As the local session opened the Euro was trading within touching distance of a two-month high against the Pound but was softer against the US Dollar as investors focused on the upcoming Federal Reserve policy announcement.
The common currency derived some support from the news that the Spanish economy expanded by 0.1 per cent in the third quarter, taking the nation out of recession.
However, movement was limited ahead of today’s Eurozone economic/industrial/consumer and services confidence figures.
Economists are hoping that the indexes, in the main, will add to the 17-nation currency bloc’s improving economic picture and if estimations prove accurate the Euro could be boosted.
Of course, German inflation data (due for publication at 13:00 GMT) will also be of considerable interest.
The Euro is currently trading against the Pound Sterling in the region of: 0.8568
Already today a report has shown that the German jobless rate held at 6.9 per cent in October, as expected, despite a surprising 2,000 increase in the nation’s unemployment.
September’s unemployment rise was positively revised to 24,000.
Another factor weighing on the Euro this morning is the news that the head of Italy’s statistics office, Antonio Golini, expects the Italian economy to have contracted in the third quarter and declined by 1.8 per cent over the course of 2013. The Istat statistics agency had previously estimated that the Italian economy would contract by 1.4 per cent this year.
In the aftermath of Golini’s comments Finance Minister Fabrizio Saccomanni undermined the statistics chief by asserting; ‘The economy is expected to have stabilised in the third quarter – I’m aware that Istat said otherwise. Economic activity is set for a gradual recovery.’
However, despite the confidence of some members of the Italian government regarding the prospect of the nation emerging from recession in the third quarter, economist Silvio Peruzzo observed; ‘A further GDP contraction in the third quarter would confirm our assessment that despite the improvements of the last two quarters, the Italian economy is a laggard in the Euro area. Political and fiscal uncertainty are likely taking a toll on the economy constraining the recovery.’
As the European session progressed the Euro fluctuated slightly against the Pound.
Euro (EUR) Exchange Rates
As of 09:20
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3744 <
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: 1.4467 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6624 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4375 <