Although the Pound began the day close to a two-month low against the Euro, the GBP/EUR pairing went on to fluctuate following the release of a pretty mixed bag of economic data for the Eurozone.
The Pound to Euro Exchange Rate is currently trading in the region of 1.1676 as of 11:00 GMT
While the common currency garnered support from figures confirming that Spain finally emerged from recession in the third quarter after eking out growth of 0.1 per cent, the Euro was later knocked by a separate report showing that German unemployment increased in October for a third month.
As the Madrid-based National Statistics Institute confirmed Spanish growth of 0.1 per cent, one London-based economist observed; ‘This is an important staging post in what will be a slow but steady recovery. The latest data, including more recent survey indicators suggest the pick-up in growth this quarter is not ephemeral.’
Meanwhile, Federal Labour Agency figures showed that the number of German jobless increased by a seasonally-adjusted 2,000 this month following a revised unemployment hike of 24,000 in September.
The German unemployment rate held at 6.9 per cent, but given that the Eurozone’s largest economy has been largely responsible for driving the currency bloc out of a record long recession, this news is a bit concerning.
The GBP/EUR Exchange Rate hit a high of 1.1704
As senior economist Anatoli Annenkov commented; ‘Survey indicators are weakening a bit and the big concern that we have is that even German companies are not investing that much. If we have continued growth in the third and fourth quarter, we can start to look forward to continued improvement in the labour market.’
While this result triggered slight Euro movement the common currency went on to fluctuate further as a gauge of economic confidence in the Eurozone advanced to 97.8 in October from 96.9 the previous month. Economists were only expecting the index to advance to 97.2.
A measure of industrial sentiment rose from -6.6 to -4.8 while consumer confidence advanced from 14.9 to 14.5, as previously estimated.
Euro gains were limited by the news that the Italian economy is expected to remain in recession in the third quarter, but movement across the currency market was restricted ahead of the all-important Federal Open Market Committee policy meeting. If the Fed offers any additional details regarding a timeline for tapering stimulus significant volatility can be expected.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3758 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8568 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4466 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6617 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7266 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1676 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6912 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6018 >
(Correct as of 11:00 GMT)
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