The Euro began the European session slightly stronger against the US Dollar and little changed against the Pound, but went on to experience modest movement as German import prices declined by less-than-expected in August.
The Euro to Pound Exchange Rate is currently trading in the region of 0.8490 as of 11:20 GMT
Additional common currency fluctuations occurred as ZEW economic sentiment gauges for Germany and the Eurozone came in above expectations while a measure of the current situation in Germany defied estimates and declined to 29.7
The German ZEW sentiment survey came in at 52.8 in October rather than the 49.6 expected.
This was the third consecutive month of improving confidence in the Eurozone’s largest economy and intimates that investors believe Germany can withstand the negative repercussions of the federal shutdown in the US.
As one senior economist observed; ‘Today’s ZEW index gives the impression that analysts believe in the invulnerability of the German economy. The new dark clouds coming from the other side of the Atlantic have not yet blacked out analysts’ optimism.’
The EUR/GBP Exchange Rate hit a low of 0.8520
Similarly, in a statement published with the report ZEW President Clemens Fuest asserted; ‘Financial market experts remain optimistic. A greater impact over the dispute on the US debt ceiling isn’t visable.’
However, the ZEW measure of the current situation unexpectedly dropped from 30.6 rather than rising to 31.3 as anticipated, so it wasn’t all good news.
Separate data also showed that Ireland posted a smaller than anticipated trade surplus in August, and the Euro weakened against both the US Dollar and Pound as the European session continued.
Last week’s disappointing German factory order data served as a reminder of the fragility of the Eurozone’s return to growth, and data published since has added to the patchy tale of progress.
As the week continues tomorrow’s Eurozone inflation and trade balance data is likely to inspire notable Euro fluctuations.
Developments regarding the political situation in the US will also be of considerable interest in the two days leading up to the deadline for raising the debt ceiling.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3506 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8476 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4175 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6156 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7406 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1798 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7056 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6178 >
(Correct as of 11:20 GMT)
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