Euro shines after unexpectedly strong German data
Frankfurt (Nov 22) The euro climbed to a four-year peak against the yen and rose for a second straight day versus the dollar on Friday after much-stronger-than-expected German business sentiment pointed to a continued rebound in Europe's largest economy.
Germany's closely watched Ifo survey of business sentiment rose far more than forecast in November, reaching its highest level since April 2012. That added to positive sentiment about German growth, the engine of the euro zone economy.
A ZEW survey this week also showed German investor sentiment at its highest in four years while a purchasing managers index release suggested the private sector's expansion was gaining traction.
"The enthusiastic IFO report has investors comfortable increasing exposure to the euro this morning, pushing euro/dollar back above $1.3500," said Scott Smith, senior corporate FX trader at Cambridge Mercantile Group in Calgary.