The Euro edged away from the three-week high recorded against the US Dollar this week as the European session began and data showed that industrial output in the Eurozone declined in May.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8631 as of 11:10 GMT
The 0.3 per cent month-on-month decline was in line with forecasts.
Year-on-year, industrial production slipped by 1.3 per cent.
There was some slightly upbeat news however, as April’s figure was upwardly revised to growth of 0.5 per cent.
After the data was published the Euro was little changed against the US Dollar but fluctuated against the Pound.
The Euro to Pound (EUR/GBP) exchange rate hit a low of 0.8583 pence per Euro
The Euro received some support from comments issued by top ratings agency Standard & Poor’s.
S&P opted to upgrade Ireland’s outlook to positive from stable and asserted that there is a 1-in-3 chance that the nation’s credit rating could be raised from BBB-plus.
In a statement S&P offered the following reason for its action: ‘The outlook revision reflects our view that Ireland’s general government debt burden is likely to decline more rapidly, as a percentage of GDP, than we had previously expected. Ireland’s economic recovery is under way.’
Additionally, the European Central Bank released further market-calming remarks. In a speech in Singapore ECB official Vitor Constancio stated: ‘Europe is behind the US in economic recovery and inflation risks which implies that monetary policy has to stay accommodative for a longer period of time […] Advanced economies, Europe in particular, face a long period of slow growth that will test the quality of our institutions. The European social compact will have to prove its adaptability and resilience. The Euro Area is still facing a painful crisis of imbalances, financial fragmentation and low growth. Questions of excess inequalities and high unemployment will have to be addressed. […] As someone said, “a crisis is a terrible thing to waste” – and we are using this crisis to build a stronger and more stable monetary union that will play a constructive part in global rebalancing.’
Another factor affecting the EUR/GBP pairing today was the news that construction output in the UK fell by more than anticipated in May.
Movement in the USD/EUR pairing could result from today’s US news, including producer price figures and the University of Michigan confidence gauge.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3050 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8631 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4290 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6600 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7664 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1589 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6994 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6020 >
(Correct as of 11:10 GMT)
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