The Euro firmed against the Pound on Thursday after data out of Germany buoyed sentiment and as mortgage approval data out of the UK came in below economist forecasts.
The Euro was buoyed after data out of the Eurozone’s largest economy showed that the number of Germans out of work fell more than forecast in January as companies grow more confident in the region’s economic recovery.
According to the German Federal Labour Agency, the number of people out of work fell by a seasonally adjusted figure of 28,000, beating expectations for a fall of 5,000. The overall unemployment rate was at 6.8%.
Also supporting the Euro was the release of data which showed that economic confidence in the single currency region increased for a ninth-consecutive month in January. According to the Brussels based European Commission its index for of consumer and executive sentiment climbed to 100.9, up from the previous revised figure of 100.4. January’s figure is the highest recorded since 2009.
Even Greece provided some positive news as a business confidence report showed a rise. GDP data out of Spain also provided some support.
Euro Forecast
The Euro could push higher against the Pound as the session progresses especially if inflation data out of Germany comes in positively. The threat of deflation remains a drag on the Eurozone economy so any positive news on that front will support the currency.
Sterling fell below the 1.21 mark after a report showed that new mortgage approvals in the UK increased less than expected.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.3593 ,
Euro,,British Pound,0.8263 ,
Euro,,Australian Dollar,1.5554,
Euro,,Canadian Dollar,1.5196 ,
Pound,,Euro,1.2098 ,
[/table]
