It was a decidedly mixed day for the single currency yesterday, with modest falls against the pound, yen and Aussie dollar, but sizeable rises of 0.5% to 0.75% against the US and Canadian dollars and renminbi.
The eurozone was revealed to have been in a mild recession over the last quarter of 2022 and first quarter of 2023 yesterday, with GDP falling by 0.1% between January and March. The falls in Q1 were among the largest in Germany and the Netherlands (-0.3% and -0.7% respectively) while there was growth in France, Spain and Italy of between 0.2% and 0.6%.
There is no data today, but two members of the European Central Bank’s (ECB) interest rate setting panel will be talking and the markets are likely to listen with interest.
Tuesday starts with a bang – a mass of final readings for inflation, as well as the ZEW economic sentiment index for Germany and eurozone. Few analysts are expecting anything other than more gloom from the Germans.
With the interest rate decision on Wednesday, anyone exposed to currency risk should be in close communication with their trader well before.
EUR/USD past year
