The Euro is holding steady against the Pound after dropping sharply in yesterday’s session.
The single currency tumbled on Thursday after European Central Bank President Mario Draghi told reporters at the Central Banks monthly press conference that policy makers are comfortable with introducing new monetary stimulus measures at next month’s policy meeting.
As a result the GBP to Euro exchange rate was able to push beyond the 1.22 level.
The Euro came under pressure early in Friday’s session after data showed that Germany’s trade surplus narrowed more than forecast in March.
The surplus narrowed to €14.8 billion in March from the €15.8 billion recorded in February.
The fall was being blamed on the ongoing tensions between the West and Russia over the situation in Ukraine.
France came in for some criticism from Jean-Claude Juncker, the centre right candidate for the European Commision told Reuters that France should fix its domestic problems before blaming the Euro.
“I don’t believe France is the sick man of Europe. But I do caution against looking for the causes of what is partly the result of its own mistakes somewhere other than at home. If France had a tougher time than other countries, then the reasons for this are to be found in France, not in exchange rates.”
Sterling meanwhile eased despite the release of positive data. Better-than-expected industrial and manufacturing production data spurred investors into embarking on a round of profit taking which saw Sterling ease slightly against several peers.
According to a report released by the UK’s Office for National Statistics, manufacturing output increased by 0.5% in March beating expectations for a rise of 0.3%.
Industrial production meanwhile increased by 0.7%, just under the 0.8% rise predicted by analysts.
A separate report also showed that the UK’s trade deficit narrowed to £8.48 billion in March from £8.75 billion seen in February.
Exports increased by 4.9% whilst imports ticked higher by 2.8%.
Sterling could push higher against the Euro later in the session if today’s GDP estimate by the National Institute of Economic and Social Research comes in strongly as expected.
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,1.3805 ,
Euro,,British Pound,0.8172 ,
Euro,,Australian Dollar,1.4742 ,
Euro,,Canadian Dollar,1.4958 ,