by Sam Hewitt
British sterling has slid -0.5% against the euro to a low of 1.3311 today, as the Eurozone's economic climate has unexpectedly improved, according to the most recent data.
Pound slides, as German factory orders rebound
Sterling has lost out for instance, because German factory orders rocketed +4.2% in December, according to the official Deutsche Bundesbank, easily outdoing the +1.5% forecast. This suggests that the Eurozone's largest economy has shrugged off its recent downturn, is set to perform well in early 2015.
Sterling drops, as Eurozone retail sales near 8-year high
What's more, the pound also fell, as retail sales in the Eurozone climbed at the fastest annual pace since March 2007 at the end of last year, by +2.7%, says the European Commission. This indicates that consumers in the currency bloc have more money to spend since the recent dramatic fall in oil prices, and will contribute positively the Eurozone's growth.
Eurozone economic activity grows at fastest clip in 6 months
In addition, economic activity in the Eurozone's services, manufacturing and construction sectors rose at the quickest pace since in 6 months, according to economic surveyor's Markit. Activity in the 19-member bloc reached 52.6 in January, says Markit's PMI (Purchasing Manager's Index), where any figure above 50.0 points to growth, and the higher the better.
Pound weakens, as EC upgrades Eurozone growth outlook
To top it all off, sterling also dived today, because the European Commission has upgraded its 2015 growth outlook for the Eurozone, just 3 months after it previously downgraded it. Now, the EC thinks the common currency bloc will expand +1.3% this year, +0.2% more than previously thought. According to Pierre Moscovici, the EU’s economic chief, low oil prices and a declining euro are "a welcome shot in the arm" for Europe's economy.
