The Euro to GBP exchange rate firmed on Wednesday as trade balance data out of Germany offered support to the single currency and as traders embarked on a bout of profit taking.
According to figures released by the Federal Statistics Office, German imports reached their highest levels since the nation was reunified at the end of the Cold War. The rise in imports supported the Euro as it suggests that domestic demand in the Eurozone’s largest economy is improving.
Imports climbed by 0.4% to €77.6 billion, the highest level since 1991. The figure was better than economist forecasts for a rise of 0.1%.
“Imports grew because consumers are consuming more and companies are investing more. This trend of imports growing more quickly than exports should continue,” said a senior economist at Berenberg Bank
Exports meanwhile fell by 1.3%, more than expected as the ongoing crisis in Ukraine and recent turbulence in emerging markets impacted. Economists had been expecting a fall by 0.5%.
UK trade data showed that the nation’s trade deficit narrowed in February by a bigger-than-forecast level. According to the Office for National Statistics, the nation’s trade deficit shrank to £9.094 billion from £9.463 billion seen in January. The figure was better than the £9.2 billion economists had forecast.
Goods exports in the month of February slowed to £23.547 billion – it’s lowest since November 2010. Imports of goods also slowed to £32.641 billion the lowest monthly figure since April 2011.
The Euro also found some support from data out of Greece which showed that industrial production in the country increased by 1.70% on a year on year basis, defying economist expectations for a decline of -5.12%.
Current Euro Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3790 ,
Euro,,British Pound,0.8236 ,
Euro,,Australian Dollar,1.4715 ,
Euro,,Canadian Dollar,1.5086 ,