Wednesday saw the shared currency of the European Union climb against the world's reserve currency following Germany's release of strong industrial production data, Reuters reports.
As the largest economy in the 17-nation euro bloc, Germany also released stronger-than-forecast economic data earlier in the week regarding industrial orders. But those gains are likely to be curbed by weaker economic data released by euro zone nations as the region struggles with rough economic times.
"Euro/dollar is likely to trade sideways for now, with a risk to the downside," currency strategist Niels Christensen with Nordea in Copenhagen told Reuters on Wednesday.
Recent gains for the euro are attributed to cuts to borrowing costs. But the monetary unit is still prone given the regional economy is struggling and a point of concern among analysts and investors.
Four investment houses are cautiously optimistic about the euro's prospects as this year continues, according to The Sydney Morning Herald. Deutsche Bank AG, Citigroup Inc., UBS AG and Barclays Plc are projecting the monetary unit to surge as much as 9 percent by the end of 2013.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.