Homepage » News » EUR/USD » Euro to US Dollar (EUR/USD) Exchange Rate Tumbles to Eight-Month Low; Euro to Pound (EUR/GBP) Falls

Euro to US Dollar (EUR/USD) Exchange Rate Tumbles to Eight-Month Low; Euro to Pound (EUR/GBP) Falls


The Euro (EUR) fell broadly on Friday as negative business climate data out of Germany and the publication of positive US durable goods and UK GDP data weighed upon the single currency.

The EUR/USD exchange rate fell to a fresh eight-month low of 1.343, the lowest-level seen since November last year and the EUR/GBP exchange rate weakened to 0.790.

Earlier in the session the Euro weakened after the IFO institute for Economic Research released a report which showed that business confidence in Germany (the Eurozone’s largest economy) dropped to its lowest level in nine months.

The business climate index fell to 108.0 this month, a fall from the previous month’s figure of 109.7 and was worse than economist forecasts for a figure of 109.4.

Initial further losses were restrained as a separate report compiled by GfK showed that its consumer climate index climbed to a seven-and-a-half year of 9.0 in July. The figure was better than the 8.9 reading seen last month and forecast by economists.

The Euro then slipped further against the Pound following the release of GDP data which showed that the UK’s economy has finally overtaken its pre-crisis peak.

According to the Office for National Statistics the UK economy has expanded by 3.1% since the second quarter of last year.

In the afternoon the US Dollar received a boost after a report showed a rise in durable goods orders. Data showed that US durable goods orders rose by 0.7% last month, better than the 0.5% rise forecast by economists and marked a reversal following the previous month’s revised figure of -0.9%.

The positive data combined with Thursday’s better than expected jobless claims data to send the ‘Greenback’ higher and increase speculation as to when the Federal Reserve will choose to raise interest rates.

The Euro has come under sustained pressure due to the diverging monetary policy directions of the European Central Bank, US Federal Reserve and Bank of England. More positive data out of the US and UK next week will likely see the Euro fall further.

Euro Exchange Rates

[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3434 ,
Euro,,British Pound,0.7910 ,
Euro,,Australian Dollar,1.4283 ,
Euro,,Canadian Dollar,1.4457 ,

As of 14:40 pm GMT