EUR/USD stays above 1.33 on Improving Economy

The euro was 0.4 percent from a one-week high against its U.S. peer before German data this week that analysts predict may show the currency bloc’s largest economy is gaining momentum.

Germany’s producer prices probably rose in July, while surveys of purchasing managers in manufacturing and services industries showed activity picked up this month in the nation and in the euro region, according to economists polled by Bloomberg News. The yen fell earlier on data showing Japan’s trade deficit widened in July. Australia’s dollar rose amid speculation minutes tomorrow of the Reserve Bank’s last meeting will signal no hurry to reduce interest rates further.

“We’re seeing some pretty clear signs that the euro zone has recovered from recession,” said Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington. “This week’s European flash PMI will certainly see that recovery trend shine through,” Jones said, adding that BNZ estimates the euro will trade at $1.28 by year-end.


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