The Euro weakened against the majority of its peers as investors continue to focus on the ongoing situation in the United States.
The single currency found little support despite the release of data out of Germany which showed that investor confidence increased for a third for third consecutive month in October. The data suggests that Europe’s largest economy is holding up against the uncertainty being created by the US fiscal impasse.
According to the ZEW Centre for European Economic Research its index of investor and analyst expectations rose to 52.8 in October, up from September’s reading of 49.6. The figure is also the highest level recorded since April 2010. Economists had been expecting no change in the figure. The data suggests that the Germany economy is on track to make a strong recovery following its recent slowdown.
“Today’s ZEW index gives the impression that analysts believe in the invulnerability of the German economy, the new dark clouds coming from the other side of the Atlantic have not yet blackened analyst optimism,” said Carsten Brzeski, senior economist at ING Groep NV.
Elsewhere, the Index of Eurozone economic sentiment climbed to 59.1 in September, the highest reading since September 2009 and higher from Augusts’ level of 58.6. Economists had expected sentiment to rise to 59.4. On the index, a level above 0.0 indicates optimism; a level below 0.0 indicates pessimism.
“Indicators for Germany and the euro area are quite good but analysts are aware of the uncertainty stemming from the budget fight in the U.S.,” said an economist at Dekabank in Frankfurt. “In any case, we will see a second quarter of growth in the euro area and I’m very satisfied with its performance.”
Germany continues to hold the Eurozone out of recession and is the major beneficiary of the Euro. Mercedes-Benz recorded record sales earlier in the year and German exports rebounded in August. Ireland, Spain and Portugal are on track to exit their bailouts according to the ECB and European Commission.
Euro (EUR) Exchange Rates
As of 11:20 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3497
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8474
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4175
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6120
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: 133.1283
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2368
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1798
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7407
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7051
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6201
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.7147
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8084
