The Euro has slipped for a second day against the US Dollar after the Eurozone posted disappointing economic data but has strengthened against the Pound due to poor UK manufacturing data.
The single currencies decline against the Dollar came after the latest Eurozone manufacturing data showed that output had fallen for a 19th consecutive month and unemployment rose to a new record high.
A dire performance from France, the Eurozone’s second largest economy ensured that despite a strong performance from Germany the regions output remained below the 50 level that indicates contraction.
Unemployment across Europe increased yet again to a new record high nation’s increasing to 11.9% in January, up from the previous record high of 11.8% in December 2012. Once again the highest rate of people of out of work was in Greece, which posted a staggering level of 27%. Spain was close behind with over 26.2%. According to the Eurostat data agency over 19 million people across Europe are out of work.
In the wider European Union the unemployment rate edged up to 10.8% with a total of 26.2 million people unable to find work. Eurostat said that compared with December, some 201,000 joined the jobless queues in the Eurozone in January and 222,000 in the EU.
The Euro is expected to remain weaker next week as economists raise their predictions that the European Central Bank will have to take further action to reverse the declining trend.
“The overall picture is consistent with a euro-zone economy that is still stuck in recession,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. “There are downside risks for the euro. The ECB could signal it is closer to further monetary easing next week.”
Current Euro Exchange Rates
As of 11:45 am
The Euro to Pound Sterling (EUR/GBP) exchange rate is trading in the region of 0.8622
The Euro to US Dollar (EUR/USD) exchange rate is trading in the region of 1.3081
The Euro to Australian Dollar (EUR/AUD) exchange rate is trading in the region of 1.2781
The Euro to New Zealand Dollar (EUR/NZD) exchange rate is trading in the region of 1.5778
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