Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started
Euro Strong On Positive Data
www.investing.com/analysis/euro-strong-on-positive-data-182576
Euro Strong On Positive Data
By Benzinga (Benzinga ) | Sep 05, 2013 10:20AM ET
The euro strengthened against the dollar on Thursday morning after stronger than expected economic data confirmed that the region's recovery was growing.
The common currency traded at $1.32 following the release of better than expected GDP data which indicated that the 17 nation bloc's recovery was broad based.
Reuters reported that Eurostat, the EU's statistics office, released data which showed that the euro-zone's economy grew by 0.3 percent in the second quarter. Exports and increased household spending contributed to the improved GDP and added to a growing number of positive economic indicators coming from the region.
After six months of falling sales, the euro-zone's global exports spiked in the April to June period and helped contribute to the economy's expansion. Government spending also positively affected the economy in the second quarter for the first time since the crisis began in 2009.
Household spending increased for the first time since 2011, which many believe stems from euro-zone governments' pull back on austerity policies designed to reduce budget deficits. At the start of the crisis, most struggling nations implemented belt tightening policies and cut spending on things like healthcare and education, which in turn contributed to the already rising unemployment rate.
PMI data from the region confirmed that businesses were picking up as new orders increase. Markit's composite PMI increased one percent from July to August and the forward looking new orders index rose above the 50 mark that indicates growth to 51.0.
The positive data has most betting that the European Central Bank will maintain the region's record low 0.50 percent interest rate, at least for the time being. ECB President Mario Draghi pledged to maintain the current rate, or take it lower if need be, at last month's policy meeting as he attempted to provide some forward guidance.
Despite the recent positive data, the European Commission has forecast that the euro-zone's economy will contract 0.4 percent this year, before returning to growth in 2014.
By Laura Brodbeck
The common currency traded at $1.32 following the release of better than expected GDP data which indicated that the 17 nation bloc's recovery was broad based.
Reuters reported that Eurostat, the EU's statistics office, released data which showed that the euro-zone's economy grew by 0.3 percent in the second quarter. Exports and increased household spending contributed to the improved GDP and added to a growing number of positive economic indicators coming from the region.
After six months of falling sales, the euro-zone's global exports spiked in the April to June period and helped contribute to the economy's expansion. Government spending also positively affected the economy in the second quarter for the first time since the crisis began in 2009.
Household spending increased for the first time since 2011, which many believe stems from euro-zone governments' pull back on austerity policies designed to reduce budget deficits. At the start of the crisis, most struggling nations implemented belt tightening policies and cut spending on things like healthcare and education, which in turn contributed to the already rising unemployment rate.
PMI data from the region confirmed that businesses were picking up as new orders increase. Markit's composite PMI increased one percent from July to August and the forward looking new orders index rose above the 50 mark that indicates growth to 51.0.
The positive data has most betting that the European Central Bank will maintain the region's record low 0.50 percent interest rate, at least for the time being. ECB President Mario Draghi pledged to maintain the current rate, or take it lower if need be, at last month's policy meeting as he attempted to provide some forward guidance.
Despite the recent positive data, the European Commission has forecast that the euro-zone's economy will contract 0.4 percent this year, before returning to growth in 2014.
By Laura Brodbeck
Related Articles
EUR/USD Bulls Lurk Below March 31 Highs
By Al Brooks - Jun 06, 2023
4
The EUR/USD is getting a second leg down after the June 2nd bear reversal bar. While the selloff over the past three days has been good for the bears, it will probably be...
EUR/NZD: Support Break Likely
By Scott Barkley - Jun 06, 2023
Note: Gov Lowe speaks this PM Bearish: EUR/NZD is currently at 1.7611 in the channel. With the support break, we are looking for a continuation to the 1.000 Fibo/ATR target at...
RBA Surprises with a Quarter-Point Hike, German Factory Orders...
By Marc Chandler - Jun 06, 2023
1
The Reserve Bank of Australia surprised many with a quarter-point hike and German factory orders unexpectedly fell. Reports suggest that China has asked banks to cut deposit rates....
Euro Strong On Positive Data
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.