Currency Note Euro

Mixed data doesn’t undermine the euro

By Smart Currency October 31st, 2013

It was another fairly stable day for the euro yesterday as mixed stimuli resulted in little net movement against major trading partners. The single currency remained at a very steady level against sterling throughout the day and appreciated only slightly against the US dollar. Positive news was seen from the Eurozone as preliminary quarterly GDP figures from Spain suggested that Europe’s fourth largest economy has finally begun to emerge from the recession that it has been mired in for the last few years. Spain’s economic outlook has looked bleak amidst the high levels of debt and unemployment that have plagued the Iberian Peninsula and Southern Europe in recent years, so some investors are likely to see these figures as a the first small step towards sustainable recovery in Spain. This more positive news was counterbalanced by less promising data from Germany in the form of monthly unemployment figures and inflation data. Both sets were slightly worse than expected with unemployment numbers rising and Consumer Price Index data showing slight contraction. The single currency appears to be reaching a plateau after strengthening considerable throughout the month of October. Traders will be watching the markets closely to see if we will see continued euro-strength in November. Today’s Eurozone data releases include monthly German retail sales data and Consumer Climate information. Call your trader now to help you manage your exposure for the coming months.