The euro has struggled against the US dollar all week, dropping by close to 3%. Against sterling, the single currency has recovered the losses it made midweek to come out even.
There has been little economic data this week, it being mid-August. However, the ZEW Economic Sentiment Index was broadly in line with expectations for both Germany and the eurozone, and unemployment was lower than expected. Europe’s overall inflation rate is 8.9%.
Next week there will be more indicators to the health of the German economy with PMI, Ifo Business Climate and GfK Consumer confidence.
However, it is likely to be worries over winter gas supplies that keep the euro depressed.
EUR/USD past year