Although the Pound strengthened this morning as a result of positive UK housing and inflation data, the Euro was bolstered by some impressive economic news for Germany.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8593 as of 10:45 GMT
Economists expected the German ZEW economic sentiment survey to rebound in August following July’s slump, but the gauge leapt by significantly more than anticipated in another sign that the Eurozone is emerging from recession.
The index, compiled by the ZEW Centre for European Economic Research in Mannheim, is a good indicator of how the economy will be performing six months ahead and climbed from 36.3 in July to 42 in August – beating economists’ expectations for an advance to 39.9.
The Euro to Pound Sterling (EUR/GBP) exchange rate hit a low of 0.8577 pence per Euro
Meanwhile, the German ZEW current situation gauge also strengthened by more than anticipated, rising from 10.6 to 18.3.
And the positive news just kept coming as the Eurozone ZEW economic sentiment survey rallied from 32.8 to 44.0.
ZEW stated: ‘First signs of an end to the recession in important Eurozone countries may have contributed to the indicator’s rise. This is also reflected by the strong increase of economic expectations for the Eurozone. Furthermore, the economic optimism is supported by the robust domestic demand in Germany.’
Similarly, economist Aline Schuiling observed: ‘Better-than-expected data from China and the US are reflected in investor confidence.’
However, a separate report did show that month-on-month industrial production in the Eurozone expanded by less than forecast, rising 0.7 per cent in June as appose to the 1.0 per cent predicted.
After the domestic data was released the Euro pared declines against the Pound and held steady against the US Dollar ahead of today’s influential US retail sales report.
If US retail sales climb by as much or more than expected the ‘Greenback’ is likely to rally on Fed speculation and the Euro could drop against its US peer in spite of today’s good news for the Eurozone.
Investors will also be looking ahead to tomorrow’s German GDP data.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3301 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8593 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4568 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6623 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7523 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1637 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6869 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6013 <
(Correct as of 10:45 GMT)
Comments are closed.