Yesterday a comparatively quiet news day for the Eurozone kept common currency fluctuations limited.
The Euro did ease lower against the Pound however as Monday’s impressive UK manufacturing report was followed by encouraging construction data.
However, during North American trading the Euro advanced to an almost one-month high against the US Dollar as investors speculated on the outcome of the European Central Bank’s upcoming policy meeting.
In the words of currency analyst Eimear Daly; ‘The current strength of the euro is dangerously underpricing the risk of more ECB action going into Thursday’s meeting. We saw a strong push-back into the dollar yesterday. Today’s trade has been driven by traders consolidating those gains before a plethora of key U.S. data released later in the week.’
The ECB is due to deliver its rate decision on Thursday, but with highly influential Eurozone data scheduled for release today Euro volatility is likely.
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8290
Economists have forecast that today’s Eurozone/German services PMI will show that the sector expanded in both the 17-nation currency bloc and its largest economy while a separate GDP report will confirm that the Eurozone’s economy grew by 0.1 per cent in the third quarter.
Eurozone retail sales figures will also be of interest.
Meanwhile, UK services PMI could trigger GBP/EUR movement. If the gauge surprises expectations by showing that the pace of expansion accelerated in November the Pound’s bullish relationship with its European peer may continue ahead of tomorrow’s Bank of England policy meeting and rate decision.
Meanwhile, US mortgage application and trade balance data will impact the EUR/USD pairing during the latter half of European trading.
Signs of improvement in the US economy could well increase tapering speculation before the publication of highly influential US non-farm payrolls figures on Friday.
Euro (EUR) Exchange Rates
As of 07:05 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3585 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8290 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4993 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6474 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4461 <
