Forex Flash: Euro gives back early gains – Wells Fargo

FXstreet.com (Barcelona) - Nick Bennenbroek, Head of Currency Strategy at Wells Fargo notes that positive sentiment data out of Germany initially led to a bounce in the Euro, but it has since give back most of its gains.

Germany's ZEW economic sentiment index soared from 6.9 to 31.5, a 2 ½ year high and far outpacing expectations of an increase to 12. Today's data echoes other recent European sentiment data which has suggested underlying sentiment may have bottomed for the time being. He notes that meanwhile, Spain's 10-year debt syndication was met with strong investor demand. Net borrowing in the UK fell to 13.2bn and a UK manufacturing survey fell to -20 (vs. expectations of -11).

Bennenbroek finishes by commenting that, "In spite of the poor data, the pound is trading higher this morning. Nonetheless, today's manufacturing data could potentially spark some concern around Friday's Q4 GDP report and markets will look to tomorrow's BoE minutes to glean further insights into the Bank's monetary policy stance. Elsewhere, Turkey's central bank kept its benchmark rate steady as expected."