The pair EUR/GBP is quite unstable at the moment. Right now, the Euro is gaining strength and is trading at £0.8274.
The Pound was said to be the worst performing currency last week. However, it has a great advantage ahead of its counterparts, which is that the UK is not a member of the Euro Zone. Such independence allows the country to control its own monetary policy, and is more flexible when it comes to shifts in market trends that are deepening the Euro crisis.
Still, the UK does not remain completely untouched by the overall economic situation in Europe. Low growth and high unemployment still exists. Labour market data will be released on Thursday, and the unemployment rate is said to remain at the current rate of 8.3 per cent.
The Pound is currently trading at €1.2082.
This week euro zone ratings downgrades are unlikely to shake up investors. What could change the Euro shift, however, is the Greek debt talks which would block any optimism in the future of the single currency.
“The euro zone crisis is now dominating market activity again, after a period in which better economic news from the U.S., and easier monetary policy in China had helped markets move higher,” said Dominic Rossi, chief investment officer at Fidelity Worldwide Investment.
The Euro is downgrading against the Dollar today as it’s trading at $1.2662 at the moment, which is a fall of -0.17%.
The US Dollar is well-positioned at the moment, and any shift would be a result of the European debt crisis. It’s currently growing against the Euro and is trading at €0.7900.