The Euro began European trading little changed against the Pound having declined against its British counterpart last week in response to uplifting economic data for the UK. The EUR/GBP pairing was also knocked overnight as UK house prices increased by 2.8 per cent in October following a decline of 1.5 per cent the previous month.
Although the US Dollar was feeling the pressure ahead of tomorrow’s US non-farm payrolls report, the common currency was slightly softer against its North American peer prior to the release of German producer price figures.
The Euro to Pound Exchange Rate is currently trading in the region of 0.8462 as of 14:55 GMT
While the German producer price index rose by more-than-forecast last month, advancing at an annual rate of 0.3 per cent following Augusts’ 0.1 per cent decline, the Euro was little effected. Economists had forecast that producer price inflation increased by 0.1 per cent in September.
Meanwhile, in its monthly report Germany’s central bank asserted that while it expects the nation’s economic growth to have slowed in the third quarter of the year it believes that the Eurozone’s largest economy will regain momentum in the months ahead.
Bundesbank stated; ‘It seems economic output in Germany increased in the summer quarter of 2013, albeit not to the same extent as in the second quarter.’
The EUR/GBP Exchange Rate hit a low of 0.8436
In other European news, although German software giant SAP maintained its full-year guidance for 2013 it warned that the strength of the Euro could prove an issue in the future.
According to the Financial Times, ‘SAP cautioned that if exchange rates remain at present levels, growth in software and related service revenues could be about 5 percentage points lower than expected […] Currency is expected to be a significant headwind for an array of European multinationals in the third quarter, partly because of big declines in emerging market currencies and the weakening of the US Dollar and Yen.’
While recent reports have intimated that the political chaos in the US has lessened the appeal of the ‘Greenback’ and elevated the Euro to almost safe-haven status, the Eurozone still faces considerable headwinds (not least record high unemployment) and a positive non-farms payrolls report could inspire EUR/USD losses.
Similarly, if this week’s UK GDP data confirms that the British economy expanded more rapidly in the third quarter than the second the EUR/GBP pairing could extend declines.
Eurozone/German manufacturing and services PMI will also be of interest.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3653 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8462 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4143 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6147 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7319 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1823 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7065 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6189 <
(Correct as of 14:55 GMT)
Comments are closed.