In the latter half of last week the Euro recovered losses against the Pound as the Bank of England left fiscal policy unchanged and the European Central Bank refrained from hinting at the prospect of a negative deposit rate.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1949 as of 11:45 GMT
But the Euro started off this week on the back foot as German industrial production was shown to have fallen despite estimates for a month-on-month gain of 0.7 per cent.
Industrial output was down by 1.2 per cent in October, month-on-month, and up by just 1.0 per cent on the year.
The GBP/EUR Exchange Rate hit a low of 1.1889
In a statement accompanying the data the German Economy Ministry asserted that ‘Industrial production had a weak start to the final quarter of the year [although] sentiment indicators signal growing economic confidence. Therefore, industrial production should renew its recovery in the coming months.’
However, economist Ralph Solveen said this of the result; ‘The German economy has not managed to make a good start to the fourth quarter. Businesses are still holding back with investment. This indicates a rather cautious outlook for investment activity in the coming months.’
The Euro declined after the figures were published, losing ground against Sterling and the US Dollar.
The common currency had already been knocked by a shock decline in Eurozone investor confidence.
The measure of investor sentiment slipped from 9.3 in November to 8.0 in December instead of rising to 10.0 as forecast.
With Bank of England Governor Mark Carney due to speak at the Economic Club of New York later today further EUR/GBP movement could occur.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3705 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8364 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5097 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6520 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7295 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1949 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6626 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6043 >
(Correct as of 11:45 GMT)
Key events for the week ahead
Tuesday: Italian GDP
Wednesday: German CPI
Thursday: European Central Bank Monthly Report
Eurozone Industrial Production
Friday: German Wholesale Price Index
Eurozone Employment
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