Euro Attempts to Recover Following German Data

The Euro is attempting to regain some of the ground it lost against the US Dollar in early morning trading on Tuesday, buoyed by positive economic data from Germany. This has managed to pull the Euro out of a six-day downward spiral.

Germany’s industrial production index, a key indicator for the Eurozone’s largest economy, rose above market expectations in August. The index climbed to 2.9%, compared to 2.4% in the previous month.

Additionally, the spread between yields on benchmark US Treasury bonds and German government bonds—the benchmark for the European Monetary Union—narrowed, favoring the Euro and halting the Dollar’s ascent.

The automotive sector, a significant component of European industrial production, saw growth of approximately 19.3%. Meanwhile, the region’s capital goods sector experienced a growth of around 6.9% in output, according to data released by the Federal Statistical Office of Germany.

The Euro/Dollar pair rose to 1.0977, compared to the previous day’s closing of 1.971. The pair had dipped to a daily low of 1.0953, before reaching a high of 1.0996.