The Euro strengthened to 0.8674 against the British Pound after industrial production in the Eurozone increased by a better-than-expected 0.7%, economists had been predicting a rise of 0.2%.
According to Eurostat, the production of non-durable consumer goods grew by 2.0% in the Eurozone and by 1.3% in the wider European Union. Durable consumer goods also increased by 2% and 0.4% respectively. Capital goods rose by 1.3% in the Eurozone and by 1.2% in the wider EU. Production of intermediate goods fell by 0.2% and 0.3%.
Out of the EU nations where statistics were available, industrial production grew in fourteen, fell in six but remained steady in France and Spain. The Republic of Ireland registered the biggest increase in productivity, followed by Slovenia and Latvia. The largest falls in production were recorded in Denmark and Slovakia.
The Pound continued its decline against the single currency despite Bank of England Governor Sir Mervyn King saying that there is ‘cause for optimism’ for the UK economy. King presented the Banks quarterly inflation report saying that “a recovery is in sight” but warned that the outlook for inflation had worsened since November. Inflation in the UK is set to rise from the current 2.7% to at least 3% and remain above the bank’s target of 2% for the next two years.
The Euros strength could be weakened over the course of the next few days if the ongoing political concerns in Italy and Spain as well as the ongoing negotiations over a possible bailout for indebted Cyprus.
Current Euro exchange rates
As of 11:30 am
The Euro to Pound Sterling exchange rate is currently trading in the region of 0.8616
The Euro to US Dollar exchange rate is currently trading in the region of 1.3484
The Euro to Australian Dollar exchange rate is currently trading in the region of 1.3037
The Euro to New Zealand Dollar exchange rate is currently trading in the region of 1.6016
The Euro to Canadian Dollar exchange rate is currently trading in the region of 1.3524
The Euro to Emirati Dirham exchange rate is currently trading in the region of 4.9523
The Euro to Swiss Franc is currently trading in the region of 1.2368
The Euro to Japanese Yen exchange rate is currently trading in the region of 126.777
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