Although German inflation held rose 1.9 per cent in July, a five-month high and an unexpected stagnation from June, the Euro was able to retain previous gains against the Pound during local trade.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8670 as of 14:20 GMT
As the European session got underway the Euro strengthened against its British peer as a report showed a third month of improvement in economic confidence in the Eurozone.
As forecast by economists, a gauge of consumer sentiment for the 17 nation currency bloc climbed from 91.3 in June to 92.5 in July – its best level since April of last year.
In response to the data economist Victoria Clarke commented: ‘It is very reassuring to see an element of improvement coming through. [However] We still have quite a long way to go to get back to pre-crisis levels.’
The positive result helped the Euro advance to 1.3270 against the US Dollar.
The common currency was also supported by data showing that the Spanish recession eased in the second quarter of the year and a report detailing an unexpected advance in German consumer confidence.
The Euro to Pound (EUR/GBP) exchange rate hit a high of 0.8697 pence per Euro
Separate reports showing that the Eurozone’s business climate indicator declined in July, while a gauge of industrial confidence rose to -10.6 (less than the advance to -10.2 expected), had little impact on the Euro and movement was restrained as investors looked ahead to today’s German inflation data.
Economists expected German inflation to edge down to 1.8 per cent in July.
The result prompted Bonn-based economist Heinrich Bayer to assert: ‘Prices rose a bit more than expected but overall, everything is still under control. The increase is typical for the season, if you keep travel costs in mind. Overall, the price climate is rather calm, without any drivers, except food prices.’
Ahead of the publication of US consumer confidence figures the Euro posted a modest gain against the US Dollar.
Euro movement can be expected to occur tomorrow in response to German and Eurozone employment reports, Eurozone inflation figures and German retail sales data.
The outcome of the Federal Open Market Committee meeting will also be of significant interest.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3287 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8670 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4609 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6606 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7528 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1530 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6839 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6023 <
(Correct as of 14:20 GMT)
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