The Euro began the day in a strong position against the Pound, trading close to a six-week high against its British rival.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1898 as of 11:25 GMT
With Monday’s manufacturing PMI for Germany and the Eurozone surpassing expectations and yesterday’s ZEW sentiment surveys hinting that the currency bloc’s economic recovery is gathering momentum, the Euro has enjoyed something of a bullish week.
The common currency extended and consolidated gains early into the European session as a measure of German business confidence hit a twenty-month high.
However, this upward momentum was reversed as separate figures confirmed that construction output in the region dropped steeply, plummeting by 1.2 per cent in October month-on-month following a decline of 0.5 per cent in September.
Construction output was down 2.4 per cent on the year.
This result weighed on the Euro and the EUR/GBP pairing went on to slide as UK employment data smashed forecasts.
The surprising drop in the UK’s unemployment rate saw the Pound broadly strengthen, and the asset went on to recover 0.7 per cent against the Euro.
The GBP/EUR Exchange Rate hit a low of 1.1801
Sterling gains were a little limited however as minutes from the Bank of England’s latest policy meeting revealed that the central bank has concerns regarding the strength of the Pound’s exchange rate.
The minutes stated; ‘It would be difficult to achieve a better balance of domestic and external demand as long as activity in the UK’s main trading partners remained subdued. Any further substantial appreciation of Sterling would pose additional risks to the balance of demand growth and to the recovery.’
Additional Euro movement may be enabled by today’s US policy announcement, although investors will also be focusing on Friday’s German consumer confidence report.
Tomorrow UK retail sales figures are likely to be the main cause of GBP/EUR volatility.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3747 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8405 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5439 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6667 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7274 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1898 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6470 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6001 <
(Correct as of 11:25 GMT)
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