After softening yesterday in response to slowing services and manufacturing output in the Eurozone and a surprising slump in consumer confidence, the Euro enjoyed a reversal in fortunes during the European session.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1984 as of 11:45 GMT
The common currency recovered some ground against Sterling yesterday as European Central Bank President Mario Draghi attempted to reassure investors regarding the issue of negative interest rates.
Gains were consolidated and extended as German growth data confirmed expansion of 0.3 per cent in the third quarter (quarter-on-quarter).
The figures revealed a stronger-than-forecast gain in German construction investment, capital investment, and imports, although the 0.1 per cent advance in German exports was smaller than hoped for.
This positive result was followed by another, as three business outlook indexes for Germany jumped.
German IFO business climate rose from 107.4 to 109.3 while IFO Current Assessment edged up from 111.3 to 112.3 and German IFO Expectations rallied from an upwardly revised 103.6 to 106.3.
The GBP/EUR Exchange Rate hit a low of 1.1959
The improvement in German business confidence prompted this response from senior economist Christian Schulz; ‘Germany’s economic expansion is broad-based, with expectations rising across all sectors of the economy. Households generally should be in a fairly comfortable financial situation. And with the Euro crisis not making the newspaper headlines much for the first time in at least two years, uncertainty should be lower as well.’
In the hours following the reports the Euro rallied against the majority of its most traded peers, recovering losses against the Pound and achieving an over four-year high against the Yen.
The Euro was also poised for a second weekly gain against the ‘Greenback’.
As industry expert Neil Jones states; ‘This should help the Euro to go higher. Data continues to encourage, which is indicative of an improving economic trend throughout the Eurozone.’
The common currency was little affected by separate data showing a concerning decline in Italian retail sales.
Next week Eurozone data to be aware of includes the German GfK consumer confidence survey, German retail sales, German unemployment data, Eurozone economic/industrial/consumer confidence reports, German inflation figures and Eurozone CPI.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3512 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8343 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4744 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6469 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7400 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1984 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6782 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6039 <
(Correct as of 11:45 GMT)
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