Overnight the Euro hit a 3 ½ month high against its US counterpart as European Central Bank executive board member Benoit Coeure prepares to speak in Berlin and the likelihood of the ECB issuing a further rate cut in the near future declined.
The Euro Exchange Rate was in the region of 1.3293 against the US Dollar as of 10:30 GMT
The common currency received additional support during the European session as industrial output in the Eurozone was shown to have increased unexpectedly in April.
The 0.4 per cent month-on-month gain beat economist’s expectations for stagnation. March’s figure was also upwardly revised to 0.9 per cent.
Year-on-year industrial production in the Eurozone fell by 0.6 per cent, better than the 1.2 per cent drop forecast.
The EUR/USD pairing strengthened
France led the way in the rebound, with industrial output growth of 2.3 per cent. Germany wasn’t far behind, expanding by 1.2 per cent in April.
Although the Euro had dipped slightly against the US Dollar prior to this data release the EUR/USD pairing strengthened modestly following the unexpected result.
However, the Euro has declined against the Pound this morning as a result of better-than-anticipated UK employment figures.
A concerning development in Greece has also limited the appeal of the common currency. MSCI Inc has downgraded Greece from developed market to emerging market status as the nation fails to meet certain fiscal criteria.
In response to the decision one analyst asserted: ‘It is unclear yet what the weight of the MSCI Greece will be on emerging markets, but in any case it will be significantly higher than that it has on developed markets. This could be positive news for the Greek market as it could attract more interest, although there could be pressure in the short term.’
The publication of the ECB’s monthly report is likely to inspire notable Euro movement tomorrow.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3293 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8477 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3968 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6742 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7526 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1794 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7167 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5971 >
(Correct as of 10:30 GMT)
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