As the European session began the Euro recorded a modest advance against a softening US Dollar and was trading slightly higher against the Pound. Although Greece is currently experiencing its fourth general strike of 2013, the Euro was supported by the expectation of positive domestic data.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8671 as of 11:00 GMT
The Euro to Pound (EUR/GBP) exchange rate hit a high of 0.8708 pence per Euro
However, today’s Eurozone news wasn’t all positive.
The ZEW economic sentiment survey for Germany declined to 36.3 in July, the first fall for three months. The unexpected drop from June’s 38.5 level defied economist’s expectations for a climb to 40.
This gauge aims to forecast economic developments half a year in advance.
The result prompted this response from one Frankfurt-based economist: ‘Signals have been very contradictory. Sentiment indicators have been good, concurrent indicators were rather weak, but I’m not too pessimistic for the rest of the year. Uncertainty is slowly waning and the European Central Bank’s forward guidance should provide some support.’
A measure of economic confidence in the current situation in Germany advanced from 8.6 to 10.6.
Meanwhile, a separate report showed that Eurozone exports fell for a second month in May, declining by a seasonally adjusted 2.3 per cent month-on-month. The currency bloc’s seasonally adjusted trade surplus narrowed to 14.6 billion Euros. Unadjusted the surplus widened to 15.2 billion Euros.
The Eurozone’s Consumer Price data met forecasts, gaining by 0.1 per cent in June month-on-month and 1.6 per cent year-on-year.
The currency bloc’s core consumer price index held at 1.2 per cent.
However, a lower than expected acceleration in UK consumer price inflation saw the Pound soften and the Euro was able to achieve an almost four-month high against its British counterpart.
The EUR/GBP paring could see additional gains if this currency strategist’s prediction proves accurate: ‘We expect the Pound to weaken further. The data may not change the market view that policy makers are willing to be flexible about inflation to support growth.’
Against the US Dollar the Euro was little changed. The EUR/USD pairing continues to be supported by the expectation that Fed Chairman Ben Bernanke will intimate that the central bank is unlikely to taper stimulus in the foreseeable future when he addresses congress.
Eurozone construction output figures is the piece of domestic data to watch out for tomorrow.
The decision reached by Greek MPS regarding a controversial bill centred on civil service employment will also be of interest.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3064 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8671 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4209 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6699 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7655 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1527 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7044 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6005 >
(Correct as of 11:00 GMT)
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