Euro Struggles on German Export Data

Euro is struggling today. Even though the 17-nation currency is gaining ground against the US dollar, it has been down against other majors (but it seems to be making progress now). The latest German export data, and concerns about continued eurozone recession, are weighing on the euro.

Even though the euro is higher against the US dollar right now, it is struggling against other majors. Germany’s economy is likely returning to growth after its contraction in the final quarter of 2012, but there are still issues. German exports dropped by 1.5 per cent from January to February of this year.
As the largest economy in the eurozone, Germany often takes the lead, supporting the eurozone economy and lending support to the euro. However, even the German economy has be sluggish recently, and Germany alone can’t seem to hold off all of the troubles in the eurozone periphery.
Euro is finally managing to eke out gains against the UK pound and the Japanese yen, even though it is holding its own against a US dollar battered by disappointing economic data of its own.
At 14:59 GMT EUR/USD is still hanging on to gains, rising to 1.3048 from the open at 1.3010. EUR/GBP is a little higher, moving from losses to 0.8538, up from the open at 0.8529. EUR/JPY has managed to break even at 129.2750.

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