Ahead of next week’s growth report for the Eurozone the Euro is edging away from yesterday’s seven-week high against the US Dollar but remains softer against the Pound.
Economists are expecting that next week’s GDP report will show that the Eurozone’s economy returned to growth in the second quarter, expanding 0.2 per cent.
The 17-nation currency bloc’s economy has contracted for the last six quarters. If this result proves accurate it will be a strong indication that the Eurozone is finally emerging from recession.
The Euro/Pound pairing is currently trading in the region of 0.8605
Positive trade data from China continues to support higher-risk assets like the Euro, and the currency is expected to largely retain this week’s gains against the US Dollar as we head into the weekend.
The Pound has been supported this week by a stream of positive news for the UK. If today’s domestic trade balance and construction output figures also impress the EUR/GBP pairing could extend declines.
In other Eurozone news, a report published by the INSEE statistics agency revealed that French industrial output shrank by 1.4 per cent in June, month-on-month. Economists were expecting output to increase by 0.1 per cent, so this is a bit of a knock to the recovery of the Eurozone’s second largest economy. However, output was 1.4 per cent higher quarter-on-quarter.
Euro (EUR) Exchange Rates
As of 08:50
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3374 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8605 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4625 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6756 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3793 <