The Euro Exchange Rate was in the region of 0.8749 against the British Pound as of 11:17 am GMT
After rising this morning on the expectation that this afternoon’s consumer confidence data for the Eurozone will show improvement the Euro continued to move upwards following developments in the UK.
As markets opened this morning the Euro recorded modest gains against the US Dollar, Pound and Japanese Yen. The common currency was little changed after a report compiled by the Federal Statistical Office Germany showed that the German consumer price index dropped by a seasonally adjusted -0.5 per cent from – 0.5 per cent in the previous month. This result was in line with economists’ expectations.
As Westpac Banking Corp strategist Imre Speizer commented: ‘The Euro continues to respond to the stabilization – and it’s no more than that – in the Eurozone. But it’s a positive sign for market confidence. Investors are feeling better, or at least no worse, about prospects for the region.’
And with investors feeling decidedly shaky about the UK’s prospects the Euro has been able to make some significant advances on the British currency. After the Bank of England released the minutes of its latest policy meeting the Pound lost 0.8 per cent against the Euro to trade in the region of 87.53 pence, after achieving as much as 87.65 pence.
As Lee McDarby of Investec Bank Plc comments: ‘2013 just goes from bad to worse for the Pound as this morning’s MPC minutes came out with a surprisingly bearish vote. This continues the snowball of gloominess which has been gathering pace against Sterling with the downside risk now getting more worrying for the friendless Pound.’
Although some industry experts have expressed concerns that the Euro’s current strength could hinder Eurozone trade and growth others – including Luxemburg Prime Minister Jean Claude Juncker – are less concerned.
Earlier this month, after the Euro experienced a downward correction, Junker asserted that the Euro had no ‘optimum’ level. Although the common currency fell after disappointing 4Q GDP figures for the region’s most prominent economies, Germany and France, it has since regained (and in some cases exceeded) its previous levels.
Economists are expecting this afternoon’s European Commission Consumer Confidence Index to have improved, climbing from minus 23.9 to minus 23.2 in January.
If this forecast proves accurate the Euro could move even higher against the Pound as the day continues.
As one industry expert stated: ‘There’s nothing you can point to as negative. Data in Europe, even if you are pessimistic, is stabilising and there are points of improvement.’
Euro Exchange Rates
As of 11:14 am
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trading in the region of 0.8749
The Euro to US Dollar (EUR/USD) exchange rate is currently trading in the region of 1.3393
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trading in the region of 1.2972
The Euro to New Zealand Dollar (EUR/NZD) exchange rate is currently trading in the region of 1.6014
The Euro to Canadian Dollar (EUR/CAD) exchange rate is currently trading in the region of 1.3570
The Euro to Japanese Yen (EUR/JPY) exchange rate is currently trading in the region of 125.0730
Comments are closed.