The Euro has firmed against the Pound and several other peers after data showed that confidence in the Eurozone’s largest economy rose to its highest level in more than a year, retail sales data out of Italy however proved to be dire suggesting that Germany is reaping the benefits whilst other Euro members suffer.
The IFO institutes business climate index jumped to 109.3 in November up from the 107.4 recorded in October. The figure was better than economist forecasts of a rise to 107.7. Germany is yet again powering ahead of its fell Euro using nations with unemployment falling at close to a 20-year low and factory orders climbing more than expected in September.
“Europe’s economy is still fragile and Germany faces risks from a slowdown in France,” said Hiroki Shimazu, senior market economist at SMBC Nikko Securities Inc. “But I think Germany is strong enough to support the Euro area economically over the next year and I believe we’ll see growth both in Germany and the Euro area.”
The disparity between Germany and other Eurozone members was made clear with the release of Italian retails sales data. The country’s economy is faltering and shows no sign that it will recover from its deepest recession over six decades. Consumer groups in the country are predicting that spending over the Christmas period will be even less this year falling by 11.2%.
According to the national statistics office Italian retail sales fell by 0.3% month on month but tumbled by 2.8% on a year by year basis. The monthly decline was the steepest fall in eight months.
Economists appear to be widely ignoring the weakening in France and Italy and instead are focusing on the positive news out of Germany. As for the regions so called ‘recovery’ it can only be called that if unemployment begins to fall substantially and improvement is evident in all members and not just Germany.
Euro (EUR) Exchange Rates
As of 10:45 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3514
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8343
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4755
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6571
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4277
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 136.8547
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2306
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1985
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7399
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6777
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6031
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.7004
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8125
