The Euro was softer against the Pound but stronger against the US Dollar following the release of positive retail sales data in the UK and as the US averted defaulting on its debts.
The Pound made gains against many of its peers and the Euro after retail sales data climbed more than expected in September reversing the slump recorded in August. According to the Office for National Statistics UK Retail sales including fuel rose by 0.6% up from the -0.8% recorded in the previous month. Economists had been calling for a rise of 0.4%. The number of household goods sold increased by 3%.
The US Dollar fell against the Euro to a one-month low as uncertainty remains despite the deal made to re-open the US federal government and raise the nation’s debt ceiling. The deal is being seen as a stop-gap measure with many expecting the same budget and debt issues to raise their heads again in the New Year. Economists also favoured the Euro as they weigh up the damage caused by the governmental shutdown to US growth and the increased likelihood that the Federal Reserve will choose to refrain from tapering its quantitative easing programme.
In Europe the Eurozone recorded a rise in its current account surplus but the seasonally adjusted rise to €17.4 billion was weaker than economists had forecast.
The situation in Germany over whether Chancellor Angela Merkel will be able to form a new coalition government took a new spin after the Green party refused to join. The two-term German chancellor’s conservative union fell just short of an outright majority at last month’s elections and is looking for a new partner after the Free Democrats party failed to win any seats in the September election.
The next data release for the Eurozone comes next Wednesday with the publication of the latest Consumer Confidence data.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3627
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8478
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4187
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6077
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7338
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1793
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7048
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6209
(Correct as of 11:45 am GMT)
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