The euro slipped on Friday as consumer confidence in the eurozone in May stayed close to the 22-month low reached in March.
As export volumes saw a fresh decline on the month, reflecting the decline in global trade, investors saw little reason to favour the single currency.
With the Eurozone’s powerhouse economy losing momentum the risk of the wider currency union slipping into a state of contraction increased.
This bearish outlook was exacerbated by the dovish nature of the European Central Bank’s (ECB) latest Economic Bulletin, which also pointed towards weaker economic growth.
Wednesday’s second quarter German gross domestic product reading may push the euro lower across the board.
As investors expect to see growth contract on the quarter EUR exchange rates could struggle to hold onto a positive footing this week.
However, if this weakness fails to impact the updated estimate of the overall Eurozone growth rate any negative impact could prove limited in nature.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)