In contrast to a slew of Chinese data points missing forecasts on Tuesday, economic reports released overnight in Europe was more upbeat. The 0.8 percent third-quarter growth print in Germany topped the 0.6 percent forecast in a Reuters poll.
In response, the common currency spiked as high as $1.1805 in the last session — its highest levels in almost three weeks. At 8:23 a.m. HK/SIN, the euro traded at $1.1788.
“[W]hile the GDP print provided the initial catalyst, the velocity of the move suggests that investors are finally discounting the European Central Bank’s dovish guidance in the face of stronger economic data,” Stephen Innes, Asia Pacific head of trading at OANDA, said