The Euro has made gains against the Pound and managed to recover some ground against the US Dollar after data revealed that consumer confidence in Italy jumped to its highest level in two years as optimisms grows that the Mediterranean country is on the verge of emerging from recession.
According to the Italian statistics office its confidence index climbed to 101.1 in September, up from the 98.4 recorded in the previous month. It is the highest level recorded since June 2011 and beat economist expectations of a reading of 98.5.
“The survey shows some improvement in the current climate and economic situation, probably supported by less restrictive fiscal conditions, Italian households remain cautious on future developments, well aware that the political situation remains at risk” said Annalisa Piazza, an analyst at the Newedge Group.
The cause for the rise in confidence is likely a result of encumbered Prime Minister Enrico Letta’s approval of the scrapping of a controversial property tax and the reduction in the number of Italians out of work. Looking to the future the Italian government believes that the country will exit recession in the final quarter of 2013 and will begin to expand in 2014.
Also supporting the single currency was the release of data showing that Business confidence in France beat economist expectations by coming in at 95, above the 91.39 forecasted. German consumer confidence also improved more than expected by rising from 7.0 to 7.1.
Thursday sees the release of more data from France and Italy with consumer confidence and retail sales due for release respectively.
Euro (EUR) Exchange Rates
As of 10:30 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3489 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8430 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4440 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6391 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3913 >