This week was rather good for the euro. The shared 18-nation currency managed to stall its decline versus the US dollar and even rallied against the Great Britain pound and the Japanese yen. It is still questionable, though, whether the currency will be able to retain its strength in the future.
The euro traded mixed for the most part of the week, rising against the dollar on Thursday due to worse-than-expected economic data from the United States. The currency maintained the rally on Friday even as US reports came out better than forecasts. The reason for this was positive GDP indicators for major European economies as well as for the economy of the whole eurozone.
As for the performance against the sterling and the yen, it was mostly driven by the weakness of these currencies, not the strength of the euro itself. The pound was down due to signs of stalling economic growth while the yen had plenty of reasons to fall.
EUR/USD advanced from 1.2471 to 1.2526 over the week after touching the weekly low of 1.2394. EUR/GBP rallied from 0.7851 to 0.7993. EUR/JPY surged from 142.82 to 145.66 — the highest weekly close since September 2008.
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