Weekly Roundup: Euro softens as ECB bets remain subdued
Amy Richards October 2nd 2023 - < 1 minute read
The euro fell at the start of last week’s session as comments from multiple European Central Bank (ECB) policymakers indicated that Eurozone interest rates have peaked.
EUR found a brief respite as a gloomy mood helped it rise against its riskier peers, and a pullback in USD also aided the currency.
However, the euro then stumbled on Wednesday after German consumer confidence dropped to a six-month low, with the data printing below forecast.
Mixed data saw EUR waver on Thursday, before more notable volatility on Friday. Cooler-than-forecast Eurozone inflation dented ECB bets, thereby dragging on the euro.
The common currency then rebounded sharply amid a souring mood and a market correction, although it ended the week lower overall.
So far this week, the euro has stumbled amid an uptick in the US dollar and confirmation of a large contraction in Eurozone manufacturing activity.
EUR could face further headwinds as the week progresses. Eurozone retail sales are forecast to have shrunk for the second consecutive month in August.
Meanwhile, a number of ECB speeches throughout the session could dent the euro if policymakers once again strike a broadly dovish tone.