Yesterday fears that the US budget talks could end in a federal shutdown, coupled with improving consumer confidence in Germany, saw the Euro advance on its US counterpart.
The common currency also gained on several of its other most traded peers ahead of tomorrow’s consumer confidence reports for the Eurozone.
The Euro/Pound Sterling pairing is currently trading in the region of 0.8405
That being said, the Euro has since weakened against the Pound and comments issued by Spanish Prime Minister Mariano Rajoy could wear on the Euro in the hours ahead.
During an interview with Bloomberg Television Rajoy asserted that under the guidance of the Organisation for Economic Cooperation and Development, Spain’s government may extend the reach of its overhaul of national labour laws.
Although Spain is fighting to emerge from a two-year recession, unemployment remains a serious concern, and the OECD has recommended implementing measures such as offering a single contract for all job types in order to combat the issue.
As it stands, Spain’s unemployment rate sits at a staggering 26 per cent.
Of the labour law reforms Rajoy said; ‘If it were necessary or useful to do a touch-up so that things worked better, have no doubt that we would do it.’
Rajoy also said of the Euro; ‘If the exchange rate was somewhat lower there’s no doubt that would be better for Spanish exports.’
In a light news day for the Eurozone Euro movement is likely to be dictated by global developments, with the EUR/GBP pairing fluctuating in response to UK growth figures and the EUR/USD pairing reacting to US initial jobless claims and personal consumption data.
Euro (EUR) Exchange Rates
As of 08:45
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3517 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8405 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4409 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6324 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3939 <