The Euro softened against the Pound but held close to a two-year high against the US Dollar after a string of manufacturing and services data reports came in below forecast.
Data out of France renewed concerns that the Eurozone’s second largest economy is reversing its trends for making an improvement and instead falling back towards stagnation. According to the market research group Markit, France’s manufacturing PMI declined for a second month to 49.4 in October, down from the 49.8 recorded in September. Economists had been expecting a rise to 50.1.
A reading above 50 indicates expansion, a figure below indicates contraction.
Service sector activity in France also weakened in October falling to 50.2 from the 51 recorded in the previous month. The figure disappointed economists who had been forecasting a rise to 51.3.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “The French private sector economy delivered a flat performance at the start of Q4, as a slower fall in manufacturing output offset a softer showing from the service sector. “
Germany also caused concern after data out of Europe’s largest economy showed that the private sector expanded at its slowest pace in three months in October. One bright spot was the positive data for manufacturing which came in slightly above economist predictions.
The pace of growth in the Eurozone as a whole for business fell unexpectedly as demand fell. Markit’s Composite PMI fell to 51.5 in October from the two-year high of 52.2 recorded in September.
The surveys indicate that the Eurozone is making a recovery albeit a very fragile and slow one and one that remains highly vulnerable to outside factors such as events in the US and China. The single currency managed to hold making too many losses after finding support from positive data from China and news that unemployment in Spain fell, boosting optimism that Europe’s fourth largest economy is turning a corner in its economic troubles.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3787 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8511 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4324 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6463 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7252 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1750 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6981 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6074 <
(Correct as of 10:00 am GMT)
(Correct as of 10:00 am GMT)
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