The Euro has strengthened against the Pound after data released in Germany gave further support to signs that the region’s largest economy is continuing to strengthen.
According to the Munich based ifo institute, business confidence in Germany jumped to its highest level in 16 months, beating forecasts and indicating that a Eurozone recovery could be near. The index climbed to 107.5 in August to 106.2 in July, the highest level since April 2012. Economists had been predicting an increase to 107.
“The sharper-than-expected rise in the German ifo business sentiment adds to encouraging signs that the economy is recovering. While the manufacturing and wholesale indices both rose, the fall in the construction index seems to confirm that the second quarter’s sharp rise in activity was a temporary bounce back from bad weather in the first quarter,” said Jennifer McKeown, an economist at Capital Economics.
The German economy is set to expand by 0.3% this year according to the Bundesbank and is predicted to rise by 1.5% in 2014. Also adding support to the German economy was data showing that manufacturing in the country rose to the highest level in more than two years in August, once again beating economist forecasts.
“The German economy moved up a gear,” said Ifo economist Kai Carstensen. “Companies are more satisfied with their current business situation. Their optimism regarding future business developments – although slightly cautious – also grew.”
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3337
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4901 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7136 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7476 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1613 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6703 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5835 <
(Correct as of 10:40 am GMT)
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