While the Euro dipped briefly yesterday following the publication of disappointing PMI data for Germany and the Eurozone, the common currency recovered losses against the US Dollar and returned to trading in the region of a two-year high.
The Euro was supported against the majority of its most traded rivals by the expectation that a gauge of German business confidence would climb for a sixth month.
According to economists’ estimates, the Ifo’s business climate index advanced from 107.7 in September to 108 in October, a two year high and further proof that the largest economy in the Eurozone is strengthening.
Prior to the report’s publication economist Lothar Hessler stated; ‘In Germany, the economy has turned the corner and embarked on a sustained recovery. Of course, the level of the second quarter can’t be maintained but private consumption and investment are increasing and putting the economy on an increasingly solid footing’
The Euro is currently trading against the US Dollar in the region of: 1.3812 >
But the German confidence data failed to reach estimates, with the business climate index slipping to 107.4, the gauge of current assessment falling to 111.3 and a measure of IFO expectations tumbling to 103.6.
As a result the Euro could pare gains in the hours ahead.
However, additional EUR/USD fluctuations can be expected to occur this afternoon following the publication of US durable goods orders data and confidence figures.
While this morning’s Eurozone news will influence the EUR/GBP pairing, UK GDP data is likely to be a more significant cause of movement.
Euro (EUR) Exchange Rates
As of 09:00
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3812 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8527 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4396 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6614 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4388 >