Evidence that the eurozone economy held up better than feared in the second quarter is a positive development for the euro, MUFG Bank's Lee Hardman says in a note. Last week's stronger-than-expected industrial production data for Spain and France prompted MUFG to raise its second-quarter eurozone growth forecast to 0.25% from a previous expectation of near-stagnation, he says. "In addition, a faster-than-expected reversal of the energy price shock should improve investor sentiment towards both the euro-area economy and the euro over the remainder of this year." The European Central Bank could raise interest rates again in September even though inflationary risks have eased, he says. The euro falls 0.1% to $1.1422 and MUFG expects it to rise back towards $1.18. (renae.dyer@wsj.com)