Today EUR/GBP movement has been driven by UK developments, and as the developments were largely positive the Euro slid against the Pound.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8699 as of 15:00 GMT
Firstly Sterling garnered support from the news that UK house prices climbed by considerabley more than expected in July.
An index compiled by Nationwide showed that house prices climbed by 0.8 per cent month-on-month and 3.9 per cent year-on-year. The expectation was for gains of 0.4 per cent and 3.1 per cent.
Then the Pound was boosted against the Euro by a separate report showing a surge in UK construction PMI. In the latest in a recent series of positive UK construction/manufacturing/services sector data releases, the index hit 57.0 in July instead of advancing to 51.5 as forecast.
After the UK news was released the Pound strengthened against several of its most traded peers. The British currency may have been feeling the pressure for much of this week but it has managed to pare its five-day decline against both the Euro and US Dollar.
Meanwhile, the Eurozone’s producer price index rose by 0.3 per cent year-on-year, meeting economists’ expectations and reversing the 0.2 per cent fall recorded in May.
The Euro to Pound (EUR/GBP) exchange rate hit a high of 0.8634 pence per Euro
And early into the European session data showed that price pressures in the Eurozone dropped to a forty-month low in June, with the Eurozone Future Inflation Gauge edging down from 91.8 to 91.2 in June.
According to one industry expert; ‘Eurozone inflation will stay in a downturn in the months ahead.’
As the North American session progressed the Euro strengthened against a broadly softening US Dollar. The safe-haven US asset shed earlier advances as US employment gains failed to live up to expectations.
Eurozone data to be particularly aware of next week includes German and Eurozone services PMI, retail sales figures for the currency bloc and Italian GDP.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3247 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8699 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4884 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6739 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7545 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1493 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6736 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5946 <
(Correct as of 15:00 GMT)
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