The Euro was little moved against the Pound and other peers on Monday as investors widely ignored the publication of weak industrial production data for the Eurozone and instead focused on a speech due to given by European Central Bank President Mario Draghi.
According to the European Union’s Statistics agency Eurostat, output from the Eurozone’s mines, factories and utilities declined by 1.1% in May, the largest monthly decline recorded since September 2012 and shows that the Euro area remains weak.
Early last month the European Central Bank responded to the struggling economy and weak inflation rate by announcing a package of measures which included an interest rate cut to a new record low and cheap, medium-term funding for banks that is intended to be passed on to businesses.
However, a survey carried out on behalf of the European Commission found that those measures inspired little fresh optimism among businesses and households about the single-currency area’s economic prospects.
Germany said last week that it expects its economy to show weaker than initially forecast economic growth levels due to the region’s poor performance and the impacts of the conflict in Ukraine and the tensions between the west and Russia.
Despite the weak data the Euro was little moved as it received support from an easing in concerns regarding a possible new crisis developing in Portugal.
The Euro to GBP exchange rate is currently trading around 0.7954 – 14/07/14.
Concerns that the nation’s largest bank would require a bailout and that contagion could spread across the Eurozone were eased over the weekend after the Bank of Portugal took quick action to stem worries.
Portugal’s Prime Minister also declared that the Espirito Santo Bank would not receive a bailout.
With a lack of domestic UK data the Pound was experiencing relatively light trading. That could all change on Tuesday due to the release of the latest inflation data. The currency experienced some weakness last week as manufacturing and construction output data disappointed. Further losses were restrained however as investors continue to speculate that the Bank of England will raise interest rates before year’s end.
Tuesday will also see the publication of the latest Eurozone and German ZEW economic Sentiment Index data. Sentiment is expected to have fallen in the region’s largest economy.
ECB President Mario Draghi is due to deliver a speech this evening. His words could create volatility for the Euro.
Euro Exchange Rate News:
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3622 ,
Euro,,British Pound,0.7954 ,
Euro,,Australian Dollar,1.4505 ,
Euro,,Canadian Dollar,1.4624 ,