By Andy Scott, premier account manager at currency specialist HiFX

With so much negative news flow from Europe recently it’s refreshing to receive some good news from the beleaguered region. Germany, Europe’s largest economy returned to growth in the first three months of 2012 at a faster pace than expected of 0.5%, helped by a surge in exports.

Unsurprisingly, the Euro was at some of the lowest levels in the last 12-months during this period making products from the world’s second largest exporter cheaper. Germany’s growth prevented the euro zone from slipping back into recession with flat growth for the zone as a collective.

France narrowly escaped slipping back into a technical recession with flat growth but the picture was very different for southern euro members which saw an even sharper contraction than expected.

The Euro didn’t react much to the German data but that isn’t too surprising when you consider that this once again highlights the huge economic differences and therefore difficulties within the single currency block. We maintain a negative outlook for the Euro with so many uncertainties over its future.

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