ZURICH (awp) – The single currency rose on Wednesday on the tailwind of European economic signals. Late in the evening, the dollar/euro pair was trading at 1.0860, down from 1.0822 in early trading.
The EUR/CHF pair remains more or less steady at 0.9407. The Euro lost the big gains it initially made again during trading. With prices recently reaching 0.8664 francs, the US dollar barely moved in the early evening.
Overall, the Euro benefited from the fact that economic data from the Eurozone was better than expected. The French economy gained somewhat more momentum in the summer months than analysts had expected, thanks mainly to the Olympic Games. The Spanish economy also developed better than expected. The eurozone's fourth-largest economy was surprisingly able to maintain its relatively high growth rate in the summer months.
The Euro also received additional impetus from inflation data out of Germany, which was surprisingly high. “It is particularly worrying that core inflation did not fall further, but rather rose again in October,” wrote Thomas Getzel, chief economist at VP Bank. Because the base interest rate continues to rise, the ECB can make smaller interest rate cuts than previously expected.
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