As the European session opened the Euro was well on its way to posting a relatively impressive five-day gain against the Pound.
The EUR/GBP pairing advanced yesterday as the Bank of England left stimulus unaltered and the European Central Bank refrained from hinting at the possibility of negative interest rates.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1975 as of 12:00 GMT
However, soon after European trading began the Pound had largely recovered losses as a larger-than-forecast increase in UK house prices added to the recent run of impressive UK reports.
The Euro went on to trim its gain further as German factory orders fell by more than anticipated.
While economists had envisaged a seasonally adjusted decline of 1.0 per cent in October (following a gain of 3.1 per cent in September) orders actually tumbled by 2.2 per cent.
On the year orders were up 1.9 per cent rather than the 4.1 per cent expected.
The GBP/EUR Exchange Rate hit a low of 1.1931
The report detailed a 2.3 per cent dip in foreign orders with Eurozone demand easing by 1.3 per cent.
As Germany has been largely responsible for driving the Eurozone out of recession, the patchy nature of the German economic data released in recent weeks is concerning.
The lacklustre result inspired this comment from economist Ben May; ‘Over the coming months you are unlikely to see a dramatic acceleration in the industrial sector in Germany or in the Eurozone. In that sense, we don’t expect it to give a major boost to the economy’.
However, Euro losses were limited by the news that the Bundesbank positively revised its German growth forecasts.
The central bank raised its growth prediction for 2013 from 0.3 per cent to 0.5 per cent.
The outlook for 2014 was also increased from 1.5 per cent to 1.7 per cent.
In the aftermath of yesterday’s better-than-forecast US data the Euro edged away from a five-week high against the ‘Greenback’.
With economists expecting a positive US non-farm payrolls report the Euro could extend declines against the US Dollar before the weekend.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3670 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8354 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5077 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6686 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7317 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1975 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6630 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5994 <
(Correct as of 12:00 GMT)
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