The Euro gained slightly against the U.S. Dollar today following the release of data which showed that the U.S. economy is weakening. However, the Pound Sterling tumbled after the release of a bleak Bank of England forecast, which fuelled expectations that more U.K. interest rate cuts are needed.
The Pound Sterling hit a 6-year low versus the U.S. Dollar and a record low against the Euro following the release of the Bank of England's quarterly Inflation Report, which showed that the U.K. economy will contract sharply next year and there is a likelihood that inflation may drop to just below 1%.
The Euro was supported by a tentative improvement in share prices in Europe, but the currency retreated after data showed that the Euro zone industrial production dropped by 1.6% in September, a figure more than expected.
On November 12, at 12:04 GMT, the Euro rose by 0.4% to $1.2570. According to Reuters’ data, the Euro hit a 14-day low of $1.2481 against the U.S. Dollar during the early part of the day. The Euro rose by 0.3% to 122.66 Japanese Yen, while the U.S. Dollar dropped slightly to 97.60 Japanese Yen.