The Euro has made gains against the Pound and climbed to a two-year high against the US Dollar as demand for riskier assets improves and as data released in France, Greece in Spain all came in better than forecast.
The Pound fell in a day of muted trading due to a lack of economic data releases and as the markets remain quiet due to the end of year holiday season. The US Dollar fell as speculation mounts that the Federal Reserve is highly unlikely to hike interest rates anytime soon despite the Central Bank announcing that it will be tapering its monetary easing programme early in the New Year.
The Euro climbed after the French statistics agency Insee, said released France’s latest Producer price index data which came in at 0.5% in November, up from the -0.2% decline recorded in October. An increase in the nation’s electricity prices was thought to be the main contributor for the PPI rise. Insee added that on a yearly basis prices in France were -0.6% lower compared to the previous year.
Greece also saw an improved PPI figure. The struggling country posted a figure of -0.7% in November. The figure was better than October’s figure of -1.6% and suggests that there is some hope of a turnaround in the country.
Spain meanwhile also posted better-than-forecast data. According to the Bank of Spain the country’s current account improved in October by €1.7 billion compared to the previous month’s figure of €0.4 billion. The figure was better than the €1.1 billion expected by economists.
Next week sees the release of a number of Eurozone retail sales reports which could provide support for the currency.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3855
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8378
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5529
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6921
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7218
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1932
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6436
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5909
(Correct as of 12:15pm GMT)
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