With Sterling still buoyant following yesterday’s encouraging UK growth data, the Euro began the European session softer against its British peer.
The common currency retained gains against the US Dollar overnight but was struggling against Sterling ahead of today’s influential Eurozone data releases.
While the Euro fluctuated modestly as the German import price index declined by more than expected (dropping 0.7 per cent in October, month-on-month, rather than the 0.3 per cent forecast) movement was limited prior to the publication of German unemployment figures.
The Euro is currently trading against the Pound in the region of 0.8338
This morning’s unemployment report showed that the number of jobless individuals in the Eurozone’s largest economy increased for a fourth month, adding to signs that the currency bloc is experiencing a patchy economic recovery.
Although economists expected the number of unemployed to remain unchanged in November, it actually increased by 10,000 following a revised increase of 3,000 the previous month.
The seasonally adjusted unemployment rate held at 6.9 per cent as forecast.
According to analyst Andreas Moeller; ‘Germany’s economy is growing at a moderate pace in the fourth quarter and this is reflected in the number of unemployed. Low demand in other Eurozone-economies is affecting exports in a moderate way, while income and investment are growing stronger.’
Yesterday the Euro was supported by the news that German Chancellor Angela Merkel finally formed a coalition government with the Social Democrats. A better-than-expected increase in German consumer confidence also boosted the common currency yesterday.
While the Euro softened against several of its most traded currency counterparts in response to the German data, with Eurozone consumer/economic confidence reports and German inflation figures still due for release additional Euro volatility is likely.
Euro (EUR) Exchange Rates
As of 09:25 GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3601 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8338 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4630 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6647 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4404 >