The Euro was in retreat from the Dollar Thursday after Germany's Destatis revealed a larger-than-expected second-quarter economic contraction amid deepening losses in European stock markets.
Data out of Germany today confirms Europe's largest economy narrowly avoided falling into a technical recession at the turn of the year, but one economist tells us improvements in performance are likely in 2019.
Germany's most prominent leading indicator, the Ifo Business Climate index, plunged in January, adding to latest growth concerns.
The Euro-to-Dollar rate outlook has dimmed further in recent days as economic and political headwinds are increasingly weighing on the single currency, leading analysts at Westpac to advocate selling the EUR/USD rate short.
Economic data from the Eurozone were weak on Tuesday February 14 with Eurozone GDP grew in Q4 by 0.4% instead of 0.5% estimated by economists.
Germany’s increasing reliance on the UK for a large share of its export book has meant that the 10% fall in the Pound has reduced demand for more expensive German imports.
The German economy is picking up momentum at a time the UK is losing momentum - does this have implications for the GBP to EUR exchange rate?