Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Euro Finds Strength In Positive German Data

Published 11/07/2013, 08:59 AM
Updated 05/14/2017, 06:45 AM

The euro bounced on Thursday morning as the European Central Bank policy meeting neared. The common currency traded at $1.3519 at $5.15 GMT on Thursday after positive data from Germany quashed speculation that the bank would lower its interest rate this month.

The euro had a steep fall after data showed that the bloc's inflation was dropping dangerously low. The inflation figures were followed by even more dismal unemployment numbers which confirmed that the region's recovery was tepid at best. The poor data coupled with the US' divergent economic policy brought the common currency to new lows and prompted calls for the ECB to step in with further easing.

However, data released on Wednesday showed that German industry orders in September climbed and Germany's private sector growth was steady in October. The new data is likely to keep the bank from making any major policy changes until its December meeting.

Reuters reported that a poll showed most are expecting the bank to hold off on an interest rate cut, but some think the bank will still attempt to devalue the euro verbally. Many EU officials have been worried about the euro's recent strength as it has the power to drag down the bloc's fragile recovery by making exports less competitive. With that in mind, Bank President Mario Draghi could use verbal intervention in order to cut down on the currency's strength.

Investors will be watching the bank's press conference following the meeting to clues about the direction the eurozone is headed. Many are expecting the ECB to revise down its forecast for growth and inflation.

By Laura Brodbeck

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.