During the European session the Euro edged away from a one-month high against the US Dollar and put in a mixed performance against the Pound following the release of a mixed bag of economic data for the Eurozone.
The Pound to Euro Exchange Rate is currently trading in the region of 1.2041 as of 11:00 GMT
Early into local trading the Euro was boosted as final services PMI for the 17-nation currency bloc and its largest economy came in above previous estimates.
Germany’s public sector gauge produced a reading of 55.7 rather than the 54.5 expected while Eurozone services PMI rose from 50.9 to 51.2.
However, while these figures were positive, the statement issued by Markit economist Chris Williamson was cautious; ‘The final PMI data confirm that the Euro area’s recovery lost some momentum in November. While we shouldn’t lose sight of the fact that the region is growing again, in marked contrast to the decline seen earlier in the year, it’s clearly a concern that the rate of growth remains so fragile.’
The GBP/EUR Exchange Rate hit a low of 1.2012
The fragility of the Eurozone’s return to growth was then highlighted by a less-than-impressive retail sales report for the currency bloc.
Although economists had expected sales to rise by 0.1 per cent in October, month-on-month, they actually slumped by 0.2 per cent.
A separate GDP report confirmed that the Eurozone expanded by just 0.1 per cent in the third quarter, quarter-on-quarter.
As economist Elga Bartsch observed; ‘There’s no sign in the incoming data that growth is accelerating in the fourth quarter. We are concerned Europe will lack an engine of growth, we are worried about the core – France, the Netherlands and Germany.’
However, while the Euro softened against peers like the US Dollar declines against the Pound were limited as the British asset came under pressure following disappointing services PMI for the UK.
The UK services sector did expand in November, but at a slower pace than in October with the index coming in at 60.0 rather than the 62.0 estimated.
With the Bank of England and European Central Bank both scheduled to deliver rate decisions tomorrow, extensive EUR/GBP volatility can be expected before the weekend.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3590 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8307 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5068 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6599 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7358 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.2041 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6639 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6022 <
(Correct as of 11:00 GMT)
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