The Euro is little moved against the Pound but did manage to recoup some losses against the Swiss Franc and US Dollar on Tuesday.
Investors widely ignored the release of low impact economic data as they instead kept a watchful eye on events occurring in the Ukraine. The Euro recovered some of Monday’s losses after market sentiment improved as Russian President Vladimir Putin ordered an end to military exercises in the west of the country. As the situation is ongoing the Euro could once again fall at a moment’s notice.
“We’re seeing something of a reversal of yesterday so stocks are higher and the moves in Euro-Swiss are consistent with that. Russian military exercises are being completed for now but we remain susceptible to headline risk,” said the head of currency strategy at Canadian Imperial Bank of Commerce.
Sterling softened slightly after today’s construction PMI data which came in below forecasts. The PMI showed that construction activity in the UK expanded slower than expected in February, potentially dampening some of the optimism over the UK economic outlook.
According to Markit and the Chartered Institute of Purchasing & Supply which made the PMI, output fell to a seasonally adjusted figure of 62.6, down from the previous month’s figure of 64.6.
Commenting on the report, senior economist at Markit David Noble said, “Bad weather took a bite out of progress in house building, but UK construction remains on a strong growth trajectory in February.”
All eyes are looking ahead to Thursday’s European Central Bank policy meeting. Economists are forecasting that ECB President Mario Draghi will refrain from introducing new stimulus measures after last week’s better-than-expected inflation data eased concerns over deflation risks to the Eurozone.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,British Pound,0.8246 ,
Euro,,Australian Dollar,1.5356 ,
Euro,,Canadian Dollar,1.5240 ,