As the European session opened the Euro gained on the majority of its currency rivals, boosted by the expectation of positive German data.
The German ZEW economic sentiment survey is due for publication at 10:00 GMT and economists are forecasting that the gauge climbed to 39.9 in August from 36.3 in July. If accurate this will be another strong sign that the recovery of the largest economy in the Eurozone is progressing and will provide a boost to the outlook of the 17-nation currency bloc.
The German ZEW current situation survey, also out at 10:00 GMT, is expected to have risen from 10.6 to 12.0 in August.
Meanwhile Eurozone industrial production data is expected to show expansion of 0.8 per cent in June following contraction of 0.3 per cent in May.
The Euro/Pound pairing is currently trading in the region of 0.8598
Earlier today reports showed that German inflation came in at 1.9 per cent in July, up from 1.8 per cent in June and the highest level since the close of 2012. The result matched economists’ predictions.
Annual food inflation in Germany is now at its highest level for almost five years, at 5.1 per cent.
EUR/GBP movement is also likely to occur in response to this morning’s UK inflation data.
The Pound was supported overnight by the news that an index of UK house prices achieved its strongest level for nearly seven years in July and is currently trading within touching distance of a month high against the Euro.
Euro (EUR) Exchange Rates
As of 08:50
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3306 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8598 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4543 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6605 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3707 >