Read our currency forecasts and market reports for details of what could affect the Pound, Euro, US Dollar, Australian Dollar and many of the other major currencies.
Despite inflation figures for Europe being on the lower side of expectations recently, the Euro clawed back some ground against the pound after PMI data.
By Colm Gilhooly
The Euro is still pretty robust despite inflation being revised down so are current rate here to stay?
With the UK economy still in trouble it's difficult to see Sterling recovering, however next week’s GDP data could be the catalyst for a slight recovery.
Sterling has taken a pounding of late with one bad data release after another, however the recent AAA down grade is simply a reflection of what has happened whereas the uncertainty in Europe may be a sign of exchange rates to come.
With the speed and severity the Pound has dropped against the Euro you could be forgiven for thinking parity was suddenly on the cards.
The ECB rate decision yesterday sent GBP/EUR exchange rates through 1.25 again so markets are waiting to see if this is just a flash in the pan.
The voting in Greece may now be over but the impact on exchange rates may not be all they first appear to be as stimulus in the UK takes on greater significance.
The pound stumbled yesterday after revised UK GDP figures showed the UK economy was actually deeper in recession than first estimated in the first quarter of the year.
Exchange rates are currently being dominated by the current crisis in Greece which is fast becoming a soap opera in its twists and turns.
