EUR/USD (a 4-hour chart)
The euro grew to 1.3156 after the data that industrial production significantly exceeded economists' expectations in Germany in March. That news reinforced hopes that the euro zone's largest economy finally gained its ground.
Industrial production in Germany in March rose by 1.2% compared to the previous month, despite the fact that economists forecasted a slight decline. This news was the second positive surprise on Tuesday after a stronger-than-expected data on factory orders for March was published. This gave investors an additional reason for buying euros.
The Euro is being traded, focusing on the data published in Germany not on what is happening in the rest of Europe. Data released on Wednesday, pushed the common currency up, and investors began to close their short positions on the euro at the beginning of the North American session.
The last stop orders on the euro/dollar triggered at 1.3170. European stocks rose, the credit spread between the periphery of the eurozone countries continued to decline and there is a possibility that in the coming weeks, the European Central Bank will take further measures to stimulate the economy as close to summer liquidity starts to decline.
Considering all these factors traders are waiting for the re-growth of the euro. This will test the validity of predictions about the future release of weak economic data in Europe.
"Investors do not seem to think that the euro has a great potential to decrease," said David Gilmore, partner at Foreign Exchange Analytics.