While the news that a US strike on Syria might be averted through diplomatic means helped the Euro advance on the US Dollar, the common currency continued to trade close to a 7-month low against the Pound as the British currency was supported by the expectation that tomorrow’s UK employment figures will show improvement.
The common currency may continue to soften against its UK counterpart in the hours ahead as a result of disappointing growth data for Italy.
Although economists forecast that the Italian economy contracted by 0.2 per cent in the second quarter after shrinking by 0.2 per cent in the first, it actually shrank by 0.3 per cent.
Given that the stability of the nation’s coalition is also hanging in the balance, this will be unwelcome news for Italy.
The Euro/Pound pairing is currently trading in the region of 0.8423
The result also reinforces the cautious stance adopted by European Central Bank President Mario Draghi following last week’s policy meeting. The ECB chief was keen to temper investor’s enthusiasm regarding the Eurozone’s economic recovery, reinforcing the fact that progress remains tentative.
Additional Euro movement may be limited today due to a lack of significant global economic news, but with German inflation figures scheduled for release tomorrow the EUR/GBP pairing could experience some notable mid-week movement.
Euro (EUR) Exchange Rates
As of 09:15
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3245 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8443 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4330 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6527 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3735 <
