Euro Ends Friday with Gains

The euro ended Friday with gains with help of improving eurozone consumer sentiment and growing German economy. The positive data make an interest rate cut by the European Central Bank unlikely.
The consumer confidence indicators improved both for the eurozone (to -15.6 form -17.4) and for the European Union (to -12.8 from -14.8) in August from July. German gross domestic product demonstrated 0.7 percent growth in the second quarter of 2013, which was confirmed in the final revision, after showing no growth in the first quarter.
Ewald Nowotny, member of the European Central Bank governing council, said that the recent stream of positive data means he “would not see many arguments now for a rate cut”. He said that the recovery in Europe is still very weak “but it is a recovery”. Nowotny admitted that “the most recent developments will have no immediate effects on the policy of the European Central Bank”, but his comments were optimistic and supportive for the euro nevertheless.
EUR/USD advanced from 1.3353 to close at 1.3383. EUR/JPY rose a little from 131.81 to 132.05. EUR/GBP was up from 0.8566 to 0.8588.

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