Although the UK published some fairly good economic data this morning the Euro continues to gain on its British rival.
The Euro Exchange Rate was in the region of 0.8575 against the British Pound as of 13:40 GMT
Early in to the European session the Euro strengthened against the Pound and advanced on several of its other most traded rivals in response to some positive economic data for Germany – the largest economy in the 17-nation currency bloc.
The latest figures revealed that despite economists expecting German retail sales to rise by 0.4 per cent they actually surged by a seasonally adjusted 0.8 per cent in May from April.
April’s month-on-month retail sales figure was negatively revised to a decline of 0.1 per cent.
Sales were up 0.4 per cent on the year.
This was the latest in a series of reasonably strong data releases for Germany and some economists are hoping that they could herald the start of real momentum returning to the economy.
The Euro to Pound (EUR/GBP) Exchange Rate hit a high of 0.8592 pence
A report published later in the European session showed that German inflation accelerated by 1.9 per cent in June from a year ago, up from 1.6 per cent in May.
Economists had predicted that the inflation rate would rise to 1.8 per cent.
On the month, prices were 0.1 per cent higher.
Prior to the release of the figures one industry expert commented: ‘A slight increase in the inflation rate is no reason for concern at the moment. It’s still under 2 per cent and we are convinced it will stay there for the months to come.’
The Euro continued to edge upwards against the Pound following the data.
Additional Euro movement may result from this afternoon’s US news but investors will also be looking ahead to next week’s European Central Bank rate decision.
While ECB President Mario Draghi intimated that fiscal policy would remain ‘accommodative’ for the foreseeable future, what the central bank has to say about the current state of the currency bloc’s economy is likely to inspire significant Euro fluctuations.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3070 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8575 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4131 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6750 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7652 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1664 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7058 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5977 >
(Correct as of 13:40 GMT)
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