The Euro has continued its longest winning streak in almost a decade after gaining for a sixth-straight month against the US Dollar.
The Euro rose broadly and stocks extended gains after the currency was buoyed by better-than-expected Eurozone manufacturing data. Factories across the region had their best month in nearly a year as strong German output supported signs that the region is slowly recovering.
The improved figures have spurred on investor belief that the worst of the Euro crisis is now over and that the region will begin to make headway on making a strong recovery.
The PMI increased to 47.9 in January, up from the 46.1 recorded in December. Economists ha been predicting a rise of 47.5.
“While the industrial sector looks likely to have acted as a drag on the euro zone economy in the final quarter of last year, deepening the double-dip downturn, the PMI provides hope that the first quarter could mark the start of a turnaround,” said Chris Williamson, chief economist at Markit.
“Providing there are no further setbacks to the region’s debt crisis, these data add to the expectation that the euro zone is on course to return to growth by mid-2013.”
The Euros 14-month high against the US Dollar is the currency’s highest level since November 2011. So far this year the Euro has proven to be the best performing currency, gaining by as much as 2.9% in value.
The region also received a boost from the better-than-expected German unemployment figures for January with the data showing that the number of people out of work in the Eurozone’s biggest economy fell to 2.92 million.
These exchange rates were correct as of 10:00 am
The Pound to Euro exchange rate is currently trading at 1.1584
The Pound to US Dollar exchange rate is currently trading at 1.5835
The Pound to Australian Dollar exchange rate is currently trading at 1.5265
The Euro to US Dollar exchange rate is currently trading at 1.3664
The Euro to Pound exchange rate is currently trading at 0.8628
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