Eurozone Economy

The Euro to Dollar exchange rate will be better insulated against further weakness after a key German survey showed that the economy had turned a corner.

The Euro to Dollar exchange rate rallied following the release of a bumper German services PMI print that overshadowed another disappointment in the manufacturing sector.

The Euro to Dollar exchange rate was softer following an undershoot in March inflation data, but looking under the hood reveals inflationary trends that will limit any weakness.

The Euro touched daily lows against the Pound and Dollar following the release of softer-than-forecast inflation data that firmed expectations for a June rate cut at the European Central Bank (ECB).

It is a mixed bag for the Eurozone economy this March, as the region's services sector continues to recover, but manufacturing remains frozen in contraction territory.

Confidence in the European rebound story is growing; on Tuesday Bank of America said its much-watched fund manager survey found "rising confidence in a European growth reacceleration".

Euro exchange rates were broadly firmer following the release of data that showed Eurozone inflation surprised to the upside in February.

The Euro to Dollar exchange rate (EUR/USD) has retreated towards the key 1.08 level amidst a broader U.S. Dollar recovery and soft Eurozone consumer sentiment, potentially signalling an end to the February recovery.

Europe's energy crisis has come to an end, with electricity prices largely reverting to pre-pandemic levels. Norbert Ruecker, Economist at Julius Baer, sheds light on the factors driving this stabilisation and offers insights into the future of the region's energy landscape.

Germany, the Eurozone's economic engine, posted astonishingly weak manufacturing numbers on Thursday, but Euro exchange rates didn't bat an eyelid as traders opted to focus on improvements in the broader Eurozone PMI.

Eurozone annual inflation fell to 2.8% in January from 2.9% in December, which aligned with market expectations.

The Eurozone economy avoided falling into recession in the second half of 2024 as Eurostat reports a 0% quarter-on-quarter GDP reading for the final quarter of the year.

The Eurozone economy was stuck in contraction mode in January, according to the regular PMI survey from S&P Global.

Eurozone unemployment has fallen to an all-time low and justifies the European Central Bank's message that there is no need to rush into interest rate cuts.

Enthusiasm for the Euro was curtailed by a disappointing survey of the Eurozone's economy that revealed activity fell in December and undermined the European Central Bank's message on interest rates.

The Euro is under pressure in midweek trade after data from Germany disappointed and suggested the downturn in Europe's largest economy was not over.

Euro exchange rates retreated following the release of Eurozone inflation data that verified market bets for a number of European Central Bank (ECB) rate cuts to take place in 2024.

The Euro to Dollar exchange rate (EURUSD) returned some of the previous day's gains as markets pared back the previous day's outsized moves and after the Eurozone printed disappointing industrial production numbers.

EURUSD has stalled at 1.0750 amidst fears the U.S. Federal Reserve will push back against a recent loosening in financial conditions and as Germany prints another disappointing set of industrial numbers.

The FX textbook says the Euro should rise when inflation data beats expectations, as this boosts the odds for more bond yield-supporting interest rate rises at the European Central Bank (ECB).