The Euro has extended its gains against the US Dollar following the publication of better-than-expected trade data and as investors wait for signs that may suggest that the Federal Reserve will choose to maintain its monetary easing programme.
The Euro firmed against the Dollar and Sterling after Eurostat released data which showed that the Eurozone’s trade surplus widened more than forecast in September as exports increased and demand for imports flat lined.
According to the report the 17-nation currency bloc’s trade surplus widened to €13.1 billion in September, well above the amount recorded at the same time in the previous year. The figure was also far better than €10 billion expected by economists. Exports out of the region rose by 3% following the 6% decline recorded in August whilst imports were stagnate after they fell by 7% in the previous month.
The surplus may have widened but the data shows that the region is struggling to make a positive headway in terms of growth. Due to the declines recorded in August, September’s higher figures were still unable to recover the losses suffered.
The data also showed that Portugal saw its exports fall by 3% in the first eight months of the year. Spain and Greece however saw some improvement with exports rising by 5%.
The US Dollar meanwhile remains weaker following last week’s comments by Federal Reserve governor nominee Janet Yellen who called for more monetary easing to ensure the world’s largest economy makes a robust recovery. Investors are also turning their attention to the publication of the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
Euro (EUR) Exchange Rates
As of 14:25 pm GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3524
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8391
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4368
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6139
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4095