Currency Note Euro

Poor German data has limited impact on the euro

By Ricky Bean December 10th, 2013

The euro traded within a very narrow range against the US dollar whilst weakening slightly against sterling yesterday. Notably, German Industrial Production figures for October showed a 1.2% decline, making this the strongest decline in the Eurozone’s largest economy since May. German trade balance figures, which detail the difference in value between imports and exports, also came through slightly worse than expected. The single currency continued to show resilience in the face of negative data and despite weakening slightly against sterling, did not lose much ground in other major pairings. Today, French Industrial Production data may have some influence on euro performance when it is released this morning, however a speech by the President of the European Central Bank (ECB) at noon is more likely to cause volatility. Whilst the ECB avoided the prospect of negative interest rates in 2013, uncertainty remains regarding future monetary policy and traders will be paying close attention to the first of two public addresses by Mario Draghi this week. Call your trader now to stay on top of market movements.