The Euro has declined against the Pound and a number of its most traded peers after Eurozone producer prices fell more than expected in May, a third consecutive decline.
The weaker than expected data backed the view of the Eurozone economies stagnation and combined with political uncertainty emanating out of Greece, Portugal and Italy, sending investors to seek shelter in the safer haven currencies.
According to Eurostat, factory prices in the 17 nation Eurozone fell by 0.3% in May, a figure worse than the expected decline of 0.2% made by economists. The decline was less than the 0.6% decline seen in April.
Prices in total industry excluding the energy sector increased by 0.5% in the Euro area and by 0.6% in the wider EU, while energy prices decreased by a respective 1.8% and 2.2% respectively. In both zones intermediate goods fell by 0.5%, while capital goods increased by 0.6%.
The member states with the highest year-on-year increases in the total index were Estonia (up 6.7%), Romania (up 4.9%), and Latvia (up 2.1%), Denmark (up 1.7%) and the largest decreases in Poland (down 2.1%), Cyprus (down 2.0%), and Hungary and Sweden (both down 1.5%). The UK enjoyed a 1.5% increase.
Economists are expecting inflation to remain low in the region for the rest of the year despite a slight rise in June.
The Euro’s weakening was exacerbated by renewed concerns over Greece and the resignation of Portugal’s finance minister. Uncertainty over the Italian coalition government has also weighed upon sentiment.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3026
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8570
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4176
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6709
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7662
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1667
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7055
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5983
(Correct as of 11:35 am GMT)