While the Euro was able to advance on a broadly softening Pound in the aftermath of disappointing industrial production and manufacturing data, the common currency later dipped below 86 pence per Euro as a result of comments made by one European Central Bank Official.
The Euro to Pound Sterling Exchange Rate was in the region of 0.8604 as of 11:15 GMT
ECB Executive Board Member Joerg Asmussen stated yesterday that the central bank would be holding rates at low levels and adopting an accommodative policy stance for at least a year.
Asmussen also commented: ‘We will continue to do our part on the liquidity side […] if needed, we are going to do more.’
The statement, coupled with the news that the International Fund had lowered the Eurozone’s economic forecast, caused the Euro to post declines against rivals including the Pound and US Dollar.
The common currency was little changed this morning. However, the Euro was able to push back above 86 pence during the European session in response to better-than-forecast French industrial production data and German CPI figures meeting estimates.
The Euro to Pound (EUR/GBP) exchange rate hit a low of 0.8553 pence per Euro
As predicted by economists, German CPI came in at 1.9 per cent in June year-on-year and 1.8 per cent month-on-month.
But French industrial output, which was forecast to fall by 0.8 per cent from April to June, actually only declined by 0.4 per cent.
The result inspired this assertion from industry expert Tullia Bucco: ‘Momentum in factory activity accelerated much more than what business surveys suggested in the second quarter. Even assuming a further sizeable correction in June, industrial production is likely to provide a solid positive contribution to second quarter GDP.’
Euro movement was limited, and is likely to remain restrained in the hours ahead, as eyes turn to the US and Federal Reserve Chairman Ben Bernanke’s much speculated about announcement.
The biggest piece of Eurozone news to watch out for tomorrow is the publication of the ECB’s monthly report, at 09:00 GMT.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2815 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8604 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3926 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6334 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7803 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1620 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7179 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6128 <
(Correct as of 11:15 GMT)
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