The Euro is mixed against its peers after a plethora of data releases painted a mixed picture for the region, retail sales fell and many Eurozone countries posted weaker than expected services PMI data.
According to GDP data released by Eurostat, the Eurozone economy expanded by 0.1% quarter-on-quarter in the third quarter was unchanged from its preliminary estimates and in line with market expectations. The economy shrank a seasonally adjusted 0.4% year-over-year in the third quarter, also in line with forecasts. The data lends further credence to speculation that the previously hailed recovery has stalled.
Eurostat also released retail sales figures which showed that in the euro area sales fell to 0.1% year-on-year in October following a 0.3% growth in September. Economists had expected the sales to grow 1.0% annually. Sales on a month-over-month basis dropped 0.2% in October, weaker than estimates for a 0.1% growth following previous month’s 0.6% drop.
A separate report by Markit which measures business activity in the Eurozone fell in November. Its composite PMI fell to 51.7 in November, a fall from the 51.9 recorded in the previous month. The PMI for services also showed a decline.
France and Italy reported worse than forecast PMI figures with the formers coming in at 48 and the latter’s at 47.2. A figure below 50 indicates contraction whilst above means expansion. Spain on the other hand showed further signs that its economy is stabilising as its services PMI beat forecasts, retail sales however came in worse than expected.
The Euro managed to make slight gains against the Pound following the release of the data and as the services PMI for the UK came in weaker than the previous months figure.
Investors will now be looking ahead to Thursdays European Central Bank policy meeting where Bank President Mario Draghi is expected to refrain from making a further cut to interest rates.
Euro (EUR) Exchange Rates
As of 11:00 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3590
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8309
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5068
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6597
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4498
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 139.3769
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2284
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.2032
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7357
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6633
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6022
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6896
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8141
