020 7898 0500Yesterday was a relatively quiet day for the euro as it responded to mixed data. The seventeen-nation currency lost ground sharply against sterling in response to sterling strength and weakened slightly against the US dollar. Eurozone investor confidence data came through significantly worse than expected during the morning spurring a moderate decline, however the day’s other key data sets were largely positive and caused the euro to steady throughout the rest of the day. Spanish and Italian Services PMI data, which while both indicating a contraction, were revealed to be marginally better than expected. Similarly, monthly retail sales figures were down, but not by quite as much as predicted. This morning, euro performance may be affected by Italian second quarter preliminary growth figures as well as German monthly factory orders data. With more positive economic news emanating from the US and UK, traders will need to see some signs of economic recovery in Southern Europe in order for the euro to keep pace with its major trading partners. Call your trader now to keep track of euro performance.
