The Euro has weakened against the US Dollar after the Eurozone’s Producer Price Index fell close to a four-year low due to a sharp decline in energy costs.
The 0.6% decline recorded between April and May marks the biggest month-on-month decrease since July 2009. According Prices at factory gates in the 17 Euro using nations declined by 0.6% in April from March, according the EU’s statistics office. Economists had been forecasting a decrease of 0.3%.
The year-on-year figure showed a 0.2 percent fall in April, after a 0.6 percent rise in the previous month.
Adding o signs that the Euro crisis has fully reached the heart of the Eurozone, both France and Germany showed falls in producer prices. Germany posted a decline of 0.2%, the third monthly fall in a row and France recording a decline of 0.9%.
The single currency did find some support against the Sterling and other currencies however after Spain posted an improving picture for its dismal jobs sector. Official statistics showed that 4.89 million were registered as jobless, the lowest level in six months.
The improving picture is being seen as a result of the upcoming summer holiday season. However, on a seasonally-adjusted basis, the number of jobless dropped by just 265 people compared with April.
Earlier this month, credit rating agency Fitch said it expected Spain’s unemployment rate to peak early next year at 28.5%.
The Spanish government itself is more optimistic, forecasting the jobless rate will ease to 26.7% over 2014 and drop back further to 25% in 2015.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3075
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8546
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3545
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6311
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7648
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1700
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7399
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6133
(Correct as of 11:00am GMT)
