Early into the European session the Euro was able to break free from this week’s run of losses against the Pound and post a modest advance on its British cousin as a report showed that the UK goods trade deficit sharply increased.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8417 as of 12:25 GMT
However, gains were short lived and after the publication of German industrial data the Euro softened against the Pound, US Dollar, and several of its other most traded rivals.
Although economists expected German industrial production to fall by 0.5 per cent in July month-on-month, it was actually down 1.7 per cent from June, when it increased by a negatively revised 2 per cent.
On the year, production was down by 2.2 per cent.
Meanwhile, manufacturing output dropped by 2.1 per cent in July.
Along with the figures the Berlin-based Economy Ministry issued the following statement: ‘The current decline in industrial production is not least the consequence of the strong result in the previous month. It seems that a moderate upward trend in manufacturing and a significantly stronger one in construction is continuing.’
The EUR/GBP Exchange Rate hit a low of 0.8394
Similarly, economist Heinrich Bayer asserted; ‘There was a very strong rise in the previous month and it can’t continue at that tempo, even if overall the outlook is positive. Growth in the German economy is really rather stable.’
However, a separate report published this morning revealed a surprising decline in German exports.
Rather than increasing by 0.7 per cent as forecast they dropped by 1.1 per cent in July.
Imports also increased by 0.2 per cent less than the 0.7 per cent predicted.
Of course, notable EUR/USD movement is on the cards this afternoon due to the release of US non-farm payrolls.
Despite today’s modest gain on the Pound the Euro is still in line to post a five-day decline against its British counterpart.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3111 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8417 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4332 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6502 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7627 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1881 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6963 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6058 >
(Correct as of 12:25 GMT)
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