The Australian dollar trended lower through the majority of last week, with the risk-sensitive currency struggling to attract support as a gloomy market mood prevailed through most of the session.
EUR then regained some ground after eurozone GDP growth beat forecasts, printing at 0.3% in the first quarter of this year.
Some turbulence followed. The euro area CPI missed forecasts, holding at 7.4% rather than rising to 7.5%. In addition, European markets suffered a sharp sell-off. However, a hawkish tone from the European Central Bank’s (ECB) April meeting minutes buoyed EUR, preventing losses.
The euro ended the week on a sour note, however. Consumer confidence in the eurozone held close to a 22-month low as surging inflation and the Russia-Ukraine war continue to cast dark clouds over Europe.
So far this week, EUR exchange rates have jumped higher, boosted by an unexpected rise in German business confidence and a hawkish blog post from ECB President Christine Lagarde, in which she signals rate hikes in July and September.
Aside from the flash PMIs this week, any more hints about future rate hikes from the ECB could prompt EUR movement.
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)