Although the Euro was supported during local trading by the news that the Eurozone’s current account surplus unexpectedly widened to a six-month high of 21.8 billion Euros in October, the EUR/GBP pairing still slipped to a two-week low.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1965 as of 11:00 GMT
After advancing against the majority of its currency counterparts yesterday as a result of encouraging UK employment data, the Pound consolidated gains overnight as investors looked ahead to today’s domestic retail sales report.
On Wednesday Sterling enjoyed its biggest one-day surge against the Euro for over two years as the UK unemployment rate fell to an over four-year low. Today, in another sign that the UK’s economic recovery is gathering momentum, domestic retail sales were shown to have increased in November.
The GBP/EUR Exchange Rate hit a low of 1.1949
As expected by economists, sales including fuel rose by 0.3 per cent in November, month-on-month, following a negatively revised decline of 0.9 per cent.
This was the best monthly result for November since 2010 and was largely led by increases in the sale of textiles, clothing and footwear.
On the year retail sales including fuel increased 2.0 per cent, slightly less than the 2.2 per cent gain forecast.
The result prompted this response from economist David Tinsley; ‘Retail sales were in line with expectations today and revealed a decent monthly increase. Over the fourth quarter as a whole the pace of retail sales has dipped, but this may reflect a pause rather than a downtrend.’
Internet sales increased considerably, with online sales accounting for 11.4 per cent of department store purchases in November.
Meanwhile, the Euro was feeling the pressure as European Leaders prepared to discuss the 17-nation currency bloc’s banking union.
Before the weekend, additional GBP/EUR movement could be caused by UK GDP and German consumer confidence reports.
If the UK growth data confirms quarterly expansion of 1.5 per cent the Pound could end the week on a high.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3682 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8357 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5437 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6696 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7312 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1965 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6471 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5990 <
(Correct as of 11:00 GMT)
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