The euro was given an unexpected boost yesterday against the pound and dollar, as Eurozone and German economic sentiment figures unexpected re-entered positive numbers. German figures made their biggest ever upward swing since records began, suggesting that investors are starting to see a ‘light at the end of the tunnel’. 53% of surveyed analysts, according to ZEW, expect to see an improvement in economic activity, perhaps made more optimistic by the slight easing of lockdown restrictions in parts of the European Union.
Nonetheless, real-time economic indicators did continue to fall by over fifty points in both surveys. Italian construction output, too, fell to negative figures as the impact of lockdown continues to bite. Industrial orders this morning have seen a drop.
Later this morning, official figures are expected to show government debt-to-GDP rates to have grown in the Eurozone. Consumer confidence is still predicted to continue to drop – but a turnabout like yesterday’s figures could have further impact on the euro.
