"Europe's economy is still fragile and Germany faces risks from a slowdown in France. But I think Germany is strong enough to support the euro area economically over the next year and I believe we'll see growth both in Germany and the euro area."
- Hiroki Shimazu, senior market economist at SMBC Nikko Securities Inc.
Despite U.S. Dollar's bullishness and gloomy outlook for the Eurozone, the single currency managed to trade higher on Friday compared with week's opening price. The Euro was traded above 1.35 after data showed the Eurozone's number one economy's business climate surprised markets on the upside this month.
A report from the Munich-based Institute for Economic Research showed a measure of business climate stood at 109.3 in November, versus estimates of 107.7 and up from 107.4 recorded in October. Moreover, a measure of current situation improved as well, inching higher to 112.2 points, compared with October's figure of 111.3 and beating analysts' expectations for a 111.5 reading.
Even though economic growth significantly slowed in the third quarter, the fact expectations survey, designed to reflect businesses' projections for the next six months, posted a solid improvement, is suggesting the economy will continue gaining momentum. Moreover, ZEW economic sentiment, evaluating the economic outlook for the next six months, also edged higher to 54.6 this month, indicating bright prospects for the German economy.
© Dukascopy Bank SA