The weakness in Pound Sterling exchange rate and the US Dollar currency rate enabled the Euro exchange rate to advance during Monday trading, guiding the common currency of the European Union on a bullish charge. The the newest UK manufacturing PMI indicates that the industry rests in a strong position, even though as growth soften, still several businesses emphasized rising price pressures as a problem, which has worried investors.
Sterling’s exchange rate was the third-worst performing currency in G10 in the last week, while the Euro currency rate has gone from being the worst performer in the week prior to the best performer.
The Euro to Pound exchange rate has prolonged gains during Tuesday trading to 0.8%, following the Bank of America Merrill Lynch (BAML) prediction for the further decline in Sterling rate to just $1.15, while they has increased prediction for Euro rate to climb to 0.94 by the end of first quarter of next year.
For the meantime, traders are still pondering over the latest GDP data and inflation. Both economic indicators came in line with previous stats. The whole take-out is that inflation and economic growth in the Eurozone are on-going to grow gradually; the speed is comparatively slow, nevertheless, which is disturbing many and subsidising to weakness in Euro.
Euro/Pound currency exchange rates experienced a little decline on the back of the latest data from Germany. In a concerning development, the largest Eurozone’s economic member reported a crash in retail sales in September to 0.4% from 3.2% over the last year.
In spite of the fact that the Eurozone-wide GDP development rate and inflation rate figures for Q3 and October have beaten critical estimates, this has not been sufficient to see the Euro recuperate against its general associates.