With markets largely static ahead of the Federal Reserve’s hugely influential policy statement, the Euro is little changed against its US rival as the European session progresses – in spite of a report showing that construction output in the Eurozone experienced a rebound in April. The currency was able to gain on its British counterpart however, achieving a high of 0.8595 Pence per Euro.
The Euro Exchange Rate was in the region of 0.8576 against the British Pound as of 11:40 GMT
According to a report compiled by Eurostat, construction output rose by 2.0 per cent month-on-month in April following a decline of 1.8 per cent in March.
Although construction output was still down by 6.6 per cent on the year, the figure was a decided improvement on the -7.3 per cent figure recorded in the previous month.
After the data was released the Euro climbed to 0.8595 against the Pound
The report detailed particularly strong month-on-month construction output increases in major Eurozone nations Germany, Italy and Portugal.
The Euro also benefited as the Pound broadly softened following the publication of minutes from the Bank of England’s latest policy meeting.
The common currency was little affected by reports that Cyprus’ bid to have the terms of its bailout moderated has been rejected.
Last week Anastasiades sent a letter to the Troika of the EU, IMF and ECB, highlighting the insupportable aspects of the current bailout agreement.
The Cypriot President Nicos President stated: ‘The Cypriot economy is adapting to major shocks. Substantial private wealth has been lost and a significant number of Cypriot firms have lost their working capital at the two systemically important financial institutions which were subject to the bail – in. Restrictive measures, including capital controls, are seriously hampering the conduct of business and confidence in the banking system has been shaken. As a result the economy is driven into a deep recession, leading to a further rise in unemployment and making fiscal consolidation all the more difficult.’
But according to a notable EU policy maker Anastasiades will receive a negative response at next week’s Eurozone summit.
The EU policy maker was asked outright if the bailout might be changed and he is quoted as replying with: ‘No, not as far as I can see.’
Meanwhile a second unnamed official asserted: ‘There’s no chance we’ll revise the terms of the bailout, but we’ll discuss it on Thursday.’
Although the EUR/USD pairing is currently little changed, significant volatility can be expected to follow Fed Chairman Ben Bernanke’s policy statement at 19:30 GMT.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3390 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8575 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4090 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6713 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7468 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1665 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7097 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5984 >
(Correct as of 11:40 GMT)
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