During the whole previous week the US dollar was pairing gains. By the end of the trading session, strong statistics from Germany, published on Friday, put further pressure on the American currency.
So, the euro grew by 0.8% to the level of one US dollar and 32 cent.
The single European currency was also backed up by a business climate report of German Institute for Economic Research Ifo.
The Business Climate index hit its 9-month high of one hundred and 9.9 points, whereas Analysts had predicted a decrease in the index to the level of 109.5 pips.
This week, the US dollar is most likely to rebound, returning to positive growth.
Besides fundamental data, presidential elections in France will also affect the euro weakening. As economists say, Franco-German relations cooled, while France and Germany are two major Eurozone members. Sadly enough, trade relations between these two countries have been burdened by conflicts and controversies, so solidarity seems to be increasingly shaky. Even if Nicolas Sarkozy is re-elected for the second term, France will still need drastic reforms that always imply some risk of uncertainty and instability.
