Ahead of the publication of UK employment data the Euro was slightly stronger against the Pound, although trading in a very tight range. If UK jobs figures surprise to the upside Sterling could break away from its European cousin, although Eurozone inflation figures will also influence the pairing today.
Economists have forecast that the Eurozone’s consumer price index increased by 0.5 per cent in September, month-on-month and was up 1.1 per cent on the Year.
In other Eurozone news, Portugal has revealed plans to trim spending by 3.2 billion Euros in 2014.
The struggling nation has worked hard to overcome significant fiscal difficulties, but must meet budget deficit targets in order to exit its aid programme as planned.
Over the course of 2013 the Portuguese government has relied heavily on tax hikes in order to stick to the parameters of its Troika approved bailout. Spending cuts must be tackled next if the nation is to re-enter debt markets.
The Euro/Pound Sterling pairing is currently trading in the region of 0.8455
During a press conference Portugal’s Finance Minister Maria Luis Albuquerque asserted that the nation’s 2014 budget contains personnel cost cuts of 1.3 billion Euros. Albuquerque stated that ‘About 86 per cent of the permanent adjustment effort introduced by this budget is on the spending side’.
The budget revealed that state workers earning a monthly salary of over 600 Euros will have their incomes cut by anything from 2.5 to 12 per cent.
As well as outlining the budget breakdown, Albuquerque reasserted that the nation’s budget deficit targets stand at 5.5 per cent of GDP for 2013 and 4 per cent of GDP next year.
Spain and Ireland are also intending to exit their aid programmes next year, and with the Eurozone returning to growth both the currency bloc’s core and peripheral economies are gaining support.
While today’s Eurozone inflation data is of note, investors will largely be focusing on the US and the looming deadline for reaching the debt ceiling. If a default occurs the repercussions could be extreme, so markets are on tenterhooks as US lawmakers continue their attempts to thrash out a deal.
Euro (EUR) Exchange Rates
As of 09:00
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3524 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8455 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4177 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6075 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4027 <