After yesterday’s quiet trading the Euro strengthened modestly against the Pound as the European session began.
Although economists have forecast that tomorrow’s unemployment data will show that the jobless rate in the Eurozone stayed at a record high of 12.2 per cent in June, there have been signs of economic improvement in the currency bloc.
This morning data has shown that the Spanish economy contracted by less-than-forecast in the second quarter, shrinking by 1.7 per cent year-on-year rather than the 1.8 per cent contraction expected.
Meanwhile, a separate report showed that German consumer confidence continues to increase. The GfK research institute’s forward-looking consumer climate index climbed from 6.8 to 7 – the highest level since September 2007.
The Euro/Pound pairing is currently trading in the region of 0.8649
Economists expected the gauge to edge to 6.9 in August.
In response to the result researcher GfK commented: ‘the continued stability of employment prospects and a more moderate rate of inflation caused optimism to rise.’
The EUR/GBP pairing could experience additional movement in response to this morning’s UK Lloyds Business Barometer for July and German inflation data.
German inflation has been forecast to slow in July for the first time in three months.
One Frankfurt-based economist noted: ‘Inflation is under control and inflation expectations are firmly anchored, both in Germany and the Euro area. If anything, risks to the rate are on the downside.’
Euro (EUR) Exchange Rates
As of 08:45
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3260 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8649 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4633 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6582 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3643 >