The economic data schedule was dominated by releases from the UK and US yesterday, but the euro still found itself floundering once more as investor confidence slumped. The falls against sterling were down to continued optimism that a Brexit deal can be agreed sooner rather than later, and the outlook is looking a little rosier than it has for some time.
However, against the dollar it dropped to its lowest level since last Wednesday, as figures released showed that consumer confidence is declining. According to analysts, the reading was the lowest it has been since 2016 which will be of some concern. It is fair to say the euro has been struggling a little of late and economic data from the eurozone has been far from encouraging.
With that in mind, it will be interesting to see what the composite and services PMI data from Germany and the eurozone are when they are released today. We will also see German factory orders and if the readings miss expectations we could see some further euro weakening.
