CURRENCY

RATE

EURGBP

0.7840

GBPEUR

1.2532

GBPUSD

1.9317

EURUSD

1.5310

GBPAUD

2.0233

GBPNZD

2.5239

GBPCAD

1.9633

GBPZAR

15.0124

EURSEK

Euro - Swedish Krona

9.3325

EURDKK

Euro - Danish Krone

7.4564

EURNOK

Euro - Norwegian Krone

7.9756

GBPSEK

Sterling - Swedish Krona

11.7917

GBPDKK

Sterling - Danish Krone

9.4295

GBPNOK

Sterling - Norwegian Krone

10.0854

GBPJPY

Sterling – Japanese Yen

204.21

INTEREST RATES

UK

Base Lending

5.00

USA

Base Lending

2.00

EUROPE

Base Lending

4.00

Annual Euribor                

4.75

Monthly Euribor

4.29

3 Month Euro Libor

4.78

6 Month Euribor

4.79

IRPH

5.56

Latest Market News

Will the BoE, ECB Rate Decisions Leave Euro, British Pound Poised to Rebound?

The Bank of England is expected to leave rates steady on Thursday at 5.00 percent – the lowest since December 2006 – for the second consecutive month. Since the Monetary Policy Committee is anticipated to leave rates unchanged, they are unlikely to issue a monetary policy statement which should leave the market’s reaction to the news somewhat muted. Nevertheless, given the sharp drop we’ve seen in the British pound in recent days, even an announcement in line with expectations could lead the currency to rebound somewhat.

European Central Bank

The European Central Bank is expected to leave rates unchanged at 4.00 percent, but as usual traders will pay keen attention to the content of ECB President Jean Claude Trichet’s remarks at the post announcement press conference. Thus far, Mr. Trichet has been consistently hawkish, focusing on price stability rather than growth in the 15 member union. Mr. Trichet has good reason to worry about inflation, as the latest CPI readings in the region reached their highest levels in a decade printing at 3.6 percent in May, which is well above the ECB’s 2 percent target. Fueled by higher energy prices and rising food costs, the Euro-zone economy is unlikely to see any meaningful relief in inflationary pressures until oil prices fall significantly from their record highs.