After yesterday’s positive services/manufacturing PMI data for Germany and the Eurozone was released the Euro rallied against several of its peers, gaining on the Pound and trimming earlier losses against the US Dollar.
However, with UK second quarter GDP figures due for publication later today the Euro was slightly softer against its European peer as local trade began.
This morning German growth figures showed that the Eurozone’s largest economy expanded by 0.5 per cent in the second quarter year-on-year, in line with expectations. Quarter-on-quarter, the German economy grew by 0.7 per cent.
The growth was consumption led and aided by the Eurozone’s tentative recovery.
Federal Statistic Office figures showed that the nation’s capital investment climbed by 1.9 per cent in the second quarter, the first expansion for three quarters.
The Euro/Pound pairing is currently trading in the region of 0.8555
Consumption was up 0.5 percent.
After the data was published Brussels based economist Carsten Brzeski commented: ‘New growth hopes for the rest of the Eurozone are stimulating German confidence, which in turn could lead to higher economic growth. The expected slowdown after the exceptionally strong second quarter should be mild.’
Separate reports showed that German imports increased by 2.0 per cent in the second quarter, rather than the 1.7 per cent expected, indicating that domestic demand is increasing.
Whilst this week’s Eurozone news has been predominately positive, the Euro could still end the week trading lower against the Pound if today’s UK GDP surprises to the upside. It has been predicted that the UK economy expanded by 0.6 per cent in the second quarter, twice as much as in the first.
Euro (EUR) Exchange Rates
As of 08:55
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3341 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8555 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4832 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7055 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4069 >