The Euro-Dollar exchange rate rose to $1.216 per euro from the previous closing level of $1.2149.
The euro is supported by statistics from Germany, which showed better indicators compared to analysts' forecasts. The Federal Statistical Office (Destatis) released an estimate of a 2.7% drop in German GDP in the fourth quarter of 2020, while analysts had expected a 2.9% decline in this indicator. According to the data released, on a quarterly basis, the German GDP in the fourth quarter increased by 0.3%, taking into account seasonal adjustments. Analysts predicted a rise of only 0.1%.
The recession of the largest European economy in the last quarter of 2020 was averted by the recovery in the construction sector, industry, and positive dynamics of external demand. However, some experts admit that such factors will not significantly affect the overall level of the German economy and will not save it in the first quarter of 2021.
German GDP data also influenced the growth of European stock indices. The French CAC 40 index rose by 0.06%, the German DAX - by 0.46%, but the British FTSE 100 index showed a decrease of 0.56%. Experts note that the decline in the British index is largely due to the dynamics of the closure of the Asia-Pacific region, whose main indices sank by 0.9-3%.
Today, statistical data from the US is expected to be released, which can significantly affect the value of the dollar. In the first hours of the US session, the Census Bureau of the US Department of Commerce will publish information on new home sales in the US in January.
