The Euro to Pound exchange rate recovered some ground after yesterday’s heavy losses, as investors embarked on a bout of profit taking of the Pound ahead of the Bank of England’s interest rate decision.
Data released today in the Eurozone did little to ease investor concerns over low inflation and the regions stagnating economic recovery.
Early in the session data out of France showed that industrial production fell in Finland, France and Italy. In its report the INSEE said that French production rose by just 0.1% in February, below expectations for a rise of 0.3%. On a yearly basis production fell by -0.1%. Finland’s production tumbled by -5.4% yearly and Italy’s dropped by -0.5% monthly.
Concerns over inflation in the Eurozone were not eased as data report from France, the Netherlands, and Greece showed that the rate of inflation in all of those nations came in below expectations. Monthly inflation rates in Ireland and Portugal however did come in above forecast.
The Euro was also supported as Greece made a successful return to the financial markets as it raised around €3 billion in its first bond sale for four years. An unemployment report also showed that the jobless rate in the austerity ravaged nation went down to 26.7% from 27.2% in January.
The Bank of England is expected to maintain interest rates at the record low level of 0.5% and maintain its quantitative easing programme at £375 billion.
The Euro is likely to experience volatility on Friday due to the publication of the latest inflation data out of Germany. A weak figure from there is likely to heighten worries over the threat of deflation and put further pressure upon the European Central Bank to take action.
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,1.3864 ,
Euro,,British Pound,0.8264 ,
Euro,,Australian Dollar,1.4677 ,
Euro,,Canadian Dollar,1.5078 ,