The euro posted the first climb versus the U.S. in four days as this Friday a report indicated that the European manufacturing and services contracted at a slower pace, and German business confidence improved.
The Eurozone currency is ending the second week of gains versus low-yielding currencies like the Japanese yen and the U.S. dollar as a rally in stocks that started in the beginning of the month raised confidence among traders to take riskier positions in currency markets, which until then, were influenced by concerns regarding the global slump and its consequences. Today a report indicated a consecutive climb for the German business sentiment, suggesting that the biggest economy in the European Union is finding its way out of recession, adding optimism to the Euro outlook. The pound declined versus the euro as the quarterly GDP figures slumped more than estimates, reflecting on pessimism towards the second most traded currency in Europe.
German financial analysts are happy to affirm that reports in the region are finally coming with confident figures. Todays German business sentiment surpassed expectations and helped stock markets in Europe to climb, attracting investors to purchase euro priced assets. United Kingdoms GDP figures also helped the euro to gain regionally, since evidences that the Eurozone is economically healthier than Great Britain add attractiveness for the euro outlook.
EUR/USD traded at 1.4245 as fo 12:06 GMT after being traded at 1.4122 hours earlier. EUR/GBP traded at 0.8645 from 0.8580.
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