Eurozone data might be thin on the ground this week but global developments have helped the common currency climb against several of its rivals.
The Euro to Pound Exchange Rate is currently trading in the region of 0.8433 as of 11:15 GMT
The Euro jumped to a seven-month high against the US Dollar after months of build-up ended with the Federal Reserve opting to maintain stimulus and adopt a more dovish tone.
Meanwhile, the common currency climbed against the Pound as UK retail sales unexpectedly slumped by 0.1 per cent in August. Economists forecast stagnation.
However, if the Eurozone crisis flares up this Autumn, as some economists are predicting, the Euro’s recent show of strength could prove short-lived.
The EUR/GBP Exchange Rate hit a high of 0.8446
As it stands, anti-austerity demonstrations are occurring in Greece, Italy’s political situation looks remarkably unstable and the German elections are looming.
According to Commerzbank economist Jörg Krämer, we should’t be getting complacent about the Eurozone’s economic recovery just because of a quiet summer and improving data.
Krämer asserted; ‘On the one hand, we are seeing some progress, for instance in Spain, Portugal and Ireland. But on the other, we still haven’t seen a reform breakthrough on a broad front and particularly not in the largest crisis country – Italy. […] We have no seen reform efforts on a broad scale, and in the background we have the European Central Bank, which is camouflaging the crisis through its policy of cheap money and the prospect of government bond purchases. […] There is no economically viable alternative to a harsh austerity programme.’
And as well as aid packages for Spain, Portugal and Ireland running out this Autumn, France has also recently been criticised by EU finance ministers for fighting reform.
Whether or not these factors inspire a new crisis situation in the months ahead remains to be seen, but one thing’s for certain – Autumn/Winter 2013 is going to be influential for the 17 nation currency bloc.
Tomorrow additional Euro movement could occur in response to Eurozone consumer confidence figures.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3552 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8434 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4254 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6107 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7377 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1859 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7013 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6204 >
(Correct as of 11:15 GMT)
