Currency Note Euro

Positive German data supports the euro

By Smart Currency December 18th, 2013

Once again the single currency traded within a relatively narrow range against major peers yesterday despite German ZEW Economic Sentiment data showing increased optimism amongst key investors in the Eurozone’s largest economy. With a figure above 50 indicating optimism, the result of 62 points greatly exceeded predictions, which averaged at around 55. It is perhaps surprising that the seventeen-nation currency did not make more ground against sterling and the US dollar, although this lack of movement could be attributed to investors caution ahead of today’s array of influential events. In terms of Eurozone data we can expect German Business Climate figures to be released in the morning. Whilst the previous day’s Economic Sentiment figure is based on a survey of investors, today’s release is derived from a survey of key business figures. We also have a number of important events occurring both in the UK and the US today so it is likely that these will affect movements against these currencies. Call your trader now to see how the euro fares in what is likely to be a day of increased volatility.