Euro Rising Against the US Dollar

The euro has risen against the dollar over the past 24 hours, climbing up to buying $1.94 in the early hours of this morning, currently the euro is buying $1.088.

 

Due to the uncertainty in China, and the Federal Reserve announcing a 0.25% rate rise last month, the euro is having to face attractive selling conditions for traders.

 

Also, figures released from the US Department of Labour revealed that the US economy is progressing well, as 292,000 more jobs were created in the economy, placing the dollar in a strong position.

 

The total jobs growth for 2015 reached 2.7 million, and December produced the second largest monthly rise for the whole of last year.

 

Against the pound, the euro peaked at buying £0.754 in the early hours of this morning GMT, before falling slightly to buy £0.747.

 

Germany Reveals Manufacturing Sector Fall

 

Europe’s most influential economy reported a reduction in manufacturing output by 2.3% in November, in comparison with October last year.

 

The manufacturing sector is suffering a decline in Germany, as there was also a fall of 1.8% in October compared to September.

 

Domestic manufacturing in November decreased by 2.4% according to official figures, and business overseas also dropped by 2.1%.

 

There was a stark difference over manufacturing sales in euro area countries, and sales outside of then euro zone.

 

Within the euro area, manufacturing sales rose by 2.6%, while sales to the rest of Germany’s trading partners in the sector, was reduced by a significant 5.2%.

 

Compared to November last year, manufacturing was reduced by 0.5%,  national sales fell by 0.6%, and turnover from foreign customers also fell by 0.4%.

 

From January to November last year, the manufacturing sector did rise by 1.6% above the output for the same period in 2014.

 

The level of foreign business was a major factor for the increase in business, as trade rose by 2.7%.

 

French Business Managers Report Satisfactory Balances

 

 

Official figures in France have revealed that business managers in the second half of last year, reported that they were satisfied with their operating balances.

 

Confidence in business balances is now the highest it has been in seven years. Many industrialists expect a rise in trade for the first six months of the year, which follows similar optimism that was displayed in the same survey in June last year.

 

Although there was as many industrialists as in the previous two six month periods, that believed their cash position was difficult.

 

Many businesses are also pessimistic about their cash position for the first six months of this year, in comparison to the first half of last year.

 

Fewer industrialists are planning to ramp up production, and raise capital for investment, however more businesses thought that there would be an increase in working hours of their work forces.

 

The survey also revealed that medium to long term debt had not dropped during the past six months, although there was a  belief that outstanding short term loans had decreased.

 

Economic growth in France for the third quarter last year was 0.3%, which was favourable compared to the 0% growth that was reported for the second quarter.