020 7898 0500The euro managed to hold its ground despite the surprise downturn in economic data. It was revealed that German economic sentiment unexpectedly deteriorated in June. Economic sentiment for the next six months fell to 18.6 from 20.6 the month before, missing expectations of an increase to 21.5.
This is likely a result of the dovish tone the ECB meeting took last week which reduced the likelihood of an interest rate hike in the near future. The economic sentiment is still at a healthy level.
The day ahead is light on data from the Eurozone, but the focus will be on the US interest rate decision and the fallout from that will determine the direction of the euro against the dollar.
