Yesterday the Euro was able to strengthen against the Pound and power its way to an almost seven-week high against the US Dollar as several pieces of positive Eurozone news brightened the 17-nation currency bloc’s economic outlook.
Firstly a report showed that Italy’s recession slowed in the second quarter of the year.
Then data revealed that German factory orders rebounded by more than expected in June, jumping by 3.8 per cent.
The result followed a decline of 0.5 per cent in May and adds to signs that the Eurozone’s largest economy is regaining economic momentum.
According to currency strategist Camilla Sutton; ‘Stronger-than-expected German factory orders have been encouraging and support the view that, economically, the European outlook is finally beginning to turn.’
The Euro/Pound pairing is currently trading in the region of 0.8680
However, the Euro’s advance was limited after Peter Praet, a chief economist for the European Central Bank, intimated that interest rates could be cut from an already historic low of 0.5 per cent.
Gains in the EUR/GBP pairing were also tempered as the Pound broadly strengthened in response to positive UK housing and industrial production news.
With the Bank of England due to deliver its inflation report and German industrial production data still to be published, EUR/GBP volatility can be expected in the hours ahead. The BoE is expected to break with tradition and outline forward guidance in the inflation report. Industry experts expect that Governor Mark Carney will confirm that interest rates will stay at record lows until the employment sector picks up.
Today’s US consumer credit report is likely to be the main driver of EUR/USD movement.
Euro (EUR) Exchange Rates
As of 08:40
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3307 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8680 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4850 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6834 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3812 >