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.

Learn about the markets and forex trading at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.