At the start of the week the Euro had mixed fortunes. On Monday morning the single currency began positively after several pieces of data out of the struggling Eurozone took economists by surprise by being more positive than expected. The Italian economy showed some signs of improvement and Eurozone investor confidence surged from the -12.6 recorded in June to -4.9 in July. The morning’s data was the first releases of the week to suggest that the Eurozone is on the verge of making a turnaround. In the afternoon however, the currency declined after the USA posted better than expected data and fell against the Pound as confidence grew in the UK economy.
Tuesday the Euro climbed beyond a seven-week high after economic data showed that the Eurozone’s economic decline appears to have finally drawn to an end. German factory orders increased to their highest levels in eight months in June, and GDP data out of Italy showed that the regions third largest economy finally slowed its pace of contraction. There was more positive news for the Eurozone as well with German industrial production beating economist forecasts. Output increased by 2.4% in June, up from the 0.8% fall recorded in May.
Once again however the morning proved more favourable than the afternoon as the Euro took another tumble against the Pound in late trading due to the UK currency finding support following the BOE inflation report and continuing signs that the country is on track to make a sustained recovery.
Midweek the Euro spent the day trading at a seven-week high against the US Dollar as the single currency found support from further positive data out of Germany. A report showed that German exports outpaced imports by more than anticipated in June. In the latest in a string of signs that the German economic recovery is picking up, exports climbed by 0.6% a month-on-month basis following a 2% decrease in May. Traders chose to ignore the latest unemployment data out of Greece which increased to a new record high of 27.6%. Youth unemployment now stands at a staggering 64.9%.
As the week draws to a close the Euro is little moved against its peers and is remaining close to a seven-week high against the US Dollar and is set to make a 0.8% weekly gain.
Major events next week for the Euro
Tuesday 13th August – Eurozone Industrial Production
Wednesday 14th August – Eurozone Preliminary GDP growth rate
Friday 16th August – Eurozone inflate rate
Eurozone Balance of trade
Eurozone current account
Euro Exchange Rates
(As of 11:00 am GMT)
The Euro is trading against the Pound in the region of 0.8605
The Euro is trading against the US Dollar in the region of 1.3381
The Euro is trading against the Australian Dollar in the region of 1.4612
The Euro is trading against the New Zealand Dollar in the region of 1.6680
The Euro is trading against the Canadian Dollar in the region of 1.3792
The Pound is trading against the Euro in the region of 1.1619
The US Dollar is trading against the Euro in the region of 0.7470
The Australian Dollar is trading against the Euro in the region of 0.6841