As the European session opened the Euro was trading close to a six-week high against the Pound having gained last week as a result of disappointing UK news and stronger-than-expected German industrial production figures.
The Euro to Pound Exchange Rate is currently trading in the region of 0.8490 as of 11:10 GMT
While investors are looking ahead to this week’s influential UK news, including inflation data, retail sales and employment figures, the Euro was able to climb against Sterling as trade progressed and industrial production in the Eurozone rebounded.
Economists expected industrial production in the currency bloc to advance by 0.8 per cent month-on-month in August, but it actually increased by 1.0 per cent – wiping out the previous month’s decline of 1.0 per cent.
Year-on-year production was down 2.1 per cent rather than the 2.5 per cent forecast.
In Germany – the currency bloc’s largest economy – output was up 1.8 per cent month-on-month.
The EUR/GBP Exchange Rate hit a high of 0.8508
With the Eurozone’s economic recovery still tentative, every positive result is welcomed, although one economist did state that the industrial production result was unlikely to influence the European Central Bank’s accommodative policy stance.
The Euro advanced on the Pound as the data was published and also strengthened against the ‘Greenback’ as the political deadlock in the US continues.
As one currency strategist noted; ‘US politicians are negotiating and that leaves us with a risk-averse start to the session […] It continues to weigh on the Dollar. If we see some degree of improvement then that will provide some support for the Dollar.’
Conversely, industry expert Greg Gibbs commented; ‘Given the fiscal shenanigans, we could go through several months of dull data, especially if we get just a short-term fix. The Euro could maybe get up toward 1.40 US Dollars on the basis that the market will be looking for an alternative to the Dollar and a recovery is occurring modestly in Europe.’
While today is comparatively news-light (particularly given that US markets are closed for a national holiday) the Euro could fluctuate over the course of the week as a result of ZEW economic sentiment surveys for Germany and the Eurozone, inflation/trade balance figures for the Eurozone and the currency bloc’s construction output report.
News from the US will also be of particular interest.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3554 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8490 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4342 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6203 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7381 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1779 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6979 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6155 >
(Correct as of 11:10 GMT)
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