© Reuters. The euro reached a high daily against the pound
Investing.com – The euro reached a peak daily against the pound on Thursday after figures showed a major contrast between the strong growth in the euro area and the weakness of the british economy.
The EUR/GBP ahead of 0.33% to 0.8900 at 05:08 AM ET (10:08 AM GMT) from 0.8899.
In the euro zone, data on Thursday showed that private sector production grew at the fastest rate in six and a half years in November, the companies who registered an increase in production and hiring.
The composite index for the euro area, which measures the combined output of manufacturing and services, has reached the highest level since April 2011, to 57.5.
France has experienced a month particularly strong, surpassing Germany for the fourth time in more than five years.
German growth also remained strong, indicating that its economy may see a political stalemate which could soon lead to new elections.
In England, Ddns intake, the Office for National Statistics (ONS) said that gross domestic product grew by 0.4% in the three months leading to 30 September.
British households do suffer a compression of expenditure, inflation continuing to exceed wage growth, due to a fall of the pound sterling since the vote for the Brexit last year.
The pound reached a low against the dollar, with GBP/USD down 0.13% to 1.3304.
The eurot reached a high of a week against the dollar with EUR/USD rising 0.17% to 1.1840, close to a highest of one month to 1.1859.
The dollar remains on the defensive after minutes from the Federal Reserve showed that “many participants” were worried by the fact that inflation would remain below the 2% objective of the bank.
The minutes echoed the comments of Janet Yellen, president of the Fed, at the beginning of the week, indicating that it was not some of the inflation outlook.
While the increase in rates in December is still almost fully expected, investors reduced expectations of further rate hikes in 2018.
The exchange volumes should have remained relatively low prior to the Thanksgiving holiday in the United States on Thursday, which is also a national holiday in Japan.