Euro struggles have not abated, it seems, with Thursday morning’s economic data yielding less-than-impressive results.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2561.
The first half of this week has seen the Pound struggle to claw back the losses from the previous week. This is primarily because there has been a distinct lack of influential, market moving domestic data to divert the downwards trend.
The Euro has been out performed by every currency this week following a string of disappointing economic data publications. The issues began at the tail end of last week after a speech given by European Central Bank President Mario Draghi at the Jackson Hole symposium. In the speech he intimated towards further stimulus and, since then, a quantitative easing rhetoric has dominated trader focus.
Investors have continued to pull away from the Euro throughout the course of this week after German domestic data produced a succession of poor results. German Business Climate, Current Assessment, Expectations, Import Price Index and Consumer Confidence all failed to meet with forecast figures.
The Pound Sterling to Euro exchange rate has hit a low today of 1.2547.
With nothing by way of influential domestic data of significant economic weighting to guide the Pound on Thursday; movement is likely to be generated by changes in foreign currencies.
It is unlikely that the Pound will gain significant strength across the board, however, as the bid for Scottish independence still weighs heavily upon trader focus. The increasing uncertainty surrounding the Scottish Referendum has caused a lot of investors to pull away from Sterling in order to trade less risky currencies.
The Euro has continued to soften over the course of the week and Thursday’s data will not help reverse the situation. German Unemployment Change was forecast to show a positive decline of -5,000 but the actual data revealed that there is an extra 1,000 newly unemployed. Also the German Unemployment Rate failed to diminish posting at 6.7% in line with the previous figure.
The Pound is likely to be affected by Thursday’s Eurozone data which, once again, shows less-than-satisfactory results. Eurozone Economic Confidence, Industrial Confidence and Services Confidence all fell below forecast levels.
The German Consumer Price Index data, due for publication later in the day, will be of significant influence. Those invested in the Euro will be hoping for a reversal in fortune; although recent German economic data publications would suggest that this is optimistic to the point of foolishness.
The Pound Sterling to Euro exchange rate has hit a high today of 1.2568.
UPDATE
The bearish Pound has finally curtailed the downward trend after Friday’s economic data publications produced better-than-expected results.
The GfK Consumer Confidence Survey was predicted to show a retraction of -1 having declined by -2 in the previous month. The actual result was revealed to be a surplus figure of 1 for August.
Also the year-on-year Nationwide House Px grew by 11.0% despite having only been forecast for a growth of 10.2%.
Once again the European data on Friday morning is less-than-desirable. German Retail Sales retracted by -1.4% in July with a year-on-year growth of 0.7% which is well below the forecast growth of 1.5%. The Italian Unemployment Rate has also shown unwanted gains; printing at 12.6% despite only having been forecast to hit 12.3%.
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