The euro has been labelled as one of the weeks worst performers, and the currencies recent weakness has been observed by the market, causing the single currency to sink. The euro’s European Central Bank (ECB) meeting minutes which arrived yesterday appeared to set a bearish tone for the Euro, despite earlier rallies as major economy bond yields listed off earlier lows. Many figures in the ECB are calling for a rise in expenditure over the next multiannual-financial framework which will cover a period in which the bloc has one less member to be concerned with (Britain). Later today will see the release of further German and Eurozone economic data figures. With recent poor performances from both, investors will be anxious to observe the results.
Euro one of the worst performers of the week with the ECB calling for increase in expenditure
The euro entered the week as one of the worst performers amongst its currency counterparts and looks to remain in this position as the week draws to a close. The euro’s recent weakness across economic data releases have seen the currency fare amongst the worse in the market following a drop in manufacturing as the Chinese coronavirus strikes fear into the global economy. Recent German Gfk surveys failed to impress, highlighted a lack of confidence in the German economy from consumers which has only seen the euro tumble lower.
On Thursday, the ECB meeting minutes were released. One of the takeaway points from the meeting saw that members of the ECB were calling for an increase in spending to boost the economy through fiscal stimulus. Though the calls appeared to be rejected from multiple national leaders.
Euro’s data releases could help or sink the currency, as investors watch with one eye closed
The euro will see several data releases throughout the course of today. The first major release will be the German Markit manufacturing and composite PMIs for February, in which the market is expected a downturn. Following this, the euro zone will see its own version of these reports, similarly, the market is forecasting another slump in these figures. Should this be the case for both then the euro will likely suffer even further. Later in the day the Eurozone’s consumer price index figures will be released, the consensus shows the figure to remain flat, matching last months figure.
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