The Euro has strengthened against the US Dollar after economic data showed that the Germany economy grew in the first quarter of 2013 and as a separate report showed that business confidence in the Eurozone’s largest economy improved in May.
According to Statistsches Bundesamt Deutschland the nation’s Gross Domestic Product inched upwards by 0.1%. The data has given investors optimism that Germany will post stronger growth in the second quarter of 2013.
“The somewhat disappointing first-quarter result was due mainly to the cold weather and the sensitivity of companies to developments in the rest of Europe,” said Gerd Hassel, an economist at BHF Bank AG in Frankfurt. “While that uncertainty hasn’t quite fully dissipated yet, there should be a rebound in construction activity in the second quarter and we could see better-than-expected results.”
Adding to the sense of optimism that Germany is improving was the data released by the Munich based Ifo economic research institute. Its German business confidence data took economists by surprise as it rose unexpectedly in May.
The business climate index edged upwards to 105.7 from the 104.4 recorded in April. It marked the first improvement in two months. The survey, which polls 7,000 company executives, revealed that the mood amongst German businesses improved in nearly all sectors of the economy except the building industry.
“The firms are clearly more satisfied with their current business situation than in the previous month,” Ifo economist Kai Carstensen said in a statement.”The German economy remains on track in a challenging European environment.”
The nation’s construction sector also was the major drag on GDP as it fell by 2.1% in the first quarter of 2013. The decline is being blamed on one of the coldest winters on record and the freezing temperatures that hit the continent in March.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2967
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8584
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3412
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6034
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7720
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1649
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7456
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6236
(Correct as of 10:30am GMT)
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