The Euro managed to firm away from Thursday’s one-year low and pushed higher against the Pound following the release of disappointing data out of the UK.
According to data published by the UK’s Office for National Statistics, industrial and manufacturing production stagnated unexpectedly in November. The data also showed that the country’s construction sector fell by its biggest margin in more than a year. The data suggests that the UK economy could have struggled to maintain its positive momentum in the fourth quarter of 2013.
The Euro found support after credit ratings agency Standard & Poor’s affirmed that Germany’s credit rating remained at the AAA grade. S&P said that the nation’s ‘highly diversified and competitive economy as well as the government’s record for prudent fiscal policies’ was the reason for its decision.
Spain too provided some support after data showed that on a year by year basis industrial output in the nation was up by 2.6%, smashing economist forecasts for a decline of -3.31%. Business confidence also came in better than expected.
Eurozone GDP data widely matched forecasts. On a quarter by quarter basis GDP across the single currency region is expected to expand by just 0.1%, down from the previous quarter’s figure of 0.3%.
The market’s attention will now be focused on this afternoon’s US non-farm payrolls data. A stronger than forecast report will likely send the US Dollar higher against the Euro as economists will increase their speculation that the Federal Reserve will choose to taper its monetary easing programme quicker than initially expected.
Sterling could recover ground late in the session if the NIESR GDP estimate bets forecasts. A stronger than expected figure will further highlight the divergence occurring between the UK and Eurozone economies.
Euro (EUR) Exchange Rates
As of 10:45 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3593
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5284
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4760 >
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 142.7087 <
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2344 <
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.2069
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6543 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6057 <
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6775
