The Euro firmed against the Pound on Thursday morning following the release of a number of confidence reports which came in slightly better than forecast.
Economic confidence in the region increased more than economists had expected in December, bolstering speculation that the European Central Banks policy makers will refrain from announcing stimulus measures when they announce their latest interest rate decision later in the session.
According to the European Commission an index of consumer and executive confidence increased from November’s figure of 98.4 to 100, beating expectations for a figure of 99 and means that it is the highest figure recorded since mid 2011.
Industrial production data out of Greece however showed that the region still faces an uphill battle to recover. Production in the crisis hit nation fell to -6.1% in November, down from the previous month’s figure of -3.02%.
Unemployment is expected to have risen as well.
Gains were limited against the Pound after data showed that the UK’s trade deficit narrowed slightly more than expected in November.
According to the Office for National Statistics the trade deficit narrowed to £9.44 billion from the previous figure of £9.65 billion. Economists had been expecting a fall to £9.45 billion. The data showed some positive news for the Eurozone in that UK exports to the region increased to their highest level since August, suggesting that the single currency region’s economy has improved slightly.
The EUR/GBP currency pair is likely to experience volatility later in the session following the ECB and Bank of England interest rate decisions. Payrolls data out of the US is also likely to shake up the markets when it is released in the afternoon.
Euro (EUR) Exchange Rates
As of 10:30 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3612
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8271
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5330
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6486
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4755
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 142.9160
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2366
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.2086
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7346
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6523
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6064
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6777
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8081
