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EUR/USD Update – Euro Area Exits Record Slump Led by Largest Economies



Good day forex traders and readers.

As we head into midweek, we see positive developments for the euro zone. While one would expect a possible rise in value for the euro currency, the EUR/USD remains pressured by bearish momentum.

The current sentiments of the market suggest a return of apprehension as the latest release of positive economic data from the US may increase the possibility of quantitative easing tapering by the US Federal Reserve happening in September. Comments made by a few US Federal Reserve officials seemed to indicate this too. Hence risk aversion may be happening.

Read more about the Euro Zone positive developments below :

Euro Area Exits Record Slump Led by Largest Economies

By Angeline Benoit & Jeff Black – 2013-08-14T13:59:52Z The euro area’s economy emerged from a record-long recession in the second quarter, led by Germany and France, amid the first sustained period of financial-market calm since the start of the debt crisis.

Gross domestic product in the 17-nation euro area rose 0.3 percent in the April-June period after a 0.3 percent contraction in the previous three months, the European Union’s statistics office in Luxembourg said today. That exceeded the median estimate of 0.2 percent growth in a Bloomberg News survey of 41 economists and brought to a close six straight quarters of contraction, the longest slump since the euro’s debut in 1999.

Germany and France, the euro area’s two largest economies, both showed faster-than-projected expansions in the quarter. While the overall outlook has improved, the recession pushed the unemployment rate to a record and parts of southern Europe remain mired in a slump, with more than half of young people in Spain and Greece out of work.

“We’re not seeing a recovery, it’s only a stabilization,” said Sylvain Broyer , Chief Eurozone Economist at Natixis in Frankfurt. “What we need is a pick-up in productive investment and I don’t see that yet. You would need a good three to four quarters of positive growth in the euro area to expect the unemployment rate to edge down.” European Stocks

European stocks rose for a fifth day after the report, extending an 11-week high, with the Stoxx Europe 600 Index up 0.36 percent to 308.91 at 3:49 p.m. in London. The Swiss franc slid to the weakest in a month against the euro amid lower demand for the safety of the Swiss currency currency. The euro was stable at $1.3264 and 130.25 yen.

In Germany, GDP increased 0.7 percent in […]

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