The Euro to Pound exchange rate firmed following the release of data which showed that industrial output in Germany and Spain increased more than expected in February, raising hopes that the Eurozone recovery is picking up.
According to the German Statistics Office based in Wiesbaden, industrial production in the Eurozone’s biggest economy saw production increase by 0.4% in February, the figure follows on from the 0.7% rise seen at the start of the year. The rise was bigger than the 0.3% increase forecast by economists.
On a year-by-year basis, industrial production jumped by 4.8% in February from the previous year.
“The German economy had a super-strong winter quarter helped by relatively mild weather, the hard data is even exceeding the solid sentiment indicators of recent months,” said Christian Schulz, senior economist at Berenberg Bank.
In the final quarter of 2013 the German economy expanded by 0.4%, helping to support the Eurozone’s soft recovery. GDP data for the first quarter of 2014 is not due for release until May 15th.
Also supporting the Euro was the release of data which showed that Spanish industrial production grew by 0.7% on a monthly basis and by 2.8% year on year in February. Economists had been forecasting a yearly figure of 1.6%.
The single currency was unable to advance further against Sterling as it remained under pressure from last week’s European Central Bank meeting and the suggestions made by policy makers that monetary easing measures could be introduced to stave off the threat of deflation in the region.
The currency was also restrained by the Sentix index of investor confidence within the Eurozone rising less than expected last month. Sentix Euro Zone Investor Confidence rose to a seasonally adjusted 14.1, from 13.9 in the preceding month. Analysts had expected Investor Confidence to rise 14.2 last month.
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,1.3714 ,
Euro,,British Pound,0.8277 ,
Euro,,Australian Dollar,1.4774 ,
Euro,,Canadian Dollar,1.5064 ,