The Euro to Pound Sterling (EUR/GBP), Euro to US Dollar (EUR/USD), Euro to South African Rand (EUR/ZAR) and Euro to Australian Dollar (EUR/AUD) exchange rates are all forecast to make further gains on Thursday as data out of Spain and Germany buoyed sentiment and as investors expect Eurozone inflation data to come in positively.
The Euro to Pound Sterling (EUR/GBP) Exchange Rate Hit A Session High of 0.7267
The Pound gave up gains made earlier in the week as sentiment towards the single currency was buoyed by Wednesday’s German inflation data.
The report buoyed expectations that Eurozone inflation data also improved. If the report shows that Eurozone inflation moved out of negative territory it will be significant for the region and in particular the European Central Bank (ECB). A positive figure will be seen as proof that the central banks €1 trillion quantitative easing programme is working.
The Euro was also supported by data, which showed that Spain continues to recover. The nation’s economy was shown to have expanded by 0.9% in the first quarter of 2015; the figure beat economist expectations for a rise to 0.8% and was the fastest rate of growth recorded in Spain since the end of 2007.
The Euro to US Dollar (EUR/USD) Exchange Rate Hit A Session High of 1.1250
The Euro advanced to its best level in more than two-months against the US Dollar as the American currency was weakened by a worse-than-forecast US GDP growth report and a rather dovish policy statement by the Federal Reserve.
The US Dollar weakened after data on Wednesday showed that U.S. gross domestic product grew just 0.2% in the three months to March, slowing from 2.2% in the final quarter of 2014. It was the slowest rate of growth in a year.
The EUR/USD exchange rate could make further gains later in the session if the latest US jobless claims and earnings data disappoints.
The Euro to Australian Dollar (EUR/AUD) Exchange Rate Hit A Session High of 1.4150
The Euro strengthened by more than 1% against the Australian Dollar on Thursday as the ‘Aussie’ was weakened by data, which showed that import prices fell -0.2% in the first quarter of 2015. The figure was well below expectations for a rise of 1.1%. Export prices also declined by -0.8%.
The Australian Dollar could weaken further on Friday if the latest domestic Manufacturing and PPI data disappoints. Data out of China will also influence the currency’s movements.
The Euro to South African Rand (EUR/ZAR) Exchange Rate Hit A Session High of 13.2686
The South African Rand weakened against the Euro and most other major peers on Thursday as credit rating agency Fitch cautioned that Africa’s most developed economy is too reliant on offshore portfolio flows. The Rand is likely to soften further if domestic PPI and balance of trade data comes in below expectations.