The Euro strengthened against the Pound today and gained on several of its other main rivals as various factors lent the common currency support.
The Euro Exchange Rate was in the region of 0.8535 against the British Pound as of 10:45 GMT
Firstly, EU finance officials reached an agreement concerning how to manage failing banks after an extensive session of emergency negotiations.
The issue will now be discussed with the European Parliament before a final bill is drawn up.
The exact role of the European Stability Mechanism was also outlined, and the German, French and Swedish Finance Ministers all intimated that they were satisfied with the outcome of the negotiations.
This piece of positive news was followed by data revealing that German unemployment declined by 12,000 in June (rather than rising by 8,000 as predicted by economists).
The German unemployment rate held at 6.8 per cent, close to its lowest level for over twenty years. In response to the figures one economist stated: ‘With yesterday’s strong consumer confidence and today’s good labour market report, domestic demand should continue being an important growth driver this year […] The German labour market remains the showcase example for successful labour market reforms’.
The Euro to Pound (EUR/GBP) Exchange Rate hit a high of 0.8545 pence
This news was then followed by the release of the European Commission’s executive and consumer sentiment index for the Eurozone, which was shown to have climbed from 89.5 in May to 91.3 in June – beating economists’ forecasts for a reading of 90.4.
Today’s report detailed an increase in sentiment among European manufacturers, with the index advancing from -13 to -11.2. Meanwhile, consumer confidence advanced from -21.9 to -18.8 and service confidence dipped from -9.2 to -9.5.
The Euro was also able to recoup some of the losses sustained against the US Dollar yesterday after European Central Bank President Mario Draghi asserted that fiscal policy would remain accommodative for the foreseeable future.
The common currency’s advance on the Pound was aided by some disappointing UK news. After household disposable incomes were shown to have plummeted by the most for 25 years the Pound softened modestly.
However, the Euro did decline against the rallying Australian and New Zealand Dollars.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3027 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8535 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4000 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6644 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7676 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1726 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7141 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6007 >
(Correct as of 10:45 GMT)
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