Feb. 14: European session
EUR/USD rose to $1.3700 on positive data from the euro area. The region’s GDP gained 0.3% (forecast: 0.2%) in Q4, 2013. French and German economy both increased more than expected, by 0.3% and 0.4% respectively. Italian GDP gained 0.1% after declining by -0.1% in Q3. According to ING, today’s better-than-expected GDP data does provide the ECB with a little more confidence about the recovery and hence reduce the chances of a March 6th ECB rate cut”.
GBP/USD rose to the 33-month high in the $1.6720 area.