The euro is trading in the green as Friday’s session gets going in Europe, recovering some of the ground lost during the previous day. The single currency dropped 0.44% in relation to the US dollar on Thursday, following the publication of disappointing German and French PMI. The situation in Europe requires careful handling by the ECB, as high inflation calls for monetary tightening, at a time when economic indicators exacerbate worries over the growth prospects for the eurozone economy, especially in a scenario of rate hiking by the central bank. Against this background, the euro could face further headwinds, as investors may reprice expectations over the timing and scope of the ECB’s monetary tightening.
Ricardo Evangelista – Senior Analyst, ActivTrades
Markets opened in the green in Europe at the end of the week, extending gains registered in Asia overnight, with tech shares leading the way. Market sentiment improved yesterday after Fed Chairman, Jerome Powell, reaffirmed his “unconditional” will to tame down inflation. However, while some investors perceived these words as good news, others remain sceptical about the impact of such policies while the economy starts to show signs of weakness. The next CPI print will probably set the tone for a few more weeks, but meanwhile, we don’t expect any significant directionality on most benchmarks.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.