As the European session got underway the publication of several surprisingly positive pieces of data for the Eurozone helped the common currency strengthen against the majority of its most traded rivals.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8615 as of 10:55 GMT
While French services/manufacturing PMI was shown to have contracted at a slower pace than forecast, manufacturing in Germany and the Eurozone as a whole unexpectedly returned to growth, while German services PMI expanded by significantly more than forecast.
Services/manufacturing PMI for the Eurozone came in at 49.6 and 50.1 respectively, beating estimates of 48.7 and 49.1.
The Euro to Pound (EUR/GBP) exchange rate hit a high of 0.8638 pence per Euro
Meanwhile, German services PMI surged from 50.4 in June to 52.5 in July while manufacturing PMI came in at 50.3, above the 50 mark which separates growth from contraction.
After the data was published industry expert Steve Barrow commented: ‘The PMIs were a little bit stronger than anticipated. If you look at how Euro-region data has progressed recently we’ve tended to see more upside surprises. There’s a relative improvement in the perception of Eurozone data, which is helping the Euro.’
Meanwhile, in a statement released with the Eurozone figures Markit economist Chris Williamson asserted: ‘The best PMI reading for one-and-a-half years provides encouraging evidence to suggest that the Euro area could – at long last – pull out of its recession in the third quarter.’
As a result of the positive news the Euro was able to post a gain against the US Dollar and push above 86 pence per Euro against the Pound.
Additional movement in the EUR/USD pairing could occur in response to this afternoon’s US housing data while EUR/GBP fluctuations can be expected tomorrow due to the release of UK GDP data.
Economists have forecast that the UK economy expanded by 0.6 per cent in the second quarter. A better-than-expected result could boost the Pound and cause the Euro to shed its recent gains.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3240 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8615 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4365 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6640 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7551 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1609 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6950 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6008 <
(Correct as of 10:55 GMT)
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