There was good news for the Eurozone on Tuesday after a data report showed that industrial production across the single currency bloc rose at its fastest pace in over three years and smashed economist forecasts.
According to the European Union’s statistics agency, industrial output jumped by 1.8% in November compared to the previous month. Compared to 2012 production soared by 3% smashing expectations for a figure of -0.25%.
The increase in industrial production was spread across much of the Eurozone, with Germany recording a 2.4% rise, France a 1.4% increase, Spain a 1% rise and Italy recorded a rise of 0.3%. Output also rose in Ireland and Portugal, but fell 2.2% in Greece. Estonia was the only other member to record a decline.
The data increased optimism and removed some doubts over the sustainability of the region’s economic recovery. Data releases for the region have often come in better than expected over the past few weeks suggesting that a recovery is finally beginning. Unemployment however remains at record highs.
As a result of the positive data the EUR/GBP exchange rate is hovering around the 0.83 level.
Sterling received some support and managed to reverse the losses it suffered on Monday after a CPI report showed that inflation in the UK fell to the Bank of England’s target rate of 2%. According to the Office for National Statistics prices in the UK rose by just 0.4% in December. Lower food and energy costs were the main contributors.
The Euro could push higher against Sterling on Wednesday if GDP for Germany, Inflation for Spain and balance of trade reports for the wider region come in better than forecast. Further signs of improvement in Spain and elsewhere are sure to increase confidence and benefit the single currency.
Euro (EUR) Exchange Rates
As of 11:00 am GMT
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8340
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3680
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5186
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4907
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 141.7982
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2325
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1987
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6581
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6145
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6707
