Before the European Central Bank issued its monthly rate decision the Euro continued to trade in the region of a three month low against the Pound.
The Euro to Pound Sterling Exchange Rate is currently trading in the region of 0.8425 as of 15:05 GMT
As expected, the central bank held rates at record lows and left fiscal policy unaltered, but it was ECB President Mario Draghi’s press conference investors were really interested in.
During the conference Draghi adopted a cautious stance and intimated that with rising money markets threatening to derail his attempts to assure investors that borrowing costs will remain low, policy makers will be keeping a close eye on developments.
Maintaining the new forward guidance approach adopted in recent months, Draghi stated: ‘We will remain particularly attentive to the implications that these developments may have to the stance of monetary policy. I’m very, very cautious about the recovery. The shoots are still very green […] Risks continue to remain to the downside.’
The EUR/GBP Exchange Rate hit a low of 0.8379
After the press conference the Euro slumped, declining against peers including the US Dollar and Euro.
The common currency was also adversely effected today by a report showing that German factory orders fell by considerably more than expected in July.
If tomorrow’s UK industrial/manufacturing production and trade balance figures continue the recent positive trend for UK news the EUR/GBP pairing is likely to end the week lower than it began.
However, German industrial production data will be of interest, and economists have forecast that German industrial production advanced by 0.9 per cent in July, year-on-year, after declining by 0.5 per cent month-on-month.
Of course, the US non-farm payrolls report is likely to be the main driver of currency market movement as the week comes to a close.
Current Euro (EUR) Exchange Rates
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The Euro/US Dollar Exchange Rate is currently in the region of: 1.3132 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8425 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4406 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6696 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7574 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1864 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6955 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5988 >
(Correct as of 15:05 GMT)
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