Angela Merkel was looking pretty pleased with herself over the weekend, and with good reason. The indomitable German Chancellor received assurance that the populace are behind her as the Christian Democratic bloc she heads up snatched 41.5 per cent of the vote in yesterday’s federal election.
The Euro/US Dollar pairing is currently trading in the region of 1.3512
The result helped the Euro advance on the US Dollar and Pound overnight, and the common currency retained gains after reports showed better-than-forecast expansion in the Eurozone’s services sector.
Improving sentiment and increasing domestic/foreign demand helped a gauge of activity in the Eurozone’s services sector climb from 50.7 to 52.1 in September.
Economists thought the measure would strengthen to 51.8 this month.
In response to the report economist Martin Van Vilet asserted; ‘The Eurozone economy has ended the third quarter on an encouraging note. But a further strong acceleration in the pace of recovery seems unlikely in the near term.’
However, a separate report showed the Eurozone’s manufacturing sector expanded by less than expected this month, slipping from 51.4 to 51.1.
Meanwhile the German services sector leapt from 52.8 to 54.4, with the nation’s manufacturing sector easing from 51.8 to 51.3.
The Euro was also supported as better-than-expected manufacturing data for China boosted the global trade outlook.
In a statement issued with the Eurozone’s composite PMI report Markit economist Chris Williamson noted; ‘An upturn in the Eurozone PMI in September rounds off the best quarter for over two years, and adds to growing signs that the region is recovering from the longest recession in history.’
In the days ahead, UK GDP figures are likely to inspire movement in the EUR/GBP pairing while any hints that the Fed may taper stimulus in October could see the Euro fall against the US Dollar.
Euro (EUR) Exchange Rates
As of 11:35
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3512 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8425 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4348 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6132 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3914 <