Euro Lower Ahead Of Euro-Zone Meeting On Greece

Euro Lower Ahead Of Euro-Zone Meeting On Greece

For the 24 hours to 23:00 GMT on Friday, EUR rose 0.79% against the USD and closed at 1.2976, as investor risk appetite was boosted by better-than-expected German economic data. Moreover, the Euro also gained after Greece indicated that the International Monetary Fund had relaxed its debt-cutting target for the country, suggesting lenders were closer to a deal for a vital aid tranche to be paid.

Over the weekend, pro-independence parties in Catalonia won a regional vote, strengthening a drive for a referendum on secession in defiance of Spanish Prime Minister, Mariano Rajoy. He stated that a referendum on secession is unconstitutional.

On the economic front, Germany's IFO – business climate index rose to a reading of 101.4 in November, while the current conditions index rose to 108.1 in November. Also, the expectations index stood at a reading of 95.2 in November, compared to a forecast of 93.2. Separately, the seasonally adjusted gross domestic product rose 0.2% (QoQ) in the Q3 FY2012, unrevised from the preliminary estimate, while exports of goods and services climbed 1.4% (QoQ) in Q3 FY2012 and imports rose 1.0% (QoQ) Q3 FY2012. In France, the business confidence index rose to 88.0 in November, compared to a reading of 85.0 in October.

Moreover, Spanish producer price inflation eased to 3.5% (YoY) in October, while in Italy retail sales rose 0.1% (MoM) in September, compared to a flat reading recorded in the previous month.