2010.08.1912:48:00UTC+00Euro Steadies As German Central Bank Raises Growth Forecast

The euro was stable against other majors on Thursday, getting a modest boost after the German central bank lifted its 2010 growth forecast for Europe's largest economy.

Following a robust second quarter, the Bundesbank lifted its 2010 forecast to 3% growth, up from its previous calendar-adjusted forecast of expansion of 1.9%.

"The outlook for the current year remains favorable, even if there are signs for a slowing of global production activity and trade," the report said. "The overall trend of the German economy is positive and the upswing ought to continue."

Encouraging news on Greece also gave the euro a measure of support, offsetting risk aversion as US stocks tumble.

Greece is meeting its commitment to austerity and making structural reforms, putting the country in position to secure another loan installment, the European Commission said.

Deficit cuts "are going even faster than planned," commission spokesman Amadeu Altafaj told reporters in Brussels today.

This week's successful bond offerings in Germany, Ireland and Spain also eased fears about Europe's sovereign debt problems.

The euro rose to 1.2900 versus the dollar, which was hampered by data showing that US jobless claims soared to 500,000 last week.

Against the safe haven yen, the euro eased a bit to Y109.25, but stayed away from a recent 9-year low below Y108.

The euro was little changed near 0.8200 versus the sterling.

U.K.'s seasonally adjusted retail sales volume including automotive fuel rose 1.1% month-on-month in July, following the 0.7% rise in June, the Office for National Statistics said Thursday. Economists had forecast a 0.3% increase.

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