Yesterday the Euro was supported by the news that economic sentiment in Germany was stronger than expected in August.
This morning the common currency has been able to extend gains as a result of another piece of positive German data.
GDP figures for the second quarter showed that the German economy expanded by more than expected.
Economists had forecast a quarter-on-quarter gain of 0.6 per cent, but the economy actually expanded by 0.7 per cent. Similarly, rather than growing 0.2 per cent year-on-year as anticipated, the economy climbed 0.5 per cent.
The Euro/Pound pairing is currently trading in the region of 0.8588
French GDP was also better-than-forecast, with quarter-on-quarter growth of 0.5 per cent.
After the reports were published the Euro advanced on almost all of its most traded peers, although gains were limited in light of the influential news still to come.
Currency strategist Ray Attrill stated: ‘The Euro looks pretty strong. To the extent that the Eurozone does look as though it may be pulling out of recession, that flattens some of the tail risks associated with the region.’
Additional Euro movement is likely to occur in reaction to Eurozone GDP data, due out at 10:00 GMT.
It is expected that the currency bloc’s economy contracted by a seasonally adjusted 0.8 per cent in the second quarter, QoQ.
Euro (EUR) Exchange Rates
As of 08:50
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3257 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8588 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4572 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6602 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3739 >