As the European session opened the Euro continued to trade in the region of a week-high against the US Dollar and was largely unchanged against the Pound.
Although a report published this morning showed that German producer prices unexpectedly declined in July, dropping by 0.1 per cent month-on-month rather than gaining the 0.2 per cent expected, Euro fluctuations were limited as investors look ahead to this week’s influential PMI data.
Year-on-year German producer prices increased by 0.5 per cent rather than the 0.7 per cent forecast.
The Euro/Pound pairing is currently trading in the region of 0.8526
The expectation that this week’s Eurozone and German PMI figures will show improvement supported the Euro against several of its major currency rivals.
As currency strategist Andrew Salter observes, in the currency bloc there are ‘some signs growth is starting to stabilise. […] Euro strength has coincided with the first quarter of positive growth in six quarters.’
Economists have forecast that a composite index of manufacturing and services in the Eurozone climbed from 50.5 in July to 50.9 in August. If the actual result meets or exceeds estimates the Euro could be boosted against the US Dollar and break away from its recent trading range against the Pound.
In a quite global news day Euro movement may be limited.
Elsewhere in the Eurozone, German Finance Minister Wolfgang Schaeuble asserted that his government had achieved its aims as regards economic recovery. Speaking about the upcoming election Schaeuble stated: ‘Over these past four years, the situation for people has improved.’
He did acknowledge however that ‘it’s going to be close. It’s going to come down to every vote.’
Euro (EUR) Exchange Rates
As of 08:50
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3332 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8526 –
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4736 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6708 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3817 >