The euro touched a three-week high against the US dollar earlier in trading, thanks in large part to the latest GDP numbers out of Germany and France. Eurozone GDP for the fourth quarter of 2013 benefited from this development, and the euro received a boost.
According to the latest news out of the eurozone, GDP for the fourth quarter of 2013 rose 0.3 per cent. This beat the forecast of an increase of 0.2 per cent and is providing some support for the euro against the US dollar.
The good news was largely driven by the latest figures from France and Germany. With increases in their GDP growth, they were able to help push the total eurozone growth higher.
Things are still a little grim for the eurozone, however. There are concerns that the ECB will be forced to cut rates again in the future. But some of that speculation has been pushed off. Experts say that it will take Mario Draghi and the other policymakers weeks — if not months — to figure out where the inflation situation stands.
In the meantime, euro is likely to remain supported against the dollar.
At 14:22 GMT EUR/USD is up to 1.3702 from the open at 1.3681. EUR/GBP is down to 0.8194 from the open at 0.8214. EUR/JPY is down to 139.4435 from the open at 139.8490.
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