The Euro has strengthened against the Pound and US Dollar after the latest economic data hinted at further signs of improvement to the struggling Eurozone economy.
Sterling fell to its weakest level in two weeks against the Euro as traders wait for the next policy decision announcements due to be released by the Central Banks of the Federal Reserve, European Central Bank and the Bank of England.
According to the Brussels based European Commission economic confidence in the single currency bloc improved for a third consecutive month in July, reaching its highest level in 15 months and added to investor hopes that the recession battered region is emerging from its record long recession.
The index of executive and consumer sentiment rose to 92.5 in July from the 91.3 recorded in June. The figure matched economist expectations.
Adding to signs of improvement was the release of data showing that manufacturing output expanded in July for the first time in two years. German business confidence improved for a third month and a slowdown in the decline of Spain’s GDP added to the improving picture.
Spain’s recession eased slightly in the second quarter of the year with GDP declining by 0.1%. In the first quarter of 2013 GDP declined by 0.5%.
Despite signs of improvement Euro-area unemployment is expected to remain high and could even rise further above the current record levels. Economists expect the unemployment rate to hit as high as 12.4% before the end of the year. The Eurozone economy, which has contracted for a record six quarters, probably stagnated in the three months through June and is expected to return to growth this quarter.
Euro (EUR) Exchange Rates
As of 11:00 am
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3273 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8651 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4637 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6604 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3648 >