Although the Euro softened slightly against the Pound this morning as a UK housing report showed a 0.5 per cent monthly price increase, the common currency paired its decline against the US Dollar as German inflation data met forecasts.
The common currency was supported yesterday as the European Central Bank announced plans to improve trade conditions with the world’s largest economy by setting up a currency swap line with the People’s Bank of China.
Minutes from the most recent ECB policy meeting, in which the Eurozone’s gradual economic recovery was referred to, also gave the Euro a boost.
That being said, the Euro did go on to experience fluctuations after European Central Bank President Mario Dragh asserted that the pledge to hold interest rates at record lows allows for further reductions in borrowing costs if markets remain tempestuous.
Speaking in New York, Draghi stated; ‘The Governing Council has unanimously agreed to incorporate an easing bias that explicitly provides for further rate reductions, should the volatility in money market conditions return to the levels observed in late summer.’
The Euro/Pound Sterling pairing is currently trading in the region of 0.8484
However, after today’s German inflation data showed annualised, EU harmonised consumer price inflation held at 1.6 per cent in September, as expected by economists, the Euro strengthened against its US rival.
As the European session progressed, news that UK construction output unexpectedly declined in August ensured that the EUR/GBP pairing recovered its earlier modest declines.
The Euro is now heading towards the weekend poised for a five-day gain on its British rival.
Euro (EUR) Exchange Rates
As of 10:05
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3559 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8484 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4320 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6276 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4081 >