While the Euro fluctuated this morning (gaining on the Pound and slipping against the US Dollar) as German exports were shown to have increased by less-than-expected, the common currency experienced further mixed movement after German factory orders figures also disappointed.
The Euro to Pound Exchange Rate is currently trading in the region of 0.8448 as of 11:45 GMT
A report published this morning showed a 1 per cent month-on-month climb in exports in August, slightly less than the 1.1 per cent gain expected.
Germany’s trade surplus also narrowed by more-than-forecast, dipping from an upwardly revised 16.2 billion Euros in July to 13.1 billion Euros.
While the data shows that the German economic recovery is continuing, it does serve to highlight the headwinds still facing the nation and the tentative nature of the currency bloc’s return to growth.
Euro movement was muted after the data was published as investors looked ahead to the German factory orders report, but when the figures showed an unexpected drop in August the Euro declined against the US Dollar – although the EUR/GBP pairing was little changed.
The EUR/GBP Exchange Rate hit a low of 0.8420
Economists expected the Economy Ministry data to show a 1.1 per cent month-on-month increase in orders in August, following a revised decline of 1.9 per cent in July, but they actually dropped by 0.3 per cent.
Year-on-year orders were up 3.1 per cent rather than the 4.0 per cent expected.
In response to the lacklustre data economist Aline Schuiling commented; ‘Fundamentally it is going to be a slow recovery even if Germany benefits a bit more than others from global trade. While there may be bumps in the road from things like the US government shutdown, it’s not going to derail the economy. We’re heading toward an acceleration in global growth in the second half of this year.’
While US political developments and trade balance figures could cause further market movement before the end of trade, Euro volatility may be a little limited ahead of tomorrow’s German industrial production data and European Central Bank President Mario Draghi’s speech in Massachusetts.
EUR/GBP fluctuations could also be triggered by the NIESR UK GDP estimate for September. Economists are expecting the report to show UK economic expansion of 0.3 per cent in September following growth of 0.1 per cent in August.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3575 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8448 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4367 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6365 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7369 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1837 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6961 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6109 <
(Correct as of 11:45 GMT)
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