In spite of yesterday’s better-than forecast services/manufacturing PMI figures for Germany and the Eurozone boosting the Euro, the common currency began the local session softer against the US Dollar.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8552 as of 10:55 GMT
With data revealing that US initial jobless claims fell to a five-year low, further increasing the odds of the Federal Reserve tapering stimulus in September, the US Dollar was supported and the Euro was trading against its peer in the region of 1.3344 as the European session opened.
However, after the German economy was shown to have expanded by 0.5 per cent in the second quarter, as economists expected, the EUR/USD pairing erased declines.
This is the latest in a recent stream of data indicating that the Eurozone’s largest economy is regaining momentum and helping the Eurozone achieve its goal of a tentative recovery by the end of the year.
As senior economist Christoph Weil notes; ‘Chances of stronger growth in the second half of the year have clearly increased.’
Although Weil did add; ‘Still, we remain sceptical about a major upswing in the economy.’
While the Euro is currently trading modestly higher against the US Dollar, the common currency could shed its advance if today’s US new home sales figures show improvement, adding to the case for tapering QE in September.
The EUR/GBP Exchange Rate hit a low of 0.8527
Meanwhile the Euro declined against the Pound as the UK economy expanded by more than forecast in the second quarter.
After data showed that the UK economy grew by 0.7 per cent in the second quarter, the Euro’s five-day gain against the Pound dropped to 0.3 per cent.
The Euro was able to record a second weekly gain against the Yen however as investors speculate on what Bank of Japan Governor Haruhiko Kuroda will say at the Federal Reserve’s annual conference.
Next week Eurozone news to watch out for includes consumer confidence, unemployment rate and inflation rate figures for the currency bloc.
German IFO/GFK surveys, unemployment, retail sales and inflation data will also be of interest.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3363 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8552 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4839 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7089 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7484 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1692 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6741 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5868 >
(Correct as of 10:55 GMT)
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