Euro (EUR) Exchange Rate Now
The Euro put on a mixed performance on Tuesday. While the common currency was able to gain on a struggling Pound, the EUR/USD exchange rate shed over 0.5% following the publication of some concerning economic reports for the Eurozone.
Declines in the EUR/AUD and EUR/NZD exchange rates were also recorded.
Early into the European session the Euro came under pressure as Germany’s ZEW Economic Sentiment index dropped from 6.9 to -3.6. Economists had anticipated a slightly more modest decline to 0.
The German ZEW Current Situation measure fell from 25.4 to 3.2, again a much sharper drop than the reading of 15 forecast by economists.
The Eurozone’s own Economic Sentiment gauge came in at 4.1, down from 14.2 the previous month.
The declines in confidence are reflective of global economic slowdown concerns, the impact of the Russian sanctions and the prospect of Germany sliding into recession.
ZEW President Professor Clemens Fuest said of the results; ‘ZEW’s financial market experts expect the economic situation in Germany to decline further over the medium term. Geopolitical tensions and the weak economic development in some parts of the Eurozone, which is falling short of previous expectations, are a source of persistent uncertainty. These factors are tarnishing growth expectations in Germany. Disappointing figures concerning incoming orders, industrial production, and foreign trade have likely contributed to the growing pessimism among financial market experts.’
There was further disappointing economic news for the Eurozone in the form of Industrial Production figures. On a seasonally adjusted basis Industrial Production in the 18-nation currency bloc fell -1.8% in August, month-on-month, down from a gain of 0.9% in July and exceeding expectations for a loss of -1.6%.
On a non seasonally adjusted basis, industrial production fell by -1.9%.
However, with the UK’s Consumer Price Index surprising expectations and declining beyond the 1.4% forecast, the Euro capitalised on widespread Sterling weakness and managed to trend around 0.7929, just shy of the day’s high.
The EUR/USD pairing hit a low of 1.2640
The Euro to US Dollar exchange rate plummeted after the European reports were published and the pairing is unlikely to recover losses in the hours ahead, particularly with US data lacking.
While today’s poor domestic data is largely responsible for the Euro’s weakness, the currency was also feeling the heat as the legality of the European Central Bank’s Outright Monetary Transactions bond-buying scheme was questioned by the Court of Justice.
In the view of one locally based expert; ‘A ruling that would say the ECB’s Outright Monetary Transactions mechanism isn’t in line with the EU Treaty would be the end of the Euro. Politically, they cannot do that. There is no real suspense about the way the ruling will go, but there will be suspense about the actual content of the decision.’
EUR to GBP, USD Exchange Rate Forecast
Tomorrow volatility in the Euro exchange rate could be occasioned by final German Consumer Price figures and a speech to be given by Draghi in Frankfurt.
The EUR/GBP exchange rate could extend gains tomorrow if the UK’s Employment/Wage Growth reports also disappoint.
Conversely, the EUR/USD exchange rate may post further declines if the US Advance Retail Sales report for September surprises expectations. Retail sales are forecast to have fallen by -0.1% in September following the 0.6% gain recorded in August.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7929
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.2609
Euro Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,Pound Sterling,0.7929,
Euro,,US Dollar,1.2650,
Euro,,Canadian Dollar,1.4222,
Euro,,Australian Dollar,1.4472,
Euro,,New Zealand Dollar,1.6105,
US Dollar,,Euro ,0.7891,
Pound Sterling,,Euro,1.2608,
Canadian Dollar,,Euro,0.7024,
Australian Dollar,,Euro,0.6906,
New Zealand Dollar,,Euro,0.6198,
[/table]
