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.
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