The euro opened sharply higher today but has erased losses against the majority of its most-traded peers by now. The traders’ cautious mood was weighing on the currency, but hopes about an end to lockdown in the foreseeable future were supporting the euro. Eurozone macroeconomic data released over Monday’s trading session was mixed.
Destatis reported that the German Producer Price Index fell by 0.8% in March, both on a monthly and annual basis. Analysts were expecting a bit smaller monthly decline of 0.7%. According to data from the European Central Bank, the current account surplus widened to â¬40 billion in February from a surplus of â¬32 billion in January. A report from Eurostat showed that the trade balance surplus widened from â¬18.2 billion in January to â¬25.8 billion in February. Both indicators exceeded the market consensus but it is important to remember that the data is delayed, showing the state of the economy before the coronavirus outbreak.
Some European countries, including Germany, are planning to ease lockdown restrictions as the rate of coronavirus infection slows, allowing some businesses to reopen. Spain, with its big number of confirmed cases and a high death toll, does not plan to lift the lockdown soon. France also plans to extend lockdown for at least three weeks despite seemingly containing the coronavirus spread.
EUR/USD was about flat at 1.0866 as of 10:30 GMT today. EUR/GBP gained from 0.8682 to 0.8716. EUR/CHF rose from 1.0516 to 1.0519.
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