In a comparatively heavy news day, the EUR/GBP pairing has experienced some notable fluctuations. As the local session opened, surging UK consumer confidence, rising house prices and a decisive statement from Bank of England Governor Mark Carney saw the Euro tumble against a broadly strengthening Pound.
But as the day progressed further common currency volatility was inspired by domestic news.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8409 as of 14:05 GMT
The week ended on a positive note for the 17-nation currency bloc as several confidence gauges for the Eurozone improved by more-than-expected in September.
Indexes of consumer, economic, industrial and services confidence all exceeded expectations, advancing to -14.9, 96.9, -6.7 and -3.3 respectively.
Economists expected the index of consumer sentiment to climb to 96, so this better-than-forecast fifth monthly increase is a positive sign that the Eurozone’s economic recovery is gathering pace.
After the figures were published Amsterdam-based economist Martin van Vilet commented; ‘With Eurozone economic sentiment continuing to turn up, the risk of a near-term collapse in economic activity is clearly dwindling. However, with ongoing private-sector deleveraging in many Eurozone countries, and the ongoing deleveraging by governments (albeit at a slowing pace), the pace of recovery remains well below ‘escape velocity’.’
The EUR/GBP Exchange Rate hit a high of 0.8452
But while the Eurozone certainly still has some significant headwinds to battle, a separate report showed that German inflation held at a three-month low in September, month-on-month.
Annual consumer price growth was also in line with economists’ forecasts as low price pressures continued to help shore up domestic demand in Germany – a factor highlighted by the Bundesbank earlier this week.
Prior to the report’s publication economist Daniel Lenz asserted; ‘Prices remain rather anchored. The overall environment of modest demand outside Germany helps to keep the consumer price index anchored. Only from 2014 do we expect German CPI to rise above 2 per cent.’
Although the Euro strengthened and moved away from the day’s lows, it continued to trade below yesterday’s closing level against the Pound after the data was released.
The common currency extended gains against the US Dollar as US personal consumption expenditure climbed by less-than-forecast.
With the Federal budget deadline looming, the European Central Bank delivering its rate decision and several influential pieces of Eurozone data to look forward to, next week could be a volatile one for the Euro.
Current Euro (EUR) Exchange Rates
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The Euro/US Dollar Exchange Rate is currently in the region of: 1.3544 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8409 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4545 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6362 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7389 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1883 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6877 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6134 <
(Correct as of 14:05 GMT)
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