The Euro fell against the US Dollar and a number of other currencies including the Pound as the markets continue to react to Wednesday’s comments from Federal Reserve Chairman Ben Bernanke that the US Central Bank will ease its monetary easing scheme later in the year.
Investors chose the safe haven US currency over the Euro despite data released on Thursday showing that the Eurozone’s private sector decline eased more than expected in May. The improved figures were not enough to convince investors to stick with the Euro as new order data showed a continuing slide suggesting that the Eurozone’s problems are far from over.
According to Markit, its Flash Composite Purchasing Managers Index rose to 48.9 in June, up from May’s figure of 47.7, the highest reading recorded since March 2012 and beating economist expectations for an upturn of 48.1.
Any figure below 50 marks a contraction. The PMI has been under that level for the past 22 months.
“The most encouraging picture is outside of France and Germany where the rest of the region is seeing the weakest rate of decline for two years – and it is only a modest decline,” said Chris Williamson, chief economist at Markit.
“At this rate we should see stabilization in the third quarter and growth appearing in the fourth. It’s corresponding with the view of policymakers of the second half of the year looking much better,” Williamson said.
In a sign that there would be a wait before any recovery took hold, new orders fell for the 23rd month, although the subindex rose to 47.4 from 46.8. The Eurozone appears to be slowly edging upwards towards growth but the pace is agonisingly slow. In the meantime the people of the region are battling the effects of mass unemployment and crippling austerity measures.
“It’s suggesting that things are moving in the right direction but it’s not going to happen fast. It’s still a weak picture,” Williamson said.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3182
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8538
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4349
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6982
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7562
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1679
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6950
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5895
(Correct as of 11:25 am GMT)
