Currency Note Euro

German data influences euro movements

By Ricky Bean August 30th, 2013

It has been a relatively poor week for the euro amidst a stream of German data and influential events on the global stage. Tuesday saw the German Business Climate Index reveal a better than expected show of optimism in the Eurozone’s largest economy. The data is strongly correlated to prevailing economic conditions within the Eurozone so the strong figures had a positive effect, but this effect was tempered to an extent by poorer data from Spain and France, detailing greater contraction than first calculated in 2012 and increasing jobseekers respectively. After Tuesday, events elsewhere drove euro performance, with Mark Carney’s mid-week statement boosting sterling performance and developments in Syria sparking movement across the currency markets. The single currency traded down against sterling and the US dollar towards the end of the week, a decline which was aided by negative German data. Monthly unemployment change figures detailed a slight increase rather than the decrease that was expected and inflation data showed no change. In a day of abundant news, German retail data, Eurozone flash inflation figures and Eurozone employment rate data are all being released and further fluctuation is not unlikely. Call your trader now to see how these releases affect euro performance.