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More gloomy data for the Eurozone

According to the statistics agency Eurostat, the Eurozone posted a fall of -0.2% in retail sales for September compared with August.

Retail Sales in the Eurozone fell again by -0.2% in September (consensus of -0.1%), but the annualized figure improved from -0.9% (revised from -1.3%) to -0.8%, beating a consensus of -1.0%. Eurostat points to fuel economization as the biggest drag. Earlier, the Spanish industrial output came in very gloomy with an annualized contraction extending from -2.5% (revised from -3.2%) to -7.0% in September, instead of the -3.6% consensus.

Looking at the figures compared to a September 2011, the retail sales index fell by 0.8pc in the Eurozone and increased by 0.3pc in the EU.In September 2012, compared with August 2012, food, drinks and tobacco increased by 0.8pc in the Eurozone and by 0.5pc in the EU. The non-food sector fell by 0.6pc in the Eurozone and rose by 0.1pc in the EU.

Outside the Eurozone and in the wider European region of the EU trade increased by 0.2%, suggesting that it is the Euro that is holding back the continents economic recovery. Non-Euro nations posted improved figures for retail sales with economists suggesting that nations like the UK are set to surpass Euro nations over the course of the next two years.

In Spain industrial output plunged in September with the beleaguered country’s factories slashing output as consumer demand plunged amongst the backdrop of recession and austerity cuts. Mines, utilities and factories lowered production by a massive 7% year-on-year, making it the 13th straight month showing a decline.

The Eurozone’s largest economy, Germany saw construction falling at an accelerated rate in October according the latest PMI data and construction work fell at a faster rate in October. The figure dipped from 48.6 to 44.6m the lowest level since July and the eight sub-50 reading in the past nine months.

The Euro has made gains against the US Dollar and the Pound due to increased demand for riskier currencies after President Obama won the US election.
Today, Euro traders should be focused on the Greek parliamentary vote regarding a new batch of austerity measures needed to be enforced in order for the embattled nation to secure a new round of bailout funds.
If the measures fail to be implemented then Greece could slide deeper into recession and potentially run out of cash by the end of the year. In such a scenario it is highly likely that investors will shift their funds to safe-haven assets, leading to a weakening of the currency.

The Pound to Euro exchange rate is currently trading at 1.2472

The Pound to US Dollar exchange rate is currently trading at 1.5987

The Pound to Australian Dollar exchange rate is currently trading at 1.5300

The Euro to US Dollar exchange rate is currently trading at 1.2817

The Euro to Pound exchange rate is currently trading at 0.8017

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