Last week the Euro was floundering somewhat as encouraging economic reports for the UK boosted the Pound against its European cousin.
The Pound to Euro Exchange Rate is currently trading in the region of 1.2096 as of 11:10 GMT
Although the common currency strengthened against peers like the US, Australian and New Zealand Dollars, advances on the Pound were limited and the EUR/GBP pairing brushed multi-month lows.
However, before the weekend the Euro enjoyed a widespread rally as the unemployment rate in the 17-nation currency bloc fell unexpectedly and Eurozone inflation figures eased European Central Bank rate cut concerns.
The Eurozone’s economic outlook brightened still further as trading began for another week and final manufacturing PMI figures for Italy, France, Germany and the Eurozone as a whole came in above flash estimates.
That being said, this slightly cautious accompanying statement from Markit economist Chris Williamson limited Euro gains; ‘The November manufacturing PMI surveys bring good news on the whole, but suggest there’s still a lot to worry about in terms of the health of the Eurozone economy. Overall, manufacturing across the region is enjoying its best performance for two-and-a-half years, but the pace of growth remains only modest. The data suggest that output is rising at a quarterly rate of only around 0.6 per cent in the fourth quarter so far.’
The GBP/EUR Exchange Rate hit a low of 1.2013
EUR/GBP movement was also restrained as the Pound surged in response to stronger-than-forecast manufacturing PMI for the UK.
As the week progresses Euro movement can be expected to occur in response to Eurozone producer price figures, Eurozone/German/French services PMI, Eurozone GDP and retail sales figures, German factory orders and the European Central Bank’s rate decision.
The prospect of the ECB introducing negative interest rates in order to support the Eurozone’s fragile return to growth has weighed heavily on the Euro since the central bank’s last meeting.
Any policy guidance offered by the central bank is likely to trigger extensive Euro volatility.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3554 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8266 <
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: 1.6566 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7380 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.2096 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6733 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6034 >
(Correct as of 11:10 GMT)
Key events for the week ahead
Tuesday: Eurozone Producer Price Index
Wednesday: German/French/Eurozone Services PMI
Eurozone GDP
Eurozone Retail Sales
Thursday: European Central Bank Rate Decision
Mario Draghi Press Conference
Friday: German Factory Orders
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