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Euro slides after signs of continued German industrial slowdown

Fresh signs of a slowdown with the German manufacturing sector drove the euro down last week, with the Eurozone now looking increasingly unlikely to recover its lost economic momentum.

As German factory orders saw an unexpectedly sharp -7% contraction on the year in December the mood towards the single currency naturally soured.

Coupled with underwhelming industrial production figures this weaker showing fuelled fears that the German economy could fall into a state of recession.

With January’s Italian and French services PMIs both sitting in contraction territory investors saw little cause for confidence in the outlook of the currency union at this stage.

Even so, as German export volumes showed a solid rebound on the month in December this helped to support EUR exchange rates ahead of the weekend.

Any weakness in the fourth quarter German and Eurozone gross domestic product data may see the euro slump once again, though.

If Germany fails to avoid entering a recession EUR exchange rates are likely to trend lower across the board on Thursday.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]o request an instant quotation on a currency quotation please click here
* Information courtesy of Currencies Direct, Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information. This article was written by Currencies Direct.[/vc_column_text][/vc_column][/vc_row]