Euro Rises As Business Sector Improves

The euro stood to end the week on a high note on Friday morning as it climbed nearer to $1.33. The common currency saw a boost after better than expected PMI data gave investors hope for the region's recovery. The dollar slid against the euro after lackluster economic data put the brakes on the US' positive momentum. A German LFO survey that measures business morale came in ahead of expectations and boosted the euro. According to

, the German business climate index rose from to 106.2 from 105.9 in June. The reading narrowly beat expectations of 106.1.

Sentiment also increased in several other eurozone countries, leading many to hope that the sector would pick up. The LFO survey data came just after indicators showing that the eurozone's business activity grew modestly for the first time in 18 months; and the two have provided a positive stepping stone for recovery. However, eurozone banks remain risk averse and there is a lack of demand for credit which is keeping the region from a full recovery. The

reported that the European Central Bank released data on Thursday which showed that eurozone business loans slipped by 13 billion euros in June for the third consecutive month. Moving forward, most see the eurozone's banking union as the final piece of the puzzle to get the region's recovery on track. As it stands, high unemployment and a credit crunch in several of the periphery nations are keeping the bloc from gaining momentum. The International Monetary Fund is expected to put pressure on Eurozone leaders to move forward with the banking union for the remainder of the year. The organization released an assessment of the region on Thursday which claimed the bloc needed to pass the legislation that names the ECB as the region's banking supervisor.