Euro Turns Higher on German Growth, China PMI

Euro is getting a little help today from better German growth data. Earlier, the euro was a little lower against the US dollar, but now those gains have been pared, and the 17-nation currency is moving a little bit higher.

German economic data is showing some improvement, and that is translating into some gains by the German economy. Markit Economics reports that an improvement to 47.3 from 46.5 — and better than the expectation of 46.9 for November — is indicating some growth. While there is still contraction, it’s not as much as expected, and it’s just enough to provide hope for the rest of the eurozone.
Also helping the euro a little bit is the improved China PMI data. Once again, the news that the world’s largest emerging market is set to improve is helping high beta currencies. This is good news for the eurozone, particularly for Germany, since that is where the Chinese get many of their cars.
For now, the euro is feeling the good effects of better than expected economic data, especially against the US dollar, which is struggling on fiscal cliff uncertainty and the prospect of more easing.
At 14:39 GMT EUR/USD is up to 1.3086 from the open at 1.3077. EUR/GBP is up to 0.8119 from the open at 0.8116. EUR/JPY is a little lower at 109.2230, down from the open at 109.3900.

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