The Euro fell against the US Dollar and a number of other peers as the markets were spooked by a deepening in Italy’s political troubles, but against the Pound the single currency managed to make gains.
The single currency was weighed upon after news emerged from Italy which suggested that the country was heading towards yet another full blown political crisis.
Supporters of former Prime Minister Silvio Berlusconi threatened to bring down Enrico Letters coalition government after allies of Mr Berlusconi threatened to abandon the government if a special committee meeting on October 4th votes to kick the 76-year media tycoon out of his seat in the upper house of parliament.
Putting further pressure onto the Euro was the release of data from the European Central Bank which showed that lending to companies from the regions banks fell in all of the Eurozone’s largest economies in August, highlighting the ongoing weakness in the region’s economic recovery.
The revelation could prove to be a pain for ECB President Mario Draghi as he is running out of options to inspire lending. Interest rates are already at record lows which doesn’t leave much room for Draghi to manoeuvre.
Against the Pound the Euro managed to make small gains earlier in the session following the release of weaker than expected economic growth data. Also weighing upon Sterling was the release of data which showed that the nation’s current account deficit narrowed by a smaller than hoped for margin.
Friday sees the release of a plethora of Eurozone data including the latest German Consumer Price Index reports, Eurozone consumer confidence and second quarter GDP figures for France.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3496
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8416
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4403
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6295
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7409
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1882
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6943
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6136
(Correct as of 15:10 pm GMT)
Comments are closed.