Despite yesterday’s report showing that the Eurozone’s manufacturing sector is enjoying a broad based recovery, the Euro declined against the Pound for a fifth day and the common currency’s bearish relationship with its British rival continued overnight.
Yesterday Sterling was supported by the UK’s own positive manufacturing report, and with economists expecting this morning’s UK construction report to also show improvement the Euro continues to trade in the region of 84.72 against the Pound.
The Euro/Pound pairing is currently trading in the region of 0.8464
If the gauge of construction comes in at or above the estimated 56.9 level (down modestly from July’s 57 reading, but still above the 50 mark separating growth from contraction) the Pound could extend gains against the Euro.
In a relatively quiet news day, the main piece of Eurozone news to look out for is the currency bloc’s Producer Price Index, due out at 10:00 am. Economists are expecting the index to increase by 0.1 per cent month on month, and be up 0.1 per cent on the year.
Whilst this report may not inspire significant Euro fluctuations, the common currency is likely to remain supported against several of its peers ahead of the publication of data forecast to confirm that the Eurozone returned to growth in the second quarter, expanding by 0.3 per cent.
Additional currency market movement is likely to be triggered by today’s US ISM manufacturing report. If the result beats estimates for a reading of 54 it will throw US easing back under the spotlight and trigger further speculation regarding when the Federal Reserve will begin tapering.
Euro (EUR) Exchange Rates
As of 08:55
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3171 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8464 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4577 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6821 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3869 <