Finally, after suffering through the longest recession on record, the Eurozone has finally posted growth.
It might be modest, but the 0.3 per cent quarter-on-quarter expansion (which beat the 0.2 per cent prediction) is undoubtedly positive news for the 17-nation currency bloc.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8568 as of 10:45 GMT
Year-on-year the Eurozone posted economic contraction of 0.7 per cent in the second quarter, better than the 0.8 per cent decline expected.
Although this is a step forward it’s a tentative one, and in response to the news a global economist with HSBC noted: ‘The growth rates we’re currently seeing are still far too low and we’re seeing an increasing gap between financial and political hope on the one side and economic reality on the other. The problem is the gap between the growth that’s being delivered and the growth that’s required to make the fiscal numbers add up in the medium term.’
Similarly, senior economist Carsten Brzeski stated: ‘Of course, the Eurozone still has a long way to go before positive growth numbers can honestly be called a recovery, but relief should stand above scepticism, at least for one day.’
The Euro to Pound Sterling (EUR/GBP) exchange rate hit a low of 0.8547 pence per Euro
The Euro had been supported earlier in the session by the news that Germany and France (the Eurozone’s two largest economies) posted stronger than anticipated growth, and went on to extend gains against rivals like the Australian Dollar.
However, gains against the Pound were limited as the British currency was bolstered by better than anticipated UK employment news.
And with more positive US news expected today, the EUR/USD pairing is likely to soften during the North American session.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3268 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8568 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4588 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6603 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7538 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1667 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6865 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6005 >
(Correct as of 10:45 GMT)
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