Weekly Roundup: Euro firms on upbeat Ukraine developments
Amy Richards November 21st 2022 - < 1 minute read
The euro opened last week’s session on firm footing. The single currency being underpinned by a positive Eurozone industrial production release and a surprisingly strong improvement in German economic sentiment.
However, EUR exchange rates then faced a major setback after a missile struck a farm in East Poland killing two people.
While it was quickly established this was likely not a Russian missile, fears the war in Ukraine is spilling over into the rest of Europe kept the pressure on the Euro in mid-week trade.
Some hawkish comments from European Central Bank (ECB) policymakers, including President Christine Lagarde then helped to buoy the single currency in the latter half of the week. Although these gains remained capped in the face of ongoing Ukraine concerns.
Turning to this week, the highlight for EUR investors will be the release of the Eurozone’s latest PMI figures. November’s preliminary PMIs are expected to report the contraction in the Eurozone’s private sector deepened this month, potentially weakening the euro.