The Euro has strengthened against the US Dollar causing the US currency to hit a session low against the European currency. The rise comes after German factory orders took economists by surprise and posted a surprise jump for a second straight month in March.
The data has calmed investor concerns that Europe’s largest economy is slipping into a deep recession and hinted that it is beginning to grow once more. According to the Berlin based Economy Ministry factory orders increased by 2.2% in March, the same figure recorded in February.
“Today’s data is an extremely positive surprise,” said Heinrich Bayer, an economist at Deutsche Postbank AG in Bonn. “They give reason to hope not only that German industry will emerge from its trough, but also that the Euro area could be on the brink of an economic recovery, even if only a moderate one.”
Today’s data has spurred hopes that the Eurozone could be about to turn a corner as a lot of the latest batch of data has proven to be fairly positive. Orders for German exports rose by 2.7% in March, with demand from the Eurozone rising by 4.2%.
“This is favourable for the industrial economy,” the ministry said. “German industry seems to be gradually overcoming its weak phase.”
Bulk orders were “significantly above average” in March, helping to drive a 0.4 percent gain in the first quarter, it added.
Despite the improvement in German data the wider Eurozone continues to disappoint. French industrial output declined by 0.9% in March and unemployment continues to rise.
Since the German data was released the Euro has strengthened by 0.4% against Sterling, 1% against the Australian Dollar, and 0.4% against the US Dollar.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3115
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8445
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.2881
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5499
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7624
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1841
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7763
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6452
(Correct as of 12:10pm GMT)
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