After softening against the Pound yesterday as UK housing data bolstered the British currency and Italian political concerns piled on the pressure, the EUR/GBP pairing was little changed as the European session opened.
However, the Euro was able to gain on the US Dollar overnight as the ‘Greenback’ posted widespread declines in response to the volatility-inspiring Federal shutdown.
A mixed bag of domestic data is likely to trigger additional Euro movement in the hours ahead.
The Euro/Pound Sterling pairing is currently trading in the region of 0.8357
One report published this morning revealed a shocking 25,000 increase in German unemployment, with the surge pushing the jobless rate of the Eurozone’s largest economy to 6.9 per cent in September.
German manufacturing PMI also failed to expand by as much as originally estimated, prompting this response from economist Tim Moore; ‘Despite output volumes remaining on an upward tilt, manufacturers were cautious about their payroll numbers during September, reflecting relatively subdued demand from emerging markets’.
Italy’s unemployment rate also delivered a negative surprise, rising to 12.2 per cent in August instead of holding at 12.1 per cent as forecast.
Meanwhile, in better news, Markit’s manufacturing gauge for the Eurozone came in at 51.1 in September, in line with a previous estimate and confirming a broad-based recovery in the currency bloc’s manufacturing sector.
In a statement published with the result economist Chris Williamson commented; ‘An improvement in Eurozone manufacturing business conditions for a third straight month in September sends a reassuring signal that the sector is providing an all-important lift for a region that has been besieged by recession.’
If unemployment figures for the Eurozone add to today’s concerning employment news the Euro is likely to weaken against the majority of its peers as European trade progresses.
Euro (EUR) Exchange Rates
As of 09:15
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3569 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8357 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4413 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6278 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3968 >
