The Euro is trading slightly firmer against the Pound and is little moved against the US Dollar following the release of a number of data reports for Eurozone nations and the publication of the ECB’s monthly report.
In the October report the ECB governing council reiterated that forward guidance will remain at the current low levels for an extended period of time in an attempt to boost support for the slow recovery in the Eurozone.
The report went on to say that the region will recover at a slow pace but will see a gradual improvement thanks to domestic demand being supported by the Central Banks accommodative policy stance. An expected increase in demand for European exports was also mentioned as a reason for increased growth in the region.
Elsewhere data releases in a number of European countries highlighted just how vulnerable the regions recovery is. France, Finland and Italy all recorded declines in industrial output and Greece reported another increase to its unemployment rate.
Investors chose to support the single currency after the ECB announced that it had made a deal with the People’s Bank of China to establish a currency swap line. The move should bolster access to trade finance across the Eurozone and strengthen the international use of the Chinese Yuan.
“The swap arrangement has been established in the context of rapidly growing bilateral trade and investment between the euro area and China as well as the need to ensure the stability of financial markets,” the ECB said. “From the perspective of the Eurosystem, the swap arrangement is intended to serve as a backstop liquidity facility and to reassure Euro area banks of the continuous provision of Chinese Yuan.”
The next piece of Eurozone data is due for release next Monday and is expected to show that industrial output across the Euro Area increased in August.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3519 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8484 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4329 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6372 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7396 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1786 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6978 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6106 <
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