Eurozone data might have been a little thin on the ground today, but enough negative reports emerged from the currency bloc yesterday to ensure that the Euro was trapped in a bearish relationship with the majority of its currency peers during the local session.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1811 as of 12:40 GMT
The Euro softened against Sterling for a third day and slumped to a two-week low against the US Dollar as investors digested the surprising Eurozone inflation report, which showed that inflation in the currency bloc fell even further below the European Central Bank’s target in October.
A dispiriting decline in German retail sales and the Eurozone’s unemployment rate unexpectedly holding at 12.2 per cent also kept the Euro under pressure.
According to currency strategist Jeremy Stretch; ‘Markets are recalibrating their assumptions for what the ECB may do in the near future after those fairly shocking inflation numbers yesterday. It looks like the Euro is going to test all the way back towards the support between 1.3450 US Dollars and 1.3570 US Dollars’.
The GBP/EUR Exchange Rate hit a high of 1.1881
The one piece of pertinent Eurozone data released this morning, Greek manufacturing PMI, was far from positive, showing that the nation’s manufacturing sector contracted in October, with new orders and employment falling at faster rates.
Commentary issued with the report asserted that ‘headline PMI fell only fractionally on the month, but a faster decrease in new orders paints a more negative picture. October also saw the rate of job shedding at manufacturers pick up for the first time in seven months, boding ill for broader unemployment figures.’
While positive UK manufacturing PMI supported the Pound against the Euro, the EUR/USD pairing was trading in a tight range ahead of US ISM manufacturing data, which is forecast to show expansion. Developments in the US could see the Euro record additional declines against the ‘Greenback’ before the weekend.
Eurozone data to be particularly aware of next week includes; German and Eurozone manufacturing/services PMI, Eurozone retail sales, German factory orders, German industrial production and German trade balance.
Of course, the ECB rate decision will also be of considerable interest, and if any of next week’s data disappoints (adding to the case for the ECB cutting rates) the Euro could fall further.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3509 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8467 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4283 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6346 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7397 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1811 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7007 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6112 >
(Correct as of 12:40 GMT)
Comments are closed.