The euro rose today, erasing its previous losses versus the Japanese yen and touching the highest level since December 2011 against the US dollar, as the sentiment of German consumers was stable this month. The currency fell against the Great Britain pound.
The GfK German Consumer Climate remained almost unchanged at 5.8 in January amid optimism of German consumers. The positive data added to last week’s favorable German ZEW Economic Sentiment, German Flash Manufacturing PMI and German Ifo Business Climate. The signs of persistent economic growth in Germany give hope that the biggest European economy can be a locomotive that will drive the eurozone economy out of recession.
The euro was especially strong against the greenback, which itself was weakened by the domestic fundamentals. At the same time, the rally of the sterling allowed the UK currency to outperform the shared currency of the euro-area.
EUR/USD rallied from 1.3454 to 1.3481 as of 18:55 GMT today, rebounding from the low of 1.3413 and touching the maximum of 1.3495 intraday. EUR/JPY traded near the opening price of 122.20 after falling to 121.19. EUR/GBP declined from 0.8570 to 0.8556, reaching the low of 0.8525 intraday.
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