🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Euro strengthens despite German GDP dip and ECB rate hike signals

EditorPollock Mondal
Published 11/24/2023, 04:28 PM
© Shutterstock
EUR/USD
-

The euro has seen an uptick against the US dollar amid mixed economic signals from the Eurozone. On Thursday, despite prevailing market uncertainties, the European currency gained ground following the release of eurozone Purchasing Managers' Index (PMI) data, which indicated slight improvements, although still below the growth threshold. In addition, minutes from the European Central Bank's (ECB) latest meeting revealed a readiness to raise interest rates further if the economic situation demands it.

Today, attention turned to Germany as it reported its first gross domestic product (GDP) decline since the fourth quarter of 2022. The contraction in Europe's largest economy has escalated fears of a recession and failed to meet year-on-year growth expectations. The market is now closely watching Germany’s Ifo Business Climate Index and awaiting comments from ECB President Christine Lagarde and other central bank officials for further economic insights.

The subdued volatility in U.S. markets following Thanksgiving is expected to influence currency movements, particularly with option expiries at a pivotal level for the EUR/USD pair. Current rate hike expectations suggest that we may have reached the peak of this cycle, with potential interest rate cuts projected by mid-2024.

For traders seeking to stay informed on these developments, there is an opportunity to sign up for a bi-weekly newsletter that provides ongoing market analysis and intelligence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.