Yesterday the Euro posted widespread declines as growth data for the Eurozone as a whole, and prominent economies within the currency bloc, failed to live up to expectations.
Germany posted smaller growth than expected, while France entered a recession and the recessions in Italy and the Eurozone deepened.
So all in all, not great news.
The Euro Exchange Rate was in the region of 1.2870 against the US Dollar as of 11:30 am GMT
And the gloomy developments continued today as a report revealed that consumer price inflation in the Eurozone had slowed to the least for several years in April.
According to the EU’s statistic office the annual inflation rate in the currency bloc slipped from 1.7 per cent in March to 1.2 per cent in April, in line with an earlier estimate and the lowest rate for over three years.
The data weakened the Euro further, causing it to briefly drop to 1.2845 against the US Dollar before a slight upward correction saw it trading in the region of 1.2879, within touching distance of a 6-week low.
The common currency also declined against several of its other main peers, including the British Pound.
In response to the news one London-based senior currency strategist commented: ‘The growth data yesterday plus benign inflation will leave open the question of whether the ECB is going to do more easing. Over the last few weeks the data does seem to be stacking up in favour of the Dollar. The contrast with the Euro region is quite marked.’
The USD/EUR exchange rate is likely to fluctuate again before the close of the European session as a veritable flood of US data is published. Of particular interest are the nation’s CPI, housing starts and initial jobless claims.
Economist’s have forecast that in April US CPI (year-on-year) dropped from 1.5 per cent to 1.3. They have also predicted a housing starts drop of 6.4 per cent and a 330,000 gain in initial jobless claims. Any surprising results could inspire market volatility.
Current Euro (EUR) Exchange Rates
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The Euro/US Dollar Exchange Rate is currently in the region of: 1.2870 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8454 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3126 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5757 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7769 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1826 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7623 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6372 <
(Correct as of 11:30 GMT)
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