Germany’s positive retail sales boost euro

<p>Germany’s positive retail sales data has driven up the euro in trading with the pound.</p>

The pound has been buoyed in forex markets this afternoon (January 4th) thanks to Germany's prospering retail sector.

According to the Federal Statistical Office, sales in Europe's largest economy rose by 2.1 per cent last year, as the country continues to weather the eurozone debt crisis.

However, stripping out inflation means turnover on the high street fell between 0.1 per cent and 0.3 per cent from 2011, Destastis reported.

Germany's strength has been evident in a number of recent surveys, with figures this week showing the nation's joblessness was stable at 6.9 per cent, with the total number of unemployed people topping 2.8 million.

Nevertheless, decision-makers in Berlin chose to cut the nation's growth forecast for 2013 noting the country might be entering a recession.

At 14:50 GMT, the euro rose by 0.3 per cent in trading with the pound to €1 buying £0.813.

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