The Euro has strengthened against the majority of its peers but the gains made are less than investors had been expecting due to German investor confidence rising less than forecast in May.
According to the ZEW centre for European Economic Research, its index of investor and analyst expectations increased less than predicted. The figure rose to just 36.4, slightly up from the previous months reading of 36.3, but well below the 40 being touted by economists.
“Despite mostly positive economic data for the German economy, the ZEW indicator remains at the level of the previous month,” said ZEW President Clemens Fuest.
“This may be due to the still poor economic situation in the Eurozone, which is also reflected by the recent European Central Bank interest rate cut.”
The disappointed generated by the ZEW figures was countered by some better figures for the wider Eurozone. According to Eurostat, industrial production across the region rose by a seasonally adjusted 1% in March, more than double the forecasts of a paltry rise of 0.4%. Industrial production was 1.7% lower compared to the same month last year, better than expectations for a 2% decline.
The Euro hit two-week highs against the Pound, with EUR/GBP rising 0.23% to 0.8500 and was little changed close to three-year highs against the Yen with EUR/JPY dipping 0.05% to 132.03.
Despite today’s rise the Euro is expected to retreat once more over the course of the week due to expectations that the rest of the economic data due for release this week will not be in favour of the single currency. Eurozone GDP is expected to show contraction for a sixth-straight quarter.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2983
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8495
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3068
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5721
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7701
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1771
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7652
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6360
(Correct as of 11:25am GMT)