Eurozone Economy

Official figures show the Eurozone's economy flatlined in the final quarter of 2022, but the headline masks a more troubling picture of an economy that is clearly struggling, say economists.

Is stronger-than-expected inflation now a negative for Euro exchange rates?

The Euro was a clear outperformer at the start of the new month as it responded to another leap higher in Germany bond yields as investors react to surprisingly strong inflation readings.

 Deutsche Bank, is forecasting a further contraction in the opening quarter of this year that would make for, "sligthly more than just a technical recession." 

A sharp drop in Eurozone CPI inflation last month was offset by a stubbornly high core inflation reading, which will likely keep the European Central Bank on course to deliver further interest rate hikes.

The Euro rose after Spanish inflation unexpectedly accelerated in January, prompting investors to raise expectations for the scale of interest rate hikes yet to come from the ECB.

The Eurozone economy won't contract in 2023 says Goldman Sachs following an upgrade to their growth forecasts.

GBP/EUR extends trend of weakness in wake of Eurozone inflation data.

EUR lower on the same day data from Germany revealed a sharp decline in inflation which hints that prices in the Eurozone might come down faster than the European Central Bank currently anticipates.

Eurozone inflation data came at a lower-than-expected rate.

The Euro was softer following German inflation data for November.

Eurozone PMIs confirmed the bloc's economy shrunk in November, however, the scale of the decline was less severe than markets were expecting.

Eurozone inflation has hit a new record after Eurostat reported prices jumped by a record 10.7% in October and separate data showed the bloc's economy grew faster than expected in the third quarter.

The ECB is expected to come "out in force" in response to Eurozone inflation data that has reached double digits, however this will offer scant support to Euro exchange rates say analysts.

Germany's inflation rate has now surpassed that of the UK and could be on course to peak at 13% say economists.

Eurozone CPI inflation rose 9.1% year-on-year in August according to Eurostat, up from 8.9% in July and beating expectations for a reading of 9.0%, deepening the region's cost of living crisis.

The Eurozone is entering recession according to the findings of a regular and much watched survey.

Euro exchange rates were higher on the final trading day of July, boosted by above-consensus inflation and GDP data.

The EU Commission's measure of consumer sentiment has plunged to all-time lows, leading economists to warn the area is now entering recession.

Early data out of Germany suggests the inflation peak might have passed, resulting in falling Eurozone bond yields and Euro exchange rates.