This morning two influential pieces of economic news were released from the Eurozone, but while the currency bloc’s consumer price index was in line with expectations employment figures showed a bigger decline in positions than expected.
The Euro Exchange Rate was in the region of 1.3317 against the US Dollar as of 11:45 GMT
According to data compiled by Eurostat, inflation in the 17-nation currency bloc rose by 0.1 per cent in May after declining by 0.1 per cent in the previous month.
The annual inflation rate now stands at 1.4 per cent – still significantly below the European Central Bank’s target of just under 2 per cent.
Inflation in Germany, the largest economy in the Eurozone, climbed from April’s 1.1 per cent to 1.6 per cent in May.
The results met economists’ expectations.
The Euro weakened to 1.3312 against the US Dollar
However, the second Eurostat report defied the forecasts of industry experts.
Although it was predicted that employment in the Eurozone would fall by 0.2 per cent in the first quarter of this year (after declining by 0.3 per cent in the final quarter of 2012) it actually dropped by 0.5 per cent quarter-on-quarter.
Year-on-year employment was 1.0 per cent lower in the first three months of 2013, worse than the – 0.8 per cent figure estimated.
Euro losses were limited however as this result was reflective of previous data showing that the unemployment rate reaching a record high in April.
But one forex analyst did state: ‘I expect EUR/USD to weaken further over the next three months and fall back to around 1.30. In a year’s time I expect EUR/USD to stay around 1.25.’
Additional EUR/USD fluctuations can be expected due to ministers from major Eurozone economies Germany, France, Spain and Italy meeting in Rome.
News from the US, including manufacturing and industrial production figures, could also be responsible for movement.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3317 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8523 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3872 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6546 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7509 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1729 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7206 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6042 <
(Correct as of 11:45 GMT)
Comments are closed.