The Euro strengthened against the majority of its most traded peers including the British Pound and US Dollar after German factory orders data took economists by surprise by recording a larger than expected jump.
The better-than-expected figure caused some economists to hope that the troubled Eurozone could be heading for a recovery. The data has calmed investor concerns that Europe’s largest economy is slipping into a deep recession and hinted that it is beginning to grow once more. According to the Berlin based Economy Ministry factory orders increased by 2.2% in March, the same figure recorded in February.
“Today’s data is an extremely positive surprise,” said Heinrich Bayer, an economist at Deutsche Postbank AG in Bonn. “They give reason to hope not only that German industry will emerge from its trough, but also that the Euro area could be on the brink of an economic recovery, even if only a moderate one.”
Today’s data has spurred hopes that the Eurozone could be about to turn a corner as a lot of the latest batch of data has proven to be fairly positive. Orders for German exports rose by 2.7% in March, with demand from the Eurozone rising by 4.2%.
Despite the figures the Eurozone remains entrenched in recession. All too often the markets have jumped over false signs of improvement. Unemployment remains at an all time high in Europe. Germany on the other hand shows a sign of improvement with its own unemployment rate being the exception to the rule as it remains close to a two-decade low, despite a decline in business confidence.
Since the German data was released the Euro has strengthened by 0.4% against Sterling, 1% against the Australian Dollar, and 0.3% against the US Dollar.
As of 12:45 pm GMT
The Euro to Pound Sterling exchange rate is currently trading in the region of 0.8444
The Euro to US Dollar exchange rate is currently trading in the region of 1.3117
The Euro to Australian Dollar exchange rate is currently trading in the region of 1.2898
The Euro to New Zealand Dollar exchange rate is currently trading in the region of 1.5505