The Euro pared an earlier loss Tuesday after the influential ZEW Leibniz Centre for European Economic Research survey appeared to show the outlook for German businesses stabilising during January, after a torrid three-month period of deterioration.
The Euro will struggle this week as markets shun the currency ahead of Thursday's European Central Bank (ECB) meeting, which will see policymakers resond to a recent spate of dire economic figures, according to analysts at Societe Generale and BMO Capital Markets.
The technical picture is actually more bearish than it was at the start of the previous week. Despite temporarily piercing above the trendline drawn from off of the January 2018 highs, the exchange rate ultimately failed to break above it and declined in the week before.
The Euro is headed for new lows over the coming months, according to analysts at UniCredit Bank, who say fears over the economic outlook mean things are likely to get worse for the single currency before they get better.
The Euro has failed to capitalise on a more docile U.S. Dollar thus far in 2018, prompting bouts of consternation among some analysts who'd predicted a good start to the year and leaving the road ahead shrouded with uncertainty.
The Euro slipped lower Tuesday after trade balance data for November painted a picture of a continental economy that limped into year-end, although economists are now saying that Germany may have narrowly avoided a so-called technical recession last year.
The Euro slipped lower on Monday after official data confirmed the Eurozone's industrial output fell sharply during the final quarter, leading analysts to warn the economy is faltering and that the outlook for European Central Bank (ECB) interest rate policy has deteriorated.