Forex Trading - Euro reaches record high today against the British Pound. | CountingPips Forex Blog

December 10, 2008 - Forex Economic News

Forex Trading - Euro reaches record high today against the British Pound.

The euro reached a new all time record high verses the British pound in forex trading as the euro reached the 0.8800 pounds per euro level earlier today before retreating lower. The new record comes as poor economic news has been piling up for the UK economy in the past couple of weeks. Today saw the release of an estimate by the National Institute of Economic Euro hits record vs. Pound in Forex Trade and Social Research(NIESR) that said the UK Gross Domestic Product may have decreased by more than 1 percent in the three months through November after estimating a 0.8 percent GDP decline through October.

Last week, the Bank of England reduced interest rates by 100 basis points to 2.00 percent, bringing the rate to its lowest point in fifty years to help ease the economic decline. This week, UK economic releases saw Factory Gate Inflation decline by 0.7 percent in November and monthly manufacturing production decrease by the most since March 2005.

Today's NIESR report said that the UK GDP will be much weaker than previously expected in 2009 and into 2010. The report commented on the UK saying, "We expect the UK economy to shrink for six quarters in a row, with the economy not starting to recover until early 2010. Our forecast shows GDP growth of just 0.8 per cent per annum in 2008, down from 3 per cent in 2007. The overall contraction next year is forecast to be around 1½ per cent. The corresponding peak to trough fall in the level of output is around 2 per cent."

The euro has come down a little off its record high to trade at 0.8778 pounds per euro in the afternoon of the US trading session at 1:10 pm ET. Elsewhere, the euro has gained against the US dollar and has been trading above the 1.3000 level while the euro has advanced verses the Japanese yen and trading above the 121.00 yen per euro level.

EUR/GBP Chart - The Euro advancing vs. the British Pound today to hit an alltime high at approximately 0.8800(Hourly Chart).

Today's Forex Chart

tags: euro record high, british pound, gbp, economy, uk, forex trading

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