EURUSD Still Trending Higher Despite Poor Eurozone Confidence Data
EUR price, news and analysis:
- Eurozone confidence figures released Wednesday add to the evidence that the region’s economy is struggling to expand.
- Nonetheless, EURUSD continues to strengthen and its advance could well extend higher.
Euro shrugs off weak Eurozone confidence data
Confidence in the Eurozone remained poor in February, according to the latest sentiment data from the European Commission.
The region’s headline business climate index was unchanged from January at 0.69 while economic and industrial sentiment both fell. There was a small increase in services sentiment but consumer confidence remained negative.
Economic confidence was down for the eighth consecutive month to a new two-year low but EURUSD was virtually unaffected by the data and remains within the upward-sloping channel in place since February 15.
EURUSD Price Chart, Hourly Timeframe (February 11-27, 2019)
Chart by IG (You can click on it for a larger image)
The lack of growth in the Eurozone economy was emphasized earlier this month by data showing that German GDP was flat in the fourth quarter of last year after a 0.2% contraction in the third quarter. Italian figures were even worse, showing the country was in a technical recession at the end of last year after two successive quarters of negative growth.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.