Home » EUR » Euro to Pound Sterling (EUR/GBP) Exchange Rate Consolidates Advance Following Stream of Eurozone Data

Euro to Pound Sterling (EUR/GBP) Exchange Rate Consolidates Advance Following Stream of Eurozone Data

European Union flags

In the wake of the publication of several pieces of influential economic data for the Eurozone the common currency was able to retain and extend gains against the majority of its rivals.

The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8736 as of 10:35 GMT

Today’s stream of Eurozone data didn’t start out particularly well, as German retail sales were shown to have unexpectedly declined in June – dropping by a seasonally adjusted 1.5 per cent rather than climbing the 0.2 per cent expected.

However, this report was swiftly followed by the news that German unemployment fell by 7,000 in July, following an upwardly revised decline of 13,000 in June. The German unemployment rate held at 6.8 per cent.

In response to the data economist Alexander Koch commented: ‘The labour market is stable and domestic demand is a strong pillar of the economy. In addition, Germany will benefit from the Euro area’s emergence from recession.’

Separate figures showed a surprising decline in the Italian unemployment rate. Although economists had forecast that the jobless rate would climb to 12.3 per cent from 12.2 per cent it actually declined to 12.1 per cent in June.

The Euro to Pound (EUR/GBP) exchange rate hit a high of 0.8752 pence per Euro

Additionally, the unemployment rate in the Eurozone for May was unexpectedly revised to 12.1 per cent from a previous estimate of 12.2 per cent. The unemployment rate held at 12.1 per cent in June.

However, in spite of this result one industry expert stated: ‘Experience suggests that even as the economy is returning to growth, it takes another six to nine months for unemployment to turn around. I wouldn’t be surprised for unemployment to stay high and rise until next year even though activity picks up.’

Furthermore, figures revealed that Eurozone inflation stagnated in July following two months of acceleration, increasing the European Central Bank’s scope for loosening fiscal policy in order to support the currency bloc’s economic recovery.

In July annual inflation held at 1.6 per cent, prompting one Amsterdam based economist to observe: ‘The ECB is not in a mode of being worried about inflation, it’s in more of a mode of being a little bit concerned about disinflation. It’s a worry that inflation will be settling below their price stability goal, and that’s one of the reasons why over the last few months the ECB has adopted a more dovish tone.’

The stream of data left the Euro trading higher against the US Dollar and above 87 pence per Euro against Sterling.

Further EUR/USD movement can be expected to occur in response to today’s US news, particularly US GDP data and the Federal Open Market Committee’s policy statement.

The Bank of England and European Central Bank rate decisions, taking place tomorrow, are likely to inspire EUR/GBP volatility.

Current Euro (EUR) Exchange Rates

< Lower    > Higher

The Euro/US Dollar Exchange Rate is currently in the region of: 1.3288 >

The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8736 >

The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4706 >

The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6635 >

The US Dollar/Euro Exchange Rate is currently in the region of: 0.7520 <

The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1446 <

The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6801 <

The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6017 <

(Correct as of 10:35 GMT)