The Euro exchange rate strengthened against the Pound Sterling (EUR/GBP) and US Dollar (EUR/USD) as a report showed employment in the Eurozone improved slightly in the third quarter and annual industrial production beat forecasts.
The EUR/GBP Exchange Rate Firmed as UK Data Disappointed
The Euro advanced against the Pound Sterling after a report released by the London based Office for National Statistics (ONS) showed that construction output in the UK made an unexpectedly sharp fall in October.
‘Both new work and repair and maintenance decreased, by 1.7% and 3.1% respectively. In the new work category, only public other new work saw an increase; all repair and maintenance work categories experienced a fall in work in October,’ said the ONS in its report.
According to the data, construction output declined by 2.2%, wiping out the 2.2% gain recorded in September. Year on year sector growth slowed to its lowest level since May 2013 by coming in at 0.7%. Economists had been expecting monthly growth of 0.7% and annual growth of 1.3%.
The Euro also made gains against the US Dollar and other peers as a report released by Eurostat showed that factory output across the 18-member Eurozone increased for a second consecutive month.
The report showed that production in the regions mines, utilities and factories increased by 0.1% on a monthly basis and increased by 0.7% from the same month in 2013.
The yearly figure beat economist forecasts but the monthly rise was just below expectations. The best performing nation was Ireland.
Also offering support to the single currency was a separate report, which showed that employment across the Eurozone improved slightly in the third quarter of 2014. According to the Eurostat figures, the number of people in work in the Eurozone inched higher by just 0.2% in the third quarter. The rise represents a yearly rise of 0.6%. The report also showed that there were 148.2 million people in work in the Eurozone and 226.9 million in the wider European Union.
There was some sign of improvement in Greece, which saw job growth improve by 1.7% compared to the second quarter. Other strong performers were Lithuania, which saw growth of 1.5%, and Portugal, which saw growth of 1.4%.
The worst performers were Latvia, which saw a 1.7% fall in job numbers, and Malta, which saw a decline of 0.8%.
Euro Exchange Rates:
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