Ahead of this week’s major economic news – the publication of the Federal Open Market Committee’s policy meeting minutes – the Euro was trading close to a seven week low against its British rival.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8532 as of 14:55 GMT
An absence of data for the Eurozone has restricted the common currency’s movement during the European session, but the expectation that tomorrow’s services/manufacturing PMI reports for Germany and the Eurozone will show improvement has supported the asset against several of its peers.
However, mounting speculation regarding what the Fed minutes will reveal about tapering has left the Euro moderately softer against the US Dollar.
As foreign exchange strategist Sireen Harajli notes: ‘The markets were definitely leaning more towards tapering and that it’s going to happen soon. If you see that debate going on in the minutes, which is very likely, the markets will interpret it as being more hawkish, and we’re more likely to see a Dollar strengthening’.
The EUR/GBP Exchange Rate hit a low of 0.8497
Whatever the outcome of the Fed minutes, the EUR/GBP pairing could fluctuate if tomorrow’s German/Eurozone PMI figures surprise expectations.
German services PMI is forecast to climb from 51.3 to 51.6 while manufacturing PMI for the Eurozone’s largest economy advanced to 51 from 50.7.
Meanwhile Eurozone composite PMI is expected to edge up from 50.5 to 50.9.
If the figures surprise to the upside the Euro could adopt a stronger footing against the Pound ahead of Friday’s UK GDP.
Current Euro (EUR) Exchange Rates
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The Euro/US Dollar Exchange Rate is currently in the region of: 1.3384 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8532 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4828 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6964 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7470 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1721 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6741 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5907 <
(Correct as of 14:55 GMT)
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