Although the Euro initially posted a notable gain against the Pound after the common currency was boosted by the publication of minutes from the Federal Open Market Committee and Fed Chairman Ben Bernanke’s announcement, as the European session progressed and Eurozone news was released the EUR/GBP pairing returned to trading in the region of 0.8640.
As the Federal Reserve implied that present levels of easing would be maintained until certain aspects of the US economy (specifically employment and inflation) improve the Euro surged against the US Dollar, pushing above 1.30 US cents.
While the common currency dipped a little against a modestly rallying Pound, it was little changed against the US Dollar after the European Central Bank issued its monthly report.
In the report it was stated that interest rates will stay at ‘present or lower levels for an extended period of time […] The extended period of time over which the Governing Council currently expects the key ECB interest rates to remain at present or lower levels is a flexible horizon which does not pre-specify an end-date but is conditional on the Governing Council’s assessment of the economic fundamentals that determine underlying inflation.’
The report also intimated that further rate cuts may be considered.
Other factors weighing on the Euro today include data showing that unemployment in Greece hit a new record high of 26.9 per cent with youth unemployment rising to a staggering 57.5 per cent.
Demand at an Italian bond sale was also fairly limited.
The Euro/Pound exchange rate continues to trade above 86 pence per Euro.
Euro (EUR) Exchange Rates
As of 11:45 GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3044 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8639 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4173 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6539 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3549 <