The Euro climbed to another record high today despite weaker German producer prices. Unlike the French, the Germans continue to be very comfortable with the level of their currency as well economic growth.
Today, the German Finance Ministry said in its monthly report that the available economic indicators suggest that the upswing remains intact and the financial market turbulence has not appreciable burdened the economy. This will be an important perspective to keep in mind ahead of next week’s German IFO report. The stability of analyst sentiment and the firmness of Eurozone exports could keep businesses optimistic, which would help to drive further Euro gains.
Written by Kathy Lien, Chief Currency Strategist for DailyFX.com