As the odds of the Federal Reserve tapering stimulus before the end of the year were raised by stronger-than-anticipated US manufacturing data and lacklustre Eurozone reports added to the case for the European Central Bank introducing additional easing measures the Euro plummeted to a six-week low against the US Dollar.
The Euro is currently trading against the US Dollar in the region of: 1.3509
The common currency also floundered against several of its other most traded peers as investors looked ahead to this week’s European Central Bank rate decision and policy announcement.
In response to the Euro’s movement, strategist Imre Speizer stated; ‘Sentiment toward the Euro has turned in the last few days and that’s been endorsed by some of their data disappointing. We wouldn’t be surprised to see Draghi just elevating slightly the chance for a rate cut which would keep the pressure on the Euro.’
However, this morning the Euro put in a stronger performance as a result of mixed economic data for the Eurozone.
While manufacturing PMI for France and Italy came in below expectations, manufacturing PMI for the Eurozone and Germany met and exceeded forecasts.
The German manufacturing sector expanded by 51.7 on October rather than the 51.7 expected.
This comment from Markit economist Tim Moore was published with the German figures; ‘Manufacturing business conditions improved again in October, with production volumes rising at a solid clip and new orders expanding at one of the fastest rates seen over the past two-and-a-half years. […] Meanwhile, manufacturers reduced their staffing levels again in October, but the renewed rise in backlogs of work may provide fresh impetus for job creation in the months ahead.’
Furthermore, Eurozone investor confidence surged in November, with the Sentix sentiment gauge leaping from 6.1 to 9.3 instead of increasing to 6.2 as expected.
While the common currency was supported by this news, gains against the Pound were limited as the British asset was also bolstered by positive domestic data.
EUR/USD movement was a little limited ahead of the release of US factory orders figures, although the Euro did move away from its previous six-week low.
Euro (EUR) Exchange Rates
As of 10:00
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3509 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8472 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4206 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6293 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4047 <