Euro Exchange Rate News

Pound to Euro (GBP/EUR) Exchange Rate Fluctuates in Heavy News Day

London

The European session saw the release of a host of influential economic data and the GBP/EUR pairing reversed roles several times during the day as investors digested a mixed bag of news.

The Pound began trading softer due to yesterday’s disappointing services report for the UK and George Osborne’s spending cut comments, but Sterling recovered losses as a British Chambers of Commerce report implied that the UK’s economic recovery would continue this year.

The BCC data inspired this statement from currency strategist Lee Hardman; ‘The upward momentum in the UK economy will continue into this year and growth will be robust. Versus the Dollar, the good news about the economy seems to be more discounted.’

GBP/EUR gains were also limited as the Euro reacted to domestic data.

The Euro gained support from the news that the number of German’s out of work declined for the first time in five months in December.

According to figures compiled by the Federal Labour Agency, the number of unemployed declined by 15,000 at the end of 2013 instead of falling 2,000 as forecast.

The seasonally adjusted German unemployment rate held at 6.9 per cent, unchanged from November.

Separate figures showed that German retail sales increased by 1.5 per cent in November, month-on-month.

But Euro gains were limited by the less positive inflation data for the Eurozone. As the pace of inflation in the currency bloc slowed in December, adding to deflationary concerns, the odds of the European Central Bank introducing additional stimulus measures increased.

As observed by economist Peter Vanden Houte, ‘Today’s figures show that it’s too early for the ECB to become complacent about deflation risks, especially in peripheral countries. While we believe that for the time being the ECB will keep its monetary policy unchanged, not much is needed to push the central bank into action’.

Both the ECB and Bank of England are due to deliver their rate decisions later this week, but movement in the GBP/EUR pairing is also likely to occur as a result of tomorrow’s German trade balance and Eurozone retail sales/unemployment reports.

Euro (EUR) Exchange Rates

As of 15:00 GMT

The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.2040 >

The US Dollar/Euro Exchange Rate is currently in the region of: 0.7330 <

The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6543 <

The Euro/US Dollar Exchange Rate is currently in the region of: 1.3629 >

The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8304 <

The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5289 >

The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6458 >

The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4589 >

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