The Euro to GBP exchange rate was little moved on Friday as both currencies were being weighed upon by events occurring earlier in the week.
Even as today’s Eurozone balance of trade data came in just above forecast the single currency found little direction. The regions trade balance edged higher to €17.1 billion in March from the previous months figure of €13.6 billion. The figure was just above the €17 billion forecast by economists.
The Euro remained under pressure following yesterdays worse than expected GDP data. According to data released by EuroStat the region’s economy grew by just 0.2% in the first quarter of 2014, half the amount expected by economists.
Concerns of a renewed Euro crisis were raised after separate reports showed that GDP declined in a number of Eurozone nations and Frances economy stagnated. The Netherlands saw a contraction of 1.4%.
Another report meanwhile showed that the Eurozone’s inflation rate remained unchanged at 0.7%, well below the European Central Bank’s target of 2%.
Adding to the string of negative news for the Euro was the release of data which showed that the number of cars sold in the region increased at its slowest rate in five months in April as concerns over the region’s economy weighed.
The European Automobile Manufacturer’s Association said that car sales increased by 4.2% year-on-year. Sales in Germany fell by 3.6% in April.
“The fall of car sales in Germany reflects consumer and investor concerns that other European countries problems could have an impact internally. The latest economic figures from France and Italy are worrisome for the entire region,” said the dean of Milan Polytechnic business school in a phone interview with Bloomberg.
Euro Exchange Rate News:
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