Trader speculation regarding the rapidity of the Euro’s recent decline resulted in the common currency advancing on the US Dollar overnight. However, the Euro continued to trade in the region of a four-week low against the Pound as positive UK news supported Sterling.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1924 as of 10:50 GMT
However, the EUR/GBP pairing went on to experience modest fluctuations as German and Eurozone services PMI came in above expectations.
The gauge of German services hit 52.9 in October instead of the 52.3 originally estimated while Eurozone services came in at 51.6 instead of 50.9.
The results prove that Eurozone services output contributed more to the currency bloc’s growth than initially forecast.
As Markit’s chief economist Chris Williamson observed; ‘The Euro area economic recovery lost less momentum than first estimated in October. The survey signals a mere 0.2 per cent quarterly growth rate at the start of the fourth quarter, unchanged on the third quarter.’
While this was better than anticipated news for the currency bloc, the Euro failed to make any notable gains on the Pound as the British asset was additionally boosted by stronger-than-expected UK manufacturing/industrial production data.
The GBP/EUR Exchange Rate hit a high of 1.1969
The Euro was also adversely affected by the news that Eurozone retail sales fell by more-than-expected in September.
Although economists had expected a month-on-month dip in sales, the 0.6 per cent drop recorded was worse than the 0.4 per cent decline forecast.
Augusts’ retail sales gain was also negatively revised to 0.5 per cent.
Year-on-year sales in the 17-nation currency bloc increased by 0.3 per cent, half the 0.6 per cent advance expected.
Portugal posted its largest recorded decline in retail sales of 6.2 per cent, while Spain’s 2.5 per cent slump was the biggest recorded in over a year.
Today’s results indicate that consumer demand is still struggling amid a weak economic recovery and add to the case for the European Central Bank opting to revise its accommodative easing policy.
With the ECB meeting tomorrow further Euro volatility is likely to occur before the end of the week.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3505 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8388 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4172 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6092 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7399 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1924 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7055 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6167 >
(Correct as of 10:50 GMT)
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