Yesterday’s upbeat manufacturing PMI for both the Eurozone and Germany helped lift the Euro above peers like the Pound and US Dollar.
The common currency was able to extend gains today following the release of ZEW economic sentiment surveys.
A gauge of economic sentiment for the Eurozone advanced in December while a measure of economic sentiment for Germany jumped to 62.0 and a seven-year high.
The result was significantly better than the 55.0 reading forecast by economists.
The Euro is currently trading against the Pound in the region of 1.3749
Today’s reports also showed an improvement in Germany’s perception of the current situation.
Speaking to reporters, ZEW economist Michael Schroeder stated; ‘The better situation in the United States, and the better outlook for the United States, it’s these international connections [which are making the difference].’
Similarly, another ZEW economist observed that the results indicate that the recession in the Eurozone is bottoming out and that Germany could post better-than-forecast economic growth next year.
Separate figures confirmed that the Eurozone’s consumer price index advanced by 0.9 per cent in November year on-year.
Meanwhile, UK inflation unexpected slowed to a four-year low in November, causing the Pound to decline against several of its main peers and dip towards a month-low against the Euro.
While the Euro will be highly responsive to the Federal Open Market Committee’s policy announcement (taking place tomorrow at 19:30 GMT) fluctuations may also be inspired by tomorrow’s domestic construction output and German business climate data.
UK employment reports will also be responsible for EUR/GBP volatility.
Euro (EUR) Exchange Rates
As of 08:50 GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3749 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8365 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5114 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6608 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4620 >