The Euro has strengthened against the US Dollar and edged up against a number of its most traded peers after the latest Eurozone services PMI data hinted that the troubled regions downturn could be easing.
According to Markit’s flash Eurozone Services PMI, which surveys around 2,000 companies rose to a three-month high in May to 47.5, up from the 47.0 recorded in April. Optimism that the figure shows an easing of the crisis may be misplaced however as despite the rise the PMI has now spent 16 consecutive months below the 50 mark that divides growth and contraction.
Germany stagnated whilst France witnessed another dismal month. Markit says that the survey points to a repeat performance in the second quarter of the year suggesting that the Eurozone will remain entrenched in a recession for the foreseeable future.
“There are signs the rate of decline is easing, which do suggest we may be moving into a period of stabilisation, but it’s taking a lot longer than most people anticipated,” said Chris Williamson, chief economist at Markit. “It’s looking more like the end of the year (until) we’re going to see the numbers start to show signs of stabilising.”
Williamson added; ““The Euro zone’s second recession in five years looks set to drag on into a seventh successive quarter, The ECB’s quarter-point cut in interest rates seems to have done little to inspire confidence that the economy will start to pick up again,” he said. “In fact, expectations about the year ahead deteriorated again in the service sector, suggesting recovery remains a long way off still and that policymakers need to do more to stem the downturn and revive growth.”
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2891
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8550
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3318
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5970
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7771
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1698
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7485
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6241
(Correct as of 10:50am GMT)
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