• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / Euro / Euro following positive industrial production figures

Euro following positive industrial production figures

September 13, 2017 by Lewis Edmonds

Euro following positive industrial production figures

The Eurozone posted an increase in Industrial Production for July, following a sharp drop off in production in June. This was in line with analysts’ expectations for the month, with output rising at 0.1%. Although this doesn’t seem like a huge jump, the signs are there that this figure is set to increase as business’ upbeat sentiment was confirmed by the amount of capital goods that were bought.

The yearly figure showed that industrial production had increased to 3.2%, however this was slightly below what was expected. In light of this data, the Euro made an additional gain on Sterling following this morning’s unemployment report released by the UK. Average earnings in the UK are not keeping up with current levels of inflation and will therefore put a squeeze on UK households.

Debt is currently a concern for the Bank of England as people borrow more to cover the costs of living. As inflation rises, the Bank’s concern is that people won’t be able to pay off these debts. This leaves the Bank of England in a very precarious position when it comes to raising UK interest rates.

This is the reason as to why the gains of yesterday’s inflation report for Sterling were wiped off earlier today. Hopes of an interest rate rise in the UK have somewhat lessened and as a result Sterling retreated against its counterparts. The hopes for an interest rate hike in the UK are still, at present, very thin in my opinion.

Filed Under: Euro Tagged With: Euro strength, Eurozone economy, GBPEUR, UK interest rate

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Lewis Edmonds

When he is not offering insights into the what is happening on the currency markets Lewis manages key relationships for an authorised payment institution in the UK.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy