The euro jumped to a session high versus the dollar after the January Ifo German business climate index came in above expectations.
EURUSD hit 1.3050 within a minute compared to 1.3034 just before the data, up around 0.2 percent for the day. The pair then eased back to previous levels, but still remaining above the key $1.30 level.
Germany’s business sentiment rose for the third straight month in January, beating expectations and offering further evidence that Europe’s largest economy is shrugging off a sovereign debt crisis that has stalled growth in other euro zone countries.
The Ifo index is based on a monthly survey of around 7,000 companies. It recorded an increase to 108.3 in January from a revised 107.3 in December. The forecast was for the index to rise to 107.5.
The data soothes fears that Europe’s biggest economy was caught up in the debt crisis.
In the last quarter of 2011 data indicated that the German economy started to feel the pain of the euro-zone debt crisis. But Germany’s recovery appears to be improving despite the stalled economies of the rest of the euro zone.