As the European session began the Euro was trading in the region of a two-month low against the Pound and was slightly softer against the US Dollar as last week’s less-than-impressive German employment data continued to weigh on the common currency.
The Euro extended declines as the Pound was boosted by a report showing that UK house price growth accelerated last month.
As economists have also forecast that this week’s UK manufacturing report will show that the sector expanded in August for a fifth month, the EUR/GBP pairing could dip further as the day progresses.
The Euro/Pound pairing is currently trading in the region of 0.8500
Additional Euro movement could also occur in response to this morning’s German manufacturing PMI, which signalled the most notable improvement in business conditions for more than two years.
Economists expected the index to hold steady at 52.0 in August, but it actually declined slightly to 51.8. However, the measure remains above the 50 mark separating growth from contraction.
In response to the data Markit economist Tim Moore asserted: ‘Augusts’ survey keeps the good news rolling in for the German manufacturing sector, with improvements in domestic sales and a rebound in export demand combining to generate the fastest expansion of output volumes since the middle of 2011.’
This news was followed by a second report showing that manufacturing in the Eurozone surged to a 26-month high of 51.4 in August.
Other Eurozone data to watch out for this week includes the nation’s producer price index, services PMI, GDP figures and retail sales report.
Investors will also be focusing on the run-up to the German election and paying close attention to any comments issued by Chancellor Angela Merkel in this influential time.
Euro (EUR) Exchange Rates
As of 09:10
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3221 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8500 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4718 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6927 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3919 <