As the local session progressed the Euro was able to post a modest gain against the US Dollar as economic sentiment in the 17-nation currency bloc increased.
The Euro Exchange Rate was in the region of 1.2993 against the US Dollar as of 11:25 am GMT
After a European Commission report revealed a notable rise in an index of executive and consumer sentiment (from 88.6 last month to 89.4 in May) the common currency clawed its way towards 1.30 US Dollars per Euro.
Euro movement was slightly limited by the fact that the result was in accordance with economist’s forecasts. Investors are also looking ahead to today’s influential US news, including GDP data and initial jobless claims figures.
Meanwhile, separate reports showed that services sentiment in the Eurozone rose from minus 11.1 to minus 9.3 this month and manufacturing sentiment climbed from minus 13.8 to minus 13.
Consumer confidence also showed improvement in May, with the gauge edging from minus 22.3 to minus 21.9.
In response to the results IHS Global Insight economist Howard Archer issued a positive, but still cautious, statement: ‘Following on from modestly improved purchasing managers surveys for May, a limited overall pick up in economic sentiment supports hopes that Eurozone economic activity is inching towards stabilization in the second quarter after contracting for a sixth consecutive quarter in the first quarter of 2013.’
Archer continued: ‘However, sentiment is still pretty muted and fragile, and the situation varies markedly between countries. If the Eurozone does finally manage to stop contracting overall in the second quarter, it is likely to be heavily dependent on clear growth in Germany.’
And given yesterday’s surprising rise in German joblessness, that nation’s economic stability is far from assured.
But today’s results do seem to somewhat support the recent statement issued by European Central Bank President Mario Draghi: ‘Our measures gave breathing space from markets driven by panic, which were forcing the economy into a position where inappropriately high interest rates would make default a self-fulfilling prophecy. Today we are seeing some encouraging signs of tangible improvements in financial conditions. Spreads in sovereign and corporate debt markets have narrowed considerably.’
In other Eurozone news, the latest figures have shown a decline in the Irish unemployment rate. Although the figure remains high the seasonally-adjusted jobless rate slipped from 14.1 per cent in the final quarter of 2012 to 13.7 per cent in the first quarter of this year.
Current Euro (EUR) Exchange Rates:
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2993 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8552 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3408 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5992 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7696 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1689 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7452 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6253 <
(Correct as of 11:25 GMT)
Comments are closed.