After posting two consecutive five day declines against a bullish Pound, the tide may be turning for the Euro. This morning the common currency has advanced on its British rival and extended gains against the US Dollar as German economic sentiment climbed by considerably more than forecast.
The Euro to Pound Exchange Rate is currently trading in the region of 0.8405 as of 10:55 GMT
Economists had forecast that the measure of economic sentiment compiled by the Centre for European Economic Research (ZEW) would rise from 42 in August to 45 in September. However, it actually surged to 49.6 (an over 3-year high) while a measure of the current situation leapt from 18.3 to 30.6 – also considerably more than forecast.
The Eurozone ZEW economic sentiment survey advanced from 44 to 58.6 this month.
The results are reflective of improving global conditions, as evidenced by recent positive data from China, the US and UK.
After the report was published a ZEW official issued the following accompanying statement: ‘The financial-market experts hold the view that the German economy is still gaining momentum. In particular, the experts’ economic optimism has increased due to the improved economic outlook for the Eurozone, although recently released economic data for Germany have fallen short of expectations.’
The EUR/GBP Exchange Rate hit a high of 0.8414
In the aftermath of the data’s publication the Euro advanced against the Pound, US Dollar and Yen, as well as several of its other main peers. However, gains against Sterling were limited as the British currency firmed in response to UK inflation data and the news that the UK government has sold a 3.2 billion-pound stake in Lloyds Banking Group Plc.
Additional EUR/USD movement can be expected to occur before the close of the European session as US inflation figures are published.
While tomorrow’s Eurozone construction output figures will be of interest, tomorrow’s US news is likely to dictate market movement.
Current Euro (EUR) Exchange Rates
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The Euro/US Dollar Exchange Rate is currently in the region of: 1.3354 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8414 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4316 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6325 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7484 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1898 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6981 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6133 >
(Correct as of 10:55 GMT)
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