With reports signalling that the Eurozone’s tentative return to growth is already faltering, the Euro came under pressure this morning, declining against peers like the US Dollar and Pound.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1918 as of 11:40 GMT
Data published this morning confirmed that growth in France and Germany, two major Eurozone economies, slowed in the third quarter of the year.
The French economy unexpectedly contracted by 0.1 per cent in the third quarter (quarter-on-quarter) rather than stagnating as forecast. On the year, the French economy expanded by 0.2 per cent, just below the 0.3 per cent estimate.
Separate figures showed that German GDP expanded by a seasonally adjusted 0.3 per cent in the third quarter, down from growth of 0.7 per cent in the second quarter.
Meanwhile Italian GDP contracted by 0.1 per cent in the three months through September, and the Eurozone as a whole grew by just 0.1 per cent following expansion of 0.3 per cent in the second quarter.
The GBP/EUR Exchange Rate hit a low of 1.1844
The less-than-encouraging results prompted this response from industry expert Nicholas Spiro; ‘The bleak GDP estimate shows just how fragile and hesitant the Eurozone’s recovery is – so much so that it’s questionable whether current economic conditions even qualify as a recovery. While the slowdown extends to Germany, it’s the dire state of the French and Italian economies that looms large.’
While the Euro tumbled against the US Dollar in the aftermath of the report’s publication, the common currency was little changed against the Pound as Sterling slipped as a result of disappointing UK retail sales figures.
News that UK sales unexpectedly fell by 0.7 per cent in October wore on the British asset during European trading and limited EUR/GBP declines.
As trading continues the Euro could post further losses against the ‘Greenback’ if today’s US trade balance and initial jobless claims figures indicate economic improvement in the US.
Tomorrow Eurozone inflation figures may trigger additional EUR/GBP movement before the weekend.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3429 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8391 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4455 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6305 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7444 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1918 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6918 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6138 <
(Correct as of 11:40 GMT)
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