Although the Pound is recovering slightly from the battering it took yesterday following the publication of disappointing industrial production and manufacturing data for the UK, the Euro was able to strengthen beyond 86 pence per Euro once more.
As the European session progressed the common currency climbed on several of its most traded peers, edging away from the lows recorded yesterday after European Central Bank Executive-Board Member Joerg Asmussen asserted that the central bank would keep rates low for at least a year.
While the currency market remains a little subdued prior to today’s major US developments (Federal Reserve Chairman Ben Bernanke’s announcement and the release of minutes from the latest Federal Open Market Committee policy meeting) the Euro was slightly supported by better-than-expected French data.
Industrial production in the Eurozone’s second largest economy fell by less than anticipated in May, according to statistics office Insee.
Economists expected April’s 2.2 per cent surge to be followed by a 0.8 per cent decline in May, but industrial production actually only fell by 0.4 per cent month-on-month.
Output was up 0.4 per cent in May from the same period of the previous year.
This data could help France, a nation struggling to recover from recession, post growth in the second quarter.
As one Milan-based economist asserts: ‘Momentum in factory activity accelerated much more than what business surveys suggested in the second quarter. Even assuming a further sizable correction in June, industrial production is likely to provide a solid positive contribution to second-quarter GDP.’
However, a separate report showed that industrial output in Italy climbed by less than forecast in May, rising just 0.1 per cent instead of posting the 0.3 per cent gain hoped for.
In the hours ahead US news is likely to be the main cause of additional Euro movement.
Euro (EUR) Exchange Rates
As of 11:45
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2817 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8606 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3936 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6334 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3458 >