Tuesday saw another day of mixed data releases for the Eurozone and as seems to be becoming common the markets chose to largely ignore the negative aspects and instead pounced on any signs that the region could be making a recovery.
The Euro strengthened against the Pound after UK consumer and producer price index data came in softer than expected. Economists had been expecting inflation in the country to rise to 3%; instead it hit 2.9% in June a 14-month high.
The Eurozone’s CPI data meanwhile came in at the level economists had anticipated causing the Euro to rise against Sterling. On a month-by-month basis the data showed an increase of 0.1% whereas year by year it stayed at the 1.6% level. Also supporting the single currency was data showing that the regions trade balance increased.
The Eurozone’s trade with the rest of the world resulted in a surplus in May which was higher than the previous month. The surplus rose to €15.2 billion although exports fell by 2.3% on a month-by-month basis.
The rest of the data released on Tuesday however was negative. German investor confidence took an unexpected fall in July with investor and analyst expectations falling to 36.3, down from the 38.5 seen in June. Economists had expected a gain to 40.
The latest car sales data also showed a worsening picture, with new figures showing that sales fell to a 17-year low in June. The European Automobile Manufacturers Association reported a 5.6% slump in new vehicle registrations across Europe in June, and a 6.6% fell for the first six months of 2013.
European car sales have now been sliding steadily since the Eurozone crisis began apart from a small blip in April when sales rose year-on-year.
The car sales data shows just how affected the core Eurozone nations have become with sales down by -4.7% in Germany and -8.4% in France. Ireland meanwhile saw a staggering decline of 71% on year-on-year sales. The data casts doubt over Irelands billing as the EU’s poster boy for austerity.
The next key events for the Euro are due to take place on Friday when the G20 gathers in Russia.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3068
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8659
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4248
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6695
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7652
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1548
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7018
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5989
(Correct as of 11:05 am GMT)