with the 0.2% decline exceeding the market's -0.1% forecast.  

Following on from the news we see the following exchange rates today (Sunday 17th/8):

• The euro dollar rate (EUR/USD): 1.3403.
• The euro pound rate (EUR/GBP): 0.8027.
• The euro Australian dollar rate (EUR/AUD): 1.4345.
• The euro Canadian dollar rate (EUR/CAD): 1.46204.

Please Note: All quotes here are taken from the wholesale markets. Your bank will affix a spread at their own discretion. However, an independent FX provider will guarantee to undercut your bank's offer, thereby delivering up to 5% more FX.

Why did the Euro not Fall Following GDP Data?

Understanding the future trajectory of the euro is a tricky - why has the currency note fallen despite overwhelmingly negative news?

"Contrary to our expectations, a weaker than expected Eurozone GDP report did not crush the euro which tells us 2 things #1 investors are hoping for a stronger recovery in Q3 and #2 the euro is deeply oversold and with short positions are at 2 year highs, the data wasn't weak enough to attract fresh sellers," says Kathy Lien at BK Asset Management who had predicted the shared currency would fall in response to the GDP data outcome.

Outlook for the euro

Lloyds Bank Research have today come out with a note that suggests there is little reason to believe the euro will fall any lower against the dollar or pound sterling:

"EUR/USD remains in the same 1.3333-1.3433 range that it has for the last two weeks, and after the weak Eurozone Q2 GDP data failed to trigger a break of the downside, it is hard to see a break lower today on a day with no Eurozone data unless something very EUR negative emerges from the Ukraine.

"The most significant news for EUR/USD should be from the US with the industrial production numbers, but we doubt that these will be sufficiently strong to trigger a break of the bottom of the recent range.

"The sharp moves up we have seen in the last few sessions, followed by gradual retracements lower, are typical of a speculative market that is running short EUR/USD, but the lack of a break of key levels suggests that there has been no major squaring of shorts."

So increasingly Lloyds expect to see a break higher before the downtrend can be resumed.

"Nevertheless, we don’t expect a EUR rally to be large enough or long lived enough to suggest this is a good level to buy for anyone except a very short term trader. On a break of 1.3433 we would see scope to 1.3475, but this would still be a selling area in the current environment," say Lloyds.