Euro to Pound (EUR/GBP) Exchange Rate at 1-1/2 year low despite positive Industrial data

The Euro remained under heavy pressure against the Pound and other major peers on Thursday despite the release of data which showed that industrial output in the Eurozone rebounded in April.

According to Eurostat the regions industrial output came in twice as strong as forecast in April as energy and non-durable goods production increased. The data adds to positive signs that the Eurozone economy is continuing to recover.

The data showed that factory output in the 18-member Eurozone expanded by 0.8% on a monthly basis in April, beating economist forecasts for a rise of 0.4. On a yearly basis production was much stronger coming in at 1.4%, a better than forecast figure.

The monthly expansion is the strongest recorded in five months as energy production increased by 2.5% and a 2.1% rise in non-durable goods production.

Portugal saw production jump by a record 6.7% in April. Spain saw production increase at its fastest pace since August 2012 and its best yearly rise since November 2010.

The Euro to Pound exchange rate is currently trading around 0.8039.

Production in Germany meanwhile edged up less than forecast by a smaller-than-expected 0.2%.

The Euro remains under heavy pressure from last week’s decision by the European Central Bank to cut interest rates to a new record low and its introduction of a negative deposit rate.

The Pound continued to find support from yesterdays better than expected unemployment data and today’s European industrial production data showed that the UK enjoyed its best rate of annual growth in over three years suggesting that the nation’s economic recovery was broadening.

Investors will now be looking ahead to the afternoon’s retail sales and jobless claims data out of the USA for further guidance.