The Euro is having a mixed session on Wednesday, making gains against the heavily weighed upon US Dollar but weakening against the Pound and Swiss Franc as the UK saw better-than-expected jobs data.
Data released earlier in the session showed that inflation across the Eurozone fell to a three and a half year low in September, meeting economist expectations. According to Eurostat inflation fell as inflationary pressures eased amidst a weak Eurozone recovery and stifled demand from domestic consumers. The rate of consumer price inflation across the single currency region fell by 1.1% year-on-year in September to its lowest level since February 2010.
Other data released showed that the Eurozone’s foreign trade surplus grew in August rising to €7.1 billion from the previous year’s €4.6 billion. The rise comes after exports weakened less than expected and imports fell by 7%. Countries in the Southern periphery of the region such as Greece and Portugal saw exports improve increasing hopes that their economies are strengthening after several years of crippling austerity and budget cuts.
Greek exports rose by 6% in the first seven-months of the year whilst Portugal saw a rise of 4% in the same period.
Normally the positive data would lend support to the single currency but as the budget and debt ceiling saga rolls on in the United States investors are taking a cautious stance. The Euro weakened against the US Dollar after credit ratings agency Fitch threatened to cut the USA’s triple A rating. The ratings agency said that the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
With the US 16 days into a government shutdown, and just hours away from the point at which the Treasury no longer has authority to borrow, there are signs that economists are running out of faith that a deal will be reached. The closer the deadline comes without a solution in sight the more likely it is that investors will choose to favour safer haven currencies such as the Japanese Yen and Swiss Franc.
Euro (EUR) Exchange Rates
As of 10:50 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3529
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8438
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4188
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6067
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3988
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 133.0894
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2345
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1847
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7391
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7047
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6223
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.7127
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8099
