With the Pound taking a bit of a beating in the aftermath of the publication of UK inflation figures for October the Euro was able to advance on its peer.
However, Euro gains against the ‘Greenback’ were limited as the North American currency broadly strengthened as a result of an encouraging business activity gauge.
After last week’s surprisingly strong US non-farm payrolls report the odds of the Federal Reserve tapering stimulus before next spring increased, and every additional positive US report adds to the case for stimulus being trimmed.
Industry expert Fabian Eliasson said this of the Dollar’s movement; ‘The dollar has been outperforming other currencies in the wake of last week’s [employment] number. We’re still sort of riding the coattail of that into this week. It’s a continuation of broad dollar strength.’
The Euro is currently trading against the US Dollar in the region of 1.3441
The Euro began the European session slightly softer against the US Dollar having snapped its recent run of gains.
Today’s industrial production report for the Eurozone could cause additional Euro movement as trade continues.
Economists have forecast that industrial production rose 0.1 per cent in September year-on-year after declining by 2.1 per cent YoY the previous month.
In the opinion of one industry analyst; ‘The euro and yen will continue to come under depreciation pressure. The ECB and BOJ are seen as taking additional steps.’
But an unexpectedly strong result today could bolster the Euro ahead of tomorrow’s influential growth data.
Given that growth in Germany, France and the Eurozone is expected to have slowed in the third quarter the Euros recent gains could prove short lived.
Of course, today’s big UK news (including domestic employment figures and the Bank of England’s inflation report) will also be responsible for driving EUR/GBP movement.
Meanwhile, during the North American session US mortgage applications and the national monthly budget statement could impact EUR/USD.
Euro (EUR) Exchange Rates
As of 07:05 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3441 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8462 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4447 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6365 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4093 <