Eurozone data had a more limited effect on euro rates this week, although rate movements were still notable. The euro weakened sharply against both sterling and the US dollar mid-week as a result of strength in those currencies rather than euro weakness. Smaller movements were also seen throughout the week as speculation continued ahead of the European Central Bank (ECB)’s next monthly meeting on the 5th June. The biggest data releases of the week were the French and German Manufacturing figures that came out yesterday. Both sets of figures were worse than expected, with the French figures revealing slight contraction in the sector. However, these results had a negligible effect on euro performance as the differences were small and results largely priced into the market.
This morning we await German Business Climate data, a data set that has a strong correlation with the general economic health of the Eurozone’s largest economy. While data has had a limited impact thus far, this morning’s figures may be able to buck the trend.
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