The euro had a mixed start to the week as the single currency lost a little bit of ground against the US dollar yesterday, but did manage to stabilise against sterling after last week’s losses. This disappointment against the dollar was seen after data showed that growth in the euro area’s private sector slowed to a 16-month low in May; this was despite solid growth in Germany and France and showed that other areas across the Eurozone continue to disappoint.
Tuesday could be a big day for the euro, Gross Domestic Product (GDP) figures for Germany is expected to show an improvement from last month’s figure from 0.3 to 0.7% – and a big increase for quarter-on-quarter growth. Later on today, at 10am, we will see the release of ZEW German business confidence data, which is anticipated to increase slightly from 47.7 up to 48.7. This figure is still below the crucial level of 50 but continuing rises are expected to push it up to this all-important figure.
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