Euro Targets at Weekly High ahead of G20 Meeting - 20.4.2012

The euro strengthened slightly yesterday against the greenback, rising to 1.3135 by the end of day. In Asian trading hours the single currency traded in a narrow range 1.3128-1.3163 after Germany unexpectedly reported a jump in producer prices, which rose in March by 3.3% from the corresponding month of the preceding year after advancing by 3.2% in February 2012. Compared with the preceding month, the index rose by 0.6% in March 2012. Moreover at the beginning of the European session the euro touched 1.0380 as German IFO business climate indicator rose to the highest since July 2011 – 109.9. The euro has also found some support ahead of G20 finance ministers and central bankers meeting with the International Monetary Fund in Washington later in the global day. The meeting is expected to be focused on global risks, including continuing uncertainty in Europe and possible increase in IMF funds to cover possible additional need in capital from indebted nations. However IMF’s managing director Christine Lagarde said in an interview to Bloomberg, that Spain, one of possible candidates for international financial aid, does not require support at the moment.