This week a range of economic data from Germany might confirm that Europe’s largest economy is gaining momentum. German producer prices are expected to rise by 0.2 percent for the month of July, ending a period of six months of contracting figures. In addition, a poll of German manufacturing could rally to 51.1 this month from 50.7 in July and the services index, which will be released by London based Markit Economics on August 22nd, might advance from 51.3 to 51.7.
As a result, the EUR/USD appreciated from 1.3329 to 1.3333 on Friday, after briefly rising up to 1.3380, its highest level since August 9th. Since the beginning of the year, the EUR has gained 5 percent in reference to the Bloomberg Correlation-Weighted Indexes, the best performance among the tracked currencies, followed by the USD with 3.8 percent. The JPY, in contrast, lost 8.8 percent over the same period.