Weekly Roundup: Euro fluctuates amid mixed data

Roxane Cody November 20th 2023 - < 1 minute read

After a muted start to the week, the euro then faced volatility on Tuesday. A larger-than-forecast recovery in German economic sentiment initially lifted EUR before an improving market mood saw the safer currency slip against riskier peers.

A contraction in Eurozone industrial production then dented EUR on Wednesday, with the ongoing risk-positive tone also keeping the currency subdued.

The mood then started to sour, which supported the euro. The single currency also enjoyed its negative correlation with a weakening US dollar.

The euro closed the week moving without a clear direction. Confirmation that Eurozone inflation cooled to 2.9% last month weighed on the common currency while USD’s ongoing weakness cushioned EUR.

Turning to this week’s session, the Eurozone PMIs are in the spotlight. Could a continued contraction in business activity fuel recession fears in the bloc and drag the euro lower?

Germany’s Ifo business climate indicator for November could then lend EUR support, if it shows an improvement as expected.

Written by
Roxane Cody

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