The euro lost out against the majority of its peers yesterday, bar a very weak sterling, with a combination of factors weighing on the 18-nation currency. Industrial production figures for the region showed a contraction, coming in at -1.8% which was below forecast and almost 3% down on the previous month’s release.
This was followed by German economic sentiment data, which, following a run of worrying data from the Eurozone’s talismanic economy, was not expected to come in anywhere near last month’s result of 6.9 (anything above 0.0 illustrates positive sentiment). However, few had forecast it to come in as low as it did (a worrying -3.6) and as a result, further pressure was put on the euro. The figures would have been one of many factors in Germany’s decision to cut growth forecasts later in the day – the final nail in the coffin in what was a woeful day for the European economy. With all things considered, the euro did not lose out as much it could have done. A quiet day on the data-front today should give the euro some respite.