Euro is gaining ground today, heading higher as better economic data helps the 17-nation currency. Factory output grew at a better rate than expected, and Germany is once again leading the economic recovery charge. Euro is gaining against most of its major counterparts as a result.
The eurozone continues to recover from its recent double-dip recession. This time, the better than expected news comes in the form of the latest factory orders data for December.
According to Markit Economics, the PMI for the eurozone rose to 52.7 in December, up from 51.6 in November. The factory output improvement was led by Germany, which is seeing its own 30-month high in PMI. The news indicates that the eurozone continues to recover (albeit somewhat slowly) from the recent recession, and there are hopes that the recovery is sustainable.
The euro is heading higher against its major counterparts as a result of this news. With the recovery continuing, and with the ECB and other policymakers determined to save the euro, there isn’t much to hold the 17-nation currency back right now.
At 15:23 GMT EUR/USD is up to 1.3773 from the open at 1.3732. EUR/GBP is also higher, rising to 0.8444 from the open at 0.8428. EUR/JPY is a little lower, down to 141.8050 from the open at 141.8350.
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