After approaching a 7-week high against the US Dollar yesterday, the Euro extended gains against its most traded rivals as another positive report for Germany brightened the outlook of the Eurozone’s largest economy.
The Euro to US Dollar Exchange Rate is currently trading in the region of 1.3316 as of 12:00 GMT
Figures compiled by the Berlin-based Economy Ministry revealed that German Industrial production surged by 2.4 per cent in June, month-on-month, smashing economists’ forecasts for a 0.3 per cent gain.
This follows May’s decline of 0.8 per cent.
Year-on-year industrial production was up by 2.0 per cent.
This report, when viewed in conjunction with other recent positive pieces of German news (like yesterday’s factory orders figures) makes it increasingly likely that the nation’s growth accelerated in the second quarter of the year.
In a statement issued with the data the Economy Ministry asserted: ‘Industrial production has passed its weak phase. Current sentiment indicators clearly indicate positive progress in manufacturing.’
The Euro to US Dollar (EUR/USD) exchange rate hit a high of 1.3264 pence per Euro
Similarly, economist Thilo Heidrich commented: ‘The crisis is slowly ebbing. Hard economic data are following broad-based improvements in sentiment. That supports the gradual economic recovery we expect in Germany and the Euro area for the remainder of the year.
Next week sees the release of German and Eurozone GDP, and we will see how these positive results have translated into growth.
The Euro’s advance on the Pound was aided by the Bank of England’s inflation report. The forward guidance on interest rate movements provided by the BoE caused Sterling to broadly soften.
Eurozone news to focus on over the rest of the week includes tomorrow’s German trade balance figures and the publication of the European Central Bank’s monthly report.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3316 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8654 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4849 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6829 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7510 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1552 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6718 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5950 >
(Correct as of 12:00 GMT)
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