The Euro climbed against several of its most traded peers during the European session, testing 1.30 against the US Dollar, following the publication of several positive reports.
According to the latest figures consumer, services, manufacturing and business confidence all improved in May.
An index of consumer confidence rose from minus 22.3 to minus 21.9 last month while a gauge of services sentiment climbed to minus 9.3 and manufacturing confidence improved to minus 13.
European Commission data also showed that an index of executive and consumer sentiment jumped from 88.6 in April to 89.4.
The results were in line with economists’ expectations and prompted one industry expert to note: ‘Following on from modestly improved purchasing managers surveys for May, a limited overall pick up in economic sentiment supports hopes that Eurozone economic activity is inching towards stabilization in the second quarter after contracting for a sixth consecutive quarter in the first quarter of 2013.’
Similarly, but perhaps more cautiously, Martin van Vilet of ING Bank asserted: With economic sentiment […] starting to turn up again, hopes will be rising that the euro zone could exit recession in the second half of this year. But we shouldn’t get overexcited here. With more fiscal austerity in the pipeline—slower austerity still is austerity—unemployment elevated and still rising… consumers and businesses have plenty of reason to remain worried.’
Meanwhile, a separate report revealed a 0.4 per cent drop in Irish unemployment, quarter-on-quarter, with the unemployment rate falling from 14.1 per cent in the last three months of 2012 to 13.7 per cent in the first three months of 2013.
Despite this improvement however the Irish unemployment rate, though far less worrying than the unemployment levels in Eurozone nations like Spain, is still painfully high.
According to one Unite trade union regional secretary: ‘There is only one way to put people back to work and that is for the Government to abandon its failed austerity policies and start investing in growth and jobs’.
The Euro could experience additional movement against the US Dollar before the close of trade due to the publication of several volatile pieces of US data, including domestic GDP figures.
Euro (EUR) Exchange Rates As of 11:50:
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2985 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8564 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3424 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6033 >