The Euro is holding steady against the Pound and US Dollar after the latest Bank of England inflation report stifled the currency’s gains.
Further positive news from Germany would have sent the single currency higher but BOE governor Mark Carney drew investor attention after citing that the UK Central Bank will not raise interest rates until unemployment in the UK drops to 7%.
Meanwhile in Germany, data showed that industrial production in Europe’s largest economy increased in June, adding to signs that the Eurozone is on the brink of beginning a recovery.
According to the Berlin based Economy Ministry, output increased by 2.4% in June, up from the 0.8% fall recorded in May. Economists had been forecasting a rise of just 0.3%, on a year-by-year basis production climbed by 2%.
“Overall the manufacturing sector seems to have overcome its period of weakness. Current economic sentiment indicators are pointing to a continuation of the positive trend production” said the Economy Ministry.
Germany is benefitting from the improving picture in the rest of the Eurozone which is its biggest trading partner. Factory orders in the country jumped to an eight month high in June after being boosted by contracts signed at the Paris Air Show.
“The crisis is slowly ebbing. Hard economic data are following broad-based improvements in sentiment. That supports the gradual economic recovery we expect to see in Germany and the Euro area in the remainder of the year” Thilo Heidrich an economist at Deutsche Postbank AG told Bloomberg.
The Euro will see further movement tomorrow as the European Central Bank publishes its monthly report. German trade data is also due for release and is likely to show improvement.
Euro (EUR) Exchange Rates
As of 12:00 pm GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3276 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8674 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4848 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6814 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3835 >