Although several factors have supported the common currency this week, including positive economic news from Germany and signs of improvement in China, the Euro ends the week trading lower against its broadly stronger British counterpart.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8606 as of 10:45 GMT
Over the past five-days better-than-forecast UK services PMI, the Bank of England’s inflation report and a rosier global economic outlook have boosted the Pound and piled pressure on the EUR/GBP pairing.
The common currency extended declines against its UK rival as a report showed that French industrial production unexpectedly plummeted in June from May.
Economists were expecting output to climb by a modest 0.3 per cent month-on-month but it actually dropped 1.4 per cent, although May’s decline was revised from a previous estimate of 0.4 per cent to 0.3 per cent.
This is the latest in a series of signs that the Eurozone’s second largest economy is struggling and supports the expectation that the French economy stagnated in the second quarter.
The Euro to Pound Sterling (EUR/GBP) exchange rate hit a low of 0.8592 pence per Euro
After the data was released by statistics agency INSEE, analyst Annalisa Piazza commented: ‘Today’s data are not very encouraging. There are still pockets of weakness in the European monetary union’s industrial sector. Although the EMU economy seems to have bottomed out, signs that a sustainable recovery is on its way are not clear yet and a bumpy road ahead has to be expected.’
With UK construction output and trade balance figures surprising to the upside, the EUR/GBP pairing is likely to remain under pressure as we head into the weekend.
As the European session progressed the Euro eased away from yesterday’s seven-week high against the US Dollar.
Next week the most influential pieces of Eurozone data scheduled for publication include Tuesday’s German Consumer Price Index, Eurozone industrial production report and German ZEW economic sentiment survey, Wednesday’s German/Eurozone GDP reports and Friday’s Eurozone consumer price index.
Developments in the UK and US will also be of interest. Further positive UK data could see the EUR/GBP pairing extend declines.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3385 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8606 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4631 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6703 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7471 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1621 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6836 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5975 <
(Correct as of 10:45 GMT)
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