The euro regained ground this morning after stats showed a better-than-expected growth rate for the German economy. This followed an unexpected turn, as both Eurozone and German economic sentiment fell quite a way below expectations. German figures went from a 13-month high of 3.1 to -2.1 – against market forecasts of 5. The markets were also expecting a figure of 5 points for Eurozone sentiment, but that, too, dropped to -1.6. Euro weakened slightly against the pound on the news, although Brexit uncertainty still helped to hold sterling down.
Industrial production in March fell by 0.3%, following similar declines in February. It seems that, despite recent positivity, the eurozone is not entirely out of the woods yet. It is not unreasonable to expect further volatility over the next few weeks – especially combined with Brexit pushing euro in the opposite direction against the pound.
