On Tuesday data revealing a slightly lower-than-expected increase in German business confidence left the Euro trading close to a five-day low against its US rival. While the Ifo sentiment gauge achieved a 17 month high of 107.7 this month, the result was below the 108.2 level forecast and reinforced the patchy nature of the Eurozone’s economic recovery.
The Euro to US Dollar Exchange Rate is currently trading in the region of 1.3496 as of 10:30 GMT
Comments issued by European Central Bank officials regarding the necessity of keeping fiscal policy accommodative also piled pressure on the common currency.
On Monday ECB President Mario Draghi intimated that additional easing measures would be considered if economic conditions deteriorated, and yesterday ECB official Ewald Nowotny asserted that the Eurozone’s return to growth was too fragile for the central bank to exit from crisis measures anytime soon.
Ongoing Federal Reserve easing speculation and US budget fears also dimmed the appeal of higher-risk assets like the Euro overnight.
The EUR/USD Exchange Rate hit a high of 1.3497
However, the Euro did strengthen modestly after the GfK consumer confidence survey for Germany came in at 7.1 from an upwardly revised 7.0. The result was slightly better than the 7.0 expected.
And the Euro edged up on the Pound as Sterling slid after Bank of England policy maker David Miles stated that it ‘would be spectacularly misguided to think that some signs of more normal growth mean that the [UK] economy is back to normal’. While Miles did note that recent UK data has been positive, his tone was cautious and he stressed that forward guidance is helping to limit recovery risks.
Further EUR/USD movement can be expected to occur once the North American session opens and US durable goods orders/new home sales data is released.
Economists have forecast that durable goods orders declined by 0.2 per cent in August while new home sales surged by 6.6 per cent, month-on-month.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3496 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8436 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4410 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6358 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7410 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1850 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6921 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6110 <
(Correct as of 10:30 GMT)
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