Euro Shows Resilience in Face of Poor Economic Data

The euro remained above the opening level against the US dollar and the Japanese yen even after the set of poor European macroeconomic data was released. The currency backed off against the Great Britain pound after last week’s massive gains.

The German trade balance surplus shrank from €18.7 billion in September to â‚¬16.8 billion in October, more than was expected. The Sentix investor confidence index for the eurozone unexpectedly slipped from 9.3 to 8.0 in December. German industrial production dropped 1.2 percent in October and this decline was also unexpected.

All today’s reports were bad, but the euro managed to show resilience despite this fact. The shared 17-nation currency retreated against the sterling, but the drop was not big compared to the huge rally that the euro has demonstrated last week.

EUR/USD advanced from 1.3712 to 1.3721 and EUR/JPY rose from 141.26 to 141.70 as of 17:25 GMT today, reaching the strongest rate since October 2008. EUR/GBP dipped from 0.8387 to 0.8363.

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