The British pound (GBP) hit a 6 year best against the euro on global exchange rate markets at the start of the new year.
The gains confirm the notion that the pound to euro exchange rate could well breach the 1.30 level in 2015.
However, the strong start to the new year was ultimately hampered with the first major economic release of the year which came in below expectations.
The pound to euro exchange rate (GBPEUR) is currently quoted at 1.28, a high of 1.2911 was reached on the spot markets ahead of the release of disappointing industrial data out of the UK.
New High for Euro Buyers
The pound sterling was seen trading above the 1.28 level at the start of the new year, offering buyers of the euro the best levels in 6 years.
The attainment of these levels comes largely courtesy of the weakness in the euro exchange rate complex at the present time.
Charles Purdy at Smart Currency Business comments:
“We enter the New Year with high levels of uncertainty in the Eurozone. The upcoming Greek election could result in an anti-austerity and anti-Eurozone government determined to renegotiate the existing debt agreements it has in place.
“We are also waiting for the European Central Bank to start their much anticipated programme of quantitative easing with the aim of kick starting the Eurozone economy.
“This uncertainty has resulted in euro weakness and this morning the euro briefly reached a level against sterling last seen in 2008.”
The euro finished off 2014 in largely disappointing fashion, seeing losses against a number of its major partners.
The shared currency dropped to the worst level in three months against sterling, nearing the two and a half year lows seen at the start of October.
The euro also continued its fall against the US dollar, extended to a further low, the lowest since July 2012.