The Euro enjoyed good news throughout the week, but failed to make significant gains. Today, the good German Ifo Business Climate score and the return of risk appetite sent the Euro high, without looking back. Here’s a roundup of today’s events in the EUR/USD.
The day began with the French Consumer Spending that surprised and rose by 1.1%, much more than estaimations for a modest 0.2% rise. Also last month’s figure was revised upwards – it fell by 1.8% and not 2% as previously reported. This was a good start.
But the big push for Europe’s common currency came from the German Ifo Business Climate: this highly regarded figure surprised economists and rose to 83.7, significantly more than 82.4 that was expected. It’s also better than last month’s 82.2. This is a change in the Germans’ mood.
Upon this release, the Euro jumped by about 80 pips, and then continued upwards. The rise in the EUR/USD began during the night, when the Euro cautiously climbed above the 1.31 hurdle. This good German Ifo Business Climate gave a significant boost.
When American Durable Goods Orders (and Core Durable Goods Orders) were released, risk appetite kicked in, the EUR/USD even managed to cross the 1.33 line, but this didn’t stand. EUR/USD is currently trading at 1.3260.
Previously this week, the Euro made only modest gains on two occasions when excellent figures were released:
- Tuesday’s excellent ZEW Economic Sentiment.
- Thursday’s superb Flash PMI figures.
Finally, in the last day of forex trading this week, the Euro made it’s way up. It’s currently significantly higher than last week’s close. Contrary to last week’s bad Friday, the Euro enjoyed a Good Friday. It also gained against the Pound. EUR/GBP broke the 90 line, and now trades at .9031.
For a roundup of the British Pound today and during all the week, check out my post Pound Recovers Despite Deepening Recession.
Have a great weekend!
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