The Euro strengthened against the Pound to hold at a two-month high due to the release of positive retail sales data out of Spain and Ireland.
According to the Spanish National Statistics Institute (NSI), retail sales in the struggling European country increased for the first time in three years. The data buoyed hopes that the country’s economy is flickering back to life as it emerges from its two-year long recession which has seen joblessness soar and austerity devastate communities.
Retail sales increased by 2.2% on a year by year basis in September, a sharp jump from the 4.8% drop recorded in the previous month. Economists are urging caution not to get too excited by the data as it coincides with an increase in sales tax. When the tax hike was introduced in August sales fell so it is natural for them to have increased in September as consumers factored in the tax increase.
“We’ve not seen a rise in retail sales for many years but the comparison is with a month last year in which retail sales plummeted due to the sales tax rise, It’s a good figure, but we need to wait a couple of months before drawing any conclusions,” said Jose Luis Martinez, an economist at Citi in Madrid.
On Wednesday the NSI is expected to confirm that Spain exited its record long recession in the third quarter of the year as a strong tourist season helped nudged the nation’s economy back into growth. Whether it will begin a period of successive growth is unknown with some economists not having very high hopes of a continued expansion.
Ireland also recorded a rise in monthly retail sales. According to the data, sales rose by 0.5% in September, up from the fall of 1.6% in August.
Euro (EUR) Exchange Rates
As of 11:30 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3765
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8559
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4477
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6676
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4364
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 134.2875
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2359
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1683
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7264
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6907
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5996
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6961
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8091
