FOREX-Euro soars on strong economic growth in Germany

Reuters

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    * Euro on pace for best day in more than 4 months 
    * Dollar Index slips; little changed after PPI data 
 
 (Updates prices, market activity; adds analysts' comments) 
    By Saqib Iqbal Ahmed 
    NEW YORK, Nov 14 (Reuters) - The euro rose to a 2-1/2 week 
high against the U.S. dollar on Tuesday and was on track for its 
largest percentage gain in more than four months, after data 
showed Germany's economy shifted into a higher gear in the third 
quarter. 
    The euro was up 1.11 percent at $1.1794, set for its largest 
one-day percentage gain against the greenback since June 27. 
    "Most of what appears to have driven the euro's strength was 
the solid German data earlier this morning," said Eric Viloria, 
currency strategist at Wells Fargo Securities in New York. 
    Germany's seasonally adjusted gross domestic product (GDP) 
rose by 0.8 percent on the quarter, compared with a Reuters poll 
forecast of 0.6 percent.  urn:newsml:reuters.com:*:nL8N1NK1JC 
    In a further positive sign for Europe's biggest economy, the 
ZEW institute said investor morale improved in November and 
prospects for the economy remained "encouragingly positive." 
    Germany helped the euro zone economy expand by 2.5 percent 
in the September quarter compared with the same period in 2016, 
and more than the United States, data showed on Tuesday. 
    Viloria also attributed part of the strength of the move in 
the single currency to a break above a key technical level - its 
100-day simple moving average of $1.1733. 
    Lennon Sweeting, chief market strategist at XE in Toronto 
pointed to the dollar's recent sensitivity to any positive news 
out of Europe as contributing to the euro's strength. 
    "Any time we have seen stronger or as expected news out of 
Europe I think it leaves the dollar in a very vulnerable 
position on that particular cross," he said. 
    The dollar index  .DXY , which tracks the greenback against 
six major currencies, was down 0.7 percent at 93.828. The index 
was little changed after data showed U.S. producer prices rose 
more than expected in October.  urn:newsml:reuters.com:*:nL1N1NK0UP 
    The Fed is expected to raise interest rates next month. 
Investors will now turn their focus to U.S. consumer prices data 
due on Wednesday. 
    The euro was up 0.74 percent against sterling. The British 
pound weakened against the common currency after UK inflation 
data came in slightly lower than expected, weakening the case 
for further interest rate rises.  urn:newsml:reuters.com:*:nL8N1NK3EK 
    Sterling has been volatile in recent sessions against a 
backdrop of political turmoil as British lawmakers this week 
debate legislation underpinning the government's plan to leave 
the European Union.  urn:newsml:reuters.com:*:nL8N1NJ6QH 
    New Zealand's commodity-linked currency, which is sensitive 
to signals on Chinese demand, slipped after disappointing data 
on Chinese retail sales and industrial production. 
 
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EURUSD    http://reut.rs/2zXpqsG 
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 (Reporting by Saqib Iqbal Ahmed) 
 ((saqib.ahmed@thomsonreuters.com; +1-646-223-6054; Reuters 
Messaging: saqib.ahmed.thomsonreuters.com@reuters.net; Twitter 
@SaqibReports)) 
 
Keywords: GLOBAL FOREX/  
     

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