The Euro reversed its gains against the Pound on Thursday following the release of data which showed that industrial production in the Eurozone fell far more than economists had predicted.
According to Eurostat, industrial production in the 17-member Eurozone fell by 1.1% on a monthly basis, the biggest monthly decline seen since September 2012. Economists had been expecting to see a slight rise of 0.3%. The fall was a result of a 2.4% decline in the production of durable goods such as cars and electronics. Energy production tumbled by 4% and capital goods production fell by 1.3%.
The Republic of Ireland, which is exiting an international financial bailout, saw production plummeting 11.6 percent on the month, the worst performance since September last year.
Adding to the disappointing news was that retail sales in Holland also fell more than expected on a yearly basis in October. According to the Central Bureau of Statistics, sales fell by -1.5%, below forecasts of a decline of -0.2%.
The data weakened the Euro as it cast further doubt on the so called ‘recovery’. Recent data releases show that the hoped for economic rebound has stalled and almost ground to halt in the third quarter of the year.
Unemployment remains at record highs, business and consumer confidence also remains very weak.
The currency could recover some ground later in the session if consumer confidence data shows signs of improvement, something that is looking highly unlikely.
Euro (EUR) Exchange Rates
As of 10:40 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3773
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8400
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5213
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6570
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4560
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 141.5387
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2223
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1900
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7260
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6570
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6025
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6867
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8180
