Weekly Roundup: Euro rises amid risk aversion 

Amy Richards October 24th 2023 - < 1 minute read

The euro faced a mixed start to the week as a lack of data left the currency without a clear direction. 

EUR then enjoyed support on Tuesday after Germany’s economic sentiment index improved more than forecast. 

A souring market mood helped the safer single currency rise against its riskier peers midweek, although EUR’s negative correlation with a rising US dollar stifled its upside potential. 

As markets grew increasingly anxious about escalating tensions in the Middle East, the euro continued to attract risk-conscious investors. 

However, an unexpected decline in German producer prices tempered EUR’s upside on Friday, as it dampened bets on another ECB interest rate rise. 

The focus this week is firmly on the European Central Bank’s upcoming rate decision, with the bank expected to leave rates unchanged. 

Any further hints that the ECB is done tightening monetary policy could see the euro slump. 

Written by
Amy Richards

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