In spite of an unexpected increase in the number of jobless individuals in Germany the Euro brushed a four year high against the Yen during European trading and advanced on the US Dollar as the prospect of further easing from the European Central Bank dimmed.
The Pound to Euro Exchange Rate is currently trading in the region of 1.2012 as of 13:10 GMT
The number of unemployed people in Germany unexpectedly increased by 10,000 in November rather than stagnating as estimated, but while German unemployment data might have fallen short of the mark, economic confidence reports for the 17-nation currency bloc exceeded estimates.
A measure of economic sentiment edged up from 97.7 to 98.5 in October, better than the increase to 98 expected by economists and adding to the case for the economy of the 17-nation currency bloc expanding by 0.4 per cent in the fourth quarter.
The GBP/EUR Exchange Rate hit a low of 1.1952
The gauge of consumer confidence held at -15.4 as expected.
The Euro was also supported by upbeat inflation data from Saxony, a region of the Eurozone’s largest economy. The acceleration in consumer prices was the first for five months and contributed to hopes that the European Central Bank will refrain from altering fiscal policy in the foreseeable future.
According to analyst Eimear Daly; ‘The inflation number from Saxony significantly boosted the Euro. The more resilient German inflation is, the higher the hurdle is for more easing from the ECB’.
This comment supports one issued by industry expert Noriaki Murao; ‘The very weak reading on CPI last time led to an ECB rate cut, so the data will be closely watched. The euro will be swayed depending on whether it will beat or trail expectations in a thin market.’
Consumer prices in Germany as a whole rose by 0.2 per cent in November year-on-year rather than gaining by 0.1 per cent as expected
Before the weekend the Euro could experience additional movement as a result of tomorrow’s German retail sales and Eurozone inflation reports.
Economists have forecast a month-on-month retail sales increase of 0.5 per cent in Germany and that consumer prices increased by an annual 0.8 per cent in November.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3592 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8325 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4915 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6681 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7357 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.2012 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6709 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5990 <
(Correct as of 13:10 GMT)
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