In another comparatively light news day, the Euro has edged away from yesterday’s narrow trading range with the Pound and posted an advance on its British rival. The common currency has also gained on peers including the US Dollar as global stocks tumbled ahead of the publication of highly anticipated minutes from the Federal Open Market Committee’s policy meeting.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8550 as of 12:10 GMT
Yesterday the Euro was able to advance on several of its counterparts as the German Bundesbank asserted that while the European Central Bank had implied that rates would remain at record lows for the foreseeable future, an increase could occur if inflation rose.
After approaching a week-high against the US Dollar the Euro was little changed this morning, despite a report detailing an unexpected decline in German Producer Prices.
While economists expected producer prices to gain by 0.2 per cent in July month-on-month they actually fell by 0.1 per cent, gaining by 0.5 per cent on the year rather than the 0.7 per cent advance predicted.
As trade progressed the Euro was supported by the news that Eurozone construction output climbed by 0.7 per cent in June month-on-month, up from a positively revised gain of 0.5 per cent in May.
The EUR/GBP Exchange Rate hit a low of 0.8497
However, despite some modest strengthening against the Pound, according to the Royal Bank of Scotland the Euro could remain range-bound against Sterling this week.
RBS analyst Nick Mannion stated: ‘EUR/GBP may be more range-bound this week after two consecutive weeks of declines, with the EUR also expected to receive support from a continued improvement in the flash Euro area PMIs this week.’
While the Euro may be boosted if this week’s manufacturing/services PMI for the Eurozone and Germany show the improvement expected, the Pound could re-establish its bullish relationship with its European cousin if Friday’s UK second quarter GDP delivers a surprise to the upside.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3396 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8550 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4786 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6769 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7467 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1693 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6764 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5981 <
(Correct as of 12:10 GMT)
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