Euro Rises vs. Dollar on German GDP, But Can It Sustain Its Gains?

The euro halted today it four-day losing streak against the US dollar after Germany’s economy grew with faster pace than anticipated, suggesting the Eurozone economy is more stable that was thought.

The German gross domestic product rose by 2.2 percent in the second quarter of 2010. The median estimate was 1.3 percent growth. The result for the first quarter of 2010 was revised substantially upwards, now showing a 0.5 percent increase. The economies of some other Eurozone countries also showed the good growth, improving the sentiment about the European economy. Yet the analysts don’t think that the impact of the good economic data would last long, so the euro may resume its decline.

EUR/USD traded at 1.2835 as of 9:27 GMT today after it opened at 1.2826 and surged to 1.2905.

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