The Euro managed to recover some ground against the Pound yesterday but is trading softer on Friday as economists await the release of key US data and as a report showed that factory orders in Germany fell.
The data out of Germany, Europe’s largest economy, showed that factory orders declined more than forecast in October, suggesting that the Eurozone recovery is anything but. Instead of things showing much improvement across the Euro region, recent data releases have shown declines in many aspects of the economy. If there is a recovery then it appears to be an uneven one.
According to the Berlin based Economy Ministry, factory orders declined by 2.2% in October, down from the 3.1% recorded in September. Economists had been expecting the number of orders to have fallen by 1%. Unemployment in the country increased for a fourth consecutive month in November with the number of people out of work rising by 10,000 to 2.985 million.
Sterling found support earlier in the session after a report showed that UK house prices climbed at their fastest pace in more than six years in November. The upward trajectory is expected to slow in the coming months according to Halifax as weak wage growth puts pressure on consumer finances.
In month-on-month terms, prices rose 1.1 percent from October, more than economists had expected but slower than a revised 1.3 percent increase in October, It was the 10th consecutive monthly increase in house prices, the longest such run since early 2003 Halifax said.
Investor attention will now be focused on this afternoon’s key US jobs data.
Euro (EUR) Exchange Rates
As of 11:45 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3669
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8356
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5077
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6675
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4575