The Euro has strengthened to a six-week high against the Pound after data showed that construction output in the UK fell unexpectedly in August.
Against the US Dollar the single currency edged higher as optimism continues to increase that US policymakers will reach an agreement on raising the country’s debt ceiling and prevent the world’s largest economy defaulting on its debts.
According to the Office for National Statistics construction output across the UK fell by -0.8% on a month by month basis in August and below economist forecasts for a rise of 0.8%, on a yearly basis construction edged higher due to a surge in home-building. The Pound remained under pressure from the plethora of disappointing data released earlier in the week.
“A lot of good news on the U.K. economic front is already in the price,” said Peter Kinsella, a senior currency strategist at Commerzbank. “The momentum has certainly come a bit lower after strong upward surprises in the past few months. While it’s unlikely we are going to see very poor data out of the U.K., I would expect some sterling weakness in the near term.”
The single currency also found support from comments made by European Central Bank President Mario Draghi. He vowed to keep interest rates low to allow cuts in borrowing costs if market volatility returns to the global economy, a situation that is looking more likely to occur as the October 18th deadline for the raising of the USA’s debt ceiling draws closer.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3564 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8493 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4336 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6280 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7372 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1786 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6974
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