A stream of economic news released from the Eurozone this morning helped the Euro climb against the safe-haven US Dollar and Japanese Yen, but the common currency was little changed against the Pound as positive UK news bolstered the British asset.
The Euro Exchange Rate was in the region of 0.8567 against the British Pound as of 11:00 GMT
As the European session began a series of reports showed that last month manufacturing PMI in Spain, Italy and France exceeded expectations.
Although manufacturing PMI for Germany, the Eurozone’s largest economy, came in at 48.6 rather than the 48.7 forecast, the manufacturing gauge for the 17 nation currency bloc as a whole unexpectedly climbed to 48.8 in June.
The slightly better-than-forecast contraction in the region’s manufacturing sector may have beaten estimates, but is still below the 50 mark separating growth from contraction.
The Euro to Pound (EUR/GBP) Exchange Rate hit a high of 0.8598 pence
In response to the manufacturing figures Chris Williamson, a chief economist with Markit, stated: ‘Eurozone manufacturing is showing welcome signs of stabilising. Both output and new orders barely fell during June, and on this trajectory a return to growth for the sector is on the cards for the third quarter […] With the region suffering from record high unemployment, the ongoing decline in manufacturing headcounts is a disappointment, and suggests the jobless rate has yet further to climb. However, some consolation can be gained from the latest fall in employment being the smallest for a year.’
Meanwhile, additional data releases showed that the Eurozone’s annual inflation rate climbed from 1.4 per cent in May to 1.6 per cent in June.
Furthermore, unemployment in the currency-bloc climbed by less-than-expected in May, edging up from a revised 12.0 per cent in April to 12.1 per cent in May.
However, the Pound was supported today by data showing that UK manufacturing expanded by more than expected while the nation’s house prices climbed for a fifth consecutive month.
Today’s manufacturing data for the US (which is expected to show a rebound) is likely to inspire currency market movement in the hours ahead, but the big piece of Eurozone news investors will be looking out for is this week’s European Central Bank rate decision on Thursday.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3046 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8567 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4216 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6757 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7664 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1673 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7034 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5946 <
(Correct as of 11:00 GMT)
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