Euro Steadies on Better Economic Data

The euro, during the Asian trade session this morning, thanks to solid economic growth numbers out of China which showed the world’s second largest economy is maybe on the road of economic recovery, firmed. During the European trade session the euro will react to a whole slew of flash PMI data out of German, France and the Eurozone. Later in the day the United States will release key retail sales data.

The dollar index, which measure the dollar against six other Forex majors including the euro, was flat at 97.051. The dollar index, yesterday, lost 0.05 percent.

The benchmark USD/JPY market was down 0.1 percent to trade at 111.955 yen. On Wednesday the yen hit a for month low at 112.17 yen as Treasury yields hit a one month high.

Commodity linked currencies outperformed as crude oil prices rose. The USD/CAD market was at 1.3351 as the U.S. dollar fell from a month high of 1.3257 touched yesterday,

The Euro Reacts Positively to China’s Economic Growth Data

The benchmark EUR/USD market saw the euro last trading flat at 1.1293. Yesterday, the sngle currency rose 0.1 percent.

The EUR/USD has been recovering from a low of 1.1183 set at the beginning of April.

The Eurozone currency got a boost from better than expected economic growth data out of China. The world’s second largest economy, for the first quarter expanded by 6.4 percent. This cooled down concerns that their economy was slowing down even further. Also, industrial production improved as did consumer demand.