{"id":4478,"date":"2018-04-11T00:00:00","date_gmt":"2018-04-11T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100427-gbp-eur-ecb-president-draghi\/"},"modified":"2018-04-11T00:00:00","modified_gmt":"2018-04-11T04:00:00","slug":"100427-gbp-eur-ecb-president-draghi","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100427-gbp-eur-ecb-president-draghi\/","title":{"rendered":"GBP\/EUR: Can ECB President Draghi Lift Euro vs Pound?"},"content":{"rendered":"<p>The pound steadily strengthened against the euro in early trade on Tuesday, hitting a peak of \u20ac1.1504. This was the highest level that the pound has traded against the euro in two and a half weeks. However, later on in Tuesday\u2019s session, demand for the euro jumped, pulling the pound euro exchange rate sharply lower.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>What do these figures mean? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p> When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute. <\/p>\n<p> For example, it could be written: <em>1 GBP = 1.13990 EUR<\/em> <\/p>\n<p> <em>Here, \u00a31 is equivalent to approximately \u20ac1.14. This specifically measures the pound\u2019s worth against the euro. If the euro amount increases in this pairing, it\u2019s positive for the pound.<\/em> <\/p>\n<p> Or, if you were looking at it the other way around: <em>1 EUR = 0.87271 GBP<\/em> <\/p>\n<p> <em>In this example, \u20ac1 is equivalent to approximately \u00a30.87. This measures the euro\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the euro.<\/em> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>Comments from Bank of England policy maker Ian McCafferty helped lift the pound in the previous session. Even though Mr McCafferty is a well-known hawk on the BoE monetary policy committee, his comments over more aggressive monetary policy helped boost the pound. He said that the BoE should not dally when it comes to tightening policy modestly which has left pound investors optimistic that a rate hike in May could still be on the table. Mr McCafferty voted for a rate hike in the previous BoE monetary policy meeting; investors are still uncertain what other policymakers think of raising rates in May but didn\u2019t prevent the pound from receiving a boost from McCafferty\u2019s comments.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why do raised interest rates boost a currency\u2019s value? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Interest rates are key to understanding exchange rate movements. Those who have large sums of money to invest want the highest return on their investments. Higher interest rate environments tend to offer higher yields. So, if the interest rate or at least the interest rate expectation of a country is relatively higher compared to another, then it attracts more foreign capital investment. Large corporations and investors need local currency to invest. More local currency used then boosts the demand of that currency, pushing the value higher. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>After a quiet week, so far, as far as economic data is concerned, today sees several high impacting releases, which could create some volatility for the pound. These include manufacturing and industrial production output data for February and Construction output data for February.<\/p>\n<h2><a href=\"#euro-supported-by-hopes-of-policy-tightening\" name=\"euro-supported-by-hopes-of-policy-tightening\"><\/a>Euro Supported By Hopes Of Policy Tightening<\/h2>\n<p>Policymakers were in focus in the eurozone as well. I the eurozone it was European Central Bank (ECB) governing council member Nowotny, who put the euro back in favour. Whilst the current ECB bond buying programme is still running and is due to run until September this year, Nowotny added that the governing council will decide in the summer what happens next. Furthermore, he added that if conditions were right we will have the possibility to reduce the programme significantly and head towards and end of the programme. This would pave the way for the ECB to hike rates for the first time since 2011.<\/p>\n<p>Today the spotlight will remain on ECB members, this time with President Mario Draghi taking to the stage. Any signs of a less cautious Draghi could boost the euro further.<\/p>\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><small><em><br \/>\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>This article was initially published on TransferWise.com from the same author. The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pound steadily strengthened against the euro in early trade on Tuesday, hitting a peak of \u20ac1.1504. This was the highest level that the pound has traded against the euro in two and a half weeks. However, later on in Tuesday\u2019s session, demand for the euro jumped, pulling the pound euro exchange rate sharply lower. [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4479,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1395,1394],"class_list":["post-4478","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-gbp","tag-eur","tag-gbp"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GBP\/EUR: Can ECB President Draghi Lift Euro vs Pound? - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/100427-gbp-eur-ecb-president-draghi\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100427-gbp-eur-ecb-president-draghi\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100427-gbp-eur-ecb-president-draghi\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/EUR: Can ECB President Draghi Lift Euro vs Pound?\",\"datePublished\":\"2018-04-11T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100427-gbp-eur-ecb-president-draghi\\\/\"},\"wordCount\":734,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100427-gbp-eur-ecb-president-draghi\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100427-gbp-eur-ecb-president-draghi.jpg\",\"keywords\":[\"eur\",\"gbp\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2018\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100427-gbp-eur-ecb-president-draghi\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100427-gbp-eur-ecb-president-draghi\\\/\",\"name\":\"GBP\\\/EUR: Can ECB President Draghi Lift Euro vs Pound? 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