Euro Remains Pressured by Weak ZEW Data, USD Moves Higher
US dollar picks up a long of strength today and is trading as the strongest one. Over the week, the greenback is sitting as the second strongest, next to Australian dollar. The Japanese yen continues to trade as the weakest one thanks to return of risk appetite.
The euro fell by 0.23% against the US dollar, as German and Eurozone ZEW sentiments declined further, posting sharper falls than analysts expected. German ZEW Economic Sentiment fell to -24.7, compared with the forecast stood at -17.9 points. Eurozone ZEW Economic Sentiment dropped to -18.7 points, weaker than the estimate of -13.2 points.
Professor Achim Wambach (ZEW President) said in the release that “the current survey period has been marked by great political uncertainty. In particular, fears over an escalation of the international trade war with the US have dampened the economic outlook. The positive news regarding industrial production, incoming orders and the labour market have been greatly overshadowed by the anticipated negative effects on foreign trade”.
The British pound was also lower after release of today's data. UK GDP rose grew 0.3% mom in May and 0.2% in the three months to May. UK visible trade deficit was unchanged at GBP -12.4B in May. Industrial production dropped -0.4% mom, rose 0.8% yoy. Manufacturing production rose 0.4% mom, 1.1% yoy. Construction output rose 2.9% mom. BRC retail sales monitor rose 1.1% yoy in June.