Yesterday’s German export and factory orders figures might have disappointed expectations and weakened the Euro, but today’s encouraging data from the Eurozone’s largest economy helped the common currency recover losses.
The Euro to Pound Exchange Rate is currently trading in the region of 0.8465 as of 12:30 GMT
The Euro’s decline against the US Dollar was reversed as a report revealed an unexpected rebound in German industrial output in August.
After slumping by a revised 1.1 per cent month-on-month in July, industrial production surged by 1.4 per cent in August.
Production was up 0.3 per cent on the year.
While yesterday’s lacklustre reports may have reminded investors that the road to economic recovery is a long one, today’s data reaffirms that Germany is on the right track.
Economist Carsten Brzeski said this of the result; ‘In the short term, the prospects for German industry remain positive. Industrial production should further benefit from the recent inventory reduction and the increase in new orders earlier this year. In the longer term, however, the industry needs more fuel to return to full strength.’
The EUR/GBP Exchange Rate hit a high of 0.8522
Although the Eurozone emerged from a historically long recession this summer, largely thanks to the economic support of major members like Germany, significant headwinds remain and there are fears that the federal shutdown in the US could have long-term repercussions for its main trading partners.
As economist Mario Gruppe notes; ‘The economic-recovery trend is going in the right direction. At the same time, it could be flanked by the one or other disturbance. Comparatively weak demand from Europe, especially the Eurozone, signals that the downside risks for the overall economic situation the ECB has stressed multiple times aren’t all that unrealistic.’
However, today’s positive report did boost the Euro against its peers.
The common currency had gained on the Pound earlier in the European session as UK trade balance and industrial/manufacturing production data failed to reach expectations.
Further EUR/GBP fluctuations may occur following the release of the NIESR UK GDP estimate for September.
European Central Bank President Mario Draghi’s upcoming speech in Massachusetts is also likely to draw the attention of investors.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3527 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8465 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4292 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6335 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7397 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1813 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6986 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6126 >
(Correct as of 12:30 GMT)
Comments are closed.