The Euro softened against the Pound and pared its gains against several of its peers after data out of the Eurozone came in below economist forecasts. Against the US Dollar the Euro retreated from its two-year high.
The single currency weakened after data showed that manufacturing activity in the Eurozone expanded a slower than expected rate in October showing that the region’s economic recovery remains sluggish and vulnerable to global factors.
France was the nation which caused the most concern after its manufacturing and services sector retreated after the previous month’s gains. According to the market research group Markit, France’s manufacturing PMI declined for a second month to 49.4 in October, down from the 49.8 recorded in September. Economists had been expecting a rise to 50.1. The nation’s service sector fell to 50.2 from the previous reading of 51. Economists had forecasted for a rise to 51.3.
A reading above 50 indicates expansion, a figure below indicates contraction.
Germany, the Eurozone’s largest economy also caused concern after the data showed that the nation’s private sector expanded at its slowest pace in three months. The wider Eurozone also posted a decline with business growth for the wider region fall unexpectedly.
“The dip in the PMI will remind policy makers that a sustainable upturn is by no means assured, and adds confirmation to the European Central Bank’s view that the recovery is slow, uneven and fragile. Attention is likely to be focused on whether the region requires more policy action to boost the recovery rather than on the timing of any withdrawal of stimulus” said Chris Williamson, Chief economist at Markit.
The Euro did manage to receive some support however after it was revealed that unemployment in Spain fell slightly in the third quarter of the year.
Euro (EUR) Exchange Rates
As of 11:15 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3806
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8536
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4345
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6485
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4370
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 134.4502
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2299
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1715
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7242
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6971
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6067
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6961
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8131