German indicator ZEW, which measures trust of German businesses in economy, grew to 71.5 points in August, which is 12.2 more compared to July value and 13.5 more than markets had expected. Even though evaluation of the current economic situation worsened when the index dropped in 0.4%, it did not affect trust of businesses in future progress. “Hopes for a speedy economic recovery have continued to grow,” said ZEW Institute President Achim Wambach.
In reaction to positive data, the euro grew to 1.1809 against the dollar, which is the strongest value since 4th April. Yet, according to monetary analyst at Rabobank Jane Foley, it’s still too early to say whether European currency strengthening should be evaluated based on one indicator only. We have to wait till September, when the EUR/USD exchange rate shows in brighter colors,” she said to Reuters.
The euro has been stronger against the dollar in recent weeks. It keeps growing as the Eurozone brings some relatively positive news. Yet, the question remains – how long will the euro remain on current values?