The single currency has recorded this year its best first quarter in its history this year as the economy in Germany is accelerating with fast paces while the European Central Bank is preparing to raise the interest rates. The Euro has recorded gains of nearly 3.5% in this quarter while at at the same time Angela Merkel, the German Chancellor, and Nikola Sarkozy are promising to do everything they possibly can to support the help the EU zone with the debt crisis. The eurozone economy expanded by 1.7% in 2010 with analysts predicting that this year’s growth rate will remain at similar levels.
Germany’s economy which constitutes 30% of the Eurozone has extended by 3.6% in 2010 which is its highest rate of the last 20 years. During today’s session the EURO reached a high of 1.4270 against the USA and against the Yen a 10 month high of 120.65
The ECB will raise its key interest rate for the first time since May 2009 from 0.25% to 1.25% an act which would be crucial for the currency’s future.