- The EUR/GBP goes up while the president of the ECB, Lagarde, indicates her willingness to take all the necessary measures to achieve the target of inflation.
- A senior ECB official warned that an excessive strength of the euro could carry inflation below the 2% objective of the ECB.
- The United Kingdom Prime Minister, Starmer, confirmed that Foreign Minister Reeves will remain in office for a long time.
The EUR/GBP advances after registering losses of 0.50% in the previous session, quoting around 0.8610 during the first European hours on Friday. The crossroads tries to recover land as the euro (EUR) could be seen in front of its peers, after the comments of the president of the European Central Bank (ECB), Christine Lagarde.
President Lagarde said that “we will do whatever it takes to achieve the target of inflation.” He also added that the economic system needs to become more efficient before the euro can improve its status as a global currency. The Financial Times (FT) cited a senior ECB official, who said that the Central Bank may need to point out that excessive strengthening of the euro could be a problem, since it could push inflation below the target level of 2% of the ECB.
However, the EUR/GBP crossing could extend its losses as the sterling pound (GBP) receives support amid the reduction of market concerns about a change towards a more lax fiscal position with greater indebtedness, after speculation about a possible replacement for Foreign Minister Rachel Reeves. The Prime Minister of the United Kingdom, Keir Starmer, approached these concerns defending Reeves and stating that he will remain in his position “For a long time.”
The Bank of England (BOE) is expected to deliver an interest rate cut in August, carrying the base rate of the central bank to 4%, after the moderate comments of the officials. The governor of the BOE, Andrew Bailey, told CNBC on Tuesday that interest rates should gradually lower as inflationary pressures seem to be decreasing. However, the BOE policy formulator Alan Taylor said that “I don’t think they are needed or are desirable bigger cuts.”
Euro price today
The lower table shows the percentage of euro change (EUR) compared to the main currencies today. Euro was the strongest currency against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.11% | -0.06% | -0.39% | 0.07% | 0.41% | 0.20% | -0.20% | |
| EUR | 0.11% | 0.09% | -0.24% | 0.24% | 0.40% | 0.32% | -0.04% | |
| GBP | 0.06% | -0.09% | -0.34% | 0.12% | 0.34% | 0.24% | -0.13% | |
| JPY | 0.39% | 0.24% | 0.34% | 0.46% | 0.67% | 0.53% | 0.09% | |
| CAD | -0.07% | -0.24% | -0.12% | -0.46% | 0.20% | 0.11% | -0.25% | |
| Aud | -0.41% | -0.40% | -0.34% | -0.67% | -0.20% | -0.13% | -0.45% | |
| NZD | -0.20% | -0.32% | -0.24% | -0.53% | -0.11% | 0.13% | -0.37% | |
| CHF | 0.20% | 0.04% | 0.13% | -0.09% | 0.25% | 0.45% | 0.37% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the euro of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the EUR (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
