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EUR to Pound (EUR/GBP) Currency News – Eurozone Inflation and UK Employment See Euro Drop

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Yesterday’s mixed ZEW sentiment reports left the Euro fluctuating modestly and the EUR/GBP pairing edged lower today.

While the Pound was boosted against the majority of its most traded currency counterparts by the unexpected news that the UK unemployment rate fell to a five-year low, the Euro stumbled in response to concerning domestic inflation figures.

This morning figures confirmed that the Eurozone’s inflation rate eased to its lowest level since the end of 2009.

Annual inflation in the currency bloc stood at just 0.5 per cent in March, down from 0.7 per cent in February and well below the European Central Bank’s target levels.

The Eurozone’s consumer price index increased by 0.9 per cent in March, month-on-month, rather than the 1.0 per cent expected.

The core Eurozone CPI advanced by 0.7 per cent last month instead of the 0.8 per cent forecast.

As the result adds to the case for the ECB introducing additional stimulus the Euro broadly softened after the data was published, losing ground against the Yen, Sterling and US Dollar but holding steady against the Franc.

The Pound meanwhile was riding high as the UK’s shockingly impressive employment data bolstered the case for a Bank of England interest rate increase.

The GBP/USD pairing approached a four year high and the Pound consolidated gains against the Euro for a third day.

After the employment data was released the Office for National Statistic’s chief economic adviser stated; ‘These figures – rising employment and falling unemployment and inactivity – continue the strong trend in the labour market that has been seen in recent months. Self-employment has again been a prominent growth area.’

The Euro could spend the rest of today struggling, but tomorrow’s Eurozone current account and German producer price data could inspire further common currency movement before the weekend.

Euro (EUR) Exchange Rates

[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate , 
Euro,,US Dollar,1.3807 ,
Euro,,British Pound,0.8237 ,
Euro,,Australian Dollar,1.4796,
Euro,,New Zealand Dollar,1.6090,
Euro,,Canadian Dollar,1.5214,

As of 10:45 GMT