The Euro began the day trading against the Pound in the region of a ten-week low, and the common currency’s descent continued following the release of stronger-than-expected UK construction figures.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8459 as of 11:15 GMT
With a gauge of UK construction rising for a fourth month in August and showing the most rapid rate of expansion for nearly six years, the Euro tumbled to a three-month low against its British counterpart.
Meanwhile, the Euro was little affected by a report showing that producer price inflation in the Eurozone climbed by more than anticipated in July.
The 0.3 per cent month-on-month increase was the first gain for five months. Economists had anticipated an increase of 0.1 per cent.
Year-on-year, producer prices advanced at an annualised rate of 0.2 per cent.
The EUR/GBP Exchange Rate hit a low of 0.8435
In other news, the Organisation for Economic Cooperation and Development upwardly revised its growth forecasts for Germany and France – the Eurozone’s two largest economies.
The OECD now expects the German economy to grow by 0.7 per cent in 2013 rather than the 0.4 per cent previously forecast. Back in May the OECD predicted that the French economy would contract by 0.3 per cent this year, but now growth of 0.3 per cent in expected.
While this is positive news, the OECD report also stated that Italy continues to show little signs of recovery.
The OECD commented: ‘In the Euro area, re-balancing remains incomplete with weak domestic demand in high debt countries having been offset by stronger exports only to a limited extent. Supportive monetary conditions must be maintained, while scope for further monetary easing remains if the recovery were to fail to take hold.’
Today the Euro could record additional declines against the US Dollar as US manufacturing figures are published. A positive result will add to the case for the Federal Reserve tapering stimulus in the months ahead and may cause the Euro to dip against a broadly boosted ‘Greenback’.
Meanwhile, the EUR/GBP pairing will remain under pressure ahead of the release of UK services PMI. If tomorrow’s report adds to the encouraging outlook for UK third-quarter growth the Euro’s bearish relationship with the Pound is likely to continue.
Tomorrow’s services PMI for Germany and the Eurozone will also be of particular interest, as will Eurozone growth and retail sales figures, due for publication from 10:00 GMT.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3175 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8459 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4595 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6870 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7591 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1823 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6851 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5929 >
(Correct as of 11:15 GMT)
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