For the euro-bears was another painful, but instructive week price action. Euro against the dollar keeps this morning at 1.3550, just two weeks ago, he seemed decidedly vulnerable at the level of 1.29. The main factor here was the high single currency be bought not only China and Japan, but also other Asian and Middle Eastern states. Also, the euro helped to strong economic data from the leading countries. German business climate index in January rose to 110.3, with so bad level 109.8 last month, while an indicator of business confidence in France jumped to 108 this month, compared with 102 previously.
Another factor that supported the euro, is more hawk-like views of the ECB on inflation. This contrasts sharply with the lack of inflationary fears displayed by the British monetary policy committee, where the CPI now at 3.7% compared with 2.2% in Europe. At the moment, the currency market the euro reward for fighting the ECB to inflation and pressure on the pound because of the tacit consent of the Committee with high inflation.
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