Euro News – Eurozone Unemployment At Record High

  • The Euro began the week trading against the British Pound in the region of 0.8459

    Today the Euro is trading against the British Pound in the region of 0.8538


    Here we take a brief look at what's been happening with the Euro this week, and what could cause the Euro exchange rate to rise or fall in the week ahead. 

    Round-up for week ending 31/05/13

    As the week began, and with UK and US markets closed for national holidays, the Euro experienced little movement.

    On Tuesday the common currency continued to trade in the region of 1.29 against the US Dollar and 84.59 against the British Pound despite German unemployment jumping by 21 thousand in May (rather than increasing by the 5 thousand economists anticipated). Even with this larger-than-forecast increase the German unemployment rate held at an almost 20-year low.  

    As the week progressed positive increases in economic sentiment in the Eurozone allowed the Euro to push back above 1.30 against the US Dollar, although the currency was little changed against the Pound.

    Gains against the US Dollar were extended after a lower-than-expected US GDP figure for the first quarter caused the American currency to fall against its rivals.

    However, as the week came to a close disappointing data for the Eurozone triggered Euro losses.

    German retail sales were shown to have declined unexpectedly in April – dipping by 0.4 per cent from the previous month – while unemployment in the currency bloc hit a new high of 12.2 per cent.

    Although a separate report showing acceleration in Eurozone inflation (to 1.4 per cent, closer to the ECB’s 2 per cent target) limited the Euro’s drop, the common currency ends the week little changed against the US Dollar from Monday, but is trading at roughly 1 pence higher against the British Pound.

    What to look out for next week:

    In the week ahead the most influential pieces of economic news for the Euro include Monday’s Eurozone Manufacturing PMI, Tuesday’s Producer Price Index, Wednesday’s Eurozone Services PMI and Retail sales figures and Thursday’s ECB rate decision/monetary policy statement.

    Exchanging Euros?

    If you have any questions regarding the Euro, or currency in general, please leave me a comment and I’ll get back to you as soon as I can!

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    Current Euro Exchange rates: 

    The Euro is trading against the Pound in the region of 0.8538

    The Euro is trading against the US Dollar in the region of 1.2985

    The Euro is trading against the Australian Dollar in the region of 1.3560

    The Pound is trading against the Euro in the region of 1.1712

    The US Dollar is trading against the Euro in the region of 0.7705

    The Australian Dollar is trading against the Euro in the region of 0.7379

     

    These exchange rates are provided by TorFX, a leading provider of foreign exchange. TorFX offers the best possible exchange rates for all your currency needs.

    These exchange rates were correct as of 11.40 am GMT on the 31/05/13