Against the Pound the Euro fell to a one-month low after data out of the UK showed that services in the country expanded more than forecast in October. The single currency was also weakened by growing expectations that the European Central Bank will choose to increase its stimulus measures in a bid to get the stuttering recovery back on track.
The Eurozone’s economic recovery has hit a bit of a wall and those who triumphantly claimed that the Euro crisis was over have been silenced as it continues to stifle the region’s recovery. The European economy has slowed, unemployment remains staggeringly high and growth in many nations is virtually non-existent.
The European Union has now reduced its growth forecasts for the region as the debt crisis drags on for a fifth consecutive year. The Brussels based European Commission cut its growth forecasts from a previously predicted rise of 1.2% in 2014 to 1.1% and has increased its expectations for regional unemployment to climb to 12.2% instead of its previous prediction of 12.1%. The numbers may appear small but the meaning is significant.
Confidence is stuttering once again with some economists murmuring over potential Euro exits by nations such as Greece and Italy, something that in the summer was thought to have been laid to rest by over optimistic investors.
The current strong value of the Euro has played its part on the slowing recovery. After the recent fiscal debacle in the USA investors turned to the Euro as a safer alternative which in turn strengthened the single currency. A higher Euro however damages exports which is evident in the slowdowns seen in services and manufacturing output in October.
“The fiscal consolidation and structural reforms undertaken in Europe have created the basis for recovery, but it is too early to declare victory. Unemployment remains at unacceptably high levels. That’s why we must continue working to modernise the European economy” said Olli Rehn the EU Economic and Monetary Affairs Commissioner.
Euro (EUR) Exchange Rates
As of 10:30 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3503
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8414
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4219
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6226
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4088
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 132.6582
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2296
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1882
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7405
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7031
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6161
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.7097
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8131
