As the Eurozone’s tentative return to growth is putting the regions recovery in doubt, the Euro is ending the week trapped in a bearish relationship with the Pound.
Yesterday reports confirmed that growth in Germany, France and the Eurozone as a whole slowed in the third quarter of the year – particularly concerning given that the levels of expansion were far from impressive in the first place.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1954 as of 11:50 GMT
Although yesterday’s surprising decline in UK retail sales put the Pound under pressure and limited GBP/EUR gains, speculation that the Bank of England may raise interest rates before 2016 bolstered Sterling and helped the British asset enjoy a stronger relationship with the Euro on Friday.
Earlier this week Mark Carney, Governor of the Bank of England, argued that the UK is experiencing ‘one of the strongest recoveries in the advanced world’, and the Eurozone’s performance looks particularly patchy in comparison.
The GBP/EUR Exchange Rate hit a low of 1.1918
This morning the Euro remained softer against the majority of its most traded rivals as reports confirmed that the Eurozone’s consumer price index declined by 0.1 per cent in October, month-on-month, and was up 0.7 per cent on the year, as forecast by economists.
As these figures confirmed a worrying easing in price rises they have done little to allay deflation fears.
For some time industry experts have been calling for policy makers and European Central Bank officials to do more to bolster the Eurozone’s faltering economy. While the ECB did deliver a shock rate cut last week, more needs to be done and the urgency of those demands is likely to increase given the stream of concerning data to emerge from the currency bloc over the last five days.
Next week the publication of BoE minutes could impact the GBP/EUR pairing, but movement is more likely to occur in response to the German ZEW economic sentiment survey, German/Eurozone services and manufacturing PMI and final German GDP.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3445 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8364 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4429 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6252 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7442 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1954 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6935 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6160 >
(Correct as of 11:50 GMT)
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