The euro fell against most currencies today, including the US dollar and the Swiss franc, though not the Japanese yen. The indicators released during the current trading session showed that the economic sentiment deteriorated sharply this month.
The ZEW Indicator of Economic Sentiment for Germany dropped from 11.2 to 6.4 in May. The Indicator of Economic Sentiment for the Eurozone slid from 21.5 to 16.8. Economists were promising an increase for both indicators. The report explained the reasons for the deteriorating sentiment thusly:
Uncertainties regarding developments such as a possible Brexit currently inhibit a more optimistic outlook
On a positive note, German economic growth remained unrevised at 0.7% in the final estimate for the first quarter of this year, up from 0.3% in the fourth quarter of the prior year. Yet it did not provide much help to the euro.
EUR/USD dropped from 1.1218 to 1.1133 as of 19:18 GMT today, trading at the lowest rate since March 16. EUR/CHF slid from 1.1098 to 1.1059 after rising to the high of 1.1112. EUR/JPY traded in a narrow range and is currently at about the opening level of 122.53.
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