The Euro looks set to end the week on a bit of a high after extending and consolidating gains recorded yesterday in response to the better-than-expected retail sales and services PMI figures for the Eurozone.
The Euro to Pound Exchange Rate is currently trading in the region of 0.8460 as of 11:30 GMT
Yesterday data revealed that the Eurozone’s services sector expanded by modestly more than forecast, while the currency bloc posted a significantly smaller drop in year-on-year retail sales than expected.
The Euro consequently surged by the most for two-weeks against the Pound and hit an eight-month high against the US Dollar.
The common currency was also supported by the news that the Troika’s latest review of Portugal’s bailout ended positively; with the triad of international lenders commenting that ‘There are early signs of a recovery in economic activity.’
Portugal’s growth forecast for the year has been positively revised, with contraction of 1.8 per cent now expected rather than the previously estimated 2.3 per cent.
The nation’s economy is now expected to grow by 0.8 per cent in 2014 – up from 0.6 per cent.
A statement issued by the ‘Troika’ of the European Central Bank, European Commission and International Monetary Fund intimated that Portugal’s next bailout instalment, of 5.6 billion Euros, could be approved in November.
The EUR/GBP Exchange Rate hit a low of 0.8408
However, gains were slightly restrained by the news that Germany’s construction sector saw activity dip from the 17-month high recorded in August, while job creation eased.
The Markit construction gauge tumbled from 55.1 to 52.1 in September, but remained above the 50 mark separating growth from contraction.
In a comment issued with the report economist Phi Smith stated; ‘The primary drag on total industry activity in September was a renewed decline in civil engineering. This was perhaps pay-back for such a strong performance in this category of construction one month earlier […] Higher activity in housing and commercial projects offset the reduction in civil engineering, but rates of growth were slower in both cases, going some way to explain the lull in job creation observed during the month.’
Eurozone data to watch out for next week includes the Sentix investor confidence measure for the currency bloc, German trade balance and factory orders figures, German industrial production data and the publication of the European Central Bank’s monthly report.
Any developments in the US political situation will also be of particular interest, while EUR/GBP volatility could be inspired by the Bank of England’s rate decision – taking place next Thursday.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3608 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8460 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4447 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6394 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7350 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1818 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6938 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6096 <
(Correct as of 11:30 GMT)
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