The Euro began the local session trading within touching distance of a seven-month low against a bullish Pound. The British currency gathered support from yesterday’s comments from the Chancellor of the Exchequer and the expectation that tomorrow’s employment report will add to recent signs of an improving UK economy.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8438 as of 10:00 GMT
However, the common currency was able to post an impressive advance against the US Dollar overnight as Russia’s proposal to encourage Syria to hand over its chemical weapons in order to prevent a US strike caused the safe-haven ‘Greenback’ to soften.
The Euro also achieved a two-week high against the Yen as signs that the fiscal policy implemented by the government and the Bank of Japan is having the desired effect.
But after the publication of an Italian growth report the Euro paired its gains and extended declines against the Pound.
Economists had forecast that in the second quarter the Italian economy contracted at a rate of 0.2 per cent, quarter-on-quarter, but it actually shrank by 0.3 per cent.
The EUR/GBP Exchange Rate hit a low of 0.8428
Figures compiled by the Istat statistics agency also showed that consumer spending dropped by 0.4 per cent in the second quarter while overseas sales increased by 1.2 per cent.
In better news, Italian consumer confidence also increased last month as the Eurozone’s return to growth boosted the economic outlook of the currency bloc’s third-largest economy.
Also today the Governor of the Bank of Italy Ignazio Visco asserted that Italian output should stop declining in the months ahead, despite the Eurozone’s recovery remaining ‘highly uncertain.’
After the Italian figures were published the Euro slipped modestly against the Pound and softened slightly against the US Dollar.
Tomorrow’s German inflation figures and UK employment report are likely to be the main causes of EUR/GBP mid-week movement. If the UK economy is shown to have added the number of positions expected last month the Pound’s upward trajectory could continue.
Current Euro (EUR) Exchange Rates
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The Euro/US Dollar Exchange Rate is currently in the region of: 1.3248 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8438 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4331 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6525 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7548 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1852 >
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: 0.6055 >
(Correct as of 10:00 GMT)
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