The euro slipped on Friday as consumer confidence in the eurozone in May stayed close to the 22-month low reached in March.
This was kicked off by a disappointing German retail sales print, which reported a shock contraction of sales growth in September.
While a downwardly revised Eurozone manufacturing PMI also exerted some pressure on EUR exchange rates, it was offset by the publication of the bloc’s unemployment figures after they reported the jobless rate fell from 7.5% to 7.4% in September.
In the latter half of the week the euro was able to catch bids in the wake of the Bank of England’s decision not to hike interest rates, as it helped to narrow the perceived policy gap with the European Central Bank (ECB).
However there gains were almost immediately tested by the release of Germany’s latest industrial production figures, after they reported an unexpected contraction of factory output for the second consecutive month in September.
So far this week, the euro is trading with modest gains, with the single currency being supported by the release of the German ZEW index, after it revealed a surprising improvement in economic sentiment in the Eurozone’s largest economy this month.
Still to come is the publication of the Eurozone’s latest industrial production figures, which could place some pressure on EUR exchange rates if the release disappoints similarly to Germany’s recent figures.
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)