Weekly Roundup: Euro mixed despite upbeat economic data
Amy Richards August 21st 2023 - < 1 minute read
The euro initially suffered from its negative correlation with a rising US dollar at the start of last week.
A surprise rise in Germany’s ZEW economic sentiment index lent the common currency support on Tuesday, helping it regain ground.
More positive data followed midweek. Eurozone industrial production unexpectedly grew in June, while the latest estimate for GDP signalled a return to growth in the second quarter.
However, this failed to provide EUR with a meaningful upside, and the euro traded without a clear direction through to the end of the week. The single currency fell against its stronger peers and rose against the weaker ones.
Coming up, the Eurozone PMIs are also due out on Wednesday. If manufacturing and service sector activity continues to decline in August, the euro will likely stumble.
At the end of the week, European Central Bank (ECB) President Christine Lagarde is due to speak at the Fed’s Jackson Hole Symposium. Her comments could trigger sharp movement in the euro.
Written by
Amy Richards