Last week the European Central Bank opted to hold rates at record lows, while President Mario Draghi was keen to highlight how fragile the Eurozone’s recovery remains and stressed that there are still notable downside risks to contend with.
As a result the Euro tumbled against several of its most traded peers, notably slumping to a seven-month low against the Pound.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8422 as of 10:25 GMT
At the opening of the European session the Euro remained under pressure against its British counterpart.
Factors weighing on the common currency this week include the threat of political instability in Italy, the upcoming German election, ongoing Syrian concerns and the publication of minutes from the ECB’s latest policy meeting. Meanwhile, a string of positive data releases for the UK have served to highlight how Britain’s economic recovery is outstripping that of the Eurozone.
Today a Senate Committee will meet in Italy in order to decide whether Silvio Berlusconi should be expelled from Parliament as a result of his conviction for tax evasion. If the former leader is ousted Italy’s already tenuous coalition could fall apart, leaving the Eurozone with another political crisis to contend with.
Consequently, the common currency failed to gain on the Pound even after the release of some better-than-expected domestic data.
The EUR/GBP Exchange Rate hit a low of 0.8396
After positing negative readings for over two years, the Eurozone’s Sentix Investor Confidence index finally provided a positive result.
The gauge surged from -4.9 in August to 6.5 in September – a good reflection of the fact that the 17-nation currency bloc has made a tentative return to growth and enjoyed a comparatively calm summer.
Economists expected that the gauge would rise to -3.5.
However, the EUR/GBP pairing could experience movement after UK Chancellor of the Exchequer George Osborne delivers a speech regarding the importance of staying on course with austerity measures.
Eurozone data to look out for this week includes tomorrow’s Italian GDP figures, Wednesday’s German inflation report, Thursday’s industrial production figures and the publication of minutes from the latest ECB meeting, also taking place on Thursday.
Meanwhile, if UK reports (such as Wednesday’s jobless claims change figures) continue to surprise to the upside the EUR/GBP pairing could remain bearish.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3192 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8422 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4321 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6472 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7580 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1875 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6985 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6070 <
(Correct as of 10:25 GMT)
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