The Euro advanced against the Pound and climbed to an 8-month high against the US Dollar after the release of better-than-expected Purchasing Manger Index and retail sales data.
The single currency gained after data showed that the recovery in the Eurozone gained in momentum and as tensions eased in Italy after Italian Prime Minister Enrico Letta’s victory in a vote of confidence.
According to Markit’s Services PMI business activity across the Eurozone increased to 52.2 in September, up from the 50.7 recorded in August. Economists had been calling for a figure of 52.1.The data also showed that growth in the region’s private service sector activity increased to its highest level since June 2011. Germany once again paved the way and activity in Italy and France returned to growth for the first time in more than a year.
“With the rate of expansion picking up in September, the survey bodes well for ongoing growth in the final quarter of the year; however the political instability that has reared up in Italy is a reminder that there is plenty of scope for recoveries to be derailed” said Chris Williamson, chief economist at Markit.
Adding to the increasingly positive picture for a Eurozone recovery was the release of far better-than-expected retail sales data. In August sales increased due to increased demand for food, clothes and computers and July’s figures were also revised upward.
According to Eurostat the volume of trade across the Eurozone climbed by 0.7%, beating economist forecasts for a 0.2% rise. In Spain retail sales leapt by 3.8% in August as increased purchasing from tourists and the summer season bolstered sales, the rise is the strongest recorded in a year.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3612 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8390 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4496 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6391 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7345 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1919
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6100 >
(Correct as of 10:30 pm GMT)
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