Weekly Roundup: Euro choppy amid mixed German data
Amy Richards November 13th 2023 - < 1 minute read
The euro found success on Monday after German factory orders unexpectedly expanded by 0.2% in September, rather than shrinking by 1%.
On Tuesday, German industrial production then posted a far larger-than-forecast 1.4% contraction, undermining EUR, although a risk-off mood helped the safer common currency.
The euro faced mixed movement midweek. Confirmation of cooling German inflation and a bigger-than-expected decline in Eurozone retail sales dented EUR. However, the currency’s negative correlation with a retreating US dollar cushioned it.
Gloomy comments about the Eurozone’s economic outlook from European Central Bank (ECB) Vice-President Luis de Guindos then dented EUR on Thursday.
The euro was however able to firm against its riskier peers amid a risk-off mood on Friday, although a lack of data capped the currency’s upside.
This week, Germany’s latest economic sentiment index could boost EUR exchange rates. Analysts expect the index to have returned to positive territory for the first time since April.
Later in the week, ECB President Christine Lagarde is due to speak. Could dovish comments see the euro end the week on a sour note?
Written by
Amy Richards