The Euro made further gains against the Pound on Wednesday as yesterday’s dovish comments by Bank of England Governor Mark Carney continued to weigh upon the UK currency.
Earlier in the session the single currency found support after a report compiled by the Nuremberg based GfK Institute showed that consumer confidence in Germany, the Eurozone’s largest economy, looks set to rise in July as optimism increased following the European Central Banks decision to slash interest rates and introduce a negative deposit rate for the regions banks.
“The ECB’s renewed cut of its key interest rate to 0.15% and its introduction of a penalty rate on bank deposits placed with the central bank have provided an important boost to the consumer climate in Germany and been a significant factor in the indicator rising this month,” the GfK Institute said in a press release.
The Gfk confidence indicator is set to rise to 8.9 next month following the upwardly revised 8.6 figure recorded this month. Economists had been expected the figure to remain unchanged.
The institute warned however that a further escalation in the conflicts in Ukraine and Iraq would likely negatively impact confidence.
Further Euro gains were restrained after a separate report showed that business confidence in France fell more than expected in June and as industrial production eased in Austria.
The Euro to GBP exchange rate is trading around 0.8017.
Data out of Italy meanwhile showed some improvement with the nation’s retail sales rising more than expected. Strangely consumer confidence fell.
With no market moving data due for the UK and Eurozone now due until Friday the EUR/GBP Exchange rate will be impacted by events in the USA and elsewhere.
Euro Exchange Rate News:
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