Currency Note Euro

Eurozone claws its way out of recession

By Ricky Bean August 15th, 2013

The euro had a mixed day yesterday as its performance varied against major peers. Figures released finally revealed growth in the Eurozone after six consecutive quarters of contraction. The Eurozone GDP data revealed growth of 0.3%, which was very marginally higher than what was expected. However, although this is certainly positive news for the euro, effects were not emphatic in any way. The single currency did strengthen against the Swiss Franc, but little net change was seen against the US dollar and the euro declined steadily against sterling following the mid-morning release of Monetary Policy Committee meeting minutes in the UK. Increasing growth in France and Germany is certainly a step in the right direction for the Eurozone, however at the moment, these figures represent merely a stall in declining economic conditions and not an affirmative step towards real economic recovery. Euro appreciation is likely to be relatively limited as long as most of southern Europe remains mired in recession and unemployment rates remain at record highs. There is little data of note being released today as regards the single currency and there are bank holidays in France and Italy. Call your trader now to see if the Eurozone can make concerted moves towards a sustainable recovery.