The Euro exchange rate was mixed against the majority of its peers on Friday as data showed that economic confidence in the single currency bloc fell unexpectedly in June.
Data released today showed that consumer confidence in the Eurozone fell more than expected this month. Business confidence and sentiment in the region’s industrial sector also softened more than forecast as concerns over geopolitical issues and the European Central Bank’s policy changes earlier in the month weighed.
Today European Union leaders signed a partnership deal with three former Soviet nations, much to the annoyance of Russia. Ukraine, Moldova and Georgia all signed a deal to make closer ties to the EU and the West. Such a move has been the main cause of the conflict between the Ukrainian government and Pro-Russian Separatists.
Moscow is concerned over the geopolitical issues which could arise, the whole idea of former Soviet states, countries that Moscow still views as being within its sphere of influence, drifting towards Europe and one day possibly becoming part of the EU really grates with Moscow, particularly in the case of Ukraine.
According to the data final consumer confidence slipped to -7.5 in June, a fall from the previous month’s figure of a fall of -7.1. Business confidence meanwhile dropped to 0.22, a fall from the prior month’s revised figure of 0.36. Industrial sentiment also waned from the previous months revised -3.1 figure to -4.3.
Economic sentiment as a whole dipped from a revised figure of 102.6 to 102.0 in June.
Today’s deal between the EU and the former Soviet nations is likely to exacerbate tensions in Ukraine and could see relations between Russia and Europe come under even more strain.
Also weighing upon the Euro was a report which showed that the French economy failed to post any growth in the first quarter. Retail sales and inflation data out of Spain also disappointed.
Euro Exchange Rates:
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.3613 ,
Euro,,British Pound,0.7997 ,
Euro,,Australian Dollar,1.4463 ,
Euro,,Canadian Dollar,1.4555 ,
[/table]
