EUR/GBP
Posted on April 16th, 2008 in Currency Analysis, RTT News |
British Pound Plummets To Fresh Record Low Against Euro [EUR/GBP]
4/16/2008 7:21:18 AM Wednesday morning, the British pound plunged to a fresh record low against its European counterpart. On the other hand, the sterling eased from new multi-day highs against the yen and the franc during this time. Against it US counterpart, the pound strengthened from a 26-day low.
The Office for National Statistics, or ONS, revealed today that UK`s claimant count rate stood at 2.5% in March, same as in February. The rate came in line with economists` expectations.
The pound that closed yesterday`s deals at 0.8004 against the euro strengthened to 0.8027 before reversing direction at about 3:10 am ET. The euro-pound pair reached 0.8078 at about 6:25 am ET. This set a fresh record low for the sterling.
Latest data released from Eurostat showed that the euro zone annual inflation accelerated to 3.6% in March, revised up from 3.5% estimated earlier. Annual inflation increased from 3.3% recorded in February. Monthly inflation stood at 1% in March.
Annual inflation continued to stay well above the central bank target. The central bank aims to keep inflation rates “below, but close to, 2% over the medium term”. This made euro to hit fresh record high against the dollar too.
Italian total trade deficit narrowed to EUR408 million in February from EUR1.86 billion registered in the previous year. In January, trade deficit accounted for EUR4.21 billion. Value of exports rose 10.9% year-on-year in February and that of imports climbed 5.3%.
The British pound advanced to a 2-day high of 200.81 against the Japanese yen by about 2:25 am ET. Loosing ground thereafter, the pound is currently trading at 199.44 against the yen, compared to yesterday`s close of 199.88.
The UK`s sterling ticked down against the franc after hitting a 2-day high of 1.9829 by about 3:10 am ET. The pound-franc pair that closed yesterday`s trading at 1.9759 is currently worth 1.9711.
The British currency gained ground against the US dollar after hitting a 26-day low of 1.9603 at about 6:20 pm ET Tuesday. The pound thus climbed to 2-day high of 1.9809 against the dollar at about 5:45 am ET. The pound-dollar pair closed yesterday`s deals at 1.9628.
The US March Consumer Price Index data is expected at 8:30 am ET today. Analysts expect the consumer price index to increase 0.3%, compared with February`s flat rate. Core CPI, which excludes food and energy prices, is expected to increase 0.2% from February`s flat rate.
The US housing starts and the industrial production reports-both for the month of March have also been scheduled for release in the New York session today.
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