EUR recovered after the optimistic German data

Noam Stiekema

The EUR recovered and erased accumulated earlier in the day losses against the USD after strong published data on business activity in the manufacturing sector of Germany. The signs of stabilization of the entire Eurozone fueled a strong dose of optimism among market participants. At the same time that the USD remains stable after the […]

EUR to USD

EUR to USDThe EUR recovered and erased accumulated earlier in the day losses against the USD after strong published data on business activity in the manufacturing sector of Germany. The signs of stabilization of the entire Eurozone fueled a strong dose of optimism among market participants. At the same time that the USD remains stable after the USD rose for a third day against a basket of ten major currencies. The single currency rose earlier today after the published data on business activity in Germany and the Eurozone as a whole. Data from European leading economy showed that the estimated index of business activity in the manufacturing sector, rose to 51.8 points, ahead forecast a drop to 49.6 points. Values ​​above 50 indicate expansion of the meter. The same index, area-wide, reported an increase to 50.7 points and also anticipation.

Surprisingly good news for business activity in Europe contributed positively to the stock markets, which further supported the EUR. Single currencies recorded substantial losses on Tuesday and Wednesday against the European Central Bank from which it became clear that central bankers can take additional stimulus. At the same time, the data from today somewhat calmed the market and reduced the accumulated stress associated with speculation about a slowdown in global economic growth.

The focus of the market on the upswing and economic news, which we witnessed during today’s European session will be short-lived, analysts said. They recall that are ongoing narrowing tests of all banks in the Eurozone and it is expected that 11 of them will not pass. At the same time a number of large companies in the region with disappointing financial results. These disturbing data will likely have a negative impact on the market in the coming days, putting pressure on the EUR.

The eyes of market participants by the end of today will again target the United States, where the data will be published on applications for unemployment benefits, and the index of leading indicators. It is expected that applications for the past week have increased minimally compared to the previous period, while the benchmark, combining a data of all important indices of the United States has risen by 0.7% in September.

Today one EUR is exchanged for 1.2660 USD, close to the top for the day. The pair GBP/USD is around 1.6010 near the lowest levels of the day. At the same time a USD is trading around 107.50 JPY.

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