Monday, 9 Nov 2009

Euro Continue to Rise on Positive German Data

The Euro continued to strengthen today following positive German Industrial Production data. The Euro is reaching towards a 15-month high against the Dollar, as the EUR/USD pair is testing the 1.5020 level. The Euro is showing movements against the Pound and the Yen.

The German Industrial Production report for September rose by 2.7%, beating expectations for a 1.2% rise. Production tends to react quickly to fluctuations in the business cycle and is considered to be highly correlated with consumer conditions such as the level of employment. This follows a series of positive data from the German economy, which together combines a positive outlook for the strongest economy within the Euro-Zone.

As for tomorrow, the economic calendar will be packed with news publications from the Euro-Zone. Traders are advised to pay special attention to the German ZEW Economic Sentiment survey. This report usually has an immediate reaction in the market, and traders should be prepared.