Last week the Euro came under considerable pressure as industrial production in the Eurozone fell and positive UK data highlighted the disparity between the stability of economic recovery in Britain and the Eurozone.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1932 as of 10:50 GMT
The European asset extended declines against the Pound after reports confirmed that growth in the Eurozone slowed in the third quarter. The currency bloc’s largest economies, France and Germany, also posted a slowing in growth in the three months through September, indicating that while the Eurozone has emerged from recession, significant headwinds remain.
However, the Euro was able to strengthen modestly against the US Dollar on Friday as Janet Yellen, candidate for the position of Chairman of the Federal Reserve, stated that the US would need the support of an accommodative fiscal policy for the foreseeable future and US industrial/manufacturing production figures failed to meet estimates.
The GBP/EUR Exchange Rate hit a low of 1.1912
As the European session got underway the Euro fluctuated modestly against its UK and US counterparts.
While the news that UK house prices declined in November had comparatively little impact on the Pound, EUR/GBP movement was inspired by a report detailing a reduction in the Eurozone’s current account surplus in September.
The currency bloc’s current account surplus narrowed from 17.9 billion in August to 13.7 billion in September, with the surplus on goods trade edging from 14.7 billion Euros to 13.7 billion Euros.
But the report also highlighted that on an unadjusted basis the current account surplus rallied from 12.4 billion Euros to 14 billion Euros in August.
A lack of further European news could limit Euro movement in the hours ahead.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3509 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8383 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4353 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6120 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7405 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1932 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6964 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6210 >
(Correct as of 10:50 GMT)
Key Eurozone events for the week ahead
Tuesday: ZEW Economic Sentiment Survey’s Germany/the Eurozone
Wednesday: German Producer Prices
Thursday: German/Eurozone Services & Manufacturing PMI
European Central Bank President Mario Draghi speaks
Eurozone consumer confidence
Friday: German GDP and IFO Business Climate
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