After a bearish couple of weeks the Euro looked set to come out on top as developments in the US and a surprise drop in UK retail sales helped the common currency advance on the Pound and strengthen to a seven-month high against the US Dollar over the last five-days.
The Euro to Pound Exchange Rate is currently trading in the region of 0.8433 as of 15:50 GMT
Although a report showing a narrowing in the UK’s budget deficit pared EUR/GBP gains slightly on Friday, the Euro was still enjoying its largest 5-day surge against the US Dollar for two months.
The common currency was also within touching distance of a three and a half year high against the Yen as investors awaited the release of consumer confidence figures for the Eurozone.
It was expected by economists that the gauge would show sentiment in the 17-nation currency bloc climbed to an over two-year high in September, climbing from -15.6 to -14.5.
The EUR/GBP Exchange Rate hit a high of 0.8473
However, the index actually rose to -14.9.
Although the result is a two-year high and comparatively good given that the Eurozone has only just fought its way out of a historically long recession, it does reinforce how tentative the currency bloc’s return to growth truly is.
Several days ago an economist with top ratings agency Standard & Poor’s was quoted as saying; ‘What’s encouraging is that more positive news is coming from most economies, suggesting that the diverging trends between the Eurozone’s core and periphery could eventually start to diminish.’
That being said, Italy slashed its growth forecast today and it seems increasingly likely that more austerity measures will need to be implemented if the nation’s budget deficit is to meet the European Union’s target.
The Italian economy is now expected to contract by 1.7 per cent this year, compared with a previous projection for contraction of 1.3 per cent.
Growth for 2014 was negatively revised from 1.3 per cent to 1.0 per cent. According to Italian Prime Minister Enrico Letta, the estimates are ‘reasonable and achievable so long as there is political stability.’
Before the close of European trading the Euro largely retained gains against Sterling but lost ground against the US Dollar as the ‘Greenback’ broadly strengthened in response to hints that Fed tapering could occur in October.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3520 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8445 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4379 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6123 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7390 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1841 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6956 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6193 >
(Correct as of 15:50 GMT)
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