The euro rose on the last trading session of the week as German business climate improved and the German economy grew, leading to hopes about economic recovery in the rest of the eurozone.
The Ifo Business Climate Index for industry and trade in Germany rose from 107.4 in October to 109.3 this month. Just a small increase to 107.9 was predicted by analysts. Seasonally adjusted gross domestic product expanded 0.3 percent in the third quarter of 2013. It was in line with forecasts, but below the second quarter’s value of 0.7 percent.
The data suggests that economic recovery is underway. It allows to think that negative interest rates can be avoided.
EUR/USD was up from 1.3480 to 1.3545 yesterday. EUR/GBP advanced from 0.8320 to settle on 0.8353. EUR/JPY jumped from 136.35 to 137.27.
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