The Euro has strengthened against the Pound and a number of peers after the latest Euro-area investor confidence data posted an improvement as investors see a recovery on the horizon.
According to the Sentix research institute, Euro-area investor confidence rose in June as optimism increased that the Eurozone economy will make a return to growth this year and as turbulence in the sovereign debt crisis has eased.
The index showed that sentiment in the Euro area increased to minus 11.6, up from the minus 15.6 recorded in May. The figure beat economist expectations of a rise to minus 11.3. A gauge of economic expectations jumped to 7.3 from 2.8, while a measure of current conditions rose to minus 28.8 from minus 32.3.
The single currency continues to be supported by comments made last week by the European Central Bank President Mario Draghi, who said that the struggling Eurozone is expected to return to growth by the end of 2013.
The index’s improvement last month was thanks to “Draghi, who gave an important impulse with the latest ECB rate cut,” said an economist at Sentix.
Investors seem to have chartered in the confidence data and chosen to ignore some of the other data released on Monday. Italy remains a cause for concern after the nation posted worse-than-expected GDP data. The Italian economy contracted by -2.4% yea on year, beating economist expectations of a figure of -2.3%. On a quarter by quarter basis GDP contracted by -0.6%.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3219
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8514
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4019
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6781
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7563
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1745
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7129
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5955
(Correct as of 11:20 am GMT)
