The euro slipped on Friday as consumer confidence in the eurozone in May stayed close to the 22-month low reached in March.
A return to growth territory for the Italian service sector offered some support to EUR exchange rates, though, even as worries over its economic outlook persisted.
In spite of Italian officials showing signs of a willingness to compromise market concerns over the controversial 2019 budget persisted, to the detriment of the single currency.
Fresh contractions in German industrial production and factory orders added to the sense of bearishness, with the Eurozone’s powerhouse economy still coming under pressure thanks to global trade tensions.
Further losses could be in store for the euro this week if the European Central Bank (ECB) policy meeting proves more cautious in nature.
While markets widely anticipate an imminent end to the ECB’s long-running quantitative easing programme any indication that interest rates are likely to remain on hold for the foreseeable future would drag the euro lower.
On the other hand, if ECB President Mario Draghi strikes an optimistic tone this could encourage EUR exchange rates to recover some of their lost ground.
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)