Currency Note Euro

German economic strength underpins solid euro performance

By Smart Currency August 9th, 2013

The euro has performed reasonably well this week on the back of positive German data. As the Eurozone’s strongest economy, Germany’s economic health has a strong bearing on the performance of the seventeen-nation currency and data releases on Tuesday and Wednesday boosted performance. German Factory Orders data came in much better than expected and showed 3.8% growth. This was followed by monthly figures showing a 2.4% increase in industrial output, which was around 2% better than expected. As a result the single currency made consistent gains against the US dollar throughout the week and rose towards highs that were last seen in mid-June. The euro did not perform quite as well against sterling as despite being in the ascendancy for periods of time, it could not make up the ground lost following Mark Carney’s mid-week statement. The only real data of significance emanating from the Eurozone today is the monthly French Industrial Production data, which is expected to show marginal growth. Call your trader now to see if France can aid Germany in hauling the Eurozone towards economic salvation.