Euro is heading higher today, thanks in large part to the latest economic data out of the eurozone. Thanks to help from Germany, the latest GDP reading has moved higher, and that is providing help to the 19-nation currency.
The last quarter of 2014 saw an increase in the eurozone’s GDP. Eurostat reports that GDP was 0.3 per cent higher during the fourth quarter than it was during the third quarter. Not only was there an increase in GDP, but the growth beat estimates. This is good news for the eurozone, which has been struggling recently. Even though the eurozone still isn’t growing on pace with the United States, it is still making improvements.
Much of the growth for the eurozone GDP came from Germany. The country is the largest economy in Europe, and the most influential country in the eurozone. In fact, the opposition to a new bailout deal for Greece is being largely spearheaded for Germany. While the GDP news is helping the euro today, the reality is that there is enough uncertainty about the future that things could quickly turn around.
At 11:35 GMT EUR/USD is up to 1.1415 from the open at 1.1412. EUR/GBP is up to 0.7413 from the open at 0.7408. EUR/JPY is up to 135.7760 from the open at 135.6620.
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