Currency Note Euro

Good German news supports the Euro

By Ricky Bean November 29th, 2013

The euro gained momentum this week, strengthening consistently against the US dollar and Japanese Yen, whilst depreciating against sterling following strong mid-week GDP figures for the UK. Overall the week has been less eventful than the week previous as Eurozone data was relatively spare in the early stages of the week. Events in Germany – the Eurozone’s largest economy – lent support to the single currency towards the end of the week as German inflation data, Consumer Confidence and the formation of a coalition Government weighed in the euro’s favour. The better than expected inflation data in particular aided the performance of the single currency as it meant that the European Central Bank is less likely to either reduce interest rates further or introduce quantitative easing to the Eurozone. There is potential for further euro movements today as flash Consumer Price Index for the Eurozone are due. This data is a key measure of inflation and therefore traders will be interested to see whether the improvement in Germany is mirrored at large. Call your trader now for a complete update on euro crosses.