The Euro to Pound exchange rate is little moved after yesterday’s decline was countered by positive German factory orders data and a weaker than expected UK house price report.
Following yesterday’s European Central Bank policy meeting and press conference the Euro dropped sharply against the Pound. Dovish comments by ECB President Mario Draghi did little to ease investor concerns over the risk of deflation to the Eurozone.
On Friday the single currency recovered ground after a report showed that German factory orders increased in February, adding to signs that Europe’s largest economy is seeing its rate of economic growth increase.
According to the German Federal Statistics Office, new factory orders rose by 0.6%. The figure was better than economist forecasts for a gain of 0.2%. The data suggests that domestic demand is cushioning the impact of falling demand from overseas.
“The emerging market turbulences and the cold winter in the US may have at least temporarily prevented further growth in export orders. Domestic demand and especially consumption are increasingly taking over the role of exports as growth locomotive. That insulates Germany a bit from troubles abroad and should continue to help the Euro crisis countries via increased German imports,” said Christian Schulz, senior economist at Berenberg Bank.
Retail sales data out of Greece showed that retail sales fell by -1.9% on a yearly basis in January. The decline was less than economist forecasts and was an improvement on the sharp -6.1% decline recorded in December.
Retail sales in Greece plummeted by 40% between 2009 and 2013 due to the austerity measures imposed under the terms of its international bailout by the Troika.
The Pound meanwhile came under pressure early in the session from a report released by the Halifax showed that UK house prices fell unexpectedly in March. According to the Halifax index prices fell by 1.1%, confounding economist expectations for a rise of 0.7%.
Most investors are now looking ahead to the afternoon’s eagerly anticipated US nonfarm payrolls report. If it comes in strongly then we can expect both the Pound and Euro to weaken against the US Dollar.
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,1.3705 ,
Euro,,British Pound,0.8264 ,
Euro,,Australian Dollar,1.4824 ,
Euro,,Canadian Dollar,1.5095 ,