Overnight the Euro strengthened against the Yen as the Japanese asset was knocked by disappointing growth data, but the common currency began the European session slightly softer against the Pound and US Dollar.
An absence of economic news for the Eurozone is likely to limit Euro movement in the hours ahead, but this week’s big data releases could lend the common currency support over the next few days.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8591 as of 11:10 GMT
Economists are forecasting that a GDP report due for release on Wednesday will show that the 17-nation currency bloc finally emerged from recession, posting its first quarter of growth since 2011.
The expectation is for economic expansion of 0.2 per cent in the second quarters. Modest growth, but a significant improvement on the 0.2 per cent contraction recorded in the previous three months.
As industry expert Nick Kounis observed: ‘The external environment is really getting better, led by signs that US demand is picking up. The second quarter should mark the end of the recession in the Eurozone, but the recovery will be excruciatingly slow. We’re not getting the champagne out yet.’
The Euro to Pound Sterling (EUR/GBP) exchange rate hit a low of 0.8562 pence per Euro
Similarly, London-based economist Laurence Boone observed: ‘There’s still some fiscal adjustment going on and that’s weighing on consumption, as well as banks in the south not being in a position to support the economy. The consensus is for slight growth and we wouldn’t expect anything much more buoyant than that.’
However, if the Eurozone’s GDP report meets estimates the Euro could advance, and the common currency could be additionally bolstered if Germany’s growth data shows the improvement expected.
Industry experts are anticipating that the German economy grew by 0.7 per cent year-on-year in the second quarter.
Other influential pieces of Eurozone news to watch out for include the ZEW economic sentiment survey for Germany, industrial production figures for the Eurozone, French GDP and Eurozone CPI.
This week’s UK news, including retail sales and employment reports, could limit Euro gains against the Pound if they meet or exceed expectations.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3300 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8591 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4536 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6636 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7519 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1643 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6889 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6031 >
(Correct as of 11:10 GMT)
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