The Euro was left treading water Friday after a series of statistics showed the German economy on life support early in the New Year while inflation data confirmed that Eurozone consumer price pressures are going nowhere fast, which is a twin headache for the European Central Bank (ECB).
The Euro exchange rate complex was put on the back-foot on Thursday, February 21 after Eurozone-wide activity data for February showed the area's economy continues to be weighed down by an under-performing manufacturing sector.
The Euro is in danger of seeing fresh weakness against the Dollar during the coming weeks as markets wait to hear whether the White House will go ahead and impose tariffs on European exports of cars to the U.S., analysts say.
The technical outlook for the Euro against the Dollar is marginally bearish however this week's price action could well take a cue from U.S. President Donald Trump's guidance on whether or not he will seek to hike tariffs on EU car imports.
The Euro-to-Dollar rate weakend Friday and the U.S. greenback advanced broadly as financial markets kept one eye on the White House while responding to official data that showed Eurozone exports shrinking in December.