In the aftermath of yesterday’s European Central Bank rate decision the Euro softened against the majority of its rivals, weakening against the US Dollar, Pound and Yen.
As expected by economists the central bank opted to hold rates at record lows, while ECB President Mario Draghi issued a cautious statement in an attempt to rein in enthusiasm regarding the Eurozone’s economic recovery.
In response to the Euro’s movement economist Jessica Hinds stated: ‘Despite the string of better economic numbers over the summer in the Eurozone we still expect the region to underperform the US and UK.’
Loses against the Pound and US Dollar were exacerbated as both currencies benefited from positive domestic news.
The Euro/Pound pairing is currently trading in the region of 0.8421
This morning the Euro consolidated its decline as a report showed that German exports unexpectedly dropped. On a seasonally adjusted basis exports fell 1.1 per cent from June. Economists forecast an increase of 0.7 per cent.
The less-than-impressive result prompted this response from economist Hiroki Shimazu; ‘It will be difficult to continue the very rapid pace of growth that we found in the past quarter [but] we’ve seen many signs of recovery, from the decrease in unemployment in Spain to good news out of Portugal.’
After hitting its lowest level against the Pound since May 6th the Euro was little changed this morning, and the EUR/GBP pairing may ease lower if today’s UK manufacturing and industrial production figures meet or exceed expectations.
US non-farm payrolls figures, due out at 13:30, will be the main driver of EUR/USD movement.
Euro (EUR) Exchange Rates
As of 09:00
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3127 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8421 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4361 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6548 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3745 <