Currency Note Euro

Euro fairs well on the back of positivity from Germany

By Smart Currency August 23rd, 2013

The euro has had a reasonable week thus far as we see more positivity and improved data coming from the Eurozone helping the currency push to a six month high against the US dollar. On Tuesday we saw more upbeat comments from the German finance minister who suggested that not only could growth surpass current expectations in Europe’s biggest economy, but also that forward guidance from the European Central Bank does not rule out future increases in interest rates, which may be needed in order to counteract inflation. These prospects bode well for the single currency and were bolstered yesterday by better than expected German data showing moderate growth across the manufacturing and services sectors. This was perhaps counterbalanced to a degree by worse than expected data from the Eurozone’s second largest economy, as French manufacturing and services data came out worse than expected and showed contraction in both sectors. Overall the seventeen-nation currency has seen some volatility during the week, but net movements have been moderate. Today business climate data is released from Belgium which may have a minor bearing on performance through the day, but aside from that there is little data of note being released ahead of next week. Call your trader now to see if the euro can begin a more sustained recovery.